Maker fee

A maker fee is a trading fee on a crypto exchange with an order book. You pay it when your buy or sell order isn’t filled right away.

What is a maker fee?

An order book is a list of open buy and sell orders. If you place an order that stays on the order book, you’re a maker.

Your open order gives other traders another opportunity to buy or sell. This adds liquidity, meaning more supply or demand is available. Crypto exchanges often charge makers a lower fee than traders who place orders that are filled immediately.

The fee depends on how the order is filled, not on the type of order. So a limit order is only a maker order if it doesn’t match an existing order right away.

An example of a maker fee

A token is priced at €100. You only want to buy it for €98, so you place a buy order at that price. No one is selling for €98 at that moment, so your order stays on the order book.

Later, someone sells for €98, and your order is filled. You were a maker and pay the maker fee on the amount filled. The order could also have stayed open if the price never reached €98.

Why is a maker fee important in crypto?

Maker fees are mainly found on crypto exchanges with an order book. You may come across the term in discussions about trading fees, limit orders, or fee changes.

A lower maker fee doesn’t automatically mean trading will cost less or work out better. Your order might not be filled, or it might only be partially filled. The market could also move before your price is reached.

When looking at fees, don’t focus only on the maker fee. The price you get, the spread, and possible slippage can also affect the total cost.