Transaction fees are fixed expenses that occur with every trade.

The Binance spot trading fee is 0.1% for both buying and selling, meaning a single trade incurs a fee of 0.2% of the trading volume.

The contract trading fee is 0.02% for limit orders and 0.05% for market orders, with a fee of 0.04%-0.1% of the position size for each trade.

From the perspective of fee rates, spot fees are significantly higher than contract fees, but when calculated in practice, the actual fees for contracts can be higher.

Assuming a principal of 1000u for a single spot trade, the required fee would be 2u.

However, due to the different trading mechanisms in contract trading, many people choose to use leverage. With the same 1000u principal and 10x leverage, the position value is 10000u, and the fee for a single trade would be 4-10u.

From this comparison, I believe everyone can make their own judgment.

How to save on fees?

Binance offers several ways to do this:

① Purchase BNB and transfer it to the corresponding account to offset fees. Spot trading fees can be reduced by 25%, and contract trading fees by 10%.

② Upgrade your Binance account VIP level; different VIP levels correspond to different fee rates (Note: upgrading VIP requires purchasing BNB, remember to turn off the deduction option).

③ Participate in Binance's rebate program; filling out an invitation code can earn you a corresponding rebate ratio (Note the rebate time, rebate ratio, and rebate cycle).

These methods can be combined, but upgrading VIP is not very user-friendly for most users.

Regardless of the method, the goal is to save on fees, and do not frequently open positions just to save on transaction fees!