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.

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.

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.

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.

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.

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.

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.

Yasher Rizwan