When you receive multiple quotes, do not look only at the premium printed on the quote. That number is only the base. The real transaction cost must also include two fees: trading fee and exercise fee.
Options RFQ quote structure: first understand the visible costs and the hidden costs
In an options RFQ quote, the "quote" itself is the price given by an over-the-counter trading desk. It is usually better than what is available in the order book and has smaller slippage. But that quote does not include the trading fee.
According to Binance's official information, options RFQ trades charge a fixed-percentage trading fee, and the standard exercise fee also applies. This means no matter how attractive the quote looks, these fees must be considered when estimating the actual cost.
Four-step method to compare quotes: from quoted price to final cost
After receiving multiple quotes, do not compare only the premium. Break it down with these steps:
Step 1: Check whether the platform currently waives RFQ fees
Some platforms or certain periods may have RFQ fee-waiver promotions. For example, Binance advertised "zero fees" when launching options RFQ in early 2024, but according to the latest official documentation, RFQ trading now charges a fixed trading fee. First check whether your platform is currently in a promotional period.
Step 2: Ask what the fee rate is
A fixed fee rate is usually charged as a percentage of the notional value of the trade. Different platforms, coins, and trading volume levels have different rates. When you receive a quote, ask the other party for a fee schedule.
Step 3: Calculate the real transaction cost
Real transaction cost = premium + trading fee + exercise fee (if exercised at expiration)
Use this formula for each quote so you can compare them side by side.
Example (numbers are for illustration only):
- Platform A quote: premium 500 USDT, trading fee rate 0.05%, exercise fee 5 USDT → real cost = 500 + 0.25 + 5 = 505.25 USDT
- Platform B quote: premium 490 USDT, trading fee rate 0.08%, exercise fee 5 USDT → real cost = 490 + 0.392 + 5 = 495.392 USDT
The quote with the lower premium may actually be more expensive after fees.
Step 4: Confirm whether the quote format includes fees
Some market makers or OTC desks may bundle fees into the quote (all-in quote), while others list them separately. When you receive a quote, confirm directly: "Does this quote include trading fees and exercise fees?" It is best to get the answer in writing.
Common mistake: comparing only the premium, not the total cost
Many people fall into the trap of comparing only the premium on each quote and choosing the lowest one. Only at settlement do they find that after all fees are deducted, the actual cost is higher than on other platforms.
How to verify after the trade
After the trade, you can check the order details in the platform's [Order History] or [Funds Flow]. If you see two deductions—one for the premium and one for the trading fee—the RFQ trade has been completed. Check whether the total deducted matches your estimate. If not, ask customer support for a fee breakdown.
