Maker-Taker Fees
A two-sided fee model where liquidity providers (makers) earn rebates and liquidity takers pay fees.
Formula
Net fee = Taker fee − Maker rebate (both in $/share or bps)
The maker-taker model is the dominant fee structure for electronic exchanges in equities, futures, and crypto. Exchanges charge takers a fee for immediately consuming liquidity and pay makers a rebate for posting resting orders.
The result: posting limit orders is cheaper (often negative cost after rebate) than crossing the spread with a market order. Sophisticated participants route orders to maximize maker rebates — a practice called rebate arbitrage.
Critics argue maker-taker distorts order routing incentives: brokers may route to exchanges paying higher rebates rather than to venues offering the best prices for clients.
Related Terms
Bid-Ask Spread
The gap between the highest price a buyer will pay (bid) and the lowest price a seller will accept (ask). Crossing it is the minimum cost of an immediate trade.
BeginnerMaker
A trader whose limit order rests in the order book, adding liquidity and typically earning a fee rebate on maker-taker exchanges.
IntermediatePost-Only Order
A limit order that is automatically canceled if it would execute immediately — ensuring it rests in the book and earns maker status.
AdvancedSmart Order Routing
Automated logic that scans multiple trading venues to find the best price, fee, and fill quality for each order.
AdvancedTaker
A trader whose order immediately executes against a resting limit, removing liquidity from the book and typically paying a fee.
Intermediate