Complete Guide to Binance Fees

Updated on January 7, 2024

At a Glance

  • Binance, a prominent cryptocurrency exchange established in 2017, facilitates global cryptocurrency trading through credit/debit cards or bank accounts.
  • With a massive trading volume exceeding $2.4 trillion and a user base surpassing 100 million, Binance offers diverse features such as a savings account, Visa card, and crypto loans.
  • Despite its generally secure platform, Binance experienced a hacking incident in 2019, demonstrating the importance of robust security measures.
  • Currently, Binance faces scrutiny for alleged involvement in money laundering and tax evasion, raising concerns about regulatory compliance and transparency in the cryptocurrency industry.

Binance is one of the leading cryptocurrency exchange platforms in the world, with millions of users from multiple countries. The platform has amazing features, and many traders love it, despite some negative reviews here and there. Binance is ideal for beginners, but also some more experienced traders, and it also offers competitive rates.

If you are thinking of using Binance to perform your trades, you need to be aware of the fees charged by Binance and understand the fee structure in order to keep the costs down. This article will clarify everything regarding the fees.

What Is Binance?

Binance is a cryptocurrency exchange that was established in Hong Kong in 2017. It offers brokerage services to people from all over the world, allowing them to buy cryptocurrencies and sell them. All you need is a credit/debit card or a bank account, and you can purchase the crypto you are interested in.

Binance has a trading volume of $2.4 trillion, and it has more than 100 million active users. Thanks to its amazing features, it was able to get a lot of popularity. Also, apart from the exchange and brokerage services, it offers features such as a cryptocurrency savings account, Binance Visa card, and a cryptocurrency loan facility among others.

Binance also operates Trust Wallet. It can be a good option for anyone who wants to store their crypto assets in a secured place. You can download it on your smartphone and enjoy a safe experience.

There are almost 200 types of cryptocurrencies allowed for trading, deposits, and withdrawals, and they include coins like Bitcoin Cash, Ethereum, Litecoin, Nano, and Tether.

The exchange had to open a separate platform for the U.S. in order to be able to operate in the country. The Binance U.S. version was launched in 2019, and its fee schedule is unique from the main app. Also, it is available in all states apart from Hawaii, Louisiana, Vermont, Texas, New York, Idaho, and Connecticut.

By many, Binance is considered a very safe platform. A secure asset fund was established in order to protect users’ money, and there are also other features like 2-factor authentication, device restrictions, and address whitelisting.

Back in 2019, there was also a hacking incident where 40 million dollars in funds were stolen from Binance. Security information from a lot of users was also stolen. Binance handled the situation by covering the losses themselves, ensuring people do not lose their money.

Since then, they worked on their platform to strengthen security and prevent a potential second incident. The hackers responsible for the security compromise were also found.

At the same time, Binance is also investigated for money laundering and tax evasion, as some documents released last October allegedly show Binance’s attempts to deceive U.S. regulators. Apparently, they have been working on a corporate structure that would allow them to do so, in return helping them make a profit. The FCA from the U.K. also had to make Binance stop its crypto trade operations in the country due to some investigations for money laundering and tax evasion.

Other countries are also trying to stop trading with Binance until cryptocurrency trading can be regulated accordingly. Some of these countries include Japan, Thailand, and Malaysia.

Binance Fees

Binance has a great fee structure, offering some of the lowest fees on the market. Therefore, it is one of people’s favorite platforms. Here are some of the fees that you may encounter when trading with Binance.

Binance Purchase Fees

The first fees you might face are purchase fees, particularly if you decide to buy cryptocurrencies using a credit or debit card. It is likely for you to pay up to 4.5%. Most people end up using other payment methods because of the fees.

What’s great is that wire transfers have no transaction fees, so most individuals are likely to go with this option instead. The downside is that wire transfers are not available everywhere. That being said, if you live in an area where wire transfers are not available, you will have to pay by card – this won’t allow you to avoid fees.

Binance Deposit Fees

When making deposits in crypto assets like Ethereum, Tether, and Bitcoin, you will not have to pay any fees. However, you will have to exchange the fiat for crypto before you make the deposit.

