Maker vs. taker fees: Key differences, examples, and strategies

Whether you prefer centralized or decentralized exchanges, you can’t avoid crypto trading fees. Each exchange has its own fee structure, imposing trading costs that go beyond a digital asset's market price.

The maker-taker model is one of the more common fee schedules. In this system, which is most often used on centralized crypto trading platforms, you pay a percentage based on your trading volume and the types of orders you place.

If the platform(s) you use impose this structure, you’ll need to understand how it works and how to estimate its impact on your trades. In particular, knowing the difference between maker versus taker fees puts you in a better position to gauge your costs accurately and determine the most effective trading strategies.

The difference between taker vs. maker fees

Maker and taker fees are additional costs that some crypto exchanges charge users to confirm transactions. This fee structure is typically associated with centralized exchanges, which use order books to match buyers and sellers and record every transfer in a centrally controlled ledger. 

The terms "maker" and "taker" refer to whether the crypto trader increases or decreases an exchange's overall liquidity. To be a maker, you have to add liquidity to an exchange by placing a limit order that doesn't execute immediately. Limit orders only fill when a cryptocurrency's market price matches the specified limit price, providing exchanges with more options.

In contrast, "takers" use market orders that execute at the current market price to instantly close trades. Because takers reduce the overall liquidity on an exchange, platforms often incentivize traders to place limit orders with lower maker fees. Exchanges often have maker-taker fee schedules listed on their websites, with different percentages per trade for each depending on monthly trading volumes.

An example of maker and taker fees

Suppose a crypto exchange has a maker-taker fee model that charges 0.60% for takers, and 0.40% for makers with trades totaling less than $10,000 per month.

A trader places a market order for one Ethereum (ETH), which has a current market price of $4,500 per coin. As a taker, the order instantly fills at $4,500, and the trader pays 0.60% (or $27.00) in fees.

To qualify for the more affordable maker fee, this trader could place a limit order on ETH at $4,450. When ETH’s market price dips to $4,450, the limit order goes into effect, and the trader buys ETH with a 0.40% fee on $4,450 ($17.80).

2025

Crypto Tax
Guide is here

CoinTracker's definitive guide to Bitcoin & crypto taxes provides everything you need to know to file your 2024 crypto taxes accurately.

Get startedLearn more

Taker vs. maker fees: 4 important differences

The distinction between these two fee structures plays a significant role in market dynamics, and impacts how quickly and accurately trades fill. Here are four differences between maker versus taker fees that can inform your own trading strategy.

1. Fee amounts and structures

Taker fees are always more expensive because of their immediate demands on the exchange’s resources. In return for convenience and speed, traders who use market orders pay a premium percentage.

In some cases, exchanges offer rebates to makers rather than charging a fee. But these typically happen at high monthly trading volumes, so they’re not available to everyone. 

2. Impact on liquidity

Maker and taker fees create an incentive structure that encourages traders to use limit orders rather than market orders. Makers add liquidity by posting requests to the exchange’s order book, and creating opportunities for buyers and sellers to exchange their digital assets.

Takers put strain on an exchange's resources by instantly dumping or demanding cryptocurrencies. This makes them more costly and less valuable to most exchanges.

3. Execution speeds

Some traders don't mind paying extra taker fees, so they can take advantage of the instant confirmations. Once a taker places a market order, the exchange immediately fills the buy or sell request.

A limit order may take hours or days to confirm, depending on the cryptocurrency's price performance. Also, a limit order may never fill if the price was set low and the cryptocurrency doesn’t fall to that level while the order remains active. 

4. Price spread and slippage risks

Filling orders ASAP increases the risk that takers won’t get the exact prices they want for their digital assets. Since market orders fill instantly and don’t specify preferred prices, the taker has less control over what they pay, particularly in volatile conditions. The higher liquidity demands from market orders also puts takers at a greater risk of pricing inefficiencies like slippage, which is the spread between the actual and expected cost increases.

Makers have the advantage of setting their preferred prices in limit orders, avoiding unfavorable prices altogether. Plus, since makers add liquidity to the market, they don't tend to cause gaps in price spreads or experience slippage.

Which is better: Maker or taker fees? 

From a cost-efficiency perspective, maker fees are the "better" choice. But just because those fees are cheaper doesn't mean they're superior in every trading context. Choosing between maker and taker orders relies on understanding the specifics of a particular cryptocurrency trade, as well as your own preferences. 

For example, if a cryptocurrency is in a massive sell-off with higher-than-average volume, a day trader may want to cut their losses immediately. In this case, only market orders guarantee filling on the exchange’s order books.

If that trader opened a limit order to sell their cryptocurrency at a specific price, there's a chance the order won't go through. The trader may be forced to hold on to their crypto as its value continues to fall. So even though the taker fee is greater, that cost might be lower than holding onto a depreciating currency.

In most cases, if crypto traders prioritize price accuracy and the lowest possible fees, they’ll use limit orders to benefit from lower taker fees. However, if you want to make sure your order fills, and you don't mind paying a bit extra, placing periodic, targeted market orders can be a sound strategy.

Stay on top of all your crypto trading data with CoinTracker 

Whatever strategies you prefer, it’s important to be aware of all the fee structures on exchanges you frequent. Take the time to locate each platform’s “exchange fee schedule,” and know the difference between maker and taker costs so you can make the right decision for each order.

Of course, keeping track of these fees is just the start. There’s a lot of other information you need in order to trade successfully, including comprehensive data on your own trades and digital assets.

CoinTracker keeps accurate records of your every move, with integrations to hundreds of platforms. Simply link your exchange APIs and public wallet addresses to the CoinTracker Portfolio Tracker, and get real-time data on every transaction. You can even import that data into IRS-compliant forms and software solutions like TurboTax or H&R Block. 

Managing your crypto assets shouldn’t be complicated. CoinTracker lets you track your entire portfolio across multiple exchanges and wallets, all in one place. Join the two million users who rely on CoinTracker for a seamless crypto experience – start free today.

Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.

FAQ

What are maker and taker fees in crypto trades?

The maker-taker fee model is a common way exchanges charge traders. Fees depend on whether the trader adds liquidity with limit orders (“makers”) or takes liquidity with market orders (“takers”). These fees often have a tiered structure, with the highest levels for those who trade the lowest volumes each month, and lower percentages for more active traders.

Which is usually higher, maker or taker fees?

Taker fees are typically higher than maker fees. Exchanges do this to encourage traders to place limit orders, which increases liquidity on the exchange’s order books. 

What’s the difference between a maker and a taker? 

The key distinction between makers and takers is how they impact an exchange's liquidity. Makers increase overall liquidity by creating more trading opportunities with limit orders. Takers demand crypto or fiat immediately with market orders, lowering overall liquidity.

How do traders find maker and taker fees?

Reputable and regulated exchanges that use the maker-taker fee model publish their latest percentages on their official websites. You can typically find this information by searching for "fees" on the exchange site, or by calling an official customer service representative.

Do all crypto exchanges use the maker-taker fee model? 

Centralized exchanges that use order books to organize their trading activities typically use the maker-taker fee model. However, there are cases where an exchange may not use these fees, such as when buying and selling cryptocurrency on a beginner-friendly platform that only handles market orders.

In these cases, traders may have to pay other convenience fees to take advantage of a simplified experience. Also, many decentralized exchanges don't use order books, and thus offer different models like liquidity pool fees.