Binance maker and taker fees explained

Binance Maker and Taker Fee Explained

Binance Maker and Taker fees are explained for bitcoin and crypto trading.

  • Market makers add liquidity to the market by placing a limit order and usually pay lower trading fees (Maker fees)
  • Market takers remove liquidity by making market orders and often pay a higher trading fee(Taker fees).

Read the full article to understand and review the Binance maker and taker trading fees.

Table – Maker Taker Spot Trading Fees

In the table below you can find some examples of spot trading fees from some of the top trading sites for cryptocurrency.

This is just a cut from all the spot trading maker and taker fees listings. See a complete list in our article about the lowest crypto spot market trading fees.

What is Maker and Taker Fee?

Almost all crypto trading sites charge maker and taker fees for trading. But how do they differentiate?

➤A maker is a trader who adds liquidity to the order book.

➤A taker is a trader who takes liquidity out from the order book. 

Buy and Sell order screen

Who is a Market Maker?

➤Anyone can be a market maker.

However, getting liquidity from institutions is almost necessary to create an order book. Therefore, such large capital holders commonly take the market maker role. Of course, small traders can also become makers by placing a limit order into the order book. However, this doesn´t add as much liquidity as an institution can be able to do.

Who is a Market Taker?

➤Anyone can be a market taker. 

Usually, traders are looking for fast execution to do taker orders.

Why is the maker fee lower than the taker fee?

Maker trading fees are always lower than taker fees since all trading sites appreciate when liquidity is added to their order books.

Maker orders do not close immediately but rather linger due to price limits. Thus, they “make” the market, keeping it active. Takers file out directly, “taking” the value out of the market. Therefore, maker fees that activate the market and keep it that way usually come with the reward of low fees. Takers charge regular trading costs most of the time.

What is Market order and Limit order?

  • When you set a limit order, you usually want to add liquidity to the market because you don´t find an open order you are willing to accept. This will make you to the market maker. (Technically, you can set a limit order that buys from the order book, and that will make you a market taker)
  •  If you go for the market order alternative, you will always be a market taker. You will buy/sell from the order book at the best price when you execute the order.
Read more about the order book in the next section.

 

How to see makers and takers in an order book?

An order book keeps the market maker’s orders in the book while takers are filled immediately and removed from the order book. 

You can check the order history from the order book for price, volume, and time stamp.

Maker and Taker Fee VS Spreads

Crypto trading spreads are the differences between the buy and sell value of the cryptocurrency.

Bear with red price and bull with green price and spread in between

They are not costs per se but have implications for traders to consider. Spread is the difference between the highest bidding price and the lowest selling price in an order book. By definition, there will always be a spread in an order book since the market will execute any matched orders.

Why are spread essential and hard to evaluate?

➤Spread is essential to evaluate because it will affect every single trade in a negative direction, similar to trading fees.

➤Spreads are hard to evaluate because they are dynamic and will change all the time. Therefore, comparing the spread between different crypto trading platforms is difficult. 

However, the spread is usually directly dependent on the trading volume; therefore, you should go for crypto trading platforms with large trading volumes like Binance, Kraken, ByBit, and Kucoin.

Maker and Taker Fee on Binance

Binance applies maker and taker fees to all trading fees charged by Binance.

The table below shows a selection of the maker and taker fees for spot trading

Note that Binance offers three different ways to pay a lower commission.

How to pay lower fees with Binance?

  • Pay the fees in the Binance BNB token, and you will get 25% lower trading fees.
  • Use our referral ID, which will give you another 20% lower costs on Binance. See all signup bonuses and discount codes.
  • Hold the Binance coin BNB or trade large volumes. You can reach higher VIP levels, as seen in the table below.

If you want to read further about fees on Binance, you should check out our dedicated article, Binance trading fees. Here, you will find how to set to pay all the trading fees with the Binance Coin BNB to enjoy 25% less fees for spot trading.

Read more about Binance in our Binance Review.

See the table and compare all other crypto trading platforms in our article about the lowest cryptocurrency spot trading fees.

Maker and Taker Fee on Binance by Binance Academy

Binance has started its educational platform called Binance Academy. In the video below, Binance Academy describes the maker and taker fees on Binance. Read more about Binance academy in our best free crypto trading courses article.

Maker and Taker Fee on Kraken

Kraken is a US crypto exchange and trading platform with decent fees and good trading volumes. 

You can use the “Instant Buy” feature, but they will charge a 0.9% fee for any stablecoins and
1.5% fee for any other crypto or FX pair. It’s better to use the Kraken Pro feature, which is a trading application with more features and lower costs.

What are the Kraken Pro trading fees?

Spot trading fees on Kraken Pro range from 0.26% to 0.10%, as you can see in the screenshot below. However, if you have sizeable 30-day trading volumes, maker fees can drop to 0%. Read more about this platform in our Kraken review.

For Kraken, having large trading volumes is the only way to reach higher tier levels and pay fewer fees. With Binance and Kucoin, there is an option to hold their native token to get higher tier levels.

See the table and compare all other crypto trading platforms in our article about the lowest cryptocurrency spot trading fees.

Maker and Taker Fee on ByBit

ByBit has a simple trading fees table, as shown in the screenshot below. Everyone will have to pay the same fee regardless of their trading size.

However, they still differentiate between maker and taker fees, as you can see. Also, they charge different prices for spot trading and derivative contracts, as all platforms do. 

Read more in our ByBit Review.

See the table and compare all other crypto trading platforms in our article about the lowest cryptocurrency spot trading fees.

Maker and Taker Fee on KuCoin

Kucoin has a similar maker and taker fees table to Binance. 

Here, you can get lower spot trading fees by holding their native token or by having large trading volumes.

KuCoin spot trading fees rules

  • KuCoin will snapshot users’ KCS holdings and their total trading volume daily to calculate Tier levels.
  • Users need to meet one of the listed requirements in the screenshot below.
  • User’s Tier level and corresponding trading fees are in effect for 24 hours and automatically renewed daily.

See the table and compare all other crypto trading platforms in our article about the lowest cryptocurrency spot trading fees.

Conclusion for Maker and Taker Fee

As you can see in the article, some crypto trading platforms charge the same maker-as-taker fee, while others can differ by about 0.1%. This will not have any substantial impact on a small number of trades.

However, if you are a frequent trader or make many trades over time, this will significantly impact how much you pay in fees.

Even more important is to find out if there are other ways to reduce your trading fees. For example, Kraken, Binance, and Kucoin apply tier levels that you can reach differently.

To complement our knowledge, we would recommend our readers check out our articles about crypto trading platforms with the lowest trading fees.

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