Trading fees and funding fees are not the same thing. Trading fees are charged when an order is executed on the platform. Funding fees, on the other hand, are payments exchanged between long and short traders in perpetual futures.

Toobit facilitates the calculation and transfer of these payments rather than charging them as a regular platform fee.

That distinction matters because traders may see both in their futures account and assume they are simply two versions of the same cost. They are not. One is the cost of executing a trade; the other is a mechanism that helps keep perpetual futures prices aligned with the underlying market.

You pay trading fees to execute orders

Trading fees are the simpler of the two. They apply when your order is filled.

On Toobit, futures trading uses separate maker and taker rates. Standard spot trading is currently commission-free, while Spot Assessment Zone pairs follow a separate fee schedule. Toobit’s fee rates can also vary by VIP level.

For the current breakdown, you can review Toobit’s fee rate page.

In simple terms, trading fees are part of the cost of entering or exiting a position. If you open a futures position and later close it, a trading fee may apply to both transactions, depending on how your orders are executed.

Funding fees are exchanged between traders

Funding works differently. It applies to perpetual futures, which do not have an expiry date.

Because perpetual contracts do not expire, funding helps keep their prices close to the underlying spot price. Instead of being a standard platform charge, funding is a periodic payment exchanged between traders on opposite sides of the market.

• If the funding rate is positive, longs generally pay shorts.

• If the funding rate is negative, shorts generally pay longs.

That is why funding should not be read as an extra service fee from the exchange. It is a market mechanism.

The exact funding interval can vary by contract, so traders should check the details of the specific perpetual they are trading. For further clarity, traders can read Toobit Academy’s guide to funding rates as well as how funding fees are calculated.

Why do traders confuse the two?

The confusion is understandable because both can affect your final futures P&L, but they happen for different reasons.

A trading fee comes from executing an order. A funding fee comes from holding a perpetual position through a funding settlement.

So, you could be right about the market direction and still end up with a smaller profit than expected if:

• you paid trading fees when opening and closing the position

• you also paid funding while holding the position

That does not mean you were charged the same fee twice. It means two different costs affected the trade.

A quick example makes the difference clearer

Imagine you open a BTC perpetual long.

First, your order is filled, so a trading fee applies based on the relevant maker or taker rate.

You then keep the position open. If the contract reaches a funding settlement time and the funding rate is positive, longs may pay shorts. That creates a funding fee.

Later, you close the position, which may result in another trading fee.

So, one position could involve:

• an entry trading fee

• a funding payment or receipt

• an exit trading fee

Each one represents a different part of the trading process.

What traders should check before assuming a mistake

If your futures P&L or available balance is not what you expected, check:

• whether your order was charged a maker or taker trading fee

• whether you held the position through a funding settlement

• whether funding was paid or received on your side of the market

• whether you opened and closed the position multiple times, which can add more trading fees

Checking these separately makes it easier to see where the difference came from.

Trading fees are execution costs, while funding is a payment between traders that helps keep perpetual futures prices in line with the underlying market.

Trading fees vs. funding fees in a nutshell

Trading fee: The fee paid when a trade is executed on the platform.

Funding fee: A payment exchanged between long and short traders in perpetual futures. Toobit generally calculates and settles these payments rather than charging them as a regular platform fee.

Understanding the difference makes your account activity easier to follow. Trading fees are tied to opening or closing trades, while funding fees depend on how long you keep a perpetual position open and whether you pay or receive funding.