Too expensive!" CZ's words put Binance's TWAP fees in the spotlight
Brothers, I also have to say a few words about TWAP fees!
This morning, I saw CZ personally respond to "too expensive"; to be honest, I wasn't surprised at all. Binance's TWAP orders are often used when we make trend orders or large batch entries, aiming to reduce slippage and lower market impact. But the problem is, the algorithm for this feature itself isn't complex at all. Anyone who understands a bit of strategy can write a script to run it quite well.
As a result, the platform charges an extra 0.12% fee. What does that mean? If you're running a $5 million order, the fees alone would wipe out $6,000! And this is just the "strategy usage fee," not including the basic trading fees. To be honest, spending this money feels wasteful.
CZ's public admission of "too expensive" at least shows that there's some internal reflection. For traders like us who deal with orders every day and emphasize cost control, fee sensitivity is much higher than that of retail investors. 0.12% doesn’t seem much, but over the long run, profits get eaten away significantly.
Next, let's see how Binance adjusts. If they can really lower it, it would be a real benefit for high-frequency and large players. If the status quo is maintained, then I can only say—brothers, if you can do it yourself, don't pay this "IQ tax".
Cost control is the key to survival.