Binance uses a system where fees are calculated on a relative amount compared to the size of the trade. By default Binance charges a 0.1% fee over all trades. This means that if you buy for $1000 worth of crypto you pay a $1 fee.
However, Binance allows for many different ways to reduce the fees you have to pay. This is where things get interesting. During this article we will discuss the most important ones
The trading fees is the major source of income for Binance. This is why they want to attract many high rollers to their platform. Thinking about our previous example, a $1 on a $1000 trade seems small. Now think again for a major cryptowhale with a 30 day trading volume of 40,000 BTC. At the time of writing this would be roughly equivalent to a binance trading fee of $360,000. Ouch.
That's why Binance introduced a tiering system. This 40,000 BTC whale would end up on a VIP level of tier 7 suddenly reducing their fees to as little as 0.04%. This would save them a monthly $216,000. Perhaps just interesting enough to keep them engaged on the Binance platform. You think that 40,000 BTC is a lot? Imagine this is only tier 7 out of a 9 tier program!
Another way that Binance gamifies the fee system is by using the maker/taker concepts. It is very good for an exchange to have big and full orderbooks. This prevents the consequences of fat finger trades, creates way less spiky price behavior and provides liquidity for traders. In order to reward people who put items in the orderbook (maker) they give them a lower trading fee that people who take items out of the orderbook (taker).
But this time, the perk of the maker and taker difference is tied to the whale discount. IF you're in a low tier the difference between maker and taker doesn't make any difference. The higher you go the bigger the difference. In the highest tier, the maker only pays 50% of the fees compared to a taker.
Binance has more tricks up their sleeve to make sure they can benefit themselves while giving a mutual benefit to the user as well. Binance owns their own cryptocurrency called the BNB (Binance Coin). If many people buy and hold the coin, or use it for trading they will increase the price due to supply and demand. This is similar to people buying the stocks of a company, and will make the people who own those coins (such as CZ the funder of Binance) rich.
Another way they give discount to users on their fee is when you hold BNB. This allows you to check a button called "use BNB for trading fees". This gives you another 25% discount on your fees.
And on top of all that, you can use the binance referral code '100eyes' to get 10% discount on all your futures binance trading fees. Or click the following binance referral link to be redirected to the futures page automatically: http://www.binance.com/en/futures/ref/100eyes.
Even if you already have a Binance account, you can STILL use the referral code to get discount on your fees, as Binance is seeing this as a separate part of your account!
For the maximum 20% discount on your regular (spot) trading fees use the binance referral code LKCUG1AT which you can fill in the 'Referral ID (optional)' field. You can also just click on this link directly https://www.binance.com/en/register?ref=LKCUG1AT