Binance has long supported using BNB to pay for trading fees with a 25% discount. This article explains how to enable it and the best strategies to use. Download links: Binance website, mobile Binance official app, and for iOS users without the app, see the iOS install guide.
1. BNB Fee Deduction Mechanism
Whenever you pay a trading fee, if you have BNB in your account, Binance will automatically deduct the equivalent of 75% of the normal fee in BNB—giving you a 25% discount.
For example:
- Without deduction: Pay 100 USDT in fees.
- With deduction: Pay the equivalent of 75 USDT in BNB.
2. How to Enable It
Profile → Preferences → Using BNB to pay for fees → Enable.
This is enabled by default. If you accidentally turned it off, simply follow the path above to toggle it back on.
3. Deduction Order
- If you have BNB in your account → Deducts BNB first.
- If your BNB balance is insufficient → Deducts the traded token itself.
Therefore, ensure you keep a small amount of BNB in your account (enough to cover your expected fees for a month), without needing a large balance.
4. When Is It Not Worth It?
1. During a BNB Price Surge
If you are bullish on BNB long-term, not using it for deductions allows you to hold onto your BNB positions. However, a 25% discount is already very attractive, making it worthwhile in most scenarios.
2. If You Only Make Small Trades
When each fee is just a few cents, the cost of transferring BNB might outweigh the savings. In this case, turning off the deduction doesn't matter much.
3. When You Need Precise Cost Accounting
Using BNB for fees means your fee reports will be calculated in BNB, which isn't as straightforward as viewing them in USDT. Institutional users often prefer to turn it off for this reason.
5. Stacking with VIP Discounts
Binance VIP tiers are determined by your 30-day trading volume and BNB holdings:
- VIP 0: 0.1% spot fee rate
- VIP 1: 0.09%
- VIP 2: 0.08%
- ...
- VIP 9: 0.02%
VIP discounts and the 25% BNB deduction stack together:
- VIP 1 spot fee is 0.09%.
- After BNB deduction, it drops to 0.0675%.
This is a massive difference. Users trading tens of millions a month can save thousands of dollars monthly.
6. Futures Trading Fees
Futures opening and closing also support BNB deductions with the same logic. However, since futures fees are already very low (fractions of a percent), the absolute amount saved from deductions is relatively smaller.
7. Security Advice
1. Do Not Store Too Much BNB
You only need a small amount for deductions. For example, if your expected monthly fee is 10 USDT, holding 50-100 USDT worth of BNB is enough. Storing excess amounts is unnecessary.
2. The Deduction Toggle Does Not Affect Security
The deduction mechanism is an internal account adjustment and has nothing to do with withdrawals or logins. It does not impact your account's security.
3. Be Aware of BNB Halving / Burns
Binance repurchases and burns BNB every quarter, which can cause its price to fluctuate. This doesn't affect the deduction rate (which remains at 25%), but the value of your BNB holdings will change.
8. Custom BNB Balance
In the settings, you can specify a "Minimum BNB balance to keep"—for example, keeping 0.1 BNB free from deductions. This prevents fees from draining your balance and leaving you short for withdrawals.
FAQ
Q1: What happens if I don't have enough BNB? The fee will be deducted in the token you are trading (e.g., deducting BTC for a spot USDT/BTC trade).
Q2: Is there a time limit on the BNB deduction? No. It is valid long-term.
Q3: Is the deduction still valid after a VIP upgrade? Yes. VIP discounts and BNB deductions always stack.
Q4: Can I use other coins for fee deductions? No. Only BNB is supported.