Binance has positioned itself as a leader among cryptocurrency trading platforms around the globe, with the aim of making it easy for both beginners and experts to trade crypto while also enjoying competitive rates.
Like any trading platform, Binance charges fees for certain trades and services. Understanding the Binance platform and its fee structure helps you keep costs down so more of your investment goes into your wallet. Keep reading to learn more.
What Is Binance?
Binance is a crypto-to-crypto exchange service that got its start in 2017 in Hong Kong. It has since grown into one of the world’s most popular crypto exchanges. In addition to trading, Binance offers savings options, the Binance Smart Pool for miners, the Binance Visa card, crypto loans and more.
Binance’s U.S. platform, Binance.US, was launched in 2019 and has its own schedule of fees. It’s available for users in every state except Hawaii, New York, Texas and Vermont.
Binance offers some of the lowest fees in the crypto exchange market, making it a favorite among traders. Here’s a quick rundown of some of the fees you might face.
Purchase Fees
If you choose to buy your cryptocurrencies with a debit or credit card, you can expect to pay up to 3.75% in fees. Because of these fees, you’re better off using other payment methods.
Wire transfers, on the other hand, come with no transaction fee but are not available everywhere. If your location does support wire transfers, you can use them to avoid paying card fees.
Deposit Fees
There are no fees when depositing crypto assets on Binance with bitcoin (BTC), tether (USDT) and ethereum (ETH). You’ll first need to exchange your fiat for crypto and then make your deposit.
Trading Fees
Binance charges a 0.10% fee for trading on the platform as well as a 0.50% fee for Instant Buy/Sell, so your actual fee amount will depend on the amount of the trade. The higher the transaction, the higher the fee.
One way to lower your trading fee is to keep some Binance Coin in your account at all times so your fees can be taken from that. Doing this fetches you a 25% discount on all trading fees.
Withdrawal Fees
Fees are also incurred based on the type of crypto you are withdrawing. These fees change with the market’s status, making it difficult to know what you owe until you’re ready to withdraw. Be sure to check the Binance.US website, which provides up-to-date information for each type of cryptocurrency.
There are ways to lower withdrawal fees, and it starts with understanding that the fees are based on the type of crypto asset you want to withdraw. Some assets charge higher rates than others, so reducing withdrawal fees can be as simple as changing the coin.
Before you begin your withdrawal, check the rates on the coin you plan to request. For example, if the type of asset you were about to request has a high fee, consider trading and converting to bitcoin or ethereum first. You can also choose a less expensive crypto.
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Under most circ*mstances, taking the time to compare withdrawal rates can make a significant impact on the total amount of fees you pay.
Maker or Taker
When you check Binance fee schedule, you’ll notice that different fees are charged depending on whether you’re a “maker” or a “taker.”
According to the Binance website, maker trades happen when you place an order that goes on the order book partially or fully, such as a limit order placed via the trading screen. Any subsequent trades coming from that order will be maker trades. The name is based on the fact that these orders add volume to the order book, helping to “make” the market.
Taker trades occur on an order that trades immediately before going on the order book, regardless of whether you partially or fully fulfill an order. These trades “take” volume off of the order book.
How Binance Fees Compare to Other Exchanges
Comparing the fees at different crypto exchanges is tricky because they don’t all have the same fee structures or deal in the same coins, but it’s still a good idea to familiarize yourself with some of the individual features.
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Here’s a quick look at some of the fees you might face at a few of the leading exchanges, and how they compare to Binance.
Exchange
Fee Details
Binance.US
– 0% fees for Tier 0 pairs – 0.0375% to 0.45% maker/taker fees for Tier 1 pairs – $0 maker/trader fees for BTC/TUSD trading pairs – 25% discount on Advanced Trading if using Binance coin
Coinbase
– Fees are based on network fees for wallet-to-wallet transactions – 2% fee for credit transaction
CEX.IO
– 0%-0.25% maker/taker fees – Deposit/withdrawal fees up to 3%
Binance FAQ
Here are the answers to some of the most frequently asked questions about Binance.
Which cryptos are available on Binance?
