What Is a Bybit Subaccount and Why Should You Use It?

Every smart trader knows it’s crucial to create subaccounts to ensure greater trading efficiency. Subaccounts are mini-accounts under a main account that can help you compartmentalize your assets and investments, giving you better control over the management of your trades. 

Bybit also offers a Subaccount option for you to achieve your different trading objectives. Also, starting in July 2024, you can enter Bybit trading competitions (such as WSOT and Copy Trading Titans) using your Subaccounts, introducing a new level of organization and fairness to the competitive trading landscape. Curious to learn more about how Bybit Subaccount can help you with your trades? Read on to find out.

Key Takeaways:

• Bybit Subaccount is a free smaller account under the wing of a master account, the Bybit Main Account.

• There are two types of Subaccounts on Bybit: Standard Subaccount and Custodial Trading Subaccount.

• Up to 20 Standard Subaccounts can be created for trading purposes, with up to four eligible for trading competition use.

What Is a Bybit Subaccount?

A Bybit Subaccount is a smaller standalone account nested under the Bybit Main Account. You’ll first have to sign up with Bybit, complete Lv. 1 KYC verification and open a Main Account before you can create a Subaccount. 

There’s no minimum balance required to keep Subaccounts active. In addition, no fees are required for creating and maintaining Subaccounts or for transferring assets between them and the Main Account. 

There are two main types of Bybit Subaccounts you can use: Standard Subaccount and Custodial Trading Subaccount. 

Types of Subaccounts

Standard Subaccount

You can manage all of your trades directly under a Standard Subaccount, including API trading, and transfer any of the coins listed in your Assets Overview page to your Standard Subaccount. You’ll also enjoy the trading fee discounts awarded to your Main Account on your Subaccounts.

However, you won’t be able to invest in Bybit Earn products using your Standard Subaccount. As the P&L of Standard Subaccounts are separate from the Main Account, you’ll have a more streamlined tracking of your earnings and losses in each account. Note that your total asset amount is automatically calculated and quoted in Bitcoin (BTC).

To create a Standard Subaccount, you’ll need to create a username. You can easily log in to your Standard Subaccount via the Switch feature on the Subaccount tab in your Main Account. You can also create a Custom Subaccount, for which you’ll need to create a username and password to log in directly to the Subaccount. 

You can create two Standard Subaccount types: a Standard Account or a Unified Trading Account. When you create a Unified Trading Account as your Subaccount, all of your Spot and Derivatives trading activities (except Inverse Derivatives) and all of your assets will be merged into a single account. This feature is useful for professional traders who wish to optimize their trading and maximize their asset use.

You can connect up to 20 Standard Subaccounts to your Main Account, allowing you to try out up to 20 trading strategies and tools and track their progress in different accounts. (Note that KYC verification isn’t required for Standard Subaccounts.) After creating your Standard Subaccount, you can bind it to Google Authenticator to boost your security, and delete it under the Subaccount tab if you wish. 

Custodial Trading Subaccount

With a Custodial Trading Subaccount, you can entrust your assets to professionals to manage in order to enjoy a hassle-free trading experience. The choice of the professional trading team lies in your hands, giving you more control in choosing a trusted partner for yourself. Note, however, that the trading team you choose should be a current partner with Bybit.

Since the trading team executes the trades, you won’t be able to trade personally or view your trade and order history in the Custodial Trading Subaccount. This is in order to protect their trading strategies. However, your trades made in this account will benefit from the same VIP level and trading fee rates of the Main Account of the trading team. Also, just as with Standard Subaccounts, the P&L of your Custodial Trading Subaccount is distinct from the Main Account, and you can delete this Subaccount easily on the Subaccount tab. 

You can transfer your Spot assets between your Main Account and Custodial Trading Subaccount. The Custodial Trading Subaccount only supports USDT Perpetual, Inverse Perpetual, Inverse Futures and Spot trading, while USDC Perpetuals and USDC Options trading aren’t supported. 

You can link up to 10 Custodial Trading Subaccounts as an investor, and up to 20 Custodial Trading Subaccounts as a professional trading team.

Bybit Subaccount vs. Main Account vs. Unified Trading Account vs. Bybit Web3

Bybit Subaccount vs. Main Account

While Bybit Subaccounts offer a way for you to better organize your trading activities, a Subaccount has several restrictions that a Main Account has access to. 

