11 Binance Fee Questions (Answered & Explained!)

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Laptop with Binance on it

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Whether you’re an experienced trader or this is your first time getting started in cryptocurrency, you’ve probably had questions about Binance. The world’s largest cryptocurrency exchange by volume is also one of its most confusing. 

That’s because there are so many different ways to trade on Binance. Depending on your needs and trading style, you might prefer one of the other Binance trading platforms. Or maybe you’re just getting started and want to ask some general Binance trading questions? 

Binance is one of the most popular exchanges in the world. It prides itself on its high liquidity and low fees. But what is it like to use? Are its trading conditions as good as other exchanges? Before you begin trading, you should know about the costs and fees associated with Binance.

In this Binance review, we will be addressing some of the most frequently asked questions. If you want to get started with Binance right away, read on to learn more about Binance and its fees.

In This Post:

What Fees Does Binance Charge?

Binance is one of the cheapest exchanges to trade on in the world. The only fees you pay are for deposits and withdrawals. 

There are no hidden fees or commissions on Binance. Every transaction you make goes directly from your account to your trading partner’s account and vice versa.

The fees charged by Binance.US are at a lower rate than Coinbase or eToro, which will provide an incentive for traders to use their services. 

Binance.US is the most affordable way to trade Bitcoin and other digital currencies in America, with one of the lowest trading fees at 0.1% for spot trading. 

It also has an intuitive interface that will make your experience pleasant from start to finish, giving you a competitive edge over other exchanges. 

It can be challenging navigating through their systems or waiting on slow customer service responses.

In addition, this would potentially lead them to be more successful in generating higher profits with the same amount of money invested because they can invest without having losses being eaten up from trading fees (0.75%+$2.99).

Using the Binance desktop app, you’ll pay 0.1% for all trades and 1% for withdrawals made via the app. 

Binance also has a referral program where users can earn up to 10% of their trading volume from referrals that use their referral link to sign up on the platform. 

This is one of the most important things to know about Binance fees because they will impact your overall return on investment (ROI). 

Are Binance Fees High?

No! Binance is one of the cheapest exchanges in the world. Binance charges 0.1% for takers and 0.2% for makers. This makes it significantly more affordable than other exchanges, such as Coinbase or Bittrex, which charge around 1%.

The fees are higher for trading pairs that are not listed on Binance. For example, if you wanted to trade Ethereum (ETH), you would pay a maker fee of 0.1% and a taker fee of 0.2%. 

The maker fees are much lower than the taker fees, so most traders prefer to use Binance to trade ETH/BTC or ETH/USDT pairs rather than directly trading ETH on an exchange like Bitfinex or Kraken.

The 0.1% fee paid by traders on the exchange can be broken down into three categories:

  • Deposit/Withdrawal Fees: This is a one-time charge that you pay when you deposit or withdraw funds from your account. This includes any fees charged by other exchanges that you’ve used to transfer funds to Binance. 
  • Fee Market Maker (FMM): The FMM refers to how Binance pays its market makers when they place orders on the exchange. The market makers are the ones who set the price of an asset at which other users can trade it. To ensure that all trades happen at fair prices, Binance charges market makers 0.2% of every trade made on the exchange to cover their trading costs and pay the exchange for their services.
  • Trading Fee: This refers to the fee you pay when you make a transaction with Binance. This fee is charged to your trading fees and can add up quickly if you’re trading often or making large trades. 

Many things make up a cryptocurrency exchange, but one of them is fees. Binance is not an exception and has some of the lowest fees. Traders will have to pay a 0.1% fee for trading on Binance, which is lower than some other exchanges.

The fees on Binance are pretty low when compared to its competitors. For example, on Poloniex, you pay a 0.25% trading fee and a 1% withdrawal fee. 

On Huobi, you pay a flat 0.2% trading fee and a 0.2% withdrawal fee, so Binance is cheaper than both of those exchanges in terms of fees alone.

What About Withdrawal Fees?

Binance does not charge withdrawal fees for its users. However, the exchange does charge some trading fees on its tokens: BNB and VTHO. Each token has its unique trading pair, so Binance customers have to pay trading fees on each of these tokens separately. 

