BNB Margin Interest Discount: Save 5% on Borrowing Costs

Beyond the well-known 25% trading fee discount, Binance also offers a 5% discount on margin interest rates when BNB is used to pay interest charges. For active margin traders, this additional saving can be significant.

What Is Margin Interest on Binance?

When you borrow assets to trade on margin, Binance charges hourly interest on the borrowed amount. For example, Bitcoin borrowing carries an hourly interest rate of approximately 0.00014629%. While this sounds small, it compounds over time — leaving a leveraged position open for days or weeks accumulates meaningful interest costs.

How Does the BNB Interest Discount Work?

By enabling BNB to pay margin interest in your account settings, Binance applies a 5% discount to the effective interest rate. Instead of paying the full hourly rate in the borrowed asset, you pay a 5% reduced equivalent in BNB. This applies to both Cross Margin and Isolated Margin positions.

How to Enable BNB Margin Interest Payment

Navigate to your Margin account settings and look for the BNB fee/interest payment option. Toggle it on and ensure your Spot Wallet holds sufficient BNB to cover interest charges as they accrue hourly. The setting is separate from the spot trading BNB fee deduction toggle.

Combined Savings for Margin Traders

Active margin traders benefit from two BNB-related discounts simultaneously: the 25% reduction on margin trading fees (maker/taker) and the 5% reduction on interest charges. Together with VIP tier discounts, the total cost of margin trading can be reduced substantially compared to paying all fees at standard rates.

Comparing Margin Interest Rates by Asset

Different assets carry different hourly margin interest rates on Binance. Major assets like BTC and ETH typically carry lower rates than smaller altcoins. Higher VIP levels also receive reduced margin interest rates. Combining VIP status with BNB interest payment gives the maximum possible reduction in margin borrowing costs.