Maker vs Taker Fees Explained: What Crypto Traders Need to Know
Understanding this one concept can cut your trading costs in half.
Makers add liquidity to the order book (limit orders). Takers remove liquidity (market orders). Exchanges reward makers with lower fees because they improve market quality.
The Grocery Store Analogy
Imagine a grocery store shelf. Two types of people interact with it:
The Stocker (Maker)
Puts items on the shelf for others to take later. The store values them because they make products available.
In crypto: Places a limit order that doesn't fill immediately, adding it to the "order book shelf."
The Shopper (Taker)
Takes items off the shelf immediately. They get what they want now, but they're depleting inventory.
In crypto: Places a market order that fills instantly by "taking" from existing orders.
Why it matters: Exchanges need "stockers" (makers) to have orders available for "shoppers" (takers) to fill. So they charge makers less to incentivize liquidity.
How Maker/Taker Fees Actually Work
Every trade has two sides. One person is the maker; the other is the taker. Here's how the exchange determines which is which:
Scenario: Bitcoin is trading at $100,000
You become a MAKER if:
- • You place a limit order to buy at $99,500 (below current price)
- • You place a limit order to sell at $100,500 (above current price)
- • Your order sits on the order book, waiting to be filled
You become a TAKER if:
- • You place a market order (fills instantly at current price)
- • You place a limit order to buy at $100,000+ (fills immediately)
- • You place a limit order to sell at $100,000 or below (fills immediately)
Key Insight
A limit order can still make you a taker if the price is aggressive enough to fill immediately. The question is: does your order wait on the book, or does it match with existing orders right away?
Maker vs Taker Fees by Exchange
The difference between maker and taker fees can be 0.10% or more. Here's what the major US exchanges charge:
| Exchange | Maker Fee | Taker Fee | Difference |
|---|---|---|---|
| Kraken Pro | 0.16% | 0.26% | 0.10% |
| Gemini ActiveTrader | 0.20% | 0.40% | 0.20% |
| Bitstamp | 0.30% | 0.40% | 0.10% |
| Coinbase Advanced | 0.40% | 0.60% | 0.20% |
| Binance.US | 0.40% | 0.60% | 0.20% |
Real Money Example
On a $10,000 trade using Coinbase Advanced:
As a Maker
$40 fee
As a Taker
$60 fee
That's $20 saved just by using a limit order instead of a market order.
How to Always Pay Maker Fees
Becoming a maker is simple once you understand the mechanics:
Step-by-Step: Placing a Maker Order
-
1
Check the current price
Let's say BTC is at $100,000
-
2
Select "Limit Order" (not Market Order)
This is crucial—market orders are always taker orders
-
3
Set your price slightly away from current
To buy: Set limit at $99,900 (below market). To sell: Set at $100,100 (above market)
-
4
Wait for the market to come to you
Your order sits on the book until someone takes it
The Tradeoff
Maker orders aren't guaranteed to fill. If the price moves away from your limit, you might not get filled at all. You're trading speed/certainty for lower fees.
When It's Worth Paying Taker Fees
Maker fees are cheaper, but there are legitimate reasons to pay taker fees:
🚀 The market is moving fast
If Bitcoin is crashing or pumping, a limit order might never fill. Sometimes speed matters more than saving 0.10%.
🎯 You need a specific exit price
If you're taking profit at a target or stopping a loss, a market order guarantees execution.
💰 The trade is small
On a $100 trade, the difference between 0.16% and 0.26% is just $0.10. Probably not worth stressing over.
Volume Discounts: Lower Fees for Bigger Traders
Most exchanges reduce fees as your 30-day trading volume increases. Here's Kraken's tier structure as an example:
| 30-Day Volume | Maker | Taker |
|---|---|---|
| $0 - $50,000 | 0.16% | 0.26% |
| $50,000 - $100,000 | 0.14% | 0.24% |
| $100,000 - $250,000 | 0.12% | 0.22% |
| $10,000,000+ | 0.00% | 0.10% |
At the highest tier, makers trade for free because they're providing so much valuable liquidity to the exchange.
Frequently Asked Questions
Can I be both a maker and taker in the same trade? ▼
No, each order is either maker or taker. But a large order might partially fill immediately (taker portion) and then sit on the book (maker portion). You'd pay different fees for each part.
Does Robinhood use maker/taker fees? ▼
No. Robinhood uses a spread-based model with no visible maker/taker fees. They don't have a true order book—you just get their quoted price. This is why they can advertise "zero commission."
Is there any way to guarantee I'm a maker? ▼
Yes. Most exchanges have a "Post Only" order type that rejects your order if it would immediately fill (making you a taker). It only places your order if it will sit on the book as a maker order.
Why do exchanges reward makers with lower fees? ▼
Makers provide liquidity—they're the reason there are orders to trade against. Without makers, there's no market. Exchanges incentivize market-making with lower fees because a liquid market attracts more traders (and more fee revenue).
The Bottom Line
Maker and taker fees are one of the most important concepts in crypto trading. By understanding the difference and using limit orders when possible, you can save 0.10-0.20% on every trade.
The action step: Next time you trade, select "Limit Order" and set your price just slightly away from the current market. You'll pay maker fees and keep more of your money.
Compare Exchange Fees