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Definition maker feetaker feefee tier

Maker and Taker Fees

Exchange fees that charge less to orders which wait in the book and more to orders that trade immediately against them.

An order that rests and adds liquidity is a maker order; one that executes on arrival and removes liquidity is a taker order. Venues charge takers more, and some pay makers a rebate, because resting orders are what make the venue tradable. Fee schedules are usually tiered by a customer's trailing volume, so large participants pay materially less per trade than retail accounts. On an automated market maker there is no maker and taker distinction: every swap pays the pool's swap fee, which goes to liquidity providers rather than to a company.

In practice

A limit order placed away from the market and later filled is charged the maker rate, while the same order priced to execute at once is charged the taker rate.

The common misunderstanding

Maker status is decided by outcome, not intent: a limit order that executes the instant it arrives is charged as a taker order.

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Related terms

Centralized Exchange A company that runs a trading venue where customers deposit funds, and the company holds those…
Liquidity How easily an asset can be traded in size, quickly, without moving its price much.
Liquidity Pool A shared pot of two or more assets locked in a smart contract that traders trade against and…
Market Maker A firm or program that continuously offers to both purchase and sell an asset, earning the spread…
Order Book A live list of the prices and quantities people are willing to trade at, sorted from the best bid…
Spread The gap between the highest price anyone is currently willing to pay and the lowest price anyone is…
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