Understanding the difference between maker and taker fees is essential for any crypto trader looking to minimize costs. In this guide, we'll explain how these fees work and how you can save money on every trade.
What Are Trading Fees?
Every time you execute a trade on a cryptocurrency exchange, you pay a small fee. This fee is how exchanges make money and keep their platforms running. The fee structure typically varies based on whether you're a "maker" or a "taker."
Maker Fees Explained
A maker fee is charged when you add liquidity to the order book. This happens when you place a limit order that doesn't immediately fill. Your order sits in the order book, waiting for another trader to match it.
For example, if Bitcoin is trading at $67,000 and you place a limit order to buy at $66,500, your order won't fill immediately. Instead, it goes into the order book and "makes" liquidity for other traders.
- Typical maker fees: 0.01% to 0.02%
- Why they're lower: Exchanges reward you for adding liquidity
- Best for: Patient traders who can wait for their price
Taker Fees Explained
A taker fee is charged when you remove liquidity from the order book. This happens when you place a market order or a limit order that fills immediately against existing orders.
Using the same example, if Bitcoin is at $67,000 and you place a market order to buy, you're "taking" liquidity from sellers who had orders in the book. This convenience comes at a higher cost.
- Typical taker fees: 0.04% to 0.06%
- Why they're higher: You're removing liquidity from the market
- Best for: Traders who need immediate execution
Fee Comparison Example
Let's say you trade $100,000 in volume per month. Here's how maker vs taker fees would affect you:
- As a maker (0.02%): $100,000 x 0.0002 = $20/month in fees
- As a taker (0.06%): $100,000 x 0.0006 = $60/month in fees
- Difference: $40/month or $480/year saved by using limit orders
How to Reduce Your Trading Fees
There are several strategies to minimize the fees you pay:
- Use limit orders: Whenever possible, use limit orders to pay maker fees instead of taker fees
- Increase your trading volume: Most exchanges offer volume-based discounts
- Hold exchange tokens: Some exchanges offer fee discounts for holding their native token
- Use cashback platforms: Services like TradeGetPaid return a portion of your fees
Maximize Savings with TradeGetPaid
With TradeGetPaid, you can get up to 70% of your trading fees back automatically. This means your effective taker fee drops from 0.06% to just 0.018% — lower than most maker fees!
Combined with smart order placement, you can dramatically reduce your trading costs and keep more of your profits.