What Currency Are Binance Fees Charged In?

Default Fee Currency for Different Trade Types

Understanding which currency your trading fees are charged in is important for accurate cost tracking, portfolio management, and tax reporting. Binance uses different fee deduction methods depending on the type of trade and your account settings.

Spot trading (default behavior): When you buy a cryptocurrency, the fee is deducted from the amount of cryptocurrency you receive. For example, if you buy 1 ETH with USDT at a 0.1% fee, you receive 0.999 ETH. The fee (0.001 ETH) is deducted from the received amount. When you sell a cryptocurrency, the fee is deducted from the currency you receive (the quote currency). For example, selling 1 ETH for USDT at 0.1% means you receive 99.9% of the USDT value.

Futures trading: Fees are charged in the settlement currency of the contract. For USDT-margined futures, fees are charged in USDT. For coin-margined futures, fees are charged in the underlying cryptocurrency (BTC, ETH, etc.).

P2P trading: Binance P2P charges fees to the ad maker (the person posting the advertisement), not the taker. The fee is deducted in the cryptocurrency being sold.

Margin trading: Fees follow the same logic as spot trading but are deducted from the respective currencies within the margin account.

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BNB Fee Deduction: Changing the Fee Currency

The most significant way to change which currency your fees are charged in is to enable BNB fee deduction. When enabled, all trading fees across spot markets are deducted from your BNB balance instead of from the traded currencies.

This has two benefits: you receive a 25% fee discount, and you receive the full amount of the purchased or sold cryptocurrency without fee deduction. The fees are consolidated into a single currency (BNB), making cost tracking and accounting simpler.

To enable BNB fee deduction, navigate to your account settings and toggle on the BNB fee deduction option. Ensure you maintain a sufficient BNB balance in your spot wallet. The system automatically converts the fee amount to BNB at the current market rate and deducts it from your balance.

Download the Binance app from the official download page to manage your fee deduction settings conveniently.

Fee Deduction Priority System

Binance follows a priority system when determining which currency to use for fee deduction.

When BNB fee deduction is enabled and BNB balance is sufficient, fees are charged in BNB with the 25% discount. When BNB deduction is enabled but BNB balance is insufficient, the system falls back to the default method (deducting from the received currency) at the standard fee rate without the discount. When BNB deduction is disabled, fees are always charged in the received currency at the standard rate.

It is important to monitor your BNB balance to ensure uninterrupted fee deduction. Setting up a small recurring BNB purchase through Auto-Invest can help maintain a sufficient balance automatically.

Impact on Portfolio Tracking and Taxes

The currency in which fees are charged affects your portfolio tracking and tax reporting.

When fees are deducted from traded currencies, each trade slightly reduces the amount of cryptocurrency you receive or sell, which can complicate precise portfolio tracking. When fees are paid in BNB, the full amounts of traded currencies are preserved, making it easier to track exact quantities and calculate cost basis for tax purposes.

For tax reporting, regardless of which currency the fee is paid in, it represents a deductible trading expense in most jurisdictions. However, paying fees in BNB creates an additional taxable event (the disposal of BNB) in some tax frameworks. Consult a tax professional familiar with cryptocurrency taxation in your jurisdiction.

Fee Currency for Withdrawals

Withdrawal fees on Binance are always charged in the cryptocurrency being withdrawn. For example, withdrawing BTC costs a flat BTC fee, withdrawing ETH costs a flat ETH fee. Withdrawal fees vary by cryptocurrency and by the blockchain network used for the withdrawal.

BNB fee deduction does not apply to withdrawal fees, only to trading fees. Withdrawal fees are always charged in the withdrawn currency regardless of your BNB deduction settings.

To minimize withdrawal costs, choose the most cost-effective network for your withdrawal. For example, withdrawing USDT via the TRC20 network costs significantly less than via ERC20.

Fee Currency for Earn Products

Binance Earn products (Flexible Savings, Locked Savings, etc.) do not charge explicit fees for subscribing or redeeming. The returns are net of any platform costs. Any performance fees for products like Dual Investment are deducted from the returns directly.

BNB fee deduction does not apply to Earn products, as they do not involve traditional trading fees.

Conclusion

Understanding fee currencies on Binance helps you optimize costs and simplify accounting. For most users, enabling BNB fee deduction is the recommended approach, as it provides a 25% discount, consolidates fee payments into a single currency, and preserves the full amounts of traded assets. Maintain a sufficient BNB balance to ensure uninterrupted deduction, and consider the tax implications in your jurisdiction.

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