What Is the Difference between the Funding Fee and the Trading Fee?

The trading fee is a commission charged by the exchange for executing a trade (opening or closing a position). It is paid to the exchange.

The funding fee (or funding payment) is a periodic transfer of money directly between traders (longs pay shorts or vice versa) to align the contract price with the spot price. The exchange only facilitates the transfer and does not profit from the funding fee itself.