How Crypto Trading Fees Work: Maker, Taker & Funding Explained
Disclosure: This guide may contain affiliate links; we may earn a small commission at no extra cost to you. This is educational information, not financial advice. Fee rates change — verify current numbers on the exchange.
New traders often obsess over which exchange is “cheapest” without understanding what they’re actually being charged. Fees quietly eat returns, especially if you trade often. Here’s how the three fee types work so you can actually reduce them.
The three fees, explained
| Fee | What it is | Who pays more |
|---|---|---|
| Maker | You place a limit order that waits on the book | Lower fee |
| Taker | You place a market order that fills instantly | Higher fee |
| Funding | Periodic long/short payment on perpetuals | Depends on market |
Maker vs taker: the fee you control
Every time you hit “market buy,” you’re a taker and pay the higher rate for instant execution. Place a limit order instead and you become a maker — your order waits, but you pay less (sometimes even earn a rebate). For anyone trading frequently, defaulting to limit orders is the single biggest fee saver.
Funding rates: the overnight cost
On perpetual futures there’s no expiry, so exchanges use funding to keep the contract price near spot. Every few hours, one side pays the other. If funding is positive, longs pay shorts; if negative, the reverse. It’s small per payment but adds up on held positions — check the funding rate before holding a perpetual overnight.
How to actually reduce fees
- Use limit orders to pay maker rates instead of taker.
- Hit a VIP/volume tier — higher 30-day volume lowers your rate.
- Hold the exchange token where it grants a fee discount.
- Mind funding on perpetuals you hold overnight.
- Trade less — overtrading multiplies fees faster than any discount saves.
Bottom line
Don’t just chase the exchange with the lowest headline number — understand maker/taker/funding and you’ll cut costs on any platform. Default to limit orders, build volume for tier discounts, and watch funding on held positions. For picking a platform, see our Bybit vs Binance comparison, and beginners should start with our guide to reducing trading fees.
FAQ
What’s cheaper, maker or taker? Maker fees are lower because limit orders add liquidity. Market (taker) orders cost more for instant execution.
Do all exchanges charge funding? Funding applies to perpetual futures, not spot trades. If you only trade spot, you won’t pay funding.
How do I lower my fee tier? Increase 30-day trading volume, hold the exchange’s token for a discount, or use limit orders to qualify for maker rates.