Liquidity providers fulfill an important function in asset trading. By placing orders in the order book, they provide liquidity for purchases and sales for other market participants. Since this increases the tradable volume of an asset on an exchange, liquidity providers are very important for exchanges to increase the attractiveness of their trading venue. <\/p>\n
The taker fee is a fee that is charged when an investor places an order that is executed immediately, i.e., the buyer accepts an already existing order instead of waiting for a new order to be executed. In this case, the buyer withdraws liquidity from the trading platform. <\/p>\n
The counterpart to this is the so-called \u201cmaker fee\u201d. A maker fee is the fee charged for a new order that is not executed immediately, but remains in the order book and waits for another buyer to accept it. In this case, you provide liquidity to the crypto exchange. <\/p>\n
The taker fee varies among the different crypto exchanges. Depending on the crypto exchange and trading volume, the taker fee can even be less than 0.10 percent of the trading amount. However, values between 0.10 and 0.50 percent are more common. Since takers withdraw liquidity from the market by executing orders in the order book, taker fees are normally higher than maker fees in order to grant the maker a discount on their transaction fee. <\/p>\n