How to calculate Binance rebate

By understanding the tiered fee system, calculating spot and margin trading fees, determining VIP level, and considering preferred rebates, traders can optimize their fee structure on Binance.

Feb 04, 2025 at 10:24 pm

Key Points:

• Understand the Binance fee system
• Calculate spot trading fees
• Calculate margin trading fees
• Determine your VIP level
• Apply for preferred rebates

Step 1: Understand the Binance Fee System

Binance employs a maker-taker fee model, which means that traders who place orders that add liquidity to the market (makers) pay lower fees than those who take liquidity (takers). The fees are tiered based on your 30-day trading volume and Binance Coin (BNB) holdings.

Step 2: Calculate Spot Trading Fees

For spot trading, Binance charges a taker fee of 0.1% and a maker fee of -0.02%, which means makers receive a rebate. Your VIP level further reduces these fees.

Example:

• If you trade $1,000 worth of BTC in a market order (taker), you pay $1 (0.1%).
• If you place a limit order that gets executed (maker), you receive $0.2 (0.02%), effectively reducing your fees.

Step 3: Calculate Margin Trading Fees

Margin trading fees are similar to spot trading fees but are calculated differently. Taker fees range from 0.04% to 0.02%, and maker fees range from 0.02% to 0.01%.

Example:

• If you borrow $1,000 of BTC to purchase ETH (taker), you pay $0.04 ($1,000 x 0.04%).
• If you repay your loan later (maker), you receive $0.02 ($1,000 x 0.02%), reducing your borrowing costs.

Step 4: Determine Your VIP Level

Binance's VIP tier system offers progressive discounts on trading fees based on your trading volume and BNB holdings. There are 20 levels, with Level 0 being the default.

To determine your VIP level:

• Calculate your average daily trading volume (30-day period).
• Multiply this value by 30 to get your monthly trading volume.
• Add your total BNB holdings.

Check the VIP Level Chart on Binance's website to find your corresponding level.

Step 5: Apply for Preferred Rebates

In addition to VIP discounts, Binance occasionally offers preferred rebates to high-volume traders via its Preferred Trader program. To qualify, you must meet certain trading volume requirements.

FAQs:

Q: How can I reduce my Binance fees further?

• Increase your trading volume.
• Hold more BNB.
• Participate in Binance's affiliate program.

Q: What is the maximum fee discount I can get?

• VIP Level 20 traders can enjoy a 90% fee discount.

Q: Do I need to pay a fee to become a VIP member?

• No, VIP membership is based solely on trading activity and BNB holdings.

Q: Can I stack VIP discounts with preferred rebates?

• Yes, in some cases, you can combine VIP discounts with preferred rebates to maximize your savings.