Fees are an often-overlooked but critically important cost in futures trading. Many traders don't realize how much frequent trading can accumulate in fees over time. Understanding how fees are calculated — and how to reduce them — can meaningfully boost your trading profits. Start by registering on Binance and downloading the official Binance app (Apple users see the iOS installation guide) to check your current fee tier.
Types of Futures Trading Fees
Futures trading involves two types of costs:
Trading fees
Charged every time you open or close a position, with separate rates for Maker and Taker orders.
Funding rate
Charged every 8 hours on perpetual contracts, paid between longs and shorts. This isn't a fee the exchange collects, but it's still a significant holding cost.
Maker and Taker Fees
What is a Maker?
A Maker provides liquidity to the market using limit orders. If your limit order doesn't fill immediately and sits in the order book waiting, you are the Maker.
What is a Taker?
A Taker removes liquidity using market orders or immediately fillable limit orders.
Rate differences
Maker rates are typically lower than Taker rates because exchanges incentivize liquidity provision:
Standard rates for regular users on major exchanges:
- Binance: Maker 0.02%, Taker 0.05%
- OKX: Maker 0.02%, Taker 0.05%
- Bybit: Maker 0.02%, Taker 0.055%
How to Calculate Fees
Formula: Fee = Position value × Fee rate
Important: Fees are based on position value, not margin. Higher leverage means a larger position and higher fees.
Calculation example
Using 100 USDT margin with 10× leverage to go long on BTC:
- Position value = 100 × 10 = 1,000 USDT
- Opening fee (market order, Taker) = 1,000 × 0.05% = 0.5 USDT
- Closing fee (market order, Taker) = 1,000 × 0.05% = 0.5 USDT
- Total fees = 0.5 + 0.5 = 1 USDT
That seems small, but 5 trades a day for a month adds up to 150 USDT — exceeding your initial margin.
Fee comparison at different leverage levels
Same 100 USDT margin, market order open/close:
- 2× leverage: Fee = 200 × 0.05% × 2 = 0.2 USDT
- 10× leverage: Fee = 1,000 × 0.05% × 2 = 1 USDT
- 50× leverage: Fee = 5,000 × 0.05% × 2 = 5 USDT
- 100× leverage: Fee = 10,000 × 0.05% × 2 = 10 USDT
At 100× leverage, fees eat 10% of your margin before you even start trading.
Funding Rate Calculation
Funding is charged every 8 hours:
Funding fee = Position value × Funding rate
Example: 10,000 USDT position, 0.01% funding rate
- Per charge = 10,000 × 0.01% = 1 USDT
- Per day (3 charges) = 3 USDT
- Per month ≈ 90 USDT
How to Save on Fees
Use limit orders
Limit orders are charged at Maker rates — usually half or less of Taker rates. Building the habit of using limit orders can significantly cut costs.
Enable BNB fee deduction (Binance)
Turning on BNB fee deduction on Binance gives you an additional 10% discount.
Register with a referral code
Register on Binance with a referral code to receive a long-term fee rebate, typically 10%–20% off.
Upgrade your VIP tier
Higher trading volume means a higher VIP tier and lower rates. However, the volume thresholds are significant for most retail traders.
Trade less frequently
Every trade incurs fees. Reducing unnecessary trades is the most direct way to save.
How Fees Impact Profitability
Many overlook how fees affect long-term returns. Suppose you make 3 trades a day, each with a 5,000 USDT position:
- Fee per trade (Taker) = 5,000 × 0.05% × 2 = 5 USDT
- Daily fees = 5 × 3 = 15 USDT
- Monthly fees = 15 × 30 = 450 USDT
- Yearly fees = 450 × 12 = 5,400 USDT
If your capital is only 5,000 USDT, a year's fees exceed your entire principal — and that doesn't include funding rates.
FAQ
Are futures fees based on margin or position value?
Position value. With 10× leverage and 100 USDT margin, the position value is 1,000 USDT, and fees are calculated on that 1,000.
Are fees charged on both opening and closing?
Yes. A complete trade costs: opening fee + closing fee.
Is there a fee when liquidated?
Yes. Liquidation incurs a liquidation fee, typically higher than the regular Taker rate. Yet another reason to avoid getting liquidated.
Can fees be deducted from profits?
Fees are deducted from your account at the time of execution, not at settlement.
Safety Tips
- Cumulative fees from frequent trading can seriously hurt your bottom line — manage your trade frequency
- Use limit orders whenever possible to lower fee costs
- Check your fee tier and historical fee spending through the official Binance app
- High leverage doesn't just increase risk — it also increases fees; weigh both factors
- Choose exchanges that offer fee discounts at registration for long-term savings