Binance is a well-known cryptocurrency exchange and is recognized for its lightning-fast trading. Binance's trading cost of 0.1 percent is cheaper than that of several other US exchanges.
But whenever you’re trading cryptocurrency via a crypto trading platform, questions like: does Binance charge fees, what are the different types of Binance crypto fees, and how does the Binance fee calculator work- can cloud your mind. This article will resolve all your questions related to Binance fees and how the Binance trading fee or BNB fee calculator calculates your trading fee.
When it comes to commission structures, Binance stands apart from the rest. Fees usually start off cheap and only go down from there. Binance transaction fee is based on volume, and it even offers additional savings if you use its own cryptocurrency, Binance Coin (BNB).
Futures fees, margin trading, as well as leveraging tokens are among the numerous markets, products, and forms of trading activity available on Binance and each one has its own set of charges.
In this article, we'll go over the basics of Binance fees and show how to calculate them.
How to Use the Binance Fees Calculator?
To calculate Binance fees, you can use the Binance fee calculator tool, which is available on the Binance website.
To use the fee calculator, follow these steps:
- Go to the Binance website and click on "Fees" at the bottom of the page.
- Click on "Fee Schedule" to view the fee structure for spot trading, margin trading, and futures trading.
- Scroll down to find the fee calculator tool and select the trading pair you want to use.
- Enter the amount of cryptocurrency you want to trade and choose whether you are a maker or taker.
- The fee calculator will then show you the estimated trading fees for your transaction.
Remember that the fees displayed by the calculator are estimates and may be subject to change based on market conditions and other factors. It's also important to note that fees may differ for different trading pairs and may also vary depending on your trading volume and Binance account level.
Binance Fees: Spot Fees
The first Binance fee that we’ll be discussing is spot fees. It is one of the most basic and common terms in crypto trading. But, what are spot fees exactly?
The spot price is the current market price at which a specific asset, a cryptocurrency, for example, may be purchased or sold for immediate delivery.
The trading fee that you’ll have to pay when trading on spot markets based on the last 30 days’ trading volume, is illustrated in the table below:
Now it is important to understand what these rates mean and figure out how much you'll be charged when trading. Let’s understand this with an example:
Suppose in the last 30 days, you have had a trading volume of 30 BTC. According to the rates tabulated above, for maker and taker orders you’ll have to pay 0.10%. Also keep in mind that, in addition to appropriate trading volume, you must have a minimum of 50 BNB in your crypto wallet for decreased trading costs.
Binance Fee Calculator: Binance Spot Fees
You can use a Binance fee calculator to calculate the spot fees for trading on Binance. However, it is equally important to understand how the calculation takes place so that you can carry out the calculations even if you do not have a Binance fees calculator.
For instance, suppose you have 250 USDT in your crypto wallet, which you intend to buy crypto. So what will be the trading fee that you’ll be charged?
Here’s a simple formula: (USDT amount that you’ll use / 100) * fees rate
Now, we have, (250/100)*0.10, which gives 0.25 USDT. Thus, you’ll be charged 0.25 USDT for using 250 USDT to buy Binance Coins (BNB). Simply put, by buying BNB with 250 USDT, you will get $249.75 worth of BNB.
Binance Fee Calculator: Reduce Spot Fees
In order to reduce your Binance transaction fee, you can use referral codes that can fetch you about a 20% discount when you create a new account.
In case you wish to have more discounts, you should keep Binance Coin (BNB) in your crypto wallet to pay Binance crypto fees in BNB and get a 25% fee discount.
The table below shows how you can even cut down about 40% that is, 25%+20%, on your Binance fees:
Binance Fees: Futures Fees
Coming to the next Binance crypto fees, that is futures fees. Let’s begin by understanding what a futures fee is.
Futures fee levels are comparable to those found in the spot market, although they are generally cheaper nevertheless, because of the leverage available, the volume required for one VIP category is five times that of the spot market.
Binance Futures includes both USDT and coin-marginated futures, each of which has its own set of fees. Let's start with the trading costs for USDT margined futures:
The table here shows the trading fees that traders are charged for the respective maker and taker orders.
If the volume of trade is 300 BTC, you’ll have to pay a 0.0160% or 0.0400% trading fee when the position is opened and closed.