Binance Trading Fees

Trading cryptocurrencies on the platform can incur fees. Trading on the platform will bring a 0.1% fee, whereas Instant Buy/Sell will incur a 0.5% fee. Therefore, how much your fee will cost will depend on how much you trade. When the transaction is higher, the fee will increase as well. You can decrease the trading fee if you keep some Binance Coin in your account. This way, all of your fees can be taken from that amount. This can also give you a 25% discount on all trading fees.

Binance Withdrawal Fees

Depending on what crypto you are withdrawing, you may also get some withdrawal fees. It can be hard to know how much you will be charged until you are about to withdraw because the fees will change with the status of the market. Therefore, you should look on the Binance U.S. website in order to find out the current fees for every single crypto.

You can also reduce fees on withdrawal fees if you are aware that the fees are based on the particular crypto asset you are planning to withdraw. There are cryptos that have higher rates than others. In this case, lowering the fees can be very easy. Some of the fees that have the highest rates are Chatcoin, Cindicator, LLToken, Vibe, and Chainlink. If you want to request an asset with high fees, you should trade and convert to Ethereum or Bitcoin first.

How Binance Fees Compare to Other Exchanges

It is quite tricky to compare the fee structure of Binance with the fees offered by other crypto exchanges. All platforms have their own structures, as well as different deals in the same coins. At the same time, it can be very useful to know what every platform has to offer so you can settle for the best one.

Binance U.S. has a 0.5% instant Buy/Sell fee, 0.1% trading fee, and 25% if you use Binance coin.

Meanwhile, Gemini has a $0.99 to $2.99 transaction fee and 0.50% convenience fee, as well as a 1.49% transaction fee for trades that exceed $200.

Coinbase has a trading fee between 1.49% and 3.99% and a 0.50% spread. On top of that, it has a 2.49% flat fee on any transaction made with another crypto.

Bittrex has between 0.00%-0.36% maker/taker fees.

Lastly, CEX.IO has deposit and withdrawal fees of up to 3.99% and 0%-0.25% maker/taker fees.

Frequently Asked Questions (FAQ)

What are the trading fees on Binance?

Binance charges a trading fee for each transaction, which includes maker and taker fees. These fees vary based on your trading volume and BNB balance, typically starting from 0.1% and potentially lower for high-volume traders.

Does Binance charge fees for deposits?

No, Binance does not charge any fees for depositing cryptocurrencies. However, when you deposit fiat currency, there might be fees depending on the payment method used.

Are there withdrawal fees on Binance?

Yes, Binance charges a withdrawal fee when you transfer cryptocurrencies out of the exchange. The fee varies for each cryptocurrency and is periodically adjusted based on blockchain conditions.

What are Binance’s fiat withdrawal fees?

Fiat withdrawal fees on Binance depend on the payment method and currency. These fees are typically a small percentage of the withdrawal amount or a fixed fee.

Does Binance charge for using the Binance Card?

Binance Card users might incur certain fees, such as transaction fees or currency conversion fees. However, Binance often promotes the card with low or no fees for specific transactions or periods.

Are there any fees associated with Binance’s staking and savings products?

Binance’s staking and savings products might have specific fees or terms, such as early redemption fees for staking. It’s important to review the terms for each product.

Does Binance charge a fee for P2P trading?

Binance does not charge makers (sellers) a fee for P2P (peer-to-peer) trading, but there might be a small fee for takers (buyers). Always check the latest fee schedule on Binance’s P2P platform.

Are there any hidden fees on Binance?

Binance is known for its transparency in fee structures. However, users should be aware of less obvious costs like spread (the difference between the buy and sell price) and potential fees for certain trading pairs or services.

What is the Binance fee structure for futures trading?

Binance Futures trading involves trading fees, including maker and taker fees, which are generally low compared to spot market fees. Traders may also face funding fees for holding positions.

How can I reduce my trading fees on Binance?

To reduce trading fees on Binance:

  1. Hold BNB in your account to receive a discount on trading fees.
  2. Increase your trading volume to move to a higher VIP tier, which offers lower fees.
  3. Participate in promotions and fee discount programs offered by Binance.

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Conclusion

Binance has a unique fee structure and in many ways, it can be very convenient for traders looking for a good cryptocurrency exchange. There are no deposit fees, which is great, but at the same time, you may have to pay a trading fee and also an instant Buy/Sell fee.

Before you start trading, it is best to familiarize yourself with the fee structure that Binance established. So, check the Binance fees for each cryptocurrency before making any trade.

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Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.