Crypto Trading Guide: BingX Fees

Trading Made Easy 2023-08-31 01:54:44

The cryptocurrency market has transformed from an emerging and thinly-traded market into a firmly established asset category, boasting a value exceeding $2 trillion. With trading available around the clock, seven days a week, getting started is relatively uncomplicated. However, your first step will involve selecting a suitable exchange.

 

Cryptocurrency exchanges function as platforms where you can purchase and sell cryptocurrencies at prevailing market rates. These exchanges aggregate various orders to facilitate seamless buying and selling at any given time. Engaging in trading through these exchanges incurs costs, which vary based on your trading frequency and the specific type of asset you're dealing with. We will guide you through comprehensive details regarding BingX trading fees, ensuring you have a transparent understanding of the expenses involved.

 

Key Takeaway

- BingX trading fees differ across various markets, spanning from Spot to Futures trading fees.

- The charges on BingX are tailored according to a user's profile, which ranges from VIP0 (standard user) to VIP5 level.

 

 

What Are Trading Fees?

Trading fees encompass the expenses incurred when you execute an order on a marketplace exchange. Each category of transaction may have its distinct fee structure, which can potentially undergo rapid changes. Broadly speaking, cryptocurrency trading fees encompass a range of different costs.

 

Exchanges primarily generate commissions from the traded volumes. However, fees are not confined solely to trades; they extend to cover deposits and withdrawals, funding charges, margin and leverage expenditures, and even the costs associated with bid-ask spreads. Typically, exchange fees span from 0.1% to 1% or even higher per trade, though they can differ across different exchanges. Ultimately, the particulars hinge on the specific trading contracts and the policies of the exchange in question.

 

 

Understanding Makers and Takers

Within marketplace exchanges, the process of matching buy and sell orders in order books takes place. The maker and taker framework serves as a classification system for these orders, influencing the determination of trading fees. Distinct fees are applied to makers and takers based on whether they are contributing to the order book's composition or depleting it.

 

The term "maker" pertains to a market maker, someone who injects liquidity into the market. For instance, a maker enhances the depth of the order book by often placing limit orders that don't receive immediate matches. These orders create an avenue for other traders to engage in trades against them. Makers generally incur lower fees compared to takers and, in certain instances, may even receive rebates.

 

On the flip side, "takers" reduce the liquidity within the market. They employ market orders to promptly remove liquidity from the order books. When you submit an order that is instantaneously fulfilled, you assume the role of a taker and consequently bear a fee.

 

Factors to Consider

The distinction between a "maker" and a "taker" order hinges on the speed at which orders are fulfilled. Market Orders unfailingly execute as taker orders, whereas the classification of Limit Orders can vary as either maker or taker orders. This differentiation does not imply any intrinsic uniqueness to Limit Orders; rather, they stand as the sole order category that doesn't trigger an instantaneous buy or sell action—unlike a Market Order, which is instantaneous in nature.

 

Maker

Taker

Contributes liquidity to order books

Extracts liquidity from order books

Executes without immediate fulfillment

Executes with immediate fulfillment

BingX Spot Fee*: 0.1%

BingX Spot Fee*: 0.1%

BingX Perpetual Futures Fee: 0.02%

BingX Perpetual Futures Fee: 0.05%

BingX Standard Futures Fee: 0.045% (Only collected when closing a position)

*The fee rate for Spot Grid and Spot Infinity Grid is the same as for Spot. Fee percentage may differ for different pairs, please refer to BingX Fee Schedule for details.

 

 

Understanding BingX Trading Fees

BingX employs a user-friendly fee structure designed to be cost-effective for traders. The recently introduced VIP program brings about a transformation in the prevailing trading fee rates for both the spot and futures markets. Traders can exclusively access benefits through the VIP program or the BingX Loyalty program.

 

The fee structure breakdown is outlined as follows:

Learn more: Everything about BingX fees.

 

BingX Maker and Taker Fee Structure

BingX distinguishes between maker and taker fees based on the swiftness of order fulfillment. Market Orders, executing immediately by purchasing or selling at the best available market price, fall under the category of taker orders.

 

In contrast, Limit Orders are positioned at a predetermined price and execute once the market price matches or surpasses the specified limit. Whether Limit Orders are deemed maker or taker orders is contingent on their timing of fulfillment.

 

Taker Fee Calculation: Order Value × Taker Fee Rate

Maker Fee Calculation: Order Value × Maker Fee Rate

 

Non-VIP

Maker

Taker

Spot Trading Pairs

From 0.1%

From 0.1%

Standard Futures

BingX Standard Futures Fee: 0.045% (Only collected when closing a position)

Perpetual Futures

0.02%

0.05%

 

 

The determination of the order value is dependent on the contract quantity and price. Its computation also varies based on whether you are engaged in spot trading, standard futures, or perpetual futures, explained further below.

 

BingX Spot Trading Fees Example

Given a trading fee rate of 0.1% for the BTC/USDT trading pair, the formula for calculating trading fees is as follows:

 

Trading Fee = Filled Order Quantity x Trading Fee Rate

 

Let's illustrate this with an example using the current BTC price of $40,000, where traders can buy or sell 0.5 BTC for 20,000 USDT.

 

Trader A executes a Market Order to purchase 0.5 BTC using USDT.

 

Trader B employs a Limit Order to buy 20,000 USDT using BTC.

