Crypto Trading Fees Explained: Maker, Taker, Spreads & Hidden Costs

Trading fees are one of the most important — and most frequently overlooked — factors in cryptocurrency trading. Even small differences in fee structures can have a significant impact on your overall returns, particularly for active traders. This guide explains every major type of fee you are likely to encounter.

Maker and Taker Fees

The maker/taker model is the most common fee structure on centralised exchanges. Understanding the distinction is essential.

What Is a Maker?

A maker is a trader who places a limit order that does not immediately match with an existing order in the order book. By placing this order, the maker "makes" liquidity — they add an order to the book that others can trade against. Makers typically pay lower fees because they contribute to market depth.

Example: You place a buy order for Bitcoin at $60,000 when the current market price is $62,000. Your order sits in the book waiting to be filled. You are a maker.

What Is a Taker?

A taker is a trader who places an order that immediately matches with an existing order in the book, "taking" liquidity from the market. Market orders are always taker orders. Takers typically pay higher fees.

Example: You place a market buy order for Bitcoin at the current price of $62,000. Your order is filled immediately against existing sell orders. You are a taker.

Typical Fee Ranges

Maker fees on major exchanges typically range from 0% to 0.10% per trade. Taker fees typically range from 0.04% to 0.10% per trade. Some exchanges offer tiered fee schedules where higher trading volumes unlock lower rates.

Spreads

The spread is the difference between the best available buy price (bid) and the best available sell price (ask) in the order book. Even on exchanges that advertise "zero fees," the spread represents a cost to traders.

Spreads are typically wider for:

• Less liquid assets (low trading volume)
• Volatile market conditions
• Smaller exchanges with less market depth
• Peer-to-peer (P2P) trading platforms

When evaluating the true cost of trading, always consider the spread in addition to stated fees.

Funding Rates (Perpetual Futures)

Funding rates apply specifically to perpetual futures contracts — derivatives that have no expiry date. Because perpetual contracts do not expire, exchanges use a funding mechanism to keep the contract price aligned with the spot price.

Funding is exchanged between long and short positions at regular intervals (typically every 8 hours). When the funding rate is positive, longs pay shorts. When it is negative, shorts pay longs.

Funding rates can be significant during periods of strong market sentiment:

• During bull markets, funding rates for long positions can reach 0.1% per 8 hours (approximately 10.95% annualised)
• During bear markets, short positions may face negative funding

Traders holding leveraged positions for extended periods must account for cumulative funding costs, which can erode returns substantially.

Withdrawal Fees

Withdrawal fees are charged when you transfer cryptocurrency from an exchange to an external wallet or another platform. These fees vary significantly by:

• Asset: Bitcoin withdrawals typically cost more than stablecoin withdrawals on cheaper networks.
• Network: Withdrawing on the Ethereum mainnet is more expensive than using Layer 2 networks or alternative blockchains.
• Exchange policy: Some exchanges charge flat fees; others pass on the actual network fee.

Always check the withdrawal fee before initiating a transfer, particularly for smaller amounts where fees may represent a disproportionate percentage of the transaction.

Deposit Fees

Most exchanges do not charge fees for cryptocurrency deposits. However, fiat currency deposits may incur fees depending on the payment method:

• Bank transfer: Usually free or low cost, but may take 1–3 business days.
• Debit/credit card: Typically 1.5%–3.5% per transaction. Convenient but expensive for large amounts.
• Third-party payment processors: Fees vary widely.

Hidden and Indirect Costs

Beyond explicit fees, be aware of these indirect costs:

• Slippage: For large orders or illiquid assets, your order may be filled at a worse price than expected as it moves through the order book.
• Conversion fees: When converting between currencies (e.g., AED to USD to crypto), each conversion may carry a fee or unfavourable exchange rate.
• Inactivity fees: Some platforms charge fees for dormant accounts.
• Liquidation fees: If a leveraged position is liquidated, exchanges typically charge an additional fee on top of the loss.

How to Calculate Your True Cost of Trading

To understand the full cost of a trade, consider:

1. Trading fee (maker or taker) on entry
2. Trading fee on exit
3. Spread cost (bid-ask difference)
4. Funding rate cost (for futures positions held over time)
5. Withdrawal fee when moving funds off the exchange

For a round-trip spot trade (buy and sell) with a 0.10% taker fee on each side, your minimum cost is 0.20% of the trade value, before accounting for spread and any withdrawal fees.

Key Takeaways

• Maker fees are lower than taker fees; using limit orders when possible reduces costs.
• Spreads represent a real cost even on "zero-fee" platforms.
• Funding rates on perpetual futures can accumulate significantly over time.
• Always check withdrawal fees before transferring assets.
• Calculate the total round-trip cost of a trade before entering a position.