The base fee for Binance spot trading is 0.1% (for both Maker and Taker). This means that if you buy 1,000 USDT worth of BTC, 1 USDT will be deducted. After enabling the BNB deduction feature, the fee rate gets a 25% discount, dropping to 0.075%. The higher your VIP level, the lower the fee, which can go as low as 0.012%. If you haven't started trading yet, first register via the Binance Official Website and download the Binance Official APP. iOS users can refer to the iOS Installation Guide to complete the installation. Then, entering the "Fees" page to immediately enable BNB deduction is the most cost-effective approach.
Basic Concepts of Trading Fees
A trading fee is a portion deducted from the transaction amount every time a buy or sell order is executed. Binance spot fees come in two types:
- Maker Rate: You place a limit order that does not immediately execute, thereby "adding liquidity" to the order book. Hence, you are called a Maker.
- Taker Rate: Your order executes immediately (a market order, or a limit order where the price already matches an existing counter-order), thereby "taking liquidity" from the order book. Hence, you are called a Taker.
For regular Binance users, both Maker and Taker rates are 0.1%. Compared to other exchanges (like Coinbase at 0.5% or Kraken at 0.26%), this is already very cheap.
Step 1: How to Calculate Specific Amounts
The fee calculation formula is simple:
Fee = Transaction Amount × Fee Rate
Example 1: Buying BTC
You buy BTC using 1,000 USDT at a 0.1% fee rate:
- Fee = 1000 × 0.001 = 1 USDT (deducted in the form of BTC)
- The actual value of BTC you receive = equivalent to 999 USDT
Example 2: Selling BTC
You sell 0.01 BTC. Assuming the transaction amount is 1,000 USDT at a 0.1% fee rate:
- Fee = 1000 × 0.001 = 1 USDT
- The actual USDT you receive = 999 USDT
Key Detail: Which Coin is Deducted for Fees
- When buying, the "purchased coin" is deducted: Buying BTC deducts BTC, buying ETH deducts ETH.
- When selling, the "received coin" is deducted: Selling BTC for USDT deducts USDT.
Step 2: Enable BNB Deduction for Fees
The simplest way to save money is to enable BNB deduction. Here are the steps:
- Open the Binance App.
- Click the avatar in the top right corner.
- Enter the "Fees" page.
- Find the "Use BNB to pay for fees" toggle.
- Turn on the toggle (it should be green).
Once enabled, the system will prioritize using the BNB in your spot account to pay for fees and apply a 25% discount, dropping the rate from 0.1% to 0.075%.
Prerequisite: Your spot account must have a small BNB balance. It is recommended to hold 1 to 5 BNB as a long-term deduction reserve.
Step 3: Understand VIP Level Fee Rates
Binance has 10 tiers from VIP 0 to VIP 9. The higher the level, the lower the fee rate. Upgrading requires meeting two conditions:
- Trading volume over the past 30 days (BTC equivalent)
- BNB balance
VIP Fee Rate Table (Simplified)
| Level | 30-Day Volume (BTC) | Base Maker | Base Taker | Taker with BNB Deduction |
|---|---|---|---|---|
| Regular | <50 | 0.1% | 0.1% | 0.075% |
| VIP 1 | ≥50 | 0.09% | 0.1% | 0.075% |
| VIP 2 | ≥500 | 0.08% | 0.1% | 0.075% |
| VIP 3 | ≥1500 | 0.042% | 0.06% | 0.045% |
| VIP 5 | ≥10000 | 0.025% | 0.05% | 0.0375% |
| VIP 9 | ≥150000 | 0.012% | 0.024% | 0.018% |
Most regular users are at Regular or VIP 1. Upgrading to VIP 3 or above requires a monthly trading volume of around $1.5 million, which falls into the realm of professional traders and institutions.
Step 4: Save Even More with Referral Kickbacks
Users who register through a referral link can enjoy a 20% to 40% fee kickback. The specific percentage depends on the referrer's level:
- Regular User Referral: 20% Kickback
- V-Level Referrer: 30% to 40% Kickback
Kickbacks are automatically returned to your spot account after every trade, settled in USDT or the corresponding coin.
Comprehensive Comparison Across Tiers
Using 100,000 USDT monthly trading volume as an example, the monthly savings across different situations:
| Situation | Effective Rate | Monthly Fee | Saved |
|---|---|---|---|
| No BNB Deduction | 0.1% | 100 USDT | 0 |
| Only BNB Deduction | 0.075% | 75 USDT | 25 USDT |
| BNB + 20% Kickback | 0.06% | 60 USDT | 40 USDT |
| BNB + 40% Kickback | 0.045% | 45 USDT | 55 USDT |
Optimal Strategy for Beginners = Enable BNB Deduction + Register via Referral Link, which instantly saves over 40%.
Fees for Other Transactions
P2P Fiat Trading
The fee is 0. Merchants might charge a 0.5% to 2% premium built into the exchange rate, but there are no explicit fees.
Withdrawal Fees
Different coins and networks have fixed withdrawal fees:
- USDT (TRC20): 1 USDT
- USDT (ERC20): About 5 USDT
- BTC (Mainnet): About 0.0002 BTC
- ETH (Mainnet): About 0.003 ETH
- BNB (BEP20): 0.00015 BNB
TRC20 is the cheapest network for USDT withdrawals, making it the top choice for small transfers.
Futures Trading Fees
- Maker: 0.02%
- Taker: 0.04%
- With BNB deduction enabled, an additional 10% discount applies.
FAQ
Q1: Why is BTC still being deducted when I enabled BNB deduction?
Because your BNB balance is insufficient. You need to maintain at least 1 BNB or more to ensure continuous deduction.
Q2: Does BNB deduction affect my BNB balance?
Yes. Every trade will consume a small amount of BNB as a fee. Long-term traders need to periodically replenish their BNB stash.
Q3: Is P2P trading really feeless?
It is free at the platform level, but merchants will add a 0.5% to 2% premium to their quotes, which essentially acts as a hidden fee.
Q4: Can a beginner quickly upgrade to VIP 1?
VIP 1 requires a 30-day trading volume of 50 BTC or holding 25 BNB, which is difficult for beginners to achieve. It's best to simply enjoy the Regular tier + BNB deduction.
Q5: Will referral kickbacks be tracked by tax authorities?
Kickbacks currently have no clear tax regulations in many jurisdictions. Digital assets generally exist in a regulatory gray area, but it is recommended to keep records for future compliance needs.
Summary: Enable BNB deduction + register using a referral link. These two steps can instantly lower a beginner's fee rate from 0.1% to around 0.045%, saving a considerable amount of money over the long term.