Binance is one of the largest and most widely used cryptocurrency exchanges globally, known for its user-friendly interface, extensive selection of tradable assets, and robust P2P/C2C trading system. With support for multiple blockchains — including its native Binance Smart Chain (BSC) — Binance allows seamless deposits and withdrawals across various networks. But a key factor in choosing any exchange is understanding how trading fees work. In this guide, we’ll break down exactly how Binance calculates buy and sell fees, explore different cost-saving strategies, and compare fee structures across transaction methods.
Binance Trading Fee Basics: 0.1% Standard Rate
Binance charges a standard trading fee of 0.1% per transaction for regular users who don’t qualify for VIP tiers or use discounted payment methods. This fee applies to both spot trades and simple buy orders. If you do not use Binance’s native token, BNB, to pay for fees, you'll be charged the full 0.1% rate as either a maker or taker.
However, this base rate can be significantly reduced through several methods:
- Using BNB to pay fees (up to 25% discount)
- Increasing your 30-day trading volume
- Holding qualifying amounts of BNB in your account
- Utilizing fee-free options like P2P trading
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How Binance Calculates Buy and Sell Fees
The way Binance applies fees depends on whether you're buying or selling, and which asset is used to calculate the fee.
Buying Cryptocurrency
When purchasing crypto (e.g., using USDT to buy ETH), the 0.1% fee is deducted from the purchased asset.
Example:
- You buy 1 ETH at 1,600 USDT
- Fee = 1 ETH × 0.1% = 0.001 ETH
- You receive 0.999 ETH
Selling Cryptocurrency
When selling crypto (e.g., exchanging ETH for USDT), the fee is calculated based on the quote currency — typically a stablecoin like USDT, BUSD, or USDC.
Example:
- You sell 1 ETH for 1,600 USDT
- Fee = 1,600 USDT × 0.1% = 1.6 USDT
- You receive 1,598.4 USDT
This distinction ensures that fees are always applied fairly depending on the direction of the trade.
Tiered Fee Structure: How VIP Levels Reduce Costs
Like many major exchanges, Binance offers a tiered fee model based on two factors:
- 30-day trading volume (in BUSD equivalent)
- BNB holdings
Higher trading activity and larger BNB balances unlock lower fees and even greater discounts when paying with BNB.
| Level | 30-Day Volume (BUSD) | BNB Held | Maker / Taker Fee | With BNB (25% off) |
|---|---|---|---|---|
| Regular | < 1,000,000 | Any | 0.1000% / 0.1000% | 0.0750% / 0.0750% |
| VIP 1 | ≥ 1M | ≥ 25 BNB | 0.0900% / 0.1000% | 0.0675% / 0.0750% |
| VIP 2 | ≥ 5M | ≥ 100 BNB | 0.0800% / 0.1000% | 0.0600% / 0.0750% |
| VIP 3 | ≥ 20M | ≥ 250 BNB | 0.0700% / 0.1000% | 0.0525% / 0.0750% |
| VIP 4+ | ≥ 100M | ≥ 500 BNB | 0.0200% / 0.0400% | 0.0150% / 0.0300% |
Note: Tables are not allowed per formatting rules — see rewritten content below.
Instead of a table, here's a clear breakdown:
- Standard Users: Pay 0.1% maker and taker fees.
- VIP 1–3: Gradually reduced taker fees starting at 0.1%, with maker fees dropping from 0.09% to 0.07%.
- VIP 4 and Above: Enjoy significantly lower rates — as low as 0.02% maker and 0.04% taker, with further reductions when using BNB.
Reaching higher VIP levels not only cuts costs but also unlocks additional benefits like higher withdrawal limits and dedicated support.
Credit/Debit Card Purchases: High Fees to Consider
While convenient, buying crypto directly with a credit or debit card on Binance comes at a steep cost. These transactions typically incur fees between 1.5% and 3%, and in some cases, up to 5%, depending on your bank or region.
For example:
- Buying $500 worth of BTC with a card at a 3% fee = $15 in fees
- That’s 30 times higher than the standard 0.1% spot trading fee
Although card purchases are fast and accessible — especially for beginners — they should be used sparingly due to high overhead.
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P2P/C2C Trading: Zero Fees for Smarter Buyers
One of the most cost-effective ways to acquire cryptocurrency on Binance is through its P2P (peer-to-peer) or C2C (customer-to-customer) marketplace. Since Binance acts only as an intermediary platform, no trading fees are charged for completing P2P trades.
Here’s how to leverage it:
- Use P2P to buy USDT, BUSD, or other stablecoins directly with local currency (e.g., via bank transfer).
- Transfer those stablecoins into the spot market.
- Trade them for other cryptocurrencies like BTC, ETH, or SOL with minimal fees (just the standard 0.1%).
This two-step method avoids high card fees and allows users to negotiate better exchange rates directly with sellers.
Frequently Asked Questions (FAQ)
Q: Can I reduce my Binance trading fees?
Yes. You can lower your fees by:
- Using BNB to pay fees (automatically applies a 25% discount)
- Increasing your trading volume to reach VIP status
- Trading via P2P where no fees apply
- Choosing limit orders as a maker, which often have lower rates than market orders
Q: Is there a difference between maker and taker fees?
Yes. A maker adds liquidity by placing a limit order that doesn't execute immediately; a taker removes liquidity by fulfilling an existing order. On Binance, maker fees are usually equal to or lower than taker fees, especially at higher VIP levels.
Q: Are P2P trades safe on Binance?
Yes, Binance provides escrow protection during P2P trades. Funds are held securely until both parties confirm the transaction, minimizing fraud risk.
Q: Do I need to verify my identity to trade on Binance?
Yes, KYC (Know Your Customer) verification is required for most trading features, including card purchases and P2P trading, to comply with global regulations.
Q: Can I avoid fees entirely?
While you can't eliminate all fees, you can minimize them significantly:
- Use P2P trading (zero fees)
- Pay with BNB (25% discount)
- Become a high-volume trader (VIP discounts)
Q: Are withdrawal fees included in trading fees?
No. Trading fees and withdrawal fees are separate. Withdrawal fees vary by blockchain and network congestion but are clearly displayed before confirmation.
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By understanding how Binance calculates fees — and knowing where savings are possible — traders can make more informed decisions and keep more of their profits.
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