What Are Maker and Taker Fees in Crypto Trading?

Overview: 

• Maker fees remain lower than taker fees as exchanges reward liquidity providers and encourage deeper order books.

• Major exchanges such as Binance, Coinbase, Mudrex, and WazirX have updated their fee tiers, rebates, and loyalty programs to stay competitive.

• True trading costs depend on fees and on execution quality, spreads, slippage, and regulatory transparency.

Crypto trading platforms usually follow a maker-taker fee model to charge for the trades that are executed. This model helps exchanges manage liquidity and maintain smooth market activity. Understanding how these fees work is important for anyone who wants to trade cost-effectively. This article covers the basics of cryptocurrency trading.

What are Maker Fees?

A maker is a trader who adds liquidity to the exchange. This happens when a limit order is placed that does not immediately match with an existing order. For example, placing a limit order to buy at a lower price or to sell at a higher price than the current market price adds new liquidity to the order book.

Exchanges encourage this kind of activity because it helps build deeper order books. To reward this, maker fees are usually lower than taker fees. On many global exchanges, maker fees for retail traders are often around 0.10%, and for high-volume traders they can fall to 0.01% - 0.10%. Some exchanges even give small rebates when liquidity providers help maintain strong markets.

What are Taker Fees?

A taker is a trader who removes liquidity from the exchange. This happens when an order is executed immediately at the current market price. Market orders and aggressive limit orders fall into this category.

The exchange charges a higher fee for taker orders because they demand instant execution. On most major platforms, taker fees commonly fall between 0.03% and 0.25%. For smaller or beginner accounts, they may be higher. The higher fee reflects the cost of consuming liquidity and enjoying fast trade execution.

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Why Exchanges Use This Fee Model

Exchanges compete to attract liquidity. Deep order books lead to better price discovery, reduced slippage, and fairer pricing for all traders. By charging lower fees to makers, exchanges encourage more limit orders to be placed.

High-volume traders and market makers often prefer maker orders because they reduce costs. On the other hand, traders who want fast execution often choose market orders even though taker fees are higher, because the priority is speed rather than fee savings.

Latest Fee Trends and 2025 Updates

The maker-taker model continues to evolve, especially as crypto markets expand globally. During 2025, leading exchanges made several updates.

Binance introduced refinements to its maker and taker fee programs across both spot and futures markets. In its highest trading tiers, spot maker and taker fees reach as low as 0.011% for makers and 0.023% for takers. For USD$-M futures, the top tiers show maker fees around 0.016% and taker fees around 0.025%. Binance also updated its rebate and market-maker evaluation standards in November 2025.

Coinbase also continues to use a volume-based fee system. Based on 30-day trading activity, its maker fees range from 0.00% to 0.40%, while taker fees fall between 0.05% and 0.60%. The pricing depends heavily on trading volume, with higher-volume accounts receiving much lower rates.

In India, competitive pricing has become a major trend. Mudrex introduced a loyalty program in 2025, offering futures trading fees as low as 0.03% and spot fees around 0.12% for certain tiers. WazirX relaunched its platform with a temporary 0% trading-fee offer to attract users back and strengthen market activity after returning to operations in late 2025.

These examples show that exchanges often adjust fees to attract traders, improve liquidity, or strengthen their competitive position.

Role of Regulation and Transparency

Regulatory bodies have increased their focus on how trading fees are disclosed. Some trading platforms in both crypto and traditional markets advertise “zero fee” or “commission-free” trading. Although the fee looks free on the surface, these platforms may earn revenue in other ways, such as payment for order flow. Authorities in the United States and other regions have examined whether these practices meet transparency and best-execution standards.

However, understanding only maker and taker fees is not enough. Execution quality, spreads, and slippage also affect the real cost of trading. A platform with low fees but poor liquidity may end up costing more than a platform with slightly higher fees but better execution quality.

Factors That Affect Maker and Taker Costs

Several elements shape the final cost of trading. Order type strongly influences whether a trade becomes a maker or a taker order. Limit orders usually qualify as maker orders, while market orders almost always count as taker trades.

Trading volume has a major effect as well. Many exchanges calculate fee tiers based on 30-day activity. Large traders benefit from significantly lower maker and taker fees. Token-based programs like those using BNB on Binance also reduce fees for users who hold or pay fees with the exchange’s token.

In addition to fees, other trading costs exist. Slippage, spreads, and funding rates in futures trading can influence the total expense of executing a position. For this reason, fee comparisons should be made along with an understanding of order-book depth and market behavior.

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Final Thoughts

Maker and taker fees form a core part of how crypto exchanges operate. Maker orders, which add liquidity, usually enjoy lower fees. Taker orders, which demand immediate execution, incur higher charges. The fee structures vary from exchange to exchange and often depend on trading volume, loyalty programs, and promotional offers.

In 2025, leading global and regional exchanges continue to push fees down for active traders while also experimenting with temporary zero-fee programs and loyalty benefits. As regulatory scrutiny grows, transparency around fees and execution quality becomes increasingly important. Overall, understanding the difference between maker and taker fees helps traders make smarter decisions, calculate true trading costs, and choose platforms that best match their goals.

FAQs

1. What are maker fees in crypto trading?

Maker fees are charges applied to orders that add liquidity to the order book, usually through limit orders that do not execute immediately.

2. What are taker fees in crypto trading?

Taker fees apply when an order removes liquidity by matching instantly with an existing order, such as a market order.

3. Why do exchanges charge different maker and taker fees?

Exchanges reward liquidity creation with lower maker fees and charge higher taker fees for immediate execution.

4. How does Binance structure its maker and taker fees?

Binance uses a tiered structure based on 30-day trading volume, with lower fees offered to higher-volume traders and VIP accounts.

5. Do maker and taker fees affect overall trading costs?

Yes, these fees influence trading expenses along with spreads, slippage, and funding rates, especially for high-frequency or large-volume traders.