Trading cryptocurrencies isn't free. 😲
On centralized cryptocurrency exchanges (CEXs), you must pay trading fees when buying or selling digital assets.
Understanding these fees—and how they work—is crucial for any trader.
The Maker-Taker Fee Model
Most crypto exchanges use a maker-taker fee structure, where fees depend on:
- Order type (maker or taker)
- Your 30-day trading volume
- Trading pair
👉 Learn how to optimize trading fees
Key Definitions
| Term | Definition |
|------|-----------|
| Maker | Adds liquidity to the order book (e.g., limit orders not immediately filled). |
| Taker | Removes liquidity by filling existing orders (e.g., market orders). |
What Are Maker Fees?
Maker orders:
- Do NOT execute immediately
- Create liquidity (e.g., a BTC buy limit order below the current market price)
- Charge lower fees (typically 0.02%–0.15%)
Example:
You place a limit order to buy ETH at $1,800 (current price: $1,850). This order sits on the book until matched, paying a maker fee when filled.
What Are Taker Fees?
Taker orders:
- Execute instantly (e.g., market orders)
- Remove liquidity
- Pay higher fees (typically 0.05%–0.25%)
Example:
Buying BTC instantly at the current market price incurs a taker fee.
👉 Compare maker vs. taker fees across exchanges
Fee Examples
| Scenario | Order Type | Fee Calculation |
|----------|-----------|----------------|
| Whale trader ($10M volume) | Maker | 0.02% of $2M trade = $400 |
| Retail trader ($100K volume) | Taker | 0.25% of $90K trade = $225 |
Pro Tip: Higher trading volumes reduce fees!
Why Exchanges Use This Model
- Encourages liquidity: Lower maker fees incentivize traders to add orders.
- Balances execution: Takers pay more for immediate fills.
FAQs
1. Can one order have both maker and taker fees?
Yes! Partial fills may incur both fee types.
2. How do I qualify for lower fees?
Increase your 30-day trading volume or hold the exchange’s native token.
3. Are limit orders always maker orders?
Mostly—unless they fill existing orders immediately (e.g., a marketable limit order).
4. Which exchanges offer the lowest fees?
Binance, OKX, and Kraken have competitive fee schedules.
Key Takeaways
- Makers = Limit orders (lower fees).
- Takers = Market orders (higher fees).
- Optimize fees by trading more or using limit orders strategically.
| Action | Benefit |
|--------|--------|
| Use limit orders | Pay maker fees |
| Trade frequently | Qualify for volume discounts |
Final Tip: Always check an exchange’s fee schedule before trading!