Most people judge a trade by one number: did the price go up?
Pros judge it by three: the price, the fee going in, and the fee coming out. That's the difference between "I made 10%" and "I actually made 8.9%".
The short version
- Every trade has two sides, and you usually pay a fee on both: once to buy, once to sell.
- Makers add liquidity. Your order waits on the order book until someone matches it. Makers usually pay less.
- Takers remove liquidity. Your order matches an existing offer instantly. Takers usually pay more.
- On a $1,000 round trip, fees of 0.40% and 0.60% cost you $10.60. Do that every week and it adds up fast.
- The habit that saves money: use limit orders that rest on the book instead of market orders, whenever speed doesn't matter.
Start with the order book
An exchange is a giant list of offers. Buyers saying "I'll pay this much." Sellers saying "I'll sell for this much." That list is the order book.
You can interact with it in two ways:
- Make: post an order that waits on the book, like "buy at $99.50 if it gets there". You've added liquidity, so you're a maker.
- Take: hit an order that's already on the book, like "buy now at whatever the best price is". You've removed liquidity, so you're a taker.
Exchanges reward makers because they keep the market liquid. That's why maker fees are usually lower, according to Coinbase's own fee explanation.
One trap: a limit order isn't automatically a maker order. If your limit price matches an existing offer the moment you place it, that part fills instantly and you pay the taker fee. An order can even be part taker, part maker.
Do the maths on a real round trip
Here's an illustrative trade with made-up fee rates:
| Step | Amount |
|---|---|
| Buy $1,000 of a coin at $100 | 10 coins |
| Entry fee at 0.40% | $4.00 |
| Sell the 10 coins at $110 | $1,100 |
| Exit fee at 0.60% | $6.60 |
| Profit before fees | $100.00 |
| Profit after fees | $89.40 |
The price went up 10%. You kept 8.94%. Fees took more than a tenth of your gain, and that's before spread and slippage, which quietly cost you even more on thin markets.
Now picture doing that every week. Fifty round trips a year at $10.60 each is $530 in fees on a $1,000 position. More than half of what you started with, gone to the exchange.
How to pay less
- Use limit orders when you're not in a rush. Set a price slightly away from the current one and let the market come to you. Maker fees, every time it works.
- Trade less. The cheapest fee is the one you never pay. Most people who trade often would do better trading less.
- Read the schedule. Fees change by exchange, product and how much you trade. Look up the actual numbers before you compare venues.
- Count both sides. Always ask "what does it cost to get out?" before you get in.
Want your own numbers? Plug them into the MYEX fee calculator. It shows your profit after fees and the exact price you need just to break even.
Questions people ask
What is the difference between a maker and a taker fee?
A maker fee applies when your order waits on the order book and adds liquidity. A taker fee applies when your order matches an existing order immediately and removes liquidity. Maker fees are usually lower.
Is a limit order always charged the maker fee?
No. If your limit price matches an existing order the moment you place it, that part fills immediately and pays the taker fee. Only the part that rests on the book pays the maker fee.
How much do trading fees cost on a round trip?
You pay a fee to buy and again to sell. With an illustrative 0.40% entry fee and 0.60% exit fee, a $1,000 trade that rises 10% costs $10.60 in fees, leaving $89.40 of the $100 gain.
How can I reduce crypto trading fees?
Use limit orders that rest on the book so you pay maker rates, trade less often, and compare each exchange's published fee schedule for both buying and selling.