Does Binance Take Fees Or It Is Free To Use? Learn About Binance's Hidden Charges

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Does Binance Take Fees Or It Is Free To Use? Learn About Binance's Hidden Charges

Does Binance Take Fees Or It Is Free To Use? Learn About Binance's Hidden Charges

Binance is one of the leading cryptocurrency exchanges in the world. It often has the largest market capitalization when compared with other platforms. A lot of people think Binance offers free services like free conversion fees, free deposit fees, free withdrawal fees, free trading fees, etc., but is this really true?

While most transactions on Binance are purported to be free, this is really not the case. For some transactions on the platform, you will see the fees displayed such as, making a P2P transaction for instance, the charges could go as high as #1,000 depending on the amount of money you want to deposit, though Binance claims that deposits on the platform are free as available here:

Binance deposit fee disclaimer

Let's also assume that I want to buy Crypto on Binance using the 'express' method, I get a 'buy with 0 fee' prompt. But is that really the case when I complete the order?

Buying Crypto using the express method on Binance

When I click the 'Buy with 0 fee', the quoted price changes and the actual amount of crypto I would receive after order completion also reduces

Buying using express on Binance

Now let's assume I want to make a crypto purchase from one of the quotes on Binance using Binance P2P.

Buying crypto using binance P2P
Buying crypto using Binance p2p

For Some P2P transactions, you receive the price quoted by the advertiser because sellers determine their price. However, other transactions via P2P may have variable prices depending on the amount of money being transacted.

Sometimes on Binance, you may not see a fee quoted but after the transaction, you receive an amount lower than what is expected, leaving you wondering where the rest of the money had gone.

After all, a free fee structure was quoted, so what reduced the amount received?

The screenshots below, are transactions from a Binance convert which showed that the conversion fee was 0, but the amount of crypto received after converting from USDT to BTC was lower than the quote:

Bimance convert showing conversion details
Conversion of 6.325 USDT yielded 0.00021433BTC at a quoted price of 0.00003389 BTC

Actual conversion price, different from market price

Do you see any discrepancy from the two images above?

The first image showed a conversion made on Binance using Binance convert. Even though Binance showed 'No fees' in the 'Transaction Fees' section, there was actually a hidden fee - or would you call that a computation error?

The prevailing market price at the time of transaction execution was 29,265.81 BTC/USDT. The conversion price was 0.00003389. If you do the computation, you find out that Binance did the conversion at a price which is higher than the market price: 29,507.23.

That's a difference of $241.42.

Hence if I converted 1BTC, I would have paid $241.42 to Binance as a hidden fee while I would go back feeling that I made a feeless transaction.

Of course Binance needs to charge fees to survive as a business, more so that there are no other ways in which it generates income for the business other than the fees it takes; but a lot of people are on the platform feeling that they are making free transactions whereas, it's not so.

Who knows, maybe the free charges hype is one of the reasons behind Binance's large userbase, but actually, they can do better by being transparent with their homongous charges. Do the above calculation and you will arrive at a fee of approximately 0.83% all hidden, with no capping; but Binance keeps on deceiving users that there was no transaction fee attached.

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