The VTHO trading pair is the most expensive. It costs 2% to buy and sell VTHO. The BNB pair does not charge any fees for buying or selling its token.

Does Binance Have Trading Fees?

Yes, Binance does have trading fees. The fee structure is one of the most critical aspects of Binance.

For traders new to crypto, this might be a bit confusing. The fee structure is intimidating and confusing at first. But once you understand it, it’s easy to use. 

Binance has a flat trading fee of 0.1% for all trades. This includes both buy and sell orders. You can view the current fee on the Binance platform and your Binance account settings.

How Do I Know What Binance Fee I’m Paying?

The best way to see your current Binance fees is through your trade history. If you have not completed at least one trade yet, you can see your current trading fees by clicking on the “Trade History” link at the top of any page on Binance. 

You will then be taken to a page showing all your completed trades and their associated fees. As you complete more trades, you will see how much each trade costs in terms of fees. 

This can help you determine whether or not Binance is more expensive than an alternative exchange that offers lower trading fees.

You can also see your Binance fees by clicking on the “Fees and Commission” link at the top of any page on Binance.

How Are Binance Trade Fees Calculated?

Trading fees are calculated in the asset that you receive. For example, if you buy ETH/USDT, the fee is in ETH. On the other hand, if you sell ETH/USDT, it’s USDT based on trading volume and rate.

For example:

You place an order to buy 10ETH at 3452.55USDT each:

Trading fee = 0.01ETH * 10ETH = 1% of your total purchase price or (0% of your total purchase price) with a certain amount traded within a given period.

Or you place an order to sell 10ETH at 3468USDT each: Output= Trading Fee=3454ECHT*10Eht*1%.

Trading fees are charged per trade, regardless of the size of the order. The trading fee is calculated based on the traded volume and the current trading rate. The amount of fees charged depends on your level of account.

Trading fees are paid by all users when they place orders to buy or sell cryptocurrency, regardless of their level of account. They are calculated based on the traded volume and the current trading rate for each asset pair. 

Note that the trading fee is calculated before the transaction is executed, so it doesn’t count as a fee when calculating your profit or loss. 

The fee is calculated based on the transaction amount in USD, and it’s not affected by how many tokens you are trading. The fees depend on how much volume your account has traded by and how long you have held your tokens.

Does Binance Charge Fees For Withdrawal?

Yes, Binance charges withdrawal fees. Fees vary on the type of cryptocurrency you’re withdrawing.

Binance does not charge deposit fees. You will only be charged a flat fee per withdrawal to cover the transaction costs of moving your cryptocurrency from your Binance account, but these rates can change without notice due to network congestion.

Fees are incurred based on the type of crypto you withdraw. These fees change with the market status, making it difficult to know what you owe until you are ready to withdraw. Be sure to check the Binance US website for current information for each type of cryptocurrency.

The withdrawal fee is calculated by combining a base price (in BTC) and an additional service charge rate percentage when you withdraw your digital assets from our system into your wallet or fiat currency. 

The amount charged in USD will be equivalent regardless of whether the “charge rate” changes due to fluctuations in Bitcoin value.

Is There A Margin Trading Fee?

No, Binance does not charge any margin trading fees. This is another reason why it’s one of the best places to invest in cryptocurrencies. Margin trading is risky and can be pretty expensive if your investment goes wrong.

Can You Avoid Fees On Binance?

If you use the Binance API, you can avoid trading fees. The Binance API requires a small amount of data to be transferred to trade. This data is free, so there is no fee for transferring this data.

You can also reduce your trading fees by holding Binance Coin. You’ll get a 25% discount on all of them if you do so, and the amount will be taken out from that particular coin’s balance. As long as it has enough, you can use this method indefinitely and enjoy free trading forever.

One way to lower your trading fee is to keep some Binance Coin in your account so they can take a 25% discount on their fees for each trade made with those coins.

By having enough Bitcoins or Ethereum stored in my wallet through the “Withdraw” page of the website, I’m eligible for an additional 10% price reduction which brings me down from 0.1BTC/ETH per trade to just .09BTC/.02 ETH respectively (10%).

