Trading fees are a cost you cannot ignore in cryptocurrency trading. Although a single trade's fee may seem small (typically 0.1%), over time or with large trades, fees can add up to a significant expense. Based on a monthly trading volume of 100,000 USDT, a 0.1% fee amounts to 1,200 USDT per year. Learning to save on fees is essentially the same as directly boosting your investment returns.
How Are Spot Trading Fees Charged?
Most exchanges charge spot trading fees as a percentage of the transaction amount:
- Default rate: Usually 0.1% (charged on both buy and sell)
- Maker rate: The fee for orders that add liquidity to the order book, typically equal to or lower than the Taker rate
- Taker rate: The fee for orders that remove liquidity, typically equal to or higher than the Maker rate
- Two-way charges: Fees are charged once when buying and once when selling
Fee Calculation Example:
- Buying 10,000 USDT of BTC: Fee = 10,000 x 0.1% = 10 USDT
- Selling 10,000 USDT of BTC: Fee = 10,000 x 0.1% = 10 USDT
- Total fee for one buy-sell round: 20 USDT
What Are the Methods to Save on Fees?
Method 1: Register with a Referral Code
Registering on Binance with a referral code gives you a permanent fee discount:
- Referral code discounts are typically 10%-20%
- A 0.1% rate with a 20% discount becomes 0.08%
- One-time binding at registration, valid for life
- No additional steps needed; the discount applies automatically
This is the simplest way to save money — make sure to enter a referral code when registering.
Method 2: Use Platform Token Deductions
Most exchanges allow using their native token to pay fees at a discount:
- Binance BNB deduction: An additional 25% off fees (0.1% becomes 0.075%)
- Other exchanges have similar platform token deduction mechanisms
- You need to enable "BNB Fee Deduction" in your account settings
- Make sure your account has sufficient platform token balance
Method 3: Level Up Your VIP Tier
The higher your trading volume, the higher your VIP tier, and the lower your fees:
| VIP Tier | 30-Day Volume | Maker Rate | Taker Rate |
|---|---|---|---|
| Regular | < 1M | 0.1% | 0.1% |
| VIP 1 | 1M+ | 0.09% | 0.1% |
| VIP 3 | 5M+ | 0.06% | 0.08% |
| VIP 5 | 20M+ | 0.04% | 0.06% |
(Exact rates are subject to the exchange's latest announcements)
Method 4: Be a Maker, Not a Taker
Using limit orders that go into the order book (Maker) typically has a lower fee than market orders (Taker):
- When buying: Place your limit order slightly below the current price
- When selling: Place your limit order slightly above the current price
- Make sure the order enters the order book rather than executing immediately
Method 5: Reduce Unnecessary Trades
The most direct way to lower fees is to reduce the number of trades:
- Avoid frequent short-term trading
- Have a clear reason before each trade
- Use limit orders to wait for the right price instead of chasing the market with frequent market orders
Method 6: Watch for Fee Promotion Events
Exchanges frequently offer fee promotions:
- New user registration bonus periods
- Zero-fee events for specific trading pairs
- Holiday promotional discounts
- Discounts for holding specific tokens
Keep an eye on exchange announcements to take advantage of promotions. Download the Binance app, iPhone users can refer to the iOS installation guide to enable push notifications and be the first to know about events.
How Much Can You Save by Stacking Methods?
Using a 10,000 USDT trade as an example:
| Method | Rate | Fee | Savings |
|---|---|---|---|
| No discounts | 0.1% | 10 USDT | - |
| Referral discount (20%) | 0.08% | 8 USDT | 2 USDT |
| + BNB deduction (25%) | 0.06% | 6 USDT | 4 USDT |
| + VIP 1 Maker | 0.054% | 5.4 USDT | 4.6 USDT |
By stacking multiple discounts, you can reduce fees by over 50%.
Safety Reminders
While pursuing lower fees, keep the following safety considerations in mind:
- Don't choose unreliable exchanges just for lower fees: Security matters more than saving money
- Be aware of platform token price risk: Holding BNB to save on fees is economical, but platform tokens also have price volatility
- Don't let low fees encourage over-trading: Low fees are not a reason to trade excessively
- Confirm fee calculations are correct: Make sure fee deduction features are enabled before placing orders
- Keep fee records: Regularly review your fee expenditures to ensure they are reasonable
- Beware of fee traps: Some exchanges advertise zero fees but effectively charge through wider bid-ask spreads
Can Trading Fees Be Used for Tax Deductions?
In some countries, trading fees can be included as part of the investment cost to reduce capital gains tax. Consult a local tax professional and keep complete fee records.
Are Fees Disproportionate for Small Trades?
Relatively speaking, yes. If you trade 10 USDT of BTC, the 0.01 USDT fee seems tiny, but if you make frequent small trades, the cumulative fees can become a significant proportion. It's better to consolidate small trades into larger single transactions.
Are Transfer Fees the Same as Trading Fees?
No. Trading fees are charged when you buy or sell on the exchange, calculated as a percentage of the transaction amount. Transfer fees (withdrawal fees) are a fixed amount charged when you move coins from the exchange to an external wallet, and they vary by blockchain network.
Which Has Higher Fees — Spot or Futures?
Futures typically have lower fee rates (e.g., Maker 0.02%, Taker 0.05%), but futures involve leverage that amplifies the actual trading amount, so the absolute fee may be higher. Additionally, futures have extra costs like funding rates.