Binance Fees: Don’t mess with trading, withdrawal and deposit fees!
Binance fees are spelled out on the exchange support pages so that you can have a clear idea of the deductible fees. Beyond this, deductible fees can be settled using BInance tokens (BNB), and this entitles you to a massive 50% discount.
While many people might assume that the discount rate is fixed, a closer look at the terms and conditions shows that this is variable. What you need to pay for each transaction is further explained as you read through the remaining parts of this article.
Part 1: Binance fees and how it works
On Binance exchange, there is a range of fees that have to be paid for specific transactions. An understanding of the applicable fees payable on each transaction will help the crypto trader in his investment trajectory.
The applicable fees that are paid for cryptocurrency transactions vary from one exchange to the other. On Binance, the following fees apply:
Binance Trading Fees
Trading fees apply when you swap one cryptocurrency for another. In many cases, there is a need for currency swaps when:
- Changing from one trading pair to a new one. For example BTC/ETH to BTC/Dash. In this case, the investor has to swap the existing ETH for Dash
- There is a need to fund a trade in another exchange for a specific purpose
- When sending cryptocurrency to another exchange that might not support the token trade. For example, sending populous tokens to Spectrocoin exchange is not possible when buying Bankera.
For all trades, there is a standard 0.1% trading fee on Binance exchange. The only exception is if the trader has enabled payment for transaction fees with the use of BNB.
- You are entitled to a 50% discount on your trading fees as an incentive for BNB usage.
Binance Deposit Fees
Deposit fees are collected on some exchanges when you receive any token from private wallets or other marketplaces. You need to add money on Binance to be able to trade on cryptocurrencies.
On Binance, deposits attract a zero percent charge.
Binance Withdrawal Fees
There are withdrawal fees on Binance whenever you need to withdraw your cryptocurrencies. The exact fees charged for each token might vary, but, they are disclosed on the exchange. As a cryptocurrency trader, you should know what to expect.
To withdraw your cryptocurrency on Binance attracts some fees as shown in the table below. The snapshot displays data for the top 17 currencies.
You will find the other withdrawal fees here
Part 2: The Applicable BNB charge
Having read through part 1 of this article, you might have noticed that users of Binance exchange enjoy a 50% discount on BNB payments. However, there are other fees that will arise if you decide to exchange your BNB for another cryptocurrency.
|Time||1st year||2nd year||3rd year||4th year||5th year|
|Discount Rate||50%||25%||12.50%||6.75%||No discount|
From the table above, the discount enjoyed with BNB adoption by traders will not be fixed infinitely. After the first year of its existence, discounts on BNB will reduce to 25 %. By the 3rd year, new and existing traders will only enjoy 12.50% discount.
By the 4th year, the discounts will reduce to 6.75%. At the beginning of the 5th year, the discount would cease to exist.
Binance fees when cashing out with BNB
For traders on Binance exchange, there might be a need to cash out at any time. When this occurs, and you desire to exchange your BNB for a currency of your choice, the explanation below will suffice.
Using PPT as an example; to cash out using PPT, the exchange is done as follows:
The conversion has to be using the following pairs- PPT/BTC and BNB/BTC
What is due in PPT will be arrived at using-
Exchange ratio of PPT / BNB = PPT/BTC (market price)
_________________ (using the last market price at the last second before the swap)
BNB/BTC (market price)
If your tokens are in other currencies apart from BNB, the rates on the table above in Part 1 will apply. So, as cryptocurrency trader, understand that this computation presented here is not for all tokens.
Exiting BNB for payment of deductible fees
Every trader on the Binance exchange is at liberty to use any cryptocurrency supported by the exchange for settlement of fees.
If you used BNB as a settlement token for Binance fees, you can decide to disable this at the “user center”. You will receive an alert on your trading page when this occurs.
This image shows where to turn on /off BNB for payment of charges:
On this next image, you will see the alert on the trading page indicating that deductible fees are paid using BNB.
The Implication of turning off BNB for settlement of deductible fees
The implication of turning of BNB as the deductible token for charges is that from that moment, your fees will change. The applicable fees for each trade will now be 100 % of what is shown in the table of charges.
Part3: Binance fees make a difference
A careful consideration of discounts on Binance fees shows that this incentive makes a lot of difference. While small ticket traders might not appreciate this, big -time traders will be grateful for it.
If your charges for a quarter come to $1,000, and you use BNB for settlement of charges, you would have saved $500. If this continues after the first year, after 4 quarters, you will have reasonable BNB tokens. Your savings will exceed the nominal $2000 saved for the year, as the value of BNB soars in the marketplace.
The rare chance to save on your deductible fees is a massive boost for savings that cannot be overlooked. You should head over to Binance homepage and register for an account today.
Part 4: Conclusion
Many cryptocurrency exchanges have a table of charges that clearly show what every trader will pay for transactions. Knowing what to expect in every transaction as accrued charges is a helpful tool as you plan your trading.
The fact that you can save some reasonable amount of money when you adopt BNB for payment of Binance fees is commendable.
Irrespective of what your savings amount to, it is worthwhile to use BNB as there are no negative aspects to this decision. Compared with other cryptocurrency exchanges that do not offer the same incentive, Binance stands out in this respect.