Lowering your trading fee is by holding Binance Coins in your account. Doing this will allow you to buy and sell coins without any fees, including the base trading fee, market taker’s fee (0.1%), and blockchain transaction fees – both gas costs for transactions executed on our side of a trade (currently at 0% discount) as well as network miner’s fees (taken from their respective block rewards). 

The 25% discount applies across all types of trades, including limit/market orders with or without stop-loss prices set; limit orders only where there are no matching offers available when executing the order-and take part in other kinds such as high-frequency trade programs that use API commands

This can also be done by transferring BNB from the E-Wallet on your account to an Exchange Wallet. Doing this will allow you to save 25% of all trading fees and is one way for traders who want a discount without spending their entire balance.

What Are The Fees On Binance Futures?

The futures trading market on the Binance Exchange is one of the most competitive. The low fee structure allows for more profits to be made. 

This marketplace is very popular among traders with various futures contracts from different industries, including stocks, indices, currencies, and commodities.

The fee structure at Binance Futures is quite attractive. Taker fees start at 0.04% and go as low as 0.017%. On the other hand, Maker rates start from just 0.02%, with the lowest being zero if you are an experienced trader with a large volume of trades in your account.

This makes it possible for traders who infrequently trade to get in on these markets without paying any commission whatsoever. Additionally, there is no withdrawal or deposit fee charged by Binance Futures.

This is great for the trader. The rates are low, making it easier to trade without paying too much in fees.

Another advantage of Binance Futures more than other exchanges is that there’s no deposit/withdrawal limit on cryptocurrency, meaning you can buy as much Bitcoin (BTC) or Ethereum (ETH) as your wallet supports all at once, even if it does it’s worth $500,000. 

This isn’t possible with most crypto exchanges, which often have minimum withdrawal limits set when fiat currency like USD or EUR is involved.

With that said, Binance Futures is still the best option for trading when you require a low taker and maker fee. 

Binance Futures has a total supply of 100,000,000 BNB. That’s 100 million units of Binance Coin or BNB. Right now, there are 50,000,000 BNB available in the market. Of these 50 million units of BNB, only 25% are tradable on the exchange. The remaining 75% will be locked up in the exchange’s treasury until 2023.

It is important to note that most of the tokens will be locked up for two years after their release date because they are only to be used as a reward to users who contribute to building out new features and services on the exchange. 

If you own tokens now and will still have them two years from now (or more), you can expect them to appreciate over time due to their utility.

Does Binance Charge Fees For Debit Card?

Now you’re ready to buy the Crypto of your choice in Binance with your Visa card, only pay a 1% card transaction fee instead of 3%. 

The only downside is that if you don’t have enough funds in your account, it will take up to 2 days for the bank transfer to go through and reach Binance’s account. 

This is thanks to new regulations introduced by Mastercard that eliminate this hefty charge for merchants who are registered as “high risk.” 

So if you want quick access to Bitcoin or Ethereum without dealing with fees on top, use your Visa.

Binance is pleased to announce that they have partnered with Simplex. This third-party payment provider is one of the leaders in credit and debit payment processing for businesses that need flexibility without compromising security or compliance.

They enable crypto purchases on our platform via instant bank transfer using Visa cards at competitive rates and traditional fiat currency payments (via MasterCard).

It’s time to get your hands on that crypto you’ve been eyeing for the last couple of days. Luckily, Binance makes it easy for you. You’ll only need a Visa card and about 10 minutes of your time (and no experience with cryptocurrencies). All you have to do is:

  1. Sign up at https://www.binance.com
  2. Verify your account by uploading an ID document (which takes less than 3 mins).
  3. Get yourself some Bitcoin or Ethereum to buy ANY cryptocurrency available on their list, including over 100 different coins and tokens.

Binance is one of the largest cryptocurrency exchanges and has been operational since June 2017, so we’re sure they have your back as far as safety goes. 

If you don’t yet own any Cryptocurrencies but are interested in investing some money, this is an excellent opportunity to do it at a lower cost than normal. We recommend using Coinbase first if you need help getting started. 

Some people prefer to hold their currency in cold storage wallets like Trezor or Ledger Nano S because they believe that these devices offer better protection against hacking attempts on coins stored online by third parties – including exchanges such as Binance, where hackers stole over $400 million worth of Bitcoin earlier 2018. 