Binance allows trades, deposits and withdrawals in over 350 types of crypto, including bitcoin, tether, chainlink, ethereum and litecoin.
How does Binance work?
Binance offers a simplified platform that lets you exchange fiat for bitcoin and other cryptos through different methods. Peer-to-peer trading connects buyers and sellers and accepts multiple payment options. Binance also accepts debit and credit cards for purchasing dozens of cryptocurrencies for a fee.
In addition, Binance has partnered with third parties to allow users to buy coins using Single Euro Payments Area, or SEPA, payments or bank transfers.
Are Binance and Binance.US the same?
No, they are different platforms intended for different users. Binance.US was formed in 2019 in response to Binance's decision to stop accepting U.S. investors. Users in the United States still can't use the international Binance platform.
You'll find the same interface at both platforms, as well as many of the same features. However, there are differences in the amount of crypto available to trade.
Cynthia Measom contributed to the reporting for this article.
Information is accurate as of April 24, 2023.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
Coinbase, Binance, etc), you may see high network fees for this particular transaction. It is normal to see the high fees for receiving from exchanges. These are so-called payment batching. The process of batching refers to combining multiple payments (withdrawals) into a solitary transaction that has numerous outputs.
Binance charges a 0.1% fee for trading on the platform, therefore your pricing will be determined by the size of your deal. The charge is proportional to the size of the transaction.
On wire transfers, Binance does a bit better, with no charge for wire deposits and a $15 withdrawal fee for domestic wires. For its part, Coinbase charges $10 for wire deposits into its accounts and $25 for wire withdrawals. Advantage: Binance offers a better fee structure here, both for ACH fees and even wire fees.
Binance does not charge deposit fees. For each withdrawal, a flat fee is paid by users to cover the transaction costs of moving the cryptocurrency out of their Binance account. Withdrawals rates are determined by the blockchain network and can fluctuate without notice due to factors such as network congestion.
Analysing this metric in this Binance vs Coinbase comparison, it's clear that Binance has the lowest trading fee percentage of 0.10%, while the second place goes to Coinbase with a fee of Up to 3.99%.
Trading on the platform will bring a 0.1% fee, whereas Instant Buy/Sell will incur a 0.5% fee. Therefore, how much your fee will cost will depend on how much you trade.
Created by Binance and its U.S. partner BAM Trading Services, Binance.US is a cryptocurrency exchange for residents of the United States. Users on the platform can buy, sell, trade, convert and stake over 120 popular cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Cardano (ADA).
According to public information, Binance also charges 0.001 BTC ($27) as a BTC withdrawal fee, while the minimum withdrawal amount is 0.002 BTC, or $55.
Binance increased its bitcoin withdrawal fees from 00002 BTC ($5.59) to 0.001 BTC ($27.94) per withdrawal, a spokesperson told Blockworks. “Due to an increase in the overall network fee on the Bitcoin network, the operational cost of maintaining withdrawals for BTC also increases,” they said.
Coinbase Pro charges maker fees of up to 0.40% on trades and taker fees of up to 0.60%, with no discounts. Binance.US charges up to 0.10% for both makers and takers, however, if you perform immediate purchases, Binance.US fee is a flat 0.50%.
Binance is one of the safer exchanges compared to others. So if you're actively trading crypto and need to keep it on an exchange, Binance is a pretty secure choice. However, if you're holding large amounts of crypto long term, a private hardware wallet may be a better choice than keeping it on an exchange.
What Is a Fee Structure? A fee structure is a chart or list highlighting the rates on various business services or activities. A fee structure lets customers or clients know what to expect when working with a particular business.
One way to lower your trading fee is to keep some Binance Coin in your account at all times so your fees can be taken from that. Doing this fetches you a 25% discount on all trading fees.
Binance.US is available to most residents of the United States. However, the platform is still restricted to residents in New York, Hawaii, Texas and Vermont. To truly serve U.S.-based residents to the best of its abilities, Binance.US would ideally be available in all 50 states.
