Maker vs Taker Fees Explained

Trading fees can quietly erase profits, especially in short term strategies. The biggest difference comes from whether you are a maker or a taker.

What is a maker fee?

Maker orders add liquidity to the order book. They are usually limit orders that do not fill immediately. Exchanges reward this with lower fees.

What is a taker fee?

Taker orders remove liquidity by filling instantly. Market orders are takers. The convenience of immediate execution comes with a higher fee.

How fees affect risk

Fees are charged on entry and exit. A 0.05% taker fee becomes 0.10% round trip. If your target is small, fees can consume a large portion of the move.

When to use limit orders

• When speed is not critical.
• When the spread is wide and you want a better fill.
• When your strategy targets small moves.

Fee comparison across exchanges

At base tier, here is how major exchanges compare for USDT-M perpetuals: Bybit charges 0.02% maker / 0.055% taker. Binance charges 0.02% maker / 0.05% taker. OKX charges 0.02% maker / 0.05% taker. Bitget charges 0.02% maker / 0.06% taker. The differences may seem small, but over hundreds of trades they compound significantly. VIP tiers can reduce these rates by 30-50%.

Maker fees can improve long term results, but do not force limit orders in fast breakouts. Price fees into your plan.