Jun 4, 2025
Understanding maker and taker fees is essential for successful cryptocurrency trading. While the differences might seem small, they compound significantly over time, especially for active traders.
The key is finding the right balance between low fees, security, and features that match your trading style. Remember that the cheapest option isn’t always the best. Consider the total cost of trading, including security risks, liquidity, and user experience.
What Are Maker and Taker Fees?
Crypto exchanges typically use the maker-taker fee model to incentivize market liquidity.
Maker Fees: Charged when your trade order adds liquidity to the market. Makers typically place limit orders that do not immediately fill but instead rest on the order book.
Taker Fees: Charged when your trade order removes liquidity from the market. Takers typically place market orders or limit orders that execute immediately.
Maker Fees Explained
Maker fees are usually lower (sometimes even zero or negative) than taker fees. This encourages traders to add liquidity by placing limit orders, which helps maintain stable market prices and narrower spreads.
Example of Maker Fee:
You place a limit buy order for Bitcoin at $100,000 when the market price is $101,000. Your order is added to the order book.
Once your order gets executed (when someone matches your buy order), you’re charged a maker fee, which is typically lower.
Taker Fees Explained
Taker fees tend to be higher because takers immediately execute orders, reducing liquidity. Traders who use market orders or aggressive limit orders to quickly enter or exit positions are takers.
Example of Taker Fee:
You place a market buy order for Bitcoin at the current market price of $101,000.
Your order immediately executes against existing limit sell orders. Since you’re removing liquidity from the market, you pay a higher taker fee.
Why Exchanges Use Maker-Taker Fees
Liquidity Incentive: Encouraging traders to provide liquidity by rewarding makers helps exchanges maintain healthy and stable markets.
Revenue Generation: Charging taker fees helps exchanges generate consistent revenue due to traders’ frequent, immediate execution.
How to Reduce Your Trading Fees
Use Limit Orders: Whenever possible, place limit orders to qualify for lower maker fees.
High Trading Volumes: Exchanges usually offer lower fees for traders with high trading volumes.
Exchange Tokens: Some platforms, like Binance, offer reduced fees if traders pay with their native exchange tokens (e.g., BNB).
Promotions and Rebates: Regularly check exchanges for promotional offers or rebates that can lower your overall fees.
Conclusion
As the cryptocurrency market continues maturing, we can expect fee structures to become even more competitive. Stay informed, compare options regularly, and choose platforms that align with your trading goals and risk tolerance.
Whether you’re looking to enhance market liquidity, execute large trades, optimize treasury operations, or explore strategic partnerships, Rootstone is here to help.
