Understanding Maker and Taker Fees in Cryptocurrency Trading

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When trading cryptocurrencies, every transaction comes with costs — and understanding these fees is crucial for maximizing profits and minimizing expenses. One of the most important distinctions in crypto exchange fee structures is between maker fees and taker fees. These two types of charges depend not on what you're trading, but how you're trading: whether your order adds liquidity to the market (maker) or removes it (taker).

This guide breaks down everything you need to know about maker and taker fees, how they work, and how they impact your overall trading strategy.


What Are Cryptocurrency Trading Fees?

Trading digital assets like Bitcoin or Ethereum isn’t free. Exchanges charge fees for facilitating transactions, and these costs can vary significantly based on several factors — including order type, trading volume, and platform policies.

Most crypto exchanges classify trades into two main categories:

These classifications directly affect the fees you pay and play a vital role in maintaining market efficiency and stability.

👉 Discover how different order types affect your trading costs and learn strategies to optimize them.


Maker vs Taker Fees: The Core Difference

At the heart of every exchange’s pricing model lies the maker-taker fee structure, designed to incentivize behaviors that support healthy markets.

What Is a Maker Fee?

A maker is a trader who places an order that does not execute immediately but instead waits in the order book — thereby adding new liquidity to the market. These are typically limit orders set at a price different from the current market rate.

For example:

Exchanges reward makers because their orders improve market stability, reduce slippage, and make trading smoother for everyone.

Key Traits of Maker Orders:

However, there's a trade-off: you must wait for your price to be met, which may not happen if the market moves away from your specified level.

What Is a Taker Fee?

A taker removes liquidity by fulfilling an order already present in the book. This includes market orders or limit orders that match existing bids/asks immediately.

For instance:

Taker fees are generally higher because takers benefit from immediate execution — a service enabled by makers who provided the underlying liquidity.

Key Traits of Taker Orders:


Can an Order Be Both Maker and Taker?

Yes — in some cases, a single order can incur both maker and taker fees.

Imagine this scenario:

Thus, one order can result in split fee treatment, depending on how much executes immediately versus how much remains pending.

👉 See how advanced trading tools can help you control whether your orders act as makers or takers.


Why Do Exchanges Use Maker-Taker Pricing?

The maker-taker model isn’t arbitrary — it’s a strategic mechanism used by exchanges to:

By offering lower (or even rebated) fees to makers, exchanges create incentives for participants to build deeper, more resilient markets.

This system benefits all users indirectly — even takers — because increased liquidity leads to better price discovery and faster executions.


Common Misconceptions: Maker ≠ Market Maker

It's easy to confuse “maker” with “market maker,” but they aren’t the same.

Market makers often operate under special agreements with exchanges and receive rebates or incentives beyond standard maker discounts.

While individual traders can act as makers, true market makers play a broader role in stabilizing entire markets.


How to Choose Between Maker and Taker Orders

Your choice should align with your trading goals:

GoalRecommended Order Type
Save on feesUse limit orders (aim to be a maker)
Execute quicklyUse market orders (accept taker fees)
Precision controlUse limit orders with strategic pricing
High-frequency tradingOptimize for maker rebates

Keep in mind: not all exchanges charge the same. Some offer tiered fee models based on 30-day trading volume, while others provide fee discounts for paying with native tokens (e.g., OKT, BNB). Always review the fee schedule before choosing a platform.

👉 Compare real-time fee structures across major exchanges and find the most cost-effective option for your strategy.


Frequently Asked Questions (FAQ)

Q: Are maker fees always lower than taker fees?

Generally yes. Exchanges incentivize liquidity provision, so maker fees are typically lower — sometimes even negative (you get paid to place the order). However, during periods of high volatility or on niche platforms, the difference may shrink or reverse temporarily.

Q: How do I know if my order will be a maker or taker?

If your limit order price is better than the current best bid/ask, it won’t execute immediately and becomes a maker. If it matches or crosses the spread (e.g., buying at the ask), it acts as a taker.

Q: Can I avoid taker fees completely?

You can minimize them by using only limit orders placed outside the current spread. However, this means giving up instant execution — a trade-off between cost savings and speed.

Q: Do all crypto exchanges use maker-taker fees?

Most major spot and derivatives exchanges do. However, some peer-to-peer (P2P) platforms or decentralized exchanges (DEXs) may use different models. Always check the fee policy.

Q: What happens if part of my order executes immediately?

You’ll pay taker fees on the executed portion and maker fees on any remaining amount that stays in the book. This partial execution is common with large orders.

Q: Can I lose money due to poor fee management?

Yes. Over time, consistently paying higher taker fees without justification can erode profits — especially for active traders. Optimizing order types is key to long-term success.


Final Thoughts: Optimize Your Trading Strategy

Understanding the difference between maker and taker fees empowers you to make smarter decisions in the crypto market. While saving on fees might seem minor per trade, over hundreds of transactions, those savings add up — especially for frequent traders.

By strategically placing limit orders to act as a maker, you can reduce costs and contribute positively to market health. Conversely, accepting taker fees makes sense when speed is essential — such as during fast-moving news events or breakout trades.

Always research an exchange’s fee structure, consider your trading style, and use tools that help you monitor order behavior. With the right approach, you can balance cost-efficiency with execution quality.


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