—
title: “Binance vs Bybit Funding Rates: Which Is Better for Arbitrage? (2026)”
slug: “binance-vs-bybit-funding-rates”
author: “Funding Alerts Team”
date: 2026-07-02
schema_type: Article
—
# Binance vs Bybit Funding Rates: Complete Comparison (2026)
Binance and Bybit are the **two largest** perpetual futures exchanges by
volume. This guide compares their funding rates, fees, and the arbitrage
opportunities between them.
## Quick Comparison
| Feature | Binance | Bybit |
|———|———|——-|
| 24h volume | $40B | $15B |
| Funding interval | 8h | 8h |
| Pairs | 350+ | 280+ |
| Maker fee | 0.020% | 0.020% |
| Taker fee | 0.050% | 0.055% |
| KYC | Required | None |
| Best for | Liquidity | No-KYC + cross-exchange |
## Funding Rate Comparison (Real Data, July 2026)
| Pair | Binance (8h) | Bybit (8h) | Spread | APR Spread |
|——|————–|————|——–|————|
| BTC | +0.0085% | +0.0088% | +0.0003% | +0.33% APR |
| ETH | +0.0092% | +0.0095% | +0.0003% | +0.33% APR |
| SOL | +0.0112% | +0.0125% | +0.0013% | +1.42% APR |
| HYPE | (not listed) | +0.0125% | n/a | n/a |
| ARB | +0.0095% | +0.0112% | +0.0017% | +1.86% ARB |
**Observation:** Bybit tends to have **slightly higher funding** than
Binance on most pairs. The spread is usually 0.0001-0.002%/8h = 0.1-2.2%
APR difference.
## Why Does Bybit Have Higher Funding?
1. **No KYC** → more international retail → more speculation
2. **Better copy trading** → more crowded trades
3. **Higher altcoin focus** → less liquidity per pair
4. **Lower liquidity** → more imbalance = higher funding
## Best Strategies for the Binance-Bybit Spread
### Strategy 1: Cross-Exchange Funding Arb (Low Risk)
1. Long on Binance (lower funding, you pay less)
2. Short on Bybit (higher funding, you receive)
3. Collect spread
**Example with SOL:**
– Long SOL on Binance: pay +0.0112%/8h
– Short SOL on Bybit: receive +0.0125%/8h
– Net: +0.0013%/8h = +1.42% APR
– On $50,000: ~$1,775/year
**Risk:** Transfer time, exchange insolvency, slippage. For $50k+.
### Strategy 2: Cash-and-Carry on Bybit
1. Buy SOL on Binance spot
2. Short SOL perp on Bybit
3. Collect higher Bybit funding
4. When funding normalizes, close both
**Example:**
– Long SOL spot on Binance: $50,000 position
– Short SOL perp on Bybit: same size
– Bybit funding: +0.0125%/8h = +13.7% APR
– After 0.05% × 2 fees per side: ~13% APR net
### Strategy 3: Altcoin Funding Arb
For altcoins (not BTC/ETH), the Binance-Bybit spread is larger:
| Altcoin | Binance | Bybit | Spread APR |
|———|———|——-|————|
| ARB | +0.0095% | +0.0112% | +1.86% |
| OP | +0.0052% | +0.0058% | +0.66% |
| AVAX | +0.0095% | +0.0102% | +0.77% |
| SUI | +0.0085% | +0.0091% | +0.66% |
| APT | +0.0068% | +0.0072% | +0.44% |
## Fees: The Hidden Cost
| Exchange | Taker Fee | Maker Fee | Funding Fee |
|———-|———–|———–|————-|
| Binance | 0.050% | 0.020% | 0% |
| Bybit | 0.055% | 0.020% | 0% |
Bybit is slightly more expensive on taker fees. For $50k positions with
monthly rebalancing, this is ~$50/year difference. Negligible.
## Which is Better for Funding Rate Arbitrage?
**Choose Binance if:**
– You want maximum liquidity (tightest spreads)
– You need spot + perp in one place (cash-and-carry is easier)
– You’re OK with KYC
**Choose Bybit if:**
– You want no KYC
– You trade altcoins (Bybit has higher altcoin funding)
– You want copy trading features
**Use both for cross-exchange arb:**
– The most consistent strategy
– 1-3% APR on BTC/ETH
– 2-5% APR on altcoins
## When the Spread Inverts
Sometimes Bybit has **lower** funding than Binance. This happens when:
– Major listing on Bybit (initial excitement on Binance)
– Maintenance issues on Bybit (traders move to Binance)
– Specific event-driven flows
**When this happens:** swap the strategy. Long on Bybit, short on Binance.
## Live Data
Check the [Funding Rate Screener](/funding-rate-screener/) for real-time
Binance vs Bybit spreads. Updated every 30 seconds.
## Disclaimer
Funding rate data is informational only. Not financial advice. Always
verify current rates before trading.