Cryptocurrency Trading: Maker Taker Fees Explained

cryptocurrency trading platform maker taker fees explained
This article is an in-depth look at cryptocurrency trading maker taker fees. Head on over to our guide on broker fees here!

What are Maker Taker Fees?

The maker and taker fee structure comes from the stock market. It’s a fee structure that’s based on adding or removing liquidity from the market.

Liquidity means the availability of assets, stocks, or trades in the market. It shows you how active traders are in a certain market.

Both buyers and sellers can be makers or takers, meaning there are 4 different possibilities of fees!

How do Maker Taker Fees Work?

To make it simple, we will explain how this fee structure works by giving examples.

Let’s say you are a buyer. You put in an order to buy Bitcoin at $5,000. But nobody is selling at that price point. As such, you have added liquidity to the market because you are creating a new order. You “made” liquidity. So you are a maker.

Imagine that this time you put in an order to buy Bitcoin at $5,000 and your order gets filled immediately. You have removed liquidity from the market, because you filled someone’s order. You ‘took’ liquidity. So you are a taker.

Pretty straight forward right? Now, let’s flip this around!

Cryptocurrency exchange making money crypto trading dollars usd Maker Taker

This time, you are looking to sell. You put in an order to sell Bitcoin at $10,000. But nobody wants to buy at that price so your order is not getting filled. Again, you have added liquidity to the market so you are a maker.

And what happens when you want to sell and your order gets filled instantly? You guessed it – you removed liquidity from the market and therefore are a taker.

When Will You Pay Maker Taker Fees?

Based on each of these situations, brokers will charge you a fee. In case of the taker fee, this fee is applied instantly. With the maker fee, the fee is applied when the order gets filled.

How Much are Maker Taker Fees?

Brokers will adjust their fees based on whether they want more or less liquidity on their platform. Some brokers will also lower these fees based on your trading volume.

Cryptocurrency broker fees trading cryptotrading maker taker fees volume
Kraken’s maker taker fees based on trading volume

Most of the time you’ll see that brokers will want more liquidity on their platform, and their maker fees will be at 0. Some brokers might even give you a rebate instead of a fee. This isn’t always the case though, so make sure you check!

We have found that some brokers who use this fee might also charge an extra margin fee when you trade CFDs. It’s definitely worth checking if your broker does this!

Who uses it?

Current brokers who use the maker/taker fee structure are :

  • Coinbase Pro
  • Binance
  • Kraken (Kraken also adds a margin fee on top of the maker taker fees when trading CFDs)
  • CEX.io (CEX.io also adds a margin fee on top of the maker taker fees when trading CFDs)

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