When you start trading on an exchange, you’ll notice two different fee numbers: a “maker” fee and a “taker” fee. It looks like jargon, but the idea is simple — and understanding it can genuinely save you money. Here’s the plain-language explanation.
The core idea: adding vs removing liquidity
Exchanges want lots of orders sitting on their books, because that makes it easy for everyone to trade. So they reward the people who add orders and charge a little more to the people who take them away. That’s the whole concept behind maker and taker fees.
It comes down to whether your order is filled instantly or sits and waits.
What a “maker” is
You’re a “maker” when you place an order that doesn’t fill immediately — it sits on the order book waiting for someone else to trade against it. The classic example is a limit order set at a price away from the current market: it rests there, “making” liquidity for the market. Because you’re adding to the order book, the exchange charges you the lower maker fee (sometimes even zero).
What a “taker” is
You’re a “taker” when you place an order that fills immediately against an existing order — you’re “taking” liquidity off the book. A market order (buy or sell right now at the going price) is the classic taker order. Because you’re removing liquidity, the exchange charges the slightly higher taker fee.
Why the difference matters to you
The gap between the two is usually small — often a fraction of a percent — but it adds up, especially if you trade often. If you’re not in a hurry, placing a limit order that rests on the book can mean paying the lower maker fee instead of the taker fee. That’s a small, repeatable saving for patient traders.
For a true beginner making the occasional small purchase, the difference is tiny and not worth stressing over. It matters far more for active traders, where fees quietly eat into returns over many trades.
The bigger fee trap to watch
Honestly, for beginners the maker/taker distinction is less dangerous than a different fee trap: the “instant buy” or “convert” buttons many apps push. Those are convenient but often carry a much bigger hidden markup than either maker or taker trading fees. Using the normal trading screen with a simple order is usually far cheaper than the one-tap buy button, even at the taker fee. If you want to understand that, our guide on how exchange fees work goes deeper.
Key takeaways
A “maker” adds an order to the book (like a resting limit order) and pays a lower fee; a “taker” fills instantly against existing orders (like a market order) and pays a slightly higher fee. The gap is small per trade but adds up for active traders, so patient limit orders can save money. For beginners, though, the bigger fee danger is the high-markup “instant buy” button — the normal trading screen is usually cheaper. This is education, not financial advice.
New here? This builds on the difference between a market order and a limit order and how to read a crypto order book. To avoid overpaying overall, see how crypto fees really work.
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