What is the difference between maker and taker fees?

A maker order rests on the order book and adds liquidity; a taker order executes against existing orders. Maker fees are often lower, but a missed fill, adverse selection or slower execution can cost more than the fee difference.

Transparent formula

Fee = filled notional × fee rate; execution cost = fee + spread + slippage + missed-fill cost

Worked example

On a

0,000 order, 0.02% maker costs $2 and 0.05% taker costs $5. The visible difference is $3. If waiting for a maker fill moves the entry price against you by 0.05%, the $5 market move is already larger than the fee saving.

Use this sequence

  1. Check whether the order will rest on the book.
  2. Measure the fee difference in dollars.
  3. Compare fill probability and urgency.
  4. Review post-only and cancellation rules.

Common mistakes

  • Assuming every limit order is a maker order.
  • Ignoring partial fills and order queue position.
  • Chasing maker rebates in a fast market.

Verify next

Frequently asked questions

Can a limit order be a taker order?

Yes. If its price crosses the book and executes immediately, it removes liquidity and is charged as taker.

What does post-only do?

It prevents the order from executing immediately as taker; the exchange cancels or reprices it according to platform rules.

Which is better for beginners?

Use the order type that matches the execution plan. A small fee saving should not replace a clear entry and risk rule.

This page provides calculation and research frameworks, not investment, legal or tax advice.