Maker vs Taker Fees Explained
5 min readUpdated Dec 2025
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.
Example: A $10,000 position with a 0.05% taker fee costs $5 to enter and $5 to exit.
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.
Maker fees can improve long term results, but do not force limit orders in fast breakouts. Price fees into your plan.
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