Trading cryptocurrencies on a centralized exchange (CEX) isn't free. When you buy or sell digital assets on these platforms, you are required to pay trading fees.
Understanding the types of fees charged by crypto exchanges and how they work is essential for every trader.
Generally, fees are calculated based on the type of order you place and are charged when the order is executed and matched.
Orders typically fall into two categories:
- Orders that incur a “maker fee”
- Orders that incur a “taker fee”
Maker fees are usually lower than taker fees. Both fee types often depend on your average trading volume over a specific period, typically the past 30 days.
As your trading volume increases, the fee decreases as a percentage of the trade amount.
In this guide, you'll learn the fundamentals of the maker-taker fee model, a common structure used by cryptocurrency exchanges.
Understanding the Maker-Taker Model
The primary purpose of a cryptocurrency exchange is to match the orders of clients who want to buy crypto with those who want to sell it.
For providing this matching service, the exchange charges you a fee when your order is executed (or "matched" with another client's order).
This fee depends on several factors:
- The specific trading pair
- Your trading volume over a certain period
- Whether your order acts as a maker or a taker
Most crypto exchanges use a maker-taker fee model to determine trading costs. This model distinguishes between orders that add liquidity (“maker” orders) and those that remove liquidity (“taker” orders).
If your order is executed immediately, you are considered a “taker” because the order takes liquidity from the market, incurring a taker fee.
If your order is not executed immediately and instead rests on the order book, you are considered a “maker” because the order adds liquidity, incurring a maker fee.
Different fees are applied to maker and taker orders.
What Is a Maker Fee?
A “maker” order incurs a “maker fee.”
A maker order is an order you place that does not get executed immediately or match with an existing bid or ask on the order book.
Specifically, for an order to be considered a maker:
- A buy order must be placed at a price lower than the lowest sell order (or “ask”) on the order book.
- A sell order must be placed at a price higher than the highest buy order (or “bid”) on the order book.
Your order is added to the order book, and you become a “market maker.”
Limit Orders Are Typically Maker Orders
A limit order that isn't filled immediately is considered a maker order.
For example, if BTC/USD is currently trading at $31,000** and you place a limit buy order for 1 BTC at **$30,000, the order won't execute right away.
Instead, it's added to the order book. The order will “rest” there and won't be executed unless the price drops to $30,000.
By placing this order, you are called a “maker” because you are adding liquidity or “making” a market.
If you hadn't placed this order, there might not be another trader willing to buy 1 Bitcoin at $30,000.
Therefore, if a seller emerged willing to sell 1 Bitcoin at $30,000, there would effectively be “no market” because no buyer was available at the seller's price.
With your order, you “make the market” by providing a buy option for that seller. This is why you're called the “maker.”
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What Is a Taker Fee?
A “taker” order incurs a “taker fee.”
So, what is a “taker”?
A “taker” is an order that is immediately matched with an existing bid or ask already on the order book.
More specifically, for an order to be a taker:
- A buy order must be placed at or above the lowest ask (or “best ask”) on the book.
- A sell order must be placed at or below the highest bid (or “best bid”) on the book.
Your order cancels or “takes” an existing order off the book. When this happens, you become the “taker.”
Market Orders Are Taker Orders
A market order is considered a taker order because it executes immediately.
For example, if BTC/USD is trading at $31,000 and you place a market order to buy 1 BTC, the order will execute instantly.
By placing this order, you are called a “taker” because you are “taking liquidity” from the market.
If you hadn't placed this order, that pending sell order for 1 BTC at $31,000 would still be on the book.
But since you “took” it, another buyer wanting to purchase at that price might find one less seller available.
Examples of Maker and Taker Fees
Let’s look at practical examples of what an exchange might charge you, depending on whether you act as a maker or a taker.
Taker Fee Example
Assume the following scenario:
- You want to buy 3 Bitcoin (BTC) at $30,000 each
- Your 30-day trading volume is currently $100,000
Based on a typical exchange’s fee schedule, you would pay one of the following:
- 0.15% maker fee
- 0.25% taker fee
Your order executes with a taker fee.
In this case, your total order cost is 3 $30,000 = **$90,000*.
