Binance Copy Trading: Profit Sharing vs. Trading Fees – What's the Difference?

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Profit sharing and trading fees are two separate parts of the cost when you follow a lead trader. One is based on whether you make money. The other is charged on every trade.

Binance Exchange
The world's largest cryptocurrency exchange by trading volume,leading in security and liquidity.
New user benefit: Enjoy 20% off trading fees upon registration!

Profit Sharing: A "Cut" Paid Only When You Profit

This is the share of your profits that you, as a copy trader, give to the lead trader. It is basically a performance fee. If you lose money, the lead trader does not receive this money.

  • Standard rate: Lead traders usually receive 10% of your profit. If you earn 100 USDT, the lead trader gets 10 USDT and you keep 90 USDT.

  • Higher rate after upgrade: If the lead trader is an "Elite Lead Trader," the profit-sharing rate can rise to a maximum of 30%.

  • How it is calculated: It is based on the total profit and loss of the whole portfolio. If you make 200 USDT this week and your cumulative profit is 200 USDT, a 10% profit share equals 20 USDT. If you lose 150 USDT next week, your cumulative profit drops to 50 USDT. Since 20 USDT has already been shared, no additional profit share is taken that week. A new share is only paid when cumulative profit exceeds its previous high.

  • When it is paid: Settlement usually happens every Monday, and the money is automatically sent to the lead trader's Spot Wallet. Settlement also happens when you stop copy trading or when the lead trader ends the portfolio.

Trading Fees: A "Toll" Charged on Every Trade

This part is the trading fee automatically deducted each time you make a copy trade. The lead trader can also receive a commission rebate from it.

  • Fee rate: Fees are charged at the normal rate based on your account's VIP level. BNB cannot be used to offset them.

  • Lead trader rebate: The lead trader can receive 10% of your trading fees as an extra commission.

  • How it works: Whether the trade makes money or loses money, as long as the lead trader opens a position and you copy it, the trading fee is charged and the lead trader can earn this commission.

The One-Sentence Difference

  • Profit sharing is tied to your final profit and losspaid only when you make money.

  • Trading fee rebate is tied to your tradespaid whenever you trade.

These Do Not Affect Your Referral Commission

If you registered on Binance through someone else's referral link, your referrer can already earn a commission from your trading fees. The 10% fee commission the lead trader receives when you copy trade does not affect the commission your referrer is supposed to get. It is as if the exchange pays the lead trader an extra share from the fees it has collected.

Binance Exchange
The world's largest cryptocurrency exchange by trading volume,leading in security and liquidity.
New user benefit: Enjoy 20% off trading fees upon registration!

Risk Reminder: Profit Sharing Counts Only Profit, Not Losses

Profit sharing is only deducted when you have cumulative profit. You do not get a refund when you lose money. In the first week, you made 200 USDT and shared 20 USDT with the lead trader. In the second week, you lost 300 USDT. That 20 USDT will not be returned to you. Lead traders earn only when you make money; they do not share your losses.