How to avoid high fees on Binance

Understanding Binance Trading and Transaction Fees

When using Binance, users encounter various types of fees, including trading fees, withdrawal fees, and network transaction fees. These fees can accumulate quickly, especially for active traders or those transferring assets frequently. Trading fees on Binance are typically split into maker and taker fees, with makers adding liquidity to the order book and takers removing it. Standard rates are 0.1% for both, but these can be reduced through several methods. It's essential to understand how each fee type works to minimize costs effectively.

Using Binance Coin (BNB) to Reduce Fees

One of the most effective ways to lower fees on Binance is by paying with BNB. When you choose BNB as your fee payment method, you receive a 25% discount on both spot and futures trading fees. This applies to both maker and taker fees. To enable this, go to your Binance account settings, navigate to 'Fee Settings', and select 'Use BNB to pay for fees'. Ensure you have a small amount of BNB in your spot wallet to cover the discounted fee portion. This method is automatic once enabled—every trade will deduct the fee in BNB at the discounted rate.

For withdrawal fees, using BNB does not reduce the amount you pay, but choosing networks with lower fees can help. However, holding and using BNB remains a core strategy for fee optimization on the platform.

Selecting the Right Trading Tier and VIP Level

Binance offers a tiered fee structure based on your trading volume and BNB holdings. Users with higher 30-day trading volume or larger BNB balances in their account qualify for VIP levels, which come with significantly reduced fees. To check your current tier, go to 'Fees & Limits' under your account dashboard.

To qualify for lower fees:

• Increase your trading volume over 30 days.
• Hold a minimum amount of BNB in your account (e.g., 10 BNB for VIP 1).
• Use referral programs to boost volume if eligible.

Each VIP level reduces both maker and taker fees, sometimes as low as 0.02%. Monitoring your trading activity and adjusting your strategy to meet higher tier thresholds can lead to substantial savings over time.

Optimizing Withdrawal and Network Fees

When withdrawing cryptocurrencies, network fees are unavoidable, but they can be minimized. Binance supports multiple blockchain networks for the same asset—such as USDT on BEP20, ERC20, or TRC20. Each has different fee structures:

• BEP20 (BSC): Low fees, fast confirmations.
• TRC20 (Tron): Often the cheapest for USDT withdrawals.
• ERC20 (Ethereum): Higher fees, especially during congestion.

To reduce costs:

• Always select the lowest-fee network available.
• Avoid Ethereum (ERC20) for small transfers due to high gas.
• Use BEP20 for BNB-based tokens or TRC20 for stablecoins like USDT.

Before any withdrawal, compare the estimated network fee displayed by Binance and choose the most economical option. Double-check the receiving wallet’s network compatibility to prevent loss of funds.

Leveraging Spot-Grid Bots and Fee Credits

Binance offers automated trading tools like Spot Grid Bots, which can generate fee rebates under certain conditions. Some promotional campaigns or new product launches provide fee credits or cashback for using specific services. Participating in these programs can indirectly reduce your effective fee rate.

To benefit:

• Monitor the 'Earn' or 'Promotions' section for fee rebate offers.
• Use Binance Launchpool or Launchpad—some staking activities include fee discounts.
• Enable fee rebates if participating in liquidity programs.

While not a direct fee reduction, accumulating fee credits offsets future trading costs. Keep an eye on email notifications and the Binance announcements page for limited-time opportunities.

Using Referral Programs and Fee Discounts

Binance’s referral program allows users to earn a percentage of their referrals’ trading fees. More importantly, some referral links come with exclusive fee discounts for new users. If you're a new user, ensure you sign up using a referral code that offers reduced fees during the initial period.

To maximize benefits:

• Share your referral link to earn passive income from others’ trading fees.
• As a new user, input a valid referral code during registration for potential fee waivers.
• Check if your account qualifies for volume-based discounts through team trading.

Even small reductions, such as 0.01% off, compound significantly with high-frequency trading.

Frequently Asked Questions

How do I change my fee payment currency to BNB on Binance?Go to your Binance homepage, click on your profile icon, and select 'Settings'. Navigate to 'API Management' or 'Fee Settings', then toggle on 'Use BNB to pay for trading fees'. Confirm the change. From that point, all applicable fees will be automatically deducted in BNB at the 25% discounted rate.

Why is my withdrawal fee higher on Ethereum than on BSC?The Ethereum network (ERC20) operates on a gas-based fee model, which fluctuates with network congestion. During peak times, gas prices surge, increasing withdrawal costs. In contrast, Binance Smart Chain (BEP20) uses a more stable and lower fee structure, making it cheaper for transfers of compatible tokens.

Can I get lower fees without holding BNB?Yes, but options are limited. You can reduce fees by increasing your 30-day trading volume to reach higher VIP tiers. However, without BNB, you miss the 25% discount. Using low-fee networks like TRC20 for USDT also helps, but BNB remains the most effective tool for broad fee reduction.

Do maker fees always cost less than taker fees on Binance?Not necessarily by default. Binance charges the same base rate (0.1%) for both unless you qualify for VIP tiers. At higher VIP levels, maker fees become lower than taker fees. Placing limit orders that rest on the order book qualifies as a maker, potentially saving more if your tier offers differentiated rates.