Maker vs Taker fees: What’s the difference?
If you are a trader, you should know what Maker vs Taker fees are and if you do, this post is probably not for you. But if you don’t, I strongly advise you to read this post
What is Maker and Taker?
In trading, there are 2 sides which are buy and sell. Usually, most traders will put sell/buy orders so they don’t have to watch charts 24/7.
However, besides tradingview, there is another chart known as depth chart which shows sell/buy orders at certain price points and this chart is quite handy as it lets you know the demand and resistance points for the said coin.
The traders who put sell/buy orders at certain price points are known as makers as they are literally making up the depth chart and for providing liquidity which helps other traders exchange coins.
Takers on the other hand are people who buy at market price without placing an order and thus are called takers as they are taking liquidity from the market.
Maker and Taker Fees:
Usually, exchanges will charge makers a lower trading fee for their contribution to the market and for providing liquidity. For coinbase pro and binance, this fee is the same as taker fees at first levels (having a trading volume of less than $10k a month) but as you climb up the levels, the maker fees are lower compared to taker fees
And as mentioned above, as takers take liquidity from the market, they have to pay more fees. Again, the M&T fees are the same at lower levels but as you progress, you’ll have to pay more fees if you want to trade as a taker.
So if you didn’t know this, from now on you should look into trading as a maker as you’ll have to pay less fees.