What Are Maker Fees and Taker Fees in Crypto Trading?

Trading cryptocurrencies on a centralized exchange (CEX) involves transaction fees, typically classified into two types: maker fees and taker fees. Understanding the difference between them is essential for any crypto trader looking to manage trading costs efficiently.

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Maker-Taker Fee Model

Most crypto exchanges follow a maker-taker fee model:

• Maker Orders: Add liquidity to the market by placing limit orders that are not filled immediately.
• Taker Orders: Remove liquidity by executing immediately against existing orders.

Maker fees are generally lower than taker fees, and both are often tiered based on your 30-day trading volume. The higher your trading volume, the lower your fees.

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What Is a Maker Fee?

A maker fee is charged when you place an order that sits in the order book waiting to be matched.

You are a maker if:

• You place a buy limit order below the best ask price.
• You place a sell limit order above the best bid price.

These orders add liquidity, which helps other traders execute their orders quickly.

Example:

• BTC/USD is trading at $31,000.
• You place a buy limit order at $30,000.
• Your order is not executed immediately but rests in the order book.

This makes you a maker, and you’ll be charged a lower fee once the order is filled.

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What Is a Taker Fee?

A taker fee is charged when your order is immediately matched with an existing order.

You are a taker if:

• You place a market order that executes immediately.
• You place a limit order that instantly matches an existing order.

These orders remove liquidity from the market.

Example:

• BTC/USD is trading at $31,000.
• You place a market order to buy 1 BTC.
• The order is immediately executed at the best available price.

This makes you a taker, and you’ll be charged a higher fee.

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Fee Example

Let’s assume:

• Order size: 3 BTC at $30,000 = $90,000
• 30-day trading volume: $100,000
• Exchange fee schedule: Maker fee = 0.15%, Taker fee = 0.25%

Taker Fee:

• $90,000 * 0.25% = $225

Maker Fee:

• Order size: 100 BTC at $20,000 = $2,000,000
• 30-day trading volume: $10M
• Maker fee = 0.02%
• $2,000,000 * 0.02% = $400

As seen above, maker fees are lower, encouraging traders to provide liquidity.

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Mixed Orders

Sometimes, an order may be partially executed immediately and the remaining part placed in the order book. In this case:

• The executed part incurs a taker fee.
• The remaining part incurs a maker fee once filled.

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Key Takeaways

• Makers add liquidity and are rewarded with lower fees.
• Takers remove liquidity and are charged higher fees.
• Use limit orders when possible to reduce trading costs.
• Understand the exchange’s fee structure before trading.

By mastering the maker-taker model, traders can optimize their strategy and minimize fees while trading on platforms like Binance, Coinbase, and others.