 

Taker's Fee for Trader A = 0.5 x 0.10% = 0.0005 BTC

 

Maker's Fee for Trader B = 20,000 x 0.10% = 20 USDT

 

Upon order fulfillment:

 

For Trader A, who buys 0.5 BTC through a Market Order, a taker's fee of 0.0005 BTC is levied. Consequently, Trader A will receive 0.4995 BTC.

 

For Trader B, who purchases 20,000 USDT through a Limit Order, a maker's fee of 0.1% is applied, resulting in Trader B receiving 19,980 USDT.

 

Spot Trading Fees Comparison Across Platforms

The crypto exchange fee comparison table below across platforms is for entry level or non-VIP accounts for accuracy and ease of comparison.

Crypto Exchange

Maker Fee

Taker Fee

Net Platform Fee

BingX

From 0.100%

From 0.100%

From 0.200%

Bybit

0.100%

0.100%

0.200%

Binance

0.100%

0.100%

0.200%

Huobi

0.200%

0.200%

0.400%

Kraken

0.160%

0.260%

0.420%

Gemini

0.200%

0.400%

0.600%

Coinbase

0.400%

0.600%

1.000%

KuCoin

0.100%

0.100%

0.200%

Bitget

0.100%

0.100%

0.200%

OKX

0.080%

0.100%

0.180%

Note: Official numbers from relevant crypto exchange as of Aug 25, 2023.

 

 

BingX Futures Trading Maker & Taker Fees

Non-VIP

Maker

Taker

Standard Futures

BingX Standard Futures Fee: 0.045% (Only collected when closing a position)

Perpetual Futures

0.02%

0.05%

 

BingX Perpetual Futures Trading Fees Example

To determine the trading fees, the following formula is applied:

 

Trading Fee = Order Value × Trading Fee Rate

 

Where:

Order Value = Quantity / Executed Price

 

For instance, consider Trader A who acquires 10,000 BTCUSD contracts through a Market Order, and Trader B who sells 10,000 BTCUSD contracts via a Limit Order, both at an execution price of $40,000.

 

For Trader A, the taker fee is calculated as follows:

Taker fee for Trader A = (10,000 / 40,000) × 0.05% = 0.000125 BTC

 

For Trader B, the maker fee is calculated as follows:

Maker fee for Trader B = (10,000 / 40,000) × 0.02% = 0.00005 BTC

 

Once executed, Trader A will incur a taker's fee of 0.000125 BTC, while Trader B will be subject to a maker's fee of 0.00005 BTC.

 

Perpetual Futures Fees Comparison Across Platforms

The crypto exchange fee comparison table below across platforms is for entry level or non-VIP accounts for accuracy and ease of comparison.

Crypto Exchange

Maker Fee

Taker Fee

Net Platform Fee

BingX

0.020%

0.050%

0.070%

Bybit

0.020%

0.055%

0.075%

Binance (USD(S)-M Futures)

0.020%

0.040%

0.060%

Huobi

0.020%

0.040%

0.060%

Kraken

0.020%

0.050%

0.070%

KuCoin

0.020%

0.060%

0.080%

Bitget

0.020%

0.060%

0.080%

OKX

0.020%

0.050%

0.070%

BitMEX

-0.025%

0.075%

0.050%

Note: Official numbers from relevant crypto exchange as of Feb 17, 2023.

 

 

BingX Deposit and Withdrawal Charges

When trading cryptocurrency on BingX, there is no deposit fee. However, it is important to be aware that withdrawal fees are applicable, specific to the cryptocurrency you intend to withdraw. It is recommended to be attentive to the different withdrawal fees that are associated with any withdrawal, regardless of the amount, from the BingX platform. For comprehensive information on the minimum withdrawal thresholds and fees applicable to funds withdrawal, traders are encouraged to refer to the withdrawal page, which is adjusted to the chosen blockchain for the withdrawal.

 

Considerations

Traders should keep in mind that the withdrawal fees on BingX are not factored into the amount displayed on the screen. To get the final withdrawal sum, users should incorporate the indicated fees. Detailed information regarding the minimum withdrawal thresholds and fee specifics can be conveniently found within the withdrawal window.

 

This approach ensures that traders are well-informed about the potential charges associated with their withdrawal transactions, promoting transparency and informed decision-making.

 

 

Conclusion

BingX presents an intelligent and user-friendly trading platform, offering a seamless avenue to purchase, sell, trade, and earn APY from cryptocurrencies engaged in BingX transactions. Initiating your journey on BingX is straightforward, requiring completion of a brief KYC process. The platform's website and app are designed with user convenience in mind, facilitating trading at any hour.

 

Before embarking on your trading endeavors, it's essential to comprehend the fee structures in place. BingX employs a straightforward maker/taker model to compute trading fees, striking a balance between affordability and the enhancement of order book liquidity. Notably, deposit fees are absent, and withdrawal fees are maintained at minimal levels. Both spot and futures trading fees adhere to transparent and easily calculable formulas.

 

With a clear grasp of the fee framework, you can confidently execute trades on BingX. Beyond the choice to act as market makers, there exist additional strategies to curtail the accumulation of trading fees. BingX extends incentives in the form of trading rebates, VIP discounts, and loyalty programs, thereby offering opportunities to reduce fee outlays. The BingX Rewards Hub further amplifies the allure, housing attainable prizes waiting to be claimed, often just a click away.

 

 

Further Reading

Earn Free USDT on BingX Exchange
Web 3 Wallets and dApps

Crypto Arbitrage : The Low Hanging Fruits of Crypto

Claim More New User Rewards

Claim Now