Some benefits that you can enjoy only with the Main Account are as follows:

• Can be registered via a referral program

• Can be registered as an Affiliate Account 

• Can receive trading bonuses or coupons 

• Can join campaigns and receive rewards from the Rewards Hub

• Can deposit and withdraw assets

• Can perform two-way transfers between the Main Account itself and all existing standard Subaccounts, as well as transfers between two Subaccounts

That said, a significant adjustment has been made to a privilege once exclusive to the Main Account that Subaccounts can now also enjoy — namely, participating in Bybit’s trading competitions. Previously, only Main Accounts could participate in competitions, favoring those with large amounts in their Main Accounts. 

Now, with the introduction of Subaccounts in competitions, every trader will start with the same amount. This ensures a level playing field, empowering those with actual trading skills to truly shine over those with resource advantages. Furthermore, you can create up to four Standard Subaccounts to participate in multiple competitions simultaneously and maximize your rewards.

What’s more, if you’re already a Bybit VIP user and use Subaccounts instead of just your Main Account to trade, you’ll be able to easily attain a higher VIP level, as the trading volume generated from your Subaccounts will be attributed to your Main Account. Additionally, you can essentially enjoy lower VIP fees, since you’ll be paying the same fees as you do when you trade on your Subaccounts as compared to merely trading on your Main Account.

Bybit Subaccount vs. Unified Trading Account 

While Bybit Subaccounts lets you organize your funds and track your investments in separate accounts, a Unified Trading Account (UTA) centralizes Spot, Futures and Options trading into one account. 

Subaccounts provide risk diversification by isolating trading activities, as each Subaccount operates independently with segregated P&L. On the other hand, a UTA combines your profits and losses from all product investments, reducing your risk of liquidation during a volatile market as it aggregates the overall exposure, balancing out gains and losses.

You can open your UTA as a Subaccount, which would upgrade your Main Account to a UTA. UTA unifies all your assets into one account, and you can perform Spot, Futures and Options trading within the account. This makes trading convenient and efficient, since you no longer have to transfer your assets between your accounts for trading as long as your overall portfolio value is sufficient. It’s also a margin trading system in which unrealized Derivatives profits can be used as margin for trading various Bybit products. 

Upon upgrading your account, your Spot and Derivatives Accounts will merge into a Unified Trading tab, which cannot be reversed after the upgrade. This change is reflected in your Main Account and all the Subaccounts you create. Since the upgrade is irreversible, it’s advised that you try Demo Trading before upgrading to the UTA. 

Bybit Subaccount vs. Bybit Web3

Bybit Subaccounts are targeted at professional traders and institutions to aid their management of multiple accounts. The ability to create up to 20 Subaccounts under one master account is useful for both individual traders who want to segregate their assets and test out different strategies, and institutional traders who need to manage accounts for multiple clients. 

Meanwhile, Bybit Web3 caters to users interested in exploring decentralized finance (DeFi) and web3 while leveraging the infrastructure and security of a centralized exchange (CEX). Bybit Web3 offers many different services — from sophisticated decentralized trading platforms like DEX Pro to NFT platforms like NFT Pro — as well as many ways to earn passive income, such as through airdrops and staking. To access all the benefits of Bybit Web3, you’ll need a Bybit Wallet, a custodial wallet that obviates KYC in order to help you manage your private key.

The assets of Bybit Subaccount and Bybit Web3 cannot be internally transferred. 

Closing Thoughts

Bybit Subaccount unveils a world of possibilities for professional traders seeking a more streamlined way to improve their trading strategies, and helps institutional traders manage their customers’ assets. Furthermore, the introduction of Bybit Subaccounts to trading competitions has added a new level of fairness and excitement, as traders can now simultaneously showcase their skills equally in multiple competitions. This ensures that true trading talent is recognized and rewarded, regardless of initial capital size. Bybit VIP users will also benefit from using Subaccounts, such as an easier ascent to a higher VIP level, and paying the same VIP fee rate despite using more accounts to trade. 

In conclusion, those looking to elevate their trading efficiency and strategy management will find Bybit Subaccount an invaluable tool for its ability to provide a robust solution for both individual and institutional traders.

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