Every trade you make on an exchange costs a fee. But not all trades are charged the same. Whether you're a maker or taker determines how much you pay, and sometimes whether you pay at all.

What's the Difference?#

Maker: You add liquidity to the order book. You place a limit order that doesn't fill immediately and sits waiting for someone to match it.

Taker: You remove liquidity from the order book. You place an order that fills immediately against existing orders.

Example#

The order book shows:

• Best bid (buy): $3,000
• Best ask (sell): $3,001

If you place a limit buy at $2,999: Your order sits in the book waiting. You're a maker because you made liquidity available.

If you place a market buy: Your order fills instantly at $3,001 (the best ask). You're a taker because you took liquidity from someone else's limit order.

If you place a limit buy at $3,001 or higher: Your order fills immediately. Even though it's a limit order, you're still a taker because it executed against existing orders.

Why Makers Pay Less#

Exchanges want liquidity. A deep order book with lots of bids and asks makes trading smoother for everyone. To encourage this, exchanges reward makers with lower fees (sometimes zero or even negative, meaning you get paid to trade).

Takers, on the other hand, are consuming that liquidity. They pay more.

Typical Fee Structure#

Fees vary by exchange and your trading volume, but a common structure looks like a maker fee of 0.02% and a taker fee of 0.05%.

On a $10,000 trade, the maker pays $2 and the taker pays $5.

That's a $3 difference per trade. Over hundreds of trades, it adds up.

Some exchanges offer negative maker fees for high volume traders. You literally get paid to place limit orders.

How This Affects Your Trading#

Scalpers and high frequency traders: Fees matter a lot. If you're making 50 trades a day, the difference between maker and taker fees can be hundreds of dollars monthly.

Swing traders: Less impactful since you're making fewer trades, but still worth optimizing.

Copy trading: When you copy trade, your orders are usually market orders (taker) to ensure they fill quickly and match the trader you're copying. This means you're typically paying taker fees. Factor this into your expected returns.

Tips for Reducing Fees#

Use limit orders when possible. If you're not in a rush, place limit orders at your target price and wait.

Check fee tiers. Most exchanges reduce fees as your trading volume increases. Some offer fee discounts for holding their native token.

Factor fees into your strategy. A scalping strategy that looks profitable before fees might be break even or losing after fees.

Compare exchanges. Fee structures vary. If you're trading seriously, shop around.

Maker and taker fees are a small detail that can have a big impact over time. Know what you're paying and optimize where you can.