Stage 2: Trading FundamentalsIntermediate
8 min readUpdated Jan 2024By TradingPlatforms Team

Maker vs Taker Fees in Crypto Trading

Master the difference between maker and taker fees in cryptocurrency trading. Learn proven strategies to minimize trading costs and maximize your profits through smart order placement.

What You'll Learn

  • What maker and taker fees are
  • How these fees impact your trading costs
  • Strategies to minimize trading fees
  • Real-world fee calculations and examples
  • Exchange fee comparison and optimization

Understanding Trading Fees

Quick Definition:

Maker and taker fees are the two main types of trading fees charged by cryptocurrency exchanges. Makers add liquidity to the order book, while takers remove liquidity from it.

Every time you trade cryptocurrency, you pay fees to the exchange. Understanding the difference between maker and taker fees can save you significant money, especially if you're an active trader. The key is knowing when your order adds or removes liquidity from the market.

Fee Impact Example:

High-Fee Approach:

  • • Always use market orders (taker fees)
  • • $100,000 monthly volume
  • • 0.1% taker fee = $100/month
  • Annual cost: $1,200

Optimized Approach:

  • • Mix of limit orders (maker fees)
  • • $100,000 monthly volume
  • • 0.05% average fee = $50/month
  • Annual cost: $600 (50% savings)

Maker Fees: Adding Liquidity

What Makes You a Maker?

You become a "maker" when your order adds liquidity to the order book. This happens when you place a limit order that doesn't immediately match with an existing order.

Maker Order Examples:

  • Buy Limit: BTC is $50,000, you place buy order at $49,500
  • Sell Limit: BTC is $50,000, you place sell order at $50,500
  • Post-Only Orders: Orders that are guaranteed to be maker orders

Why Exchanges Reward Makers

  • Provide Liquidity

    Make it easier for others to trade

  • Reduce Spreads

    Narrow the gap between buy/sell prices

  • Improve Market Depth

    Create more stable trading environment

Maker Fee Benefits

  • Lower Fees

    Typically 0.05-0.1% vs 0.1-0.2% for takers

  • Price Control

    You set the exact price you want

  • No Slippage

    Order executes at your specified price

Trade-off to Consider:

Maker orders may not execute immediately (or at all) if the market moves away from your price. You save on fees but sacrifice speed and execution certainty.

Taker Fees: Removing Liquidity

What Makes You a Taker?

You become a "taker" when your order removes liquidity from the order book. This happens when you place an order that immediately matches with an existing order.

Taker Order Examples:

  • Market Orders: Buy/sell immediately at current market price
  • Aggressive Limits: Limit order that crosses the spread
  • Stop Orders: Orders triggered by price movements

When to Use Taker Orders

  • Urgent Execution

    Need to trade immediately

  • Strong Market Moves

    Price moving rapidly in your favor

  • Stop Losses

    Risk management requires immediate exit

Taker Fee Costs

  • Higher Fees

    Usually 2x maker fees

  • Potential Slippage

    May not get expected price

  • Market Impact

    Large orders can move prices

Fee Structure Comparison

Major Exchange Fee Comparison

ExchangeMaker FeeTaker FeeVolume Discounts
Binance0.1%0.1%Yes (up to 50% off)
Coinbase Pro0.5%0.5%Yes (volume-based)
Kraken0.16%0.26%Yes (volume-based)
FTX0.02%0.07%Yes (aggressive tiers)
Bybit0.1%0.1%Yes (VIP levels)

Fee Calculation Examples

$10,000 Trade on Binance:

  • Maker Fee: $10,000 × 0.1% = $10
  • Taker Fee: $10,000 × 0.1% = $10
  • Difference: $0 (same rate)

$10,000 Trade on Kraken:

  • Maker Fee: $10,000 × 0.16% = $16
  • Taker Fee: $10,000 × 0.26% = $26
  • Difference: $10 savings with maker

Strategies to Minimize Trading Fees

1. Maximize Maker Orders

Techniques:

  • • Use limit orders instead of market orders
  • • Place orders slightly away from current price
  • • Use post-only order types when available
  • • Be patient and wait for fills

Example Strategy:

BTC at $50,000:
Instead of market buy, place limit buy at $49,950.
Save on fees and potentially get better price.

2. Leverage Volume Discounts

Track Your Volume

Monitor 30-day trading volume to qualify for lower tiers

Hold Exchange Tokens

BNB, FTT, etc. often provide additional discounts

VIP Programs

Apply for institutional rates if you qualify

3. Smart Order Management

Dollar-Cost Averaging (DCA):

Instead of one large order, split into multiple smaller orders over time.

Traditional:

$10,000 market buy = $26 fee (Kraken)

DCA with Limits:

10 × $1,000 limit orders = $16 total fees

Iceberg Orders:

Hide large order size while maintaining maker status. Only show small portions at a time.

4. Exchange Selection Strategy

For High-Volume Traders:

  • • Choose exchanges with aggressive volume discounts
  • • Consider FTX, Binance for lowest fees
  • • Factor in withdrawal fees and spreads

For Casual Traders:

  • • Focus on ease of use and security
  • • Consider Coinbase Pro, Kraken
  • • Factor in deposit/withdrawal options

Real-World Fee Optimization Examples

Case Study 1: Active Day Trader

Profile: $50,000 monthly volume, 100 trades/month, primarily Bitcoin and Ethereum

Before Optimization:

  • • 100% market orders (taker fees)
  • • Binance: 0.1% taker fee
  • • Monthly cost: $50,000 × 0.1% = $50
  • Annual cost: $600

After Optimization:

  • • 70% limit orders (maker fees)
  • • 30% market orders (urgent trades)
  • • Average fee: 0.07%
  • • Monthly cost: $50,000 × 0.07% = $35
  • Annual savings: $180 (30%)

Case Study 2: DCA Investor

Profile: $2,000 monthly DCA into Bitcoin, weekly purchases

Coinbase (Regular):

  • • 1.49% fee on purchases
  • • Monthly cost: $2,000 × 1.49% = $29.80
  • Annual cost: $357.60

Coinbase Pro (Optimized):

  • • Use limit orders: 0.5% maker fee
  • • Monthly cost: $2,000 × 0.5% = $10
  • Annual savings: $237.60 (66%)

Advanced Fee Optimization Tips

Pro Strategies:

  • Rebate Programs

    Some exchanges pay you to provide liquidity

  • API Trading

    Automated strategies for optimal order placement

  • Cross-Exchange Arbitrage

    Profit from price differences while providing liquidity

Tools & Resources:

  • Fee Calculators

    Compare costs across different exchanges

  • Order Book Analysis

    Tools to analyze liquidity and optimal order placement

  • Trading Bots

    Automated systems for fee-optimized trading

Master Advanced Trading Strategies

Now that you understand trading fees, explore advanced strategies like margin trading and futures to amplify your trading potential while managing risks effectively.