Binance is a digital asset exchange that offers a platform for trading various cryptocurrencies. As of January 2018, Binance was the largest cryptocurrency exchange in the world in terms of trading volume.
Binance has a tiered fee structure for trading and withdrawals, with discounts available for users who hold the Binance Coin (BNB) token. Binance fees are calculated based on a maker-taker model.
The maker-taker model is a system where the maker, or the party who creates the order, is charged a lower fee than the taker, or the party who executes the order. The maker-taker model incentivizes market liquidity by rewarding those who provide it.
For trades executed on the Binance spot market, makers are charged a 0.1% fee and takers are charged a 0.1% fee. These fees are reduced by 50% if the trade is executed using BNB. For example, if you were to buy 1 BTC worth of ETH, you would be charged a 0.1% fee, or 0.
005 BTC. If you were to sell 1 BTC worth of ETH, you would be charged 0.005 BTC.
Withdrawal fees vary depending on the cryptocurrency being withdrawn, but are generally around 0.0005 BTC per withdrawal.
Again, these fees are reduced by 50% if they are paid using BNB.
Binance also offers margin trading, with fees ranging from 0.02% to 0.
04%. These fees are much higher than spot trading fees because they must cover the risk involved in lending funds to traders.
Binance Fees are very reasonable when compared to other exchanges. Withdrawal fees are slightly higher than average but this is offset by the low trading fees.
The margin trading fees are also higher than average but this is to be expected given the risk involved in lending funds to traders. Overall, Binance provides an excellent platform for trading cryptocurrencies with low fees and a wide range of features.”.
In conclusion, Binance has created a system where they charge lower fees for those who create orders and higher fees for those who execute orders in an attempt to incentivize market liquidity by rewarding those who provide it . Withdrawal fees are reasonable and slightly higher than average but this is due in part to the low trading fees .
Lastly, margin Trading Fees while higher than average are still lower than most other exchanges .