What Are Maker Fees?
Maker fees apply when an order adds liquidity instead of matching immediately. This is why limit orders that wait on the order book are often associated with the maker side of exchange pricing.
When a trader posts a bid or ask that sits on the order book, other participants can trade against that resting order later. That makes the order a liquidity source.
The maker side exists to reward liquidity providers with lower costs than immediate takers in many fee schedules.
Because maker activity supports tighter spreads and deeper markets, exchanges often set the maker fee below the taker fee. Some platforms even provide very low maker pricing for high-volume users.
Quick Answers
Do all limit orders become maker orders? Not always. A limit order that crosses the spread and executes instantly can still be charged as taker. The key factor is whether it rests on the book first.
Why do exchanges prefer makers? Makers improve market depth and create a better trading environment for all users.
Are maker fees always low? They are often lower than taker fees, but each exchange and fee tier is different.
Maker pricing matters most to traders who place many orders over time. Even a small percentage difference can change long-run costs.
The practical takeaway is simple: if you can use a well-placed limit order instead of chasing the market, you may turn a taker trade into a maker trade and save on fees.