Binance is a popular cryptocurrency exchange. It is widely considered to be one of the cheapest platforms to buy and sell Bitcoin. Across its products, Binance consistently offers lower costs of doing business, and this is advantageous not just to the platform but most importantly to its users. In this article, we are focusing on the Binance fees so you can know and understand what to expect from the platform when it comes to costs.
Binance exchange was launched in 2017 and to encourage usage, it offered a 50% discount to its customers that opted to use Binance Coin (BNB) to pay for trading fees. BNB is the native Binance exchange’s cryptocurrency used during the token sale to raise funds for developing and launching it. According to the company’s white paper, Binance offers a tiered discount rate scheduled to be halved every year. In the first year of operation, the rate stood at 50%, then 25% then 12.5%, and finally 6.75% in the fourth year. It is worth noting that Binance has since offered to maintain its 25% discount that was only applicable in its second year. All users trading assets on the platform get to enjoy this reduced rate given that they opt to pay for their trading activities using BNB.
Binance considers a few factors when determining the fees to be paid by each of their customers for every trade. These include prior 30-day trading volume, BNB holdings, and whether or not they are makers or takers.
The previous 30-day trading volume is used to group each customer into tiers. The higher your trading volume, the higher you will be placed in the tiered fee schedule, which will qualify you for lower rates. Additionally, the more you hold in BNB, the higher your VIP tier you will be placed. Finally, through the maker/taker model, Binance determines how much to pay in each particular tier. Makers are traders that create trades to be filled at a later, more convenient price point. They bring liquidity to the marketplace. They, therefore, are rewarded with lower fees. On the other hand, takers place orders that are filled immediately at the prevailing market price. They effectively ‘take’ liquidity out of the marketplace. They are typically charged more for their trades. To put it simply, every new trader on Binance will be charged 0.1% per spot trade.
Deposit & Withdrawal fees
Binance offers a multitude of deposit and withdrawal methods and has one of the most conclusive lists of supported payment methods. All deposits into Binance are FREE for both fiat currencies and cryptocurrency assets. Not to be confused, though, as various networks charge transaction fees for facilitating a transfer. But Binance will not charge any additional fees on top of this network or payment processing fees.
The exchange, however, charges a fee for withdrawal transactions. These are any transfers out of your Binance account.