You should decide what type of wallet best suits your needs after considering all possible options for storing crypto-currencies before deciding which ones to purchase from Binance with your Visa card and pay only 1% transaction fees instead of the traditional 3%.

Are Binance Fees Lower Than Coinbase?

Yes, Coinbase’s fees are much higher. The difference in fees is significant. Binance’s fees are 0.1% on both trading and withdrawals. Coinbase charges a fee of around 3%. Binance has a better reputation than Coinbase, has lower fees, a better interface, and more liquidity.

Binance fees are lower than Coinbase’s, but there is a catch. Binance has its coin called BNB. If you want to use Binance, you’ll need to buy some of these coins to trade. 

Buying BNB only costs a few dollars, but every time you deposit or withdraw funds from your account, the cost of transfer increases by 0.1% per transaction. If you trade $100 worth of coins on Binance, the fee will be $1.

The good news is that Binance isn’t charging any trading fees until 2023. If you buy and sell at least one coin per day and make at least one transaction every 24 hours (the minimum withdrawal and deposit threshold), you won’t have to pay any trading fees until January 31st, 2023.

But if you compare Binance and Coinbase, you will see that they have similar fees. The difference is in their trading volumes. Coinbase has a higher volume of trades than Binance, so it charges a slightly higher fee for each trade. But this doesn’t necessarily mean that Binance is better or worse than Coinbase.

If you are looking for the lowest fees possible, Binance should be your top choice. If you want to trade on both exchanges, then choose whichever one has the highest volume of trades available at any given time. This will help you get the most bang for your buck regarding fees and trading volume.

So, where does this base trading fee come from? It comes from the spread between the bid and asks prices on Binance. The higher the spread is, the higher the trading fees are. 

There is no limit to how much you can trade on Binance if you pay your trading fees each month in full.

Binance has a reputation for being low-cost and easy to use. Its fees are lower than most other exchanges, making Binance an intelligent choice for newcomers to cryptocurrency trading.

However, Binance is not the cheapest exchange on the market. You can compare fees on Coinbase, which also offers a similar range of cryptocurrencies, with Binance here. 

Binance’s fees are based on the number and amount of trades. The more you trade, the lower your fees will be. The total value of your trades determines the final fee.

Trading volume is a key factor for determining Binance fees. If you are a high-volume trader, Binance might be cheaper than other exchanges.

Binance might still be cheaper than other exchanges with similar trading volumes if you trade small amounts frequently. 

However, this depends on whether Binance has better trading conditions than other exchanges with similar trading volumes. If not, you may still end up paying more in fees at the exchange with lower trading volumes. 

Are there any free trading options? Yes! Several free options are available to traders who only want to use cryptocurrency to purchase goods or services online or in-store (not to sell). 

What are the trading conditions? Binance holds a high rating in terms of security. The exchange has an excellent reputation for providing a safe and secure environment.

Binance offers low fees and fast transactions at all times. You can trade on Binance with no withdrawal limits to make as many trades as you want.

Why Did Binance Lower Its Fees?

Binance CEO Changpeng Zhao has said that the exchange lowered its fees because it wants to attract more traders. 

He said: “We want to create a very friendly environment for new users and attract more people in the world to trade on Binance.”

He also explained that due to the lower fees, the exchange would be able to offer lower trading fees in the future. He said: “Our goal is not just to be number one but also be friends with all our users to lower our fees in the future.” 

What Are Binance US Fees?

Binance is one of the most popular exchanges in the world. It offers low fees and high liquidity. Binance US fees are relatively low, but some costs are still to consider. 

Just for being a US-based trading platform, Binance.US is already an attractive option from the perspective of many traders and investors in America. However, lower fees are always better. 

Furthermore, as with most exchanges competing in this space nowadays, they have also made efforts to offer some variation on their interface that makes it easier for new or inexperienced cryptocurrency traders to use them (eToro has limited functionality at its lowest tier).

Binance’s fees are extremely low compared to most other exchanges. The trading fee is just 0.1% on all trades, regardless of the amount. 

Binance is also one of the few exchanges that offer customizable leverage, which allows traders to choose how much they want to spend or borrow before opening a position; this feature provides more flexibility than traditional margin trading by allowing traders who are familiar with these markets an opportunity to manage their risks while still profiting from crypto’s growth potential – but be careful.

