📌 What Are Maker and Taker Fees?
Maker and taker fees are the two types of trading fees charged by cryptocurrency exchanges. They are based on whether your order adds liquidity to the order book (maker) or removes liquidity from it (taker).
This fee structure is designed to incentivize traders to provide liquidity, which benefits all users by creating deeper order books, tighter spreads, and more efficient markets. Understanding the difference can save you a significant amount of money over time.
Maker fees are lower than taker fees because makers provide a valuable service to the exchange and other traders—they add liquidity. Takers remove liquidity and pay a higher fee for the convenience of instant execution.
🏗️ What Is a Maker?
A maker is a trader who places an order that is not immediately filled and is added to the order book. This order "makes" liquidity available to other traders.
How makers work:
- You place a limit order at a price that is not currently matched in the order book.
- Your order sits on the order book until another trader fills it.
- By adding your order to the book, you are providing liquidity.
- You earn a lower fee (maker fee) for providing this service.
If the current price of USDT/TRX is 0.1195 (bid) / 0.1198 (ask), and you place a buy limit order at 0.1190, your order will sit on the book and not be filled immediately. This is a maker order.
⚡ What Is a Taker?
A taker is a trader who places an order that is filled immediately against existing orders in the order book. This order "takes" liquidity from the market.
How takers work:
- You place a market order or a limit order that matches an existing order in the book.
- Your order executes immediately at the best available price.
- By consuming existing liquidity, you are removing it from the order book.
- You pay a higher fee (taker fee) for the convenience of instant execution.
If you place a market buy order for USDT/TRX at the current market price, your order will immediately match the best ask (0.1198). This is a taker order.
📊 Maker vs Taker Comparison
| Feature | Maker | Taker |
|---|---|---|
| Order Type | Limit order (not immediately filled) | Market order or immediate limit order |
| Action | Adds liquidity to the order book | Removes liquidity from the order book |
| Execution Speed | Not guaranteed (may take time) | Immediate |
| Price Control | You set the price | You accept the current market price |
| Fee Level | Lower | Higher |
| Typical Fee | 0.04–0.10% | 0.06–0.20% |
| Who Uses This | Market makers, patient traders | Active traders, urgent execution |
If you trade $10,000 on Binance with a maker fee of 0.04% and a taker fee of 0.06%: Maker fee = $4, Taker fee = $6. Over many trades, the difference adds up significantly.
💰 How to Reduce Trading Fees
There are several strategies to pay lower fees on exchanges:
- Use limit orders: Place limit orders that are not immediately filled to qualify as a maker.
- Hold the exchange's native token: Many exchanges (Binance, OKX, KuCoin) offer discounts for holding their native token.
- Reach higher volume tiers: Most exchanges offer lower fees for traders with higher 30-day trading volume.
- Use referral programs: Some exchanges offer fee discounts for using referral links.
- Trade during off-peak: Some exchanges offer lower fees during certain times or for specific pairs.
On Binance, holding BNB can reduce your trading fees by up to 25%. Combine this with using limit orders (maker fees) and higher volume tiers to minimize your trading costs.
🎯 When to Use Maker vs Taker Orders
📊 Use Maker Orders When:
- You are patient and can wait for the order to fill
- You want to set a specific entry or exit price
- You are trading high volume and want to save on fees
- You are providing liquidity to the market
- You are using limit orders for swing trading
⚡ Use Taker Orders When:
- You need immediate execution
- You are trading on news or momentum
- You need to close a position quickly
- You are using market orders for day trading
- Price is more important than saving a few cents in fees
For most traders, using limit orders (maker orders) for entries and exits when you have the flexibility to wait is the most cost-effective strategy. Use market orders (taker orders) only when speed is critical.
🏢 Maker/Taker Fees by Exchange
Different exchanges have different fee structures. Here's a comparison of major exchanges (fees are approximate and may vary):
| Exchange | Maker Fee | Taker Fee | Discount Option |
|---|---|---|---|
| Binance | 0.04% | 0.06% | BNB holder discount |
| OKX | 0.05% | 0.08% | OKB holder discount |
| Coinbase | 0.40% | 0.60% | Higher volume tiers |
| KuCoin | 0.04% | 0.06% | KCS holder discount |
| Kraken | 0.10% | 0.16% | Volume tiers |
| Bybit | 0.04% | 0.06% | Volume tiers |
Fee structures can change. Always check the exchange's official fee schedule for the most current rates and discounts.
🏊 Market Makers and Liquidity
Market makers are professional traders who continuously place both buy and sell limit orders to profit from the spread. They are the primary source of liquidity on exchanges and typically enjoy the lowest maker fees.
- How they profit: Market makers earn the spread (the difference between bid and ask) and may also receive fee rebates from exchanges.
- Why exchanges like them: Market makers provide depth and tighten spreads, making the exchange more attractive to all users.
- Who can be a market maker: Anyone can provide liquidity, but professional market makers use sophisticated algorithms and high-speed infrastructure.
You don't need to be a professional firm to act as a market maker. By placing limit orders on both sides of the order book, you can earn the spread and maker fees—though you'll need to manage the risk of adverse price movements.
🚀 The Future of Maker/Taker Fees
The maker/taker model continues to evolve. Key trends include:
- Negative maker fees: Some exchanges offer rebates (negative fees) to attract liquidity providers.
- Dynamic fee structures: Fees that adjust based on market conditions and order book depth.
- Cross-chain maker/taker: Fee models that work across multiple blockchains.
- DeFi fee models: DEXs are experimenting with different fee models, including dynamic fees based on pool utilization.
- Zero-fee trading: Some exchanges offer zero maker fees (or zero trading fees altogether) to attract users.
TRON-based exchanges and DEXs are adopting these models, with SunSwap and other platforms offering competitive fee structures.