You place a market order, and it fills immediately.
Since your order executes as a “taker,” the total “taker fee” is calculated as:
$90,000 * (0.25 / 100) = $225Maker Fee Example
In this scenario, you are a high-volume trader, often called a “whale” in crypto, and you assume the following:
- You want to buy 100 Bitcoin (BTC) at $20,000 each
- Your 30-day trading volume is currently $10 million
Based on the exchange’s fee tier, you would be charged one of the following:
- 0.02% maker fee
- 0.10% taker fee
Your total order cost would be 100 * $20,000 = $2,000,000.
Currently, BTC/USD is trading at $30,000, so you place a limit buy order at **$20,000**.
Your order now “waits” on the order book.
The next morning, the crypto market crashes, Bitcoin drops, and your order is filled.
Since your order executed as a “maker,” the total “maker fee” is calculated as:
$2,000,000 * (0.02 / 100) = $400As you can see, the maker fee is significantly lower than the taker fee would have been. This pricing structure incentivizes traders to add liquidity.
The downside of being a maker is that your order might take time to fill. If the market has low participation (a “thin” market), your order could sit on the book without ever being filled.
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Key Takeaways
A market for a specific trading pair consists of makers and takers.
Every filled trade always has one maker and one taker.
Makers create buy or sell orders that do not execute immediately. This creates liquidity, making it easier for others to buy or sell instantly if they agree to the price specified by the maker's order.
Those who wish to buy or sell immediately are called “takers.” They “take” the orders created by the “makers.”
When a “maker’s” order is executed, they pay a “maker fee,” while the “taker” pays a “taker fee.”
It's also possible for a single order to have both maker and taker fees.
For example, if your order is partially filled immediately, that portion incurs a taker fee.
The remaining part of your order is added to the order book and will incur a maker fee when executed.
Imagine you want to buy 2 BTC. One Bitcoin might be available for immediate execution (you pay a taker fee). If no other sellers match your price for the second BTC, you must wait. When a seller finally appears and the last part of your order executes, you pay a maker fee.
For cost-efficient trading, you should try to use limit orders to benefit from lower maker fees when possible.
Generally, crypto exchanges charge makers lower fees because they add liquidity. Takers pay a premium for the ability to trade “instantly.”
To summarize:
- Makers “make or create the market” by adding orders for other traders.
- A “maker” fee is charged if an order cannot be immediately matched with an order on the book.
- Takers remove liquidity by “taking” available orders for immediate execution (and pay a taker fee).
- A taker fee is charged if an order is immediately matched with an order on the book.
| “Maker” Order | “Taker” Order |
| Adds liquidity to the order book | Removes liquidity from the order book |
| Does not execute immediately | Executes immediately |
Frequently Asked Questions
What is the main difference between a maker and a taker?
A maker is a trader who provides liquidity to the market by placing an order that isn't filled immediately (like a limit order away from the current price). A taker is a trader who removes liquidity by placing an order that executes immediately against an existing maker order (like a market order).
Why are maker fees lower than taker fees?
Exchanges incentivize providing liquidity because it creates a deeper, more efficient market for all users. Maker fees are lower to reward traders for adding orders to the book, while taker fees are higher for those who consume that liquidity.
Can a single order have both maker and taker fees?
Yes, this can happen with large orders. A portion of the order may fill immediately against existing orders (incurring a taker fee), while the remainder is placed on the book as a new order (and later fills as a maker, incurring a maker fee).
How can I reduce my trading fees on an exchange?
The most common way is to increase your 30-day trading volume, which often qualifies you for lower fee tiers. Additionally, using limit orders to act as a maker whenever possible will ensure you pay the lowest available fee rate.
Is a limit order always a maker order?
Not always. If you place a limit order that matches the current best available price on the order book, it may execute immediately and be classified as a taker order. A limit order only acts as a maker if it is placed away from the current market price and rests on the book.
Do all cryptocurrency exchanges use a maker-taker model?
While it is the most common fee structure, not all exchanges use it. Some use a flat fee percentage for all trades, and others, particularly decentralized exchanges (DEXs), may use different models like liquidity provider (LP) fees.