Binance Fee Calculator: Calculate Futures Fees
Now that we know what a futures fee is, it's time we understand how a Binance fees calculator calculates your futures fee.
Let's assume $1,500 USDT has been sent to your USDT-M futures wallet and are planning to open a 5x leveraged long or maybe a short trade.
Now that you have a leverage of 5x, the position size will become 7,500. In order to compute the fee that you’ll be charged:
Divide 7,500 by 100 and multiply it by 0.02 or 0.04.
So, we get, (7500 / 100) * 0.02 = 1.5 USDT.
When you open a 7,500 USDT position as a maker order, you will be charged a cost of 1.5 USDT. If you wish to pay less, you must have a minimum of 250 BTC in futures trading volume (not spot).
By creating a new Futures account with a referral code and with BNB being sent to your USDs-M Futures wallet, you can earn a 10% + 10% fee reduction.
Let's take a look at the Futures trading costs of Binance (coin-margined):
If you wish to trade the Bitcoin-US Dollar pair and open a 15 BTC position, you can figure out the trading cost by dividing 15 by 100 and multiplying by 0.01 for maker order or 0.05 for taker order.
If it's a maker order, you'll have to pay 0.0015 BTC as a trading charge.
The calculation differs from the margined pairings USDT and BUSD. To exemplify, let us suppose you buy 6 contracts of the BTC/USD pair. You will have a position size of 600 USD since each contract is worth 100 USD.
To calculate the trading fee,
- Portion size = USD worth of position size / Entry or closing price
- And the coin you swap will give you your position size.
- Divide the position size by 100, then multiply by the charge rate.
If you think it is difficult to calculate these charges you can easily automate it on any online Binance fees calculator.
Binance Fee Calculator: Reduce Futures Fees
If you use referral codes while creating your Binance Futures account, you will receive a 10% fee reduction.
You can still enjoy a 10% trading fee reduction if you've previously created a Binance Futures account. With some BNB being transferred to your USDT-M futures wallet, to make payments in BNB, you can get this 10% discount.
Fees in futures markets, that are USDT marginalized can be paid in BNB for a 10% charge reduction. You can't pay fees in BNB if you trade coin-margined contracts.
You'll save about 20% (10%+10%) on trading costs if you use a referral code while opening your Futures account and transferring BNB to your USDT-M wallet.
Binance Fees: Margin Trading
Binance trading fees for margin trading are assessed hourly. So even if the coins are borrowed for less than an hour, you will be charged interest.
Binance Trading Fees Calculator: Calculate Margin Trading Fees
Divide the number of coins that have been borrowed by 100 and multiply by the charge rate (daily), such as X/100 * 0.05, to compute the amount of interest you will pay. Here’s the formula for calculating the interest to be paid:
Borrowed coins / 100 * Interest Rate = Interest to be paid
This will tell you how much interest you'll have to pay if you borrow coins for one day.
Fees for spot trading apply to margin trading as well. You'll have to pay a 0.1 percent trading charge for margin transactions. If you reduce spot costs by following the techniques described above, you can pay considerably reduced trading fees.
Discount or Promotion on Binance Fees
At Binance, you will get a variety of trading fee discounts and promotions.
You will receive a 25% reduction in trading costs when using BNB as payment. You can also become a VIP trader to take advantage of aggressive trading cost cuts. Observe Binance specials, such as the $0 commissions on specific trading pairs.
Binance Fees: Leveraged Tokens Fees
Leveraged tokens have leverage of 1.25x to 4x, giving traders the chance to profit more during market swings without risking liquidation.
BNB Fee Calculator: Calculate Leveraged Tokens Fees
When you will be using Binance to trade leveraged tokens, you will be charged spot trading costs, which are tabulated above. But there's more!
- Daily administration fee
- The management charges (0.01%) are payable on a daily basis and the money is traded directly between merchants.
The Bottom Line
And there you have it - the complete lowdown on Binance fees. If the thought of crunching the numbers for Binance trading fees gives you a headache, fear not! You can simplify the process by automating calculations with a Binance fee calculator, ensuring you avoid any costly errors.
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Disclaimer: This material has been prepared for informational purposes only and is not intended to provide, tax, legal or financial advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.