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

Taking Binance as an example, the spot single-side fee rate is 0.1%.

The current price of Bitcoin is £65,000, and buying and selling requires £130 in fees.

However, Binance offers many promotional policies. Holding BNB can waive 25% of trading fees, and some trading pairs don’t require any fees at all, significantly lowering user expenses. If rebates are available, you can get some of the fees back.

Perpetual contract trading

The perpetual contract trading mode has one more buying direction than spot trading; you can buy long (go long) or sell short (go short), and you can also use leverage. However, there is a liquidation mechanism, and the risk is significantly higher, so it's not recommended for beginners.

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

Different trading modes have different fee rates. The single-side fee rate ranges from 0.02% to 0.05%.

Assuming a capital of £1,000, using 50x leverage means the position value is £50,000, and the total fees for opening and closing positions would be between £20 and £50.

This is just the fee for one trade. If you trade three times a day, that amounts to 90 times in a month, with total fees accumulating to between £1,800 and £4,500.

Many users believe their trading volume is not large, but trading is a long-term activity. The longer it lasts, the more expenses accumulate, which makes rebates particularly important.

In addition to fee rebates, Binance also allows discounts using BNB. Some trading pairs offer promotions that can be stacked, making it considerably better compared to other exchanges.

Do you know the benefits of enabling rebates?

The first benefit: Players engaged in contracts in the crypto space know that every day you open and close positions, the platform will deduct a certain amount of fees from you. For example, if the platform deducts £100 in fees for your contract today, and you haven’t enabled fee rebates, that £100 goes to the platform. If you do enable fee rebates, it gets returned directly to you. This could be considered as free money, and this is just the rebate for one day's fees.

The second benefit: If you've been involved in the crypto space for a long time, have you ever calculated how much you could save in a year? For instance, if your trading fees for spot trading amount to tens of thousands of pounds annually, enabling fee rebates could save you several thousand pounds in just one year. This money could take care of fuel, maintenance, and insurance for your car, right? It's a win-win situation. Many people have been in the crypto space for 5-8 years; shouldn't you consider changing your car? You might be shocked when you do the math.

The third benefit: This is the most important point. You can share this information so that more people know about it. Saving is a virtue; don't let all the crypto newcomers be trapped in their struggles. Start spreading positive energy from yourself.

What role can fee rebates play?

The purpose of fee rebates is to help users save on trading fees. This is a promotional policy available at many exchanges, and it can only be filled out when registering. Some exchanges also have specific methods to implement it.

To receive fee rebates, you only need to fill in an invitation code when registering.