Do trading fees get you down? Do those fees seem to eat too much of your profits? I always like to keep my fees as low as possible. That’s part of what drew me to Binance. Binance has pretty competitive trading fees, but there are ways to save money on those trades, and for many trades it’s even possible to make them fee-free.
First up, this isn't financial advice and you should do all your own research to determine if any of this is suitable for you.
1. If you don’t already have a Binance account, sign up using a referral code that gives you a fee discount
I mention this first, just because it gives you an immediate saving if you don't already have an account with Binance. If you do have one, then there isn't much you can do about this.
Here's my referral link that will give you 10% off your Binance trading fees: https://www.binance.com/en/register?ref=D7J2UAE7
Alternatively, you can enter the invite code when prompted: D7J2UAE7
2. Turn on BNB for fees and keep some BNB in your spot wallet while you are trading
Paying fees with BNB will give you a 25% fee discount, regardless of the trading pair. Of course, this does mean you need to keep BNB in your spot wallet.
First up, turn on BNB for fees in your Binance profile. This will ensure that your fees are paid with BNB as long as you have enough BNB to cover the fee.
Next, buy some BNB if you don’t already have some and keep enough of it in your spot wallet to cover your fees.
3. Trade into and out of BUSD for free
There are two ways to save on fees by using BUSD.
Free Binance Trading Fees
Binance wants to increase trading volume of their BUSD token pairs, and as a result, maker trades using BUSD are fee-free as part of a promotion that began in. You can learn more about BUSD here. This BUSD zero maker fee promotion began way back in October of 2019. So far, it's been extended 6 times, with the most recent extension putting the end date at June 10, 0:00 UTC, 2021.
Binance really wants more trading volume with BUSD, so why not take advantage of it?
One thing to take care with here to ensure you don't pay a fee is that your trade is not a taker trade, it must be a maker. A couple of times I've accidentally taken a trade and paid a fee on it (which was at least 25% off since I pay fees with BNB), but that fee could have been avoided with a little more care to ensure the correct trade.
A maker trade is one where you place an order that does not get immediately filled. A taker on the other hand is one that takes an order that is already on the books.
Free Binance Withdrawal Fees
The other advantage of utilising BUSD is that it is free to withdraw on the Binance Smart Chain as a BEP-20 token (announcement here). That means you can get your BUSD out of Binance and into your BSC wallet for free. From there, you can stake it or trade it on PancakeSwap, 1Inch or any other DEX on the Binance Smart Chain.
In other words, you can exchange your fiat on Binance to BUSD for free. Then you can withdraw it to your BSC wallet for free. Meaning you don't pay any fees at all until you get to actually using your BUSD on the Binance Smart chain. Just remember, you do need to have some BNB in your BSC wallet in order to cover the fees of doing anything - like trading that BUSD into more BNB, or sending that BUSD back to Binance.
I hope you've found this article helpful to save you some dollars on your Binance trading and withdrawal fees.
If you liked it, you might also like my YouTube Channel and blog!
For something not crypto related, have a look at my travel blog.
Referral links for tools, exchanges, apps and games I use:
- 1Inch Dex Referral Link: https://1inch.exchange/#/r/0x0FDbFf6B0AC229C99E3D9CC2122af8Cb1C59EE03
- Binance Referral link: https://www.binance.com/en-AU/register?ref=D7J2UAE7
- Crypto.com Exchange Referral Link: https://crypto.com/exch/h9tfssd364
- Crypto.com App Referral Link: https://crypto.com/app/h9tfssd364
- Celsius Network Referral Link: https://celsiusnetwork.app.link/1255999311
- BlockFi Referral Link: https://blockfi.com/?ref=40e8c3ec
- Coinbase Referral Link: https://www.coinbase.com/join/brown_dtz
- Splinterlands Referral Link: https://splinterlands.com?ref=darksbane