...written by Etienne Okeke.
Cryptocurrency Exchanges are platforms which aggregate buyers and sellers of crypto assets like cryptocurrencies and tokens. It carries out this market activities in different ways ranging from Spot Markets to Derivatives and Margin trade.
Opening and verifying an account on an exchange can be stressful but Binance has tried to make these processes easier and faster. I decided to put this article together for new users, beginner traders and generally, experienced traders (who are researching), to have a better understanding of Binance trading fees.
What is Trading Fee? Trading fees are micro payments which are usually some percentages of the amount a user on an Exchange is trading or transacting on a particular trade.
What is the average Crypto Trading Fee? Wondering what the average trading fees for centralized cryptocurrency exchanges are for Market Takers and Makers? Just as their names imply, a Market Taker is a participant in the market, who has agreed with the current prices of the order book and is willing to fill his trade immediately while a Market Maker is someone who places orders with prices that are different from the current market price.
According to an article on Cryptowisser, people believe that on centralized exchanges Takers get up to 0.25% charges as their trading fee while Maker get about 0.20% trading fees. This varies from exchanges to exchanges. Makers are lower because they provide liquidity on the platform.
What is Binance Trading fees Structure?
Binance trading fees are some of the lowest on the market. Firstly, it is important to note that Binance doesn’t charge users for deposits or withdrawals. The charge you might incur when depositing or withdrawing fiat are from the payment gateways. Also, you pay blockchain transactions for withdrawing crypto.
Binance fees are based on a number of things which include your Account trading volume, your Commission Rate and you paying your trading fees using BNB. The most basic level which is VIP0.
From the above structure, the account is fully verified and the trading fee is 0.1% for both Makers and Takers. Please, zoom into the picture to see more details. You should use my Binance Referral link to register, to get a 10% discount off this 0.1%, i.e. you get to pay 0.09%.
To push the transaction fees even lower, you can set your account to settle trading fee payments in Binance native coin, BNB. This gives you about 25% off on your trading fees. It drops the 0.1% to 0.075%. If we combine both BNB fees structures and the 10% discounts I give you here, you will be paying as low as 0.07% as your trading fees.
The illustrations on this article reveals that Binance trading fees structure is one of the exchange’s best features. Binance is simple with high liquidity, fast systems which is robust for Advanced users.
Now that I’ve shown you how to get cheaper fees on Binance, go and try it for yourself!