Fees Unpacked: Maker/Taker, Funding, Gas & Hidden Costs

Why Fees Matter More Than You Think

Over time, fees can erase a meaningful slice of returns—especially for frequent traders. Know them, measure them, and minimize them.

The Big Four

1. Trading Fees:

   • Maker: Add liquidity (usually cheaper).

   • Taker: Remove liquidity (usually higher).

2. Deposit/Withdrawal Fees:

   • Fiat rails, card gateways, and bank transfers can differ widely.

3. Network (Gas) Fees:

   • Paid to blockchain validators, not the exchange. Varies by chain congestion.

4. Derivatives Funding:

   • Periodic payments between longs/shorts—relevant only on perpetual swaps.

Hidden Costs You’ll Feel

• Slippage: Executing at worse prices than quoted due to thin liquidity.

• Spread: Wider spreads increase your implicit cost to trade.

• FX Conversion: Depositing in one currency and trading in another.

• Bridging/Cross-chain: Moving assets across networks.

How to Actively Lower Fees

• Use limit orders to earn maker rates where possible.

• Batch withdrawals: Fewer on-chain transactions.

• Pick cheaper networks: Example—withdraw stablecoins on lower-fee chains when appropriate.

• Mind timing: Gas tends to fall during off-peak chain activity.

• Consolidate trades: One well-planned order vs. many tiny ones.

• Verify fee tiers: Some exchanges reduce fees with higher monthly volume or native token holdings.

A Simple Cost Checklist (Copy/Paste)

• What are maker/taker rates at my tier?

• What is the average spread on my pair?

• What is typical slippage for my order size?

• Which network minimizes withdrawal fees safely?

• Are there FX or gateway fees on my deposits?

Key Takeaways

• Fees are multi-layered: exchange + network + implicit (slippage/spread).

• You can cut costs with better order types, timing, and chain choices.

FAQs

Q1: Are network fees avoidable?
Not if you move on-chain, but you can choose cheaper networks when supported.

Q2: Why is my taker fee higher than maker?
Exchanges incentivize liquidity. Taking removes it, so it often costs more.

Q3: Do I pay funding on spot trades?
No—funding applies to perpetual derivatives, not spot markets.