It is possible to withdraw funds from your Binance account. But in order to make that possible, you will have to go through a specific withdrawal process. It's not hard, but following every step is necessary if you want everything to go smoothly.
Binance revenue is primarily generated through the collection of brokerage fees paid in Binance Coins (BNB) for every trade executed on the platform. In addition, it earns profits from its coin investments, which drives up the value of each BNB currency.
Low fees: The platform offers low fees, meaning traders get to keep more of their investments and earnings. Wide selection of trading options and order types: Binance offers several trading options including peer-to-peer trading, spot trading, and margin trading.
Binance Convert offers an easier and faster method of conversion, with no fees. It also allows you to convert your digital fiat currencies to crypto after deposit and vice versa for withdrawal.
With Coinbase being an institutional platform, some alternatives to Coinbase in that regard are Bitstamp, Kraken, eToro, Gemini, and Binance. Kraken charges much lower fees than Coinbase and is more secure, hence much better than Coinbase.
Both Crypto.com and Binance adopt a tier fee structure, and although Binance has a lower trading fee, Crypto.com is more beneficial with its fee for credit cards.
For most of you who CAN'T send money from your bank to Binance, you have to use the p2p option. This one is the totally, completely, 100% FREE option. Everything you pay is based on the price of the USDT or BTC or whatever. NO ADDED FEES.
Binance and the US Securities and Exchange Commission reached an agreement to avoid a full asset freeze of the platform in the US and keep customer assets in the United States, after a US district judge signed off on a consent order filed Saturday.
Even though there is no real deposit limit, there is a floor for how much you need to trade crypto on Binance. You must trade at least $10 worth of cryptocurrency. For regular users (anyone who isn't a VIP member), the default trading fee on Binance is 0.1%.
You can withdraw with your Bank Card (Visa or MasterCard). There are also Other Payment Options, which include bank transfers and currency-specific options. Withdrawals incur a 1.8% fee.
Binance vs Kraken cryptocurrency exchange overall score comparison reveals that Binance has a higher overall score of 9.8, while Kraken gathered an overall score of 9.6. If we look at the ease of use, it's clear that in this Binance vs Kraken comparison, Binance has better & smoother user experience than Kraken.
Availability Risk. We do not guarantee that the Binance Services will be available at any particular time or that Binance Services will not be subject to unplanned service outages or network congestion. It may not be possible for you to buy, sell, store, transfer, send or receive Digital Assets when you wish to do so.
Binance has long been considered one of the safest cryptocurrency exchanges. It offers extensive security options and gives users control over their funds. While Binance has experienced security issues, so have all major cryptocurrency exchanges.
"A collapse by Binance would destroy any remaining trust in the crypto industry leading to a further sell-off and the end of many crypto projects, possibly including some significant ones.
In 2019, the US banned Binance.com, a Hong Kong-founded crypto exchange. Due to stringent restrictions and legal obstacles, Binance can't offer its full services to people inside the US. While you can access Binance.us, the restricted US version, the token variety is extremely limited.
Now you're ready to buy Crypto of your choice with your Visa card. Only pay a 1% card transaction fee instead of the usual 3%. Buy crypto quickly and securely with the Visa.
The American branch of Binance, the giant cryptocurrency exchange, said late on Thursday that it would no longer allow customers to trade on its platform using U.S. dollars, after its banking partners cut the firm off in response to a crackdown by federal regulators.
Use Robinhood or Trade Bitcoin Stocks to Trade Crypto Commission-free: You can essentially still trade crypto without commission by using Robinhood to trade crypto or by trading Grayscale trusts (like GBTC) or Bitcoin ETFs (like BITO) with some brokers (some brokers charge fees, others don't; check with your's).
Binance is the largest cryptocurrency trading platform in the world. 3 Because it offers a robust selection of trading options and features, it is not particularly user-friendly. Investors may experience a steep learning curve with Binance depending on their experience and knowledge.
Is Bitcoin safe? Bitcoin is the most recognized cryptocurrency, so it's generally viewed as one of the safer investments within the crypto world. As with all cryptocurrencies, however, Bitcoin's price can change dramatically within a short time period.
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