Maker and Taker Fees
Exchanges often charge a lower maker fee to orders that add liquidity by resting in the order book, and a higher taker fee to orders that remove liquidity by executing immediately.
Two traders can buy the same coin or stock at the same price and pay different fees. The difference is whether their order waited in the book for someone else or hit an order already there. That is the maker-taker model.
- Category
- Market Structure
- Reading time
- 4 min
- Also called
- Maker-taker pricing, Maker fee, Taker fee
- Updated
Maker and taker in plain words
A maker posts an order that rests in the Order Book; a taker executes against it. In the classic model the maker receives a rebate and the taker pays a fee.1
A Market Order executes immediately, so it pays the taker fee.2 A Limit Order can also execute immediately and pay the taker fee if it matches straight away.2
Fees and rebates differ by venue and change over time; see Trading Fees and Commissions.
How to work out which fee you pay
Check your order type
Market orders execute immediately and incur the taker fee.2
Check the limit price
A limit order priced to match an existing order also executes immediately and pays the taker fee.2
Let it rest to be a maker
If it waits in the book and is later filled, it provides liquidity and is the maker side.1
Use post-only if offered
Post-only orders are cancelled or re-priced if they would execute on entry, keeping you a maker.1
Read the venue schedule
Some venues use an inverted model, so always check the current fee table.1
Multiply by size
Apply the per-share or percentage rate to your order size to estimate the cost.1
Worked examples
Example 1 — Per-share stock fees
$5 difference between the two rolesHypothetical exchange: taker fee $0.003/share, maker rebate $0.002/share. You trade 1,000 shares.
| As taker | 1,000 × $0.003 = $3.00 paid |
| As maker | 1,000 × $0.002 = $2.00 received |
These are the same illustrative numbers an SEC staff memo used in 2015 to describe a maker-taker market.1 Real rates vary by venue.
Example 2 — Exchange revenue
$0.10 per 100 sharesUsing the same fee and rebate, one 100-share trade happens.
| Taker pays | 100 × $0.003 = $0.30 |
| Maker receives | 100 × $0.002 = $0.20 |
| Exchange keeps | $0.10 |
The exchange keeps the gap between the taker fee it charges and the maker rebate it pays.1
Example 3 — Percentage crypto fees
$25 vs $10Hypothetical schedule: maker 0.10%, taker 0.25%. You buy $10,000 worth with a market order.
| Taker fee | $10,000 × 0.25% = $25 |
| If filled as maker | $10,000 × 0.10% = $10 |
A market order executes immediately and pays the taker fee, so waiting as a resting limit order would have saved $15 here.2
Maker vs taker
| Aspect | Maker | Taker |
|---|---|---|
| What the order does | Rests in the book | Executes immediately |
| Liquidity | Adds it | Removes it |
| Typical order | Resting limit order | Market order or marketable limit |
| Typical cost | Lower fee or rebate | Higher fee |
Why it matters
Cutting costs
Active traders use resting limits to pay lower fees.
Market making
Market makers earn rebates for posting quotes.
Strategy planning
Fee differences matter for Scalping, where profits per trade are small.
Choosing venues
Comparing fee schedules across each Exchange.
Advantages and disadvantages
Advantages
- Rewards traders who add liquidity.
- Encourages tighter quotes in the book.
- Gives patient traders a cheaper option.
- Simple to plan around once you know your order type.
Disadvantages
- Maker orders may never fill.
- Fee schedules are complex and change.
- Rebates can distort where orders are routed.
- Taker fees add up for frequent traders.
Going deeper
Read as far as you need. Each level builds on the one before it.
Rest or hit
Beginner
If your order executes immediately, you are a taker; market orders always are.2
Post-only and inverted venues
Intermediate
Venue economics
Advanced
As described in a 2015 SEC staff memo, makers receive a rebate, takers pay a fee, and the exchange keeps the difference.1 Rebates can make a slightly worse price look cheaper after fees, so compare total cost.
Common mistakes
Assuming limits are always maker
Placing a limit that matches immediately and paying taker fees.
Ignoring fees in backtests
Testing a strategy without per-trade costs.
Chasing rebates
Waiting for a fill and missing the move.
Using an old schedule
Not checking the current fee table.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- Makers add liquidity; takers remove it.
- Market orders pay taker fees.
- Limit orders that match immediately also pay taker fees.
- Post-only orders keep you on the maker side.
- Fee schedules vary by venue and change.
Frequently asked questions
Is a limit order always a maker order?
Why do exchanges pay rebates?
Are the fees in the examples current?
Further learning
- Trading Fees and Commissions
All the costs of trading.
- Order Book
Where maker orders rest.
- Limit Order
The order type that can earn maker rates.
- Liquidity
What makers provide.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- U.S. Securities and Exchange Commission. Memorandum: Maker-Taker Fees on Equities Exchanges (SEC staff, 2015) (opens in a new tab) Checked .
- Kraken. What are Maker and Taker fees? (opens in a new tab) Checked .
Read more elsewhere
- Trading Metrics (our sister site): Commission Costs (opens in a new tab)
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. Trading Metrics is our sister site, under the same ownership; we are not affiliated with any other publisher linked above. Last reviewed . Report an error or request a source credit.