Two traders can make the exact same bet and pay different costs, purely because of how they placed the order. The distinction is between makers and takers — and grasping it is one of the simplest ways to keep more of your returns.
Makers and takers
A taker removes liquidity from the market: they place a market order that fills immediately against orders already sitting in the book. A maker adds liquidity: they post a resting limit order that waits in the book for someone else to trade against it. Every trade has one of each — the person who was already offering (the maker) and the person who accepted the offer (the taker).
Why fees differ
An exchange only functions if there are standing orders to trade against, so platforms actively reward the people who provide them. Makers are typically charged lower fees, or sometimes paid a small rebate, while takers pay more for the convenience of immediate execution. In effect, the exchange is paying for the liquidity that makes it usable — and passing part of the cost to the traders who consume it.
How to be a maker
Trading as a maker means posting a limit order at or just inside the spread and waiting to be filled, rather than crossing the spread with a market order. As a bonus, you often buy at the bid or sell at the ask — capturing the spread instead of paying it — on top of the better fee. The cost is patience: your order sits until someone takes it, and if the market moves you may not get filled at all.
Is it worth it?
For a one-off trade, the maker advantage is small. For an active trader placing many trades, it compounds into a real edge — lower fees and a captured spread on every fill add up. The trade-off is execution risk: you sacrifice the certainty of a market order for a better price. Most disciplined traders lean on limit orders for exactly this reason. To see how fees change a trade’s outcome, use the fee calculator.
Frequently asked questions
What is the difference between a maker and a taker?
A taker removes liquidity by placing a market order that fills against existing orders, while a maker adds liquidity by posting a resting limit order for others to trade against. Every trade pairs one maker with one taker.
Why do makers pay lower fees?
Exchanges need standing orders to function, so they reward the traders who provide that liquidity with lower fees or rebates, and charge takers more for immediate execution. It is effectively payment for making the market usable.
How can I trade as a maker?
Post a limit order at or inside the spread and wait to be filled, rather than crossing the spread with a market order. You get the better maker fee and often capture the spread too, at the cost of possibly not being filled.