Copy trading has become a popular way for experienced traders to monetize their strategies while helping newcomers benefit from proven market performance. On Binance, users who lead copy trading portfolios can earn both revenue sharing and trading fee commissions—offering a dual-income opportunity in the crypto space. This guide breaks down how the system works, how payouts are calculated, and what you need to know to maximize your returns.
How Binance Copy Trading Rewards Work
When you set up a copy trading portfolio on Binance, followers can mirror your trades automatically. As a leader (or "signal provider"), you're eligible for two types of earnings:
- 10% revenue share from your followers’ realized profits
- 10% commission rebate on your followers’ trading fees
These incentives are designed to reward consistent performance and encourage transparency and long-term strategy development.
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Key Terms You Should Know
- Revenue Share: A percentage of the net profit your followers make when copying your trades.
- Commission Rebate: A portion of the trading fees your followers pay, returned to you as passive income.
- Realized Profit (PNL): Gains locked in when positions are closed—not including open or unrealized gains.
Payout Schedule and Conditions
Binance operates on a weekly cycle for revenue share settlements:
- Calculation Period: Every week from Monday 8:00 AM to Sunday 11:59 PM Hong Kong Time (HKT).
- Distribution Time: Revenue shares are automatically credited every Monday to your Binance spot wallet.
- Settlement Condition: Revenue share is only distributed when the follower’s copy trading portfolio has no open positions.
Note: Commission rebates are not affected by open positions—they are processed independently and do not require portfolio closure.
However, there are three scenarios where revenue share is distributed outside the regular weekly schedule:
- Follower stops copying your strategy
- Leader ends the investment portfolio
- Follower withdraws profits from the copied portfolio
In these cases, any pending revenue share is settled immediately, even if it falls mid-week.
Understanding the Revenue Share Formula
The amount you earn isn’t based on total gains—it’s calculated using realized profits only. Here's the official formula used by Binance:
Pending Revenue = Max[(Total Realized Profit × Share Percentage) - Already Distributed Amount, 0]Where:
- Total Realized Profit = Cumulative net profit after closing trades (fees deducted)
- Share Percentage = 10% (default for most leaders)
- Already Distributed Amount = What you’ve already been paid for that follower
This ensures leaders only earn when followers actually lock in profits—and prevents double-dipping on the same gains.
Step-by-Step Example: Calculating Weekly Earnings
Let’s walk through a real-world example to clarify how this works.
Assume a follower starts with 1,000 USDT and copies your portfolio over four weeks. The revenue share rate is 10%, and all fees are deducted from PNL.
| Week | PNL Change | Cumulative PNL | Total Eligible Share | Previously Paid | Pending Distribution |
|---|---|---|---|---|---|
| 1 | +200 | +200 | 20 | 0 | 20 |
| 2 | -150 | +50 | 5 | 20 | 0 |
| 3 | +100 | +150 | 15 | 20 | 0 |
| 4 | +150 | +300 | 30 | 20 | 10 |
Week-by-Week Breakdown
- Week 1: The portfolio gains $200. Total eligible share = 10% × $200 = $20. No prior payments, so $20 is pending.
- Week 2: Loss of $150 reduces cumulative profit to $50. New share = $5, but you’ve already received $20—so no additional payout.
- Week 3: Profit increases to $150 cumulative. Share = $15, still less than $20 already paid → no new distribution.
- Week 4: Profit jumps to $300. Share = $30. Since $20 was already paid, the system releases the difference: $10.
This model protects leaders during volatile swings while ensuring fair compensation when net profits grow.
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Frequently Asked Questions (FAQ)
Q: Can I earn revenue share on unrealized profits?
No. Only realized profits—gains from closed positions—are eligible for revenue sharing. Open or floating gains do not count until trades are settled.
Q: Are losses carried forward?
Yes. If a follower incurs losses in one week, they reduce the cumulative profit base. Future profits must offset those losses before new revenue share is generated.
Q: Is there a minimum payout threshold?
There is no minimum payout amount. As long as there’s a positive pending balance and settlement conditions are met (e.g., no open positions), the full amount will be distributed.
Q: How are trading fees calculated for commission rebates?
Commission rebates are based on the actual trading fees paid by followers when executing copied trades. These are calculated in real time and rebated weekly, regardless of portfolio status.
Q: What happens if a follower adds more funds mid-cycle?
Additional capital doesn’t reset profit calculations. The system continues tracking net realized PNL from the start of the copy session. New deposits increase potential future profits but don’t affect past performance metrics.
Q: Can I customize my revenue share rate?
Currently, Binance sets the standard rate at 10%. Leaders cannot adjust this percentage—it's fixed across all copy trading portfolios.
Maximizing Your Earnings as a Leader
To build a sustainable income from copy trading, consider these best practices:
- Focus on consistent profitability over high-risk swings.
- Maintain clear communication with followers about your strategy and risk level.
- Avoid frequent changes to your portfolio that may trigger premature profit-taking.
- Encourage longer-term participation to stabilize earnings flow.
Transparency builds trust—and trust leads to more followers, higher volume, and greater passive income over time.
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Final Thoughts
Binance’s copy trading revenue model offers a compelling opportunity for skilled traders to earn beyond their own capital. With a clear structure for profit-sharing and fee rebates, it rewards discipline, consistency, and strategic thinking.
By understanding how payouts are calculated and when they’re distributed, you can better manage expectations and optimize your approach. Whether you're just starting or scaling an existing following, mastering these mechanics is key to long-term success in decentralized finance.
Remember: every dollar earned by your followers can generate passive income for you—if your strategy delivers real results.
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