What is a maker / taker fee?

Cryptocurrency exchanges that uses maker / taker fee model often charges little to no fees for the maker orders (limit orders) and a slight higher fee for taker orders (market orders).

How do taker fees work?

Taker fees are minimized by placing limit orders at a trigger price that builds out an order book. Instead of being charged for taking liquidity via market orders, market makers may receive payment for building a platform's liquidity. What Are Maker-Taker Fees?

How does a trade get a maker fee?

A trade gets the maker fee if the trade order is not matched immediately against an order already on the order book, which is adding liquidity. When you place a market order, you want to buy/sell as soon as possible, at the best available price.

What is a maker fee on a cryptocurrency exchange?

In general, when calculating fees on a cryptocurrency exchange, orders are classified into two categories: those charged with “maker fees” and those charged with “taker fees”. What is a maker fee and who does it affect? An order that adds liquidity to an order book until it is picked up by another trader helps to “make the market”.