Maker vs taker: what they are and how they affect your fees

Look at any exchange's fee table and you'll see two columns: maker and taker. Understanding the difference is one of the simplest ways to pay less to trade. Here it is in plain terms.

What is a maker order?

You're a maker when your order adds liquidity to the order book: you place a limit order that doesn't fill immediately and sits waiting for someone to cross it. Because you help "build" the market, the exchange charges you a lower fee (sometimes even zero or negative).

What is a taker order?

You're a taker when your order removes liquidity: you send a market order (or a limit that fills instantly against an existing one). Because you "take" liquidity from the book, the fee is usually higher.

Why does the maker pay less?

Exchanges want deep, liquid order books. To encourage it, they reward those who add liquidity (maker) with lower fees and slightly penalize those who consume it (taker). It's an incentive system, not a punishment.

How to use it to pay lower fees

• Use limit orders when you don't need to enter instantly: you become a maker.
• Enable "Post Only" if your exchange allows it: it guarantees your order only fills as maker.
• Save market orders for when speed matters more than cost.

Maker, taker and cashback: they stack

Trading as a maker reduces the nominal fee. Cashback on fees returns a percentage of the one you do pay. They're compatible: you can trade as a maker and recover part of that fee with Omanero. It's the most efficient combination for an active trader.

Summary

Maker = you add liquidity = pay less. Taker = you remove liquidity = pay more. Use limit orders whenever you can and combine with cashback to minimize the total cost of trading.