Maker and taker fees in crypto trading and how they differ

The terms Maker and Taker come up most often in the fee sections of crypto exchanges. These two concepts form the basis of the fee model used by most centralized exchanges, both Iranian and international, and knowing the difference between them can help you manage your trading costs. Below, we explain in simple terms what makers and takers are, how they differ, what fees reputable Iranian and international exchanges charge for each, and finally, how you can manage your trading costs by choosing your order type wisely.

 

What Are Maker and Taker (Maker & Taker) in Crypto?

Maker and taker are two roles any trader can play in the market, depending on the type of order they place. When you place an order that is not matched with another order in the market immediately or at that moment, or that stays in the market for a while because of your order's specific limits and parameters, you are actually a «maker», or order placer. In this case, you are effectively adding liquidity to the market. But if you place an order that is immediately matched with one of the existing orders in the market and the trade is executed on the spot, effectively removing liquidity from the market, you are playing the role of a «taker». This distinction is the foundation of the maker-taker fee model, a model used by crypto exchanges including Binance, Kraken, Coinbase and Iranian exchanges such as Nobitex and Wallex.

 

The Concept of Liquidity and Its Role in Trading

Liquidity means how easily an asset can be bought or sold without causing a noticeable change in its price or a delay in the trade. In other words, the more orders there are in the order book of a market or asset, the narrower the gap between the best buy price and the best sell price (spread) naturally becomes, and traders can trade with more confidence and a lower chance of price slippage. 

Given the above, it is clear that high liquidity is of strategic importance to exchanges, because more liquid markets attract more users and strengthen the cycle of activity. This is exactly why exchanges designed the maker-taker model.

 

Who Is a Maker (Order Placer)?

A maker, or order placer, is someone who places an order at a specific price and adds it to the crypto order book without it being executed immediately. For example, if the current price of a cryptocurrency is 90 thousand Toman and you place your sell order at 92 thousand Toman, this order stays in the queue until a buyer is found at that same price, and you have played the role of a maker.

 

Features of Maker Orders

Maker orders are generally placed as limit orders (Limit Order) and are not executed instantly; instead, they wait for a counterparty. The most important feature of these orders is that they give the trader  full control over the execution price. In other words, you know at what price the trade will be executed, although when it will happen may be uncertain, or it may not be executed at all.

 But why do most exchanges reward maker orders and charge them lower fees? The reason clearly lies in the concept of liquidity. As we mentioned, when a maker order remains in the order book, market depth increases and the price spread narrows. This allows other traders to trade at more stable prices and without much slippage. This depth and stability of liquidity is a competitive advantage for an exchange. That is why charging lower fees, or even offering rewards, for maker trades effectively helps the exchange maintain its own market's liquidity and competitiveness.

 

Who Is a Taker (Order Taker)?

A taker, or order taker, is someone who places an order that uses existing orders in the exchange's order book and completes the trade immediately, on the spot. In the example given in the Maker section, if another person places a buy order for the cryptocurrency at 92 thousand Toman and it is matched with your sell order at that moment, that person is playing the role of a taker.

 

Features of Taker Orders

The main priority of a taker order is speed of execution, not getting the order placer's (maker's) price. By accepting the best price available in the market, the taker closes the trade instantly and does not need to wait in a queue. This speed and certainty of execution is the main advantage of taker trades, but the same feature means these orders reduce market liquidity. That is why exchanges generally charge takers higher fees.

 

The Difference Between Maker and Taker in Crypto Trading

Now that we are familiar with the concepts of maker and taker, it is worth looking at how maker and taker trades differ. In this section, we will examine the difference between maker and taker in crypto trading from 3 important angles: execution time, fees and impact on the order book.

 

Difference in Execution and Trade Timing

The most important difference between maker and taker lies in how and when the order is executed. As mentioned, a maker order is not executed immediately and may wait in the exchange's order book for minutes, hours or even days until a suitable counterparty is found. In some cases, the order may never be executed. In contrast, a taker order is generally executed immediately and instantly, because it is matched directly with an order that already exists in the market.

 

Difference in Trading Fees (Maker vs Taker Fees)

As mentioned earlier, in terms of fees, maker trades are usually cheaper than taker trades. This fee difference creates a stronger economic incentive to use maker orders instead of taker orders, although this choice also comes with the risk of the trade not being executed immediately, or not being executed at all.

 

Impact on the Order Book (Order Book) and Market Depth

By remaining in the order book (Order Book), maker orders increase market depth and help boost the exchange's liquidity. As a result, other traders have more price options to choose from. Taker orders, however, work the opposite way. With this type of order, existing orders are consumed and part of the order book is emptied, and if there are many of them, the price spread may temporarily widen.

Order Types in the Market: Which Is Maker and Which Is Taker?

To know whether an order counts as maker or taker in practice, you need to be familiar with order types. This classification is not specific to crypto and also applies to trading in the forex market, stocks and other financial markets.

 

Limit Order (Limit Order)

In a limit order, you set a specific price for buying or selling, which is usually different from the current market price. If this price is not immediately matched with another order, your order stays in the order book and you are considered a maker.

It is worth noting that a limit order does not necessarily mean you are a maker. In other words, if the price you set matches an existing order in the market at that moment, your order is executed immediately and in practice counts as a taker order.

 

Market Order (Market Order)

A market order is always executed at the best price available at that moment, and for this reason it always falls into the taker category. But note that with a market order, you usually pay a higher fee, and in shallow markets the final price may differ slightly from the price you saw.

 

Maker and Taker Fees on Reputable Exchanges (Iranian and International)

Maker and taker fees vary greatly from one exchange to another, and even between different markets on the same exchange (for example, the Toman market versus the Tether market). The table below shows a sample of base fees on several well-known exchanges:

 

 

Pros and Cons of the Maker and Taker Roles for Traders

Each of the maker and taker roles in trading has its own pros and cons. Being a maker has the clear advantages of lower fees, full control over the execution price and, on some exchanges, the possibility of receiving rebates. But this advantage comes with a hidden cost: uncertainty about execution time and the chance that the order is never executed. In other words, the market may never reach your desired price and the order may remain open, especially in highly volatile markets where the price quickly moves past the range you set.

On the other hand, the taker role is very useful for traders who need certainty and speed of execution. For example, when the market is dropping fast and you need to exit a position immediately, a taker order plays a decisive role. But this speed also comes at a higher cost, and for traders who place a large number of trades per month, these fees can add up and wipe out a significant share of their profit. 

 

 

How to optimize your trading fees

The first and simplest way to optimize trading fees is to use limit orders instead of, or alongside, market orders when you're in no particular rush to execute a trade immediately. This alone reduces part of the fees you pay.

Another way is to raise your user tier by increasing your trading volume, since exchanges lower their fees as trading volume grows.

 The third way is to use the exchange's native token to pay fees. For example, Binance offers a significant fee discount for holding BNB.

On Iranian exchanges, it's also important to note the fee difference between the Toman market and the Tether market. In many cases, trading in the Tether market generally carries lower fees than the Toman market. Finally, we recommend checking exchanges' official fee pages periodically.