As one of the world's largest cryptocurrency exchanges, Binance charges fees that are an inevitable part of the trading process. However, many users are unaware that by strategically using available tools and rules, it's possible to reduce these costs by 20% or more. Whether you're a beginner or an experienced trader, there are tailored approaches to help you minimize expenses. This guide explains practical methods for both new and existing users to effectively lower their trading fees.
Understanding Binance’s Fee Structure
To optimize fee reduction, it’s essential to first understand how Binance’s fee system works.
Basic Fee Variations
- Different Types of Trades: Fees vary significantly across spot trading, margin trading, futures (USDⓈ-M and COIN-M), and options. Generally, futures trading fees—especially for Taker orders—are higher than those for spot trading.
- User VIP Levels: Binance’s VIP tier system directly impacts fee rates. VIP 0 (standard users) pay much higher fees compared to VIP 8 or 9. New users start at VIP 0 by default.
- Maker vs. Taker Roles: Most trading types distinguish between Maker (adding liquidity) and Taker (removing liquidity). Maker fees are usually much lower. Frequent use of market orders (Taker) leads to higher costs.
Impact of High-Frequency or Small-Scale Trading
- For high-frequency traders, even low per-trade fees can accumulate substantially over time.
- When trading small amounts, fees can represent a large percentage of the principal, creating the perception that “a lot is being deducted.”
Withdrawal Fees
- Moving cryptocurrencies to an external wallet incurs network miner fees. These costs can surge during periods of blockchain congestion—especially on networks like Ethereum or Bitcoin—and are sometimes overlooked by users.
Fee-Saving Strategies for New Binance Users
If you’re new to Binance, taking advantage of initial perks and settings is crucial.
Take Advantage of Sign-Up Benefits
- Referral Rebates: One of the most effective strategies! Always register using a referral link or code from an existing user. This provides a continuous rebate on trading fees, offering the most direct way to reduce costs early on.
- New User Rewards: Complete basic tasks like identity verification (KYC), making your first deposit, or executing your first trade. These often reward users with fee vouchers, BNB bonuses, or trading rebates.
Enable BNB Fee Deduction
- How It Works: Activate the “Use BNB to Pay for Fees” option in your account settings. Once enabled, the system automatically uses your BNB balance to cover fees at a discounted rate.
- Discount Rate: Spot and margin trading typically receive a 25% discount. For example, the standard 0.1% fee becomes 0.075% with BNB. Futures trading also enjoys a discount (e.g., 0.04% Taker fee reduced to 0.036%).
- Setup: In the Binance app or web platform, navigate to Account > Settings > Use BNB to Pay Fees and toggle the switch on. Always maintain a small BNB balance to cover these costs.
Learn to Be a Maker
- Understand the difference between Maker and Taker orders. In spot trading, use limit orders—these only execute when the market hits your specified price, making you a Maker and qualifying you for lower fees (e.g., as low as 0.05625% with BNB discounts).
- Avoid frequent market orders, as these are always Taker orders and come with higher fees.
Optimize Withdrawals for Small Amounts
- When withdrawing small sums, pay close attention to network miner fees. At times, these can rival or even exceed the withdrawal amount.
- Choose networks with lower fees (e.g., use TRC20 instead of ERC20 for USDT withdrawals) and monitor real-time network congestion.
Advanced Fee Reduction for Experienced Binance Users
If you’re an active trader, consider these deeper strategies for long-term savings.
Focus on Climbing VIP Levels
- Upgrade Metrics: VIP tiers are determined by your 30-day trading volume (spot + futures) and average asset balance. Specific weighting can be checked on Binance’s VIP page.
How to Upgrade:
- Increase trading volume through compliant spot or futures activity. Note that volume is calculated both ways (buys + sells).
- Hold more mainstream assets like BTC, ETH, or BNB in your account—BNB often carries extra weight.
- Lock BNB in fixed-term products; locked BNB may contribute more to your VIP level calculation.
- Benefits: Higher VIP levels bring permanent, significant fee reductions. For example, upgrading from VIP 0 (0.1% / 0.1%) to VIP 3 (0.06% / 0.07%) combined with BNB discounts results in major savings. VIP 5 and above enjoy highly competitive rates.
Consistently Use BNB for Fees
Ensure the BNB fee deduction feature remains active and that you always have sufficient BNB available.
Master Futures Fee Structures
- Futures trading (particularly USDⓈ-M) is common among active users. Its Maker/Taker fee model is complex and varies greatly by VIP level.
Pro Tips:
- Aim to be a Maker in futures by placing limit orders. This provides liquidity and qualifies for minimal fees (as low as 0.014% for VIP 3 with BNB).
- For advanced users, leveraging funding rate differentials can indirectly offset trading costs—though this carries higher risk and requires experience.
Participate in Launchpad, Launchpool, and Earn Programs
- Holding BNB or other designated tokens for Launchpad (new token sales) or Launchpool (staking rewards) can yield new tokens. Selling these generates extra income to cover trading fees.
- Place idle assets (USDT, BTC, ETH, BNB) into Earn products like Savings, Liquid Swap, or Dual Investment to earn interest, indirectly balancing out fee expenses.
Plan Large Withdrawals Carefully
- Before large withdrawals, check real-time miner fees across different networks and choose one that’s both secure and affordable.
- Execute withdrawals during off-peak hours (e.g., weekends) when networks are less congested and fees are lower. Binance occasionally offers zero-fee withdrawal promotions for specific networks.
👉 Explore more strategies for optimizing crypto trading costs
Frequently Asked Questions
How often does Binance update its fee structure?
Binance occasionally revises its fee schedule, often in response to market conditions or platform upgrades. Users should periodically check the official fee page for the latest updates.
Can I use BNB to pay fees for all types of trades?
BNB fee deduction is available for spot, margin, and futures trading, but not all products are included. Always verify which交易 types are eligible in your account settings.
Is it worth striving for higher VIP levels if I trade infrequently?
If you trade infrequently or with small volumes, the benefits of higher VIP tiers may be limited. Focus instead on using BNB discounts and being a Maker to save on costs.
What’s the easiest way for a new user to start saving on fees?
Register with a referral code, enable BNB fee deduction immediately, and use limit orders instead of market orders. These three steps provide instant savings.
Are withdrawal fees the same for all cryptocurrencies?
No, each cryptocurrency has its own withdrawal fee based on network costs. These fees are dynamic and can change during periods of high congestion.
Does Binance charge fees for depositing funds?
No, depositing cryptocurrencies into your Binance wallet is generally free. However, network fees may apply when transferring from external wallets.
Conclusion
New users should focus on fundamentals: use a referral code at sign-up, enable BNB discounts, choose low-fee payment channels, and learn to place limit orders as a Maker. Experienced traders should aim for higher VIP levels, consistently use BNB, act as Makers in futures, earn from idle assets, and stay updated on official promotions. All users should avoid high-frequency small trades, minimize market orders, and steer clear of unnecessary third-party payment purchases to keep costs low.