What are maker and taker fees?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 4 min
In short
A maker adds liquidity by resting an order on the book; a taker removes it by trading against an order already there. Most exchanges charge the two differently. The actual rates depend on the venue and on volume tiers, and they change over time.
Key points
- Makers rest orders; takers trade against them
- Market orders are takers by definition
- Rates vary by exchange and by volume tier
- The same trade costs differently by order type
Definition
A fee structure that distinguishes orders which add liquidity by resting on the book (makers) from orders which consume it by executing against resting orders (takers).
Classification depends on how the order fills. A limit order priced away from the best quote, which later gets hit by incoming flow, is a maker. An order sent into the existing book that fills immediately is a taker. Market orders are always takers.
Exchanges draw this distinction because a well-populated book makes trading easier for everyone. Lowering the cost for the side that supplies orders is a deliberate attempt to deepen the book. Many venues also tier the rates by trading volume.
The practical consequence is that the same size traded at the same moment can cost different amounts depending on how the order is submitted. Rate levels differ sharply between venues and change with promotions and policy updates, so always read the current schedule of the exchange you use.
Watch out for
- · Fee rates differ by venue and can be revised with little notice
- · A dealer-style window may advertise zero fees while burying the cost in the quoted spread
- · Chasing maker status with a resting order risks the market leaving it behind unfilled