It may result in amplified losses if you don’t know what you’re doing. The exchange charges a 0% maker fee and 0.1% taker fee for trades executed using either Bitcoin or Ethereum pairs against any fiat currency available on its platform, including US dollar, euro, yen, etc., as well as top altcoins like EOS coin, Stellar Lumens XLM token, Litecoin LTC token. 

However, there is no commission charge applied for deposits/withdrawals made via bank wire transfers ($25), major credit cards ($10), or wire transfers ($10).

The Binance trading fee is based on the amount of the deposit you make, not the trading volume of your account. The fee is payable in BNB, a cryptocurrency that can be traded for Bitcoins or Ethereum on Binance. 

You can also convert your BNB into Bitcoin or Ethereum through Binance’s internal exchange, but this might take some time because there are only a limited number of coins available for exchange at any one time.

The exchange does charge a small fee for withdrawal and deposit, but those fees are not nearly as high as other exchanges. 

Binance offers a wide range of trading pairs and coins, making it easy to find an option that suits your needs. 

However, its fees are high compared to other exchanges. If you trade a lot on Binance, it may be worth considering getting an affiliate link to Binance or another exchange with low fees if you’re looking to save money on your trading costs.

It also offers zero-fee trading for altcoins that have no native trading pairs with USD or BTC, including Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC), and 0x (ZRX). Binance users can also use their USD or BTC wallets to make BNB deposits. 

Do You Pay Gas Fees On Binance?

Yes, Binance charges a gas fee on all orders. Binance Chain Gas Fee is $2 While Bitgert Chain Gas Fee is Zero, and a Tough Competition For Ethereum, Shiba Inu & Solana. 

The gas fee is measured in mB and is paid in GAS. The fee is based on the size of your order and will vary depending on the market you’re trading in.

If the price of GAS goes up, you’ll pay more for each transaction. If it goes down, you’ll pay less for each transaction.

Ethereum’s transaction costs are not as low as they were in the past because of its higher emission rate. 

The gas fee for Ethereum transactions has increased to $2 per gigabyte on average while it remains at zero dollars on the Binance chain. 

This will lead to tough competition for Ethereum and Solana. Digital currencies are becoming more mainstream with each passing year as they become easier to use and understand. 

The introduction of ETH on Binance has increased the popularity of digital currency among investors.

However, it may have resulted in Ether fans feeling betrayed after knowing that its price has fallen sharply this past month due to announcements from other platforms like CZ’s announcement about introducing a new coin called “BGBET: A Decentralized Gaming Platform Built On Blockchain Technology And Powered By GAS.”

Wrapping Up

Binance is known for offering low fees. The company touts itself as the “world’s most advanced blockchain platform for traders.” And it has a point: the cryptocurrency exchange offers flat trading fees.

The fee structure is simple: there are no trading fees and no hidden costs when you trade on Binance. The only transaction fee you need to worry about is the 0.1% maker-taker fee when buying and selling on Binance.

Binance is a cryptocurrency exchange primarily focusing on the Chinese market. It allows users to trade cryptocurrencies and fiat currencies for one another using their Binance coins.

The company was founded in 2017 by Changpeng Zhao and Yi He, former employees of OKCoin. The platform initially served as an alternative to the one-time exchange, but it later became an independent entity.

Binance recently added more than 100 new trading pairs to its platform to meet the needs of traders looking for more options. It has also announced plans to add new fiat currency trading pairs in the future.

References

  1. https://www.nerdwallet.com/reviews/investing/brokers/binance-us
  2. https://www.gobankingrates.com/investing/crypto/binance-fees/#:~:text=Trading%20Fees,transaction%2C%20the%20higher%20the%20fee.
  3. https://www.binance.com/en/support/faq/e85d6e703b874674840122196b89780a
  4. https://www.binance.com/en/fee/cryptoFee
  5. https://www.gobankingrates.com/investing/crypto/binance-fees/#:~:text=Trading%20Fees&text=One%20way%20to%20lower%20your,discount%20on%20all%20trading%20fees
  6. https://www.binance.com/en/buy-sell-crypto/promotion