Veteran crypto traders should know how shocking the fees for high-frequency contract trading can be. Newcomers should also understand how much fees are generated in crypto trading and what fee rebates are. Regardless of the trading model, fees will be incurred for both buying and selling.
Different exchanges charge different fee rates, and the corresponding promotional policies also vary.
Crypto exchanges can be roughly divided into two major trading models: spot (crypto-to-crypto) trading and contract trading.
Spot trading is similar to stocks; you can only buy low and sell high, but both buying and selling incur fees.

Taking Binance, a leading platform, as an example, the spot one-way fee rate is 0.1%.

The current price of Bitcoin is 65,000 USD, and each buy and sell requires a 130 USD fee.

However, there are many promotional policies on Binance. Holding BNB can reduce fees by 25%, and some trading pairs don't require any fees for limit orders, greatly reducing user expenses. If there's a rebate, you can get some fee back.

Perpetual contract trading

The perpetual contract trading model has one more buying direction than spot trading; you can buy long and also short. You can also leverage, but there's a liquidation mechanism, making the risk considerably higher. It is not recommended for beginners.

You can see that contract fee rates are divided into Maker (limit orders) and Taker (market orders).

Different trading models have different fee rates; the one-way fee rate ranges from 0.02% to 0.05%.

Assuming a capital of 1,000 USD and using 50x leverage, the position value would be 50,000 USD, and the combined opening and closing fees would be 20-50 USD.

This is just the fee for one transaction. If you trade three times a day, that's 90 times a month, accumulating fees of 1,800-4,500 USD.

Many users think their trading volume isn't significant, but trading is long-term; the longer it goes, the more expenses you incur. Therefore, rebates become especially important.

In addition to fee rebates, Binance also allows the use of BNB for discounts. Some trading pairs also have promotions that can stack, which is much better compared to other exchanges.

Do you know the benefits of activating rebates?

First benefit: Players in the crypto contract space know that every day you open and close positions, the platform deducts a certain fee. For example, if you incur 100 USD in fees today, and you haven't activated the contract fee rebate, that 100 USD is taken by the platform. If you activate the contract fee rebate, it is returned directly to you. This can be considered free money; this is just the rebate for one day's fees.

Second benefit: If you've been involved in the crypto space for a long time, have you ever calculated how much you can save in a year? For example, your spot trading fees could be tens of thousands of USD in a year. If you activate fee rebates, wouldn't you save a few tens of thousands of USD this year? This money can be used for fuel, maintenance, and insurance for your car, so you don't have to worry about it, right? It's a win-win. Many people have been in the crypto space for 5-8 years; isn't it time to change your car? You might be shocked when you calculate it.

Third benefit: This is the most important point. You can share it with others so more people know about it. Saving is a virtue; don't let all the crypto newbies suffer in silence. Spread positive energy starting with myself.

What role does fee rebate play?

The purpose of fee rebates is to help users save on trading fees; this is a promotional policy that many exchanges offer and can only be filled in when registering. Some exchanges also have operational methods.

Fee rebates only require you to enter an invitation code when registering.