How do the maker and taker fees work on Binance when trading cryptocurrencies?

3 answers

• Dec 27, 2021 · 3 years ago
  Maker and taker fees are common in cryptocurrency exchanges like Binance. The maker fee is charged to traders who provide liquidity to the market by placing limit orders that are not immediately matched with existing orders. This encourages traders to add liquidity to the order book. On the other hand, taker fees are charged to traders who remove liquidity from the market by placing market orders that are immediately matched with existing orders. The purpose of taker fees is to incentivize traders to take existing orders from the order book. Generally, maker fees are lower than taker fees, as they contribute to the overall liquidity of the market. It's important to note that the specific fee structure may vary between exchanges, so it's always a good idea to check the fee schedule on the exchange's website before trading.
  833417
• Dec 27, 2021 · 3 years ago
  When you place a limit order on Binance, you become a maker and are eligible for the maker fee. This means that if your order is not immediately matched with an existing order, you will be charged the maker fee when your order is eventually filled. On the other hand, if you place a market order, you become a taker and will be charged the taker fee. Market orders are immediately matched with existing orders, so there is no waiting time for execution. The taker fee is typically higher than the maker fee, as it provides an incentive for traders to provide liquidity to the market by placing limit orders. It's important to consider the fees when trading on Binance, as they can impact your overall profitability.
  715239
• Dec 27, 2021 · 3 years ago
  At BYDFi, a different fee structure is implemented. We believe in rewarding our users for providing liquidity to the market. Therefore, we offer a negative maker fee, which means that makers receive a rebate for adding liquidity to the order book. Takers, on the other hand, are charged a standard taker fee. This fee structure encourages traders to actively participate in the market and contribute to its liquidity. It's important to note that the fee structure may vary between exchanges, so it's always a good idea to check the fee schedule on the exchange's website before trading.
  586147