Most exchanges operate on a fee-based system where the exchange charges a small fee as a percentage of your buy or sell transaction, and for every trade there is a buy and a sell executed. These two sides of the trade can be divided between the maker and taker side of the transaction.
Some exchanges offer zero fees, but is it really the case? Zero fee exchanges often widen the spread and hide their fee within that margin. This lacks transparency and has many traders thinking they are saving on fees when actually they are losing.
A maker is someone who places their order which then rests in the book. This provides some liquidity and support. A taker, on the other side, is someone who steps in to take the trade at the current rate. Therefore, takers take liquidity by lifting the maker’s order from the order book.
From your trading interface, the simple way to explain it is if you want to be a maker you would place a limit order that may need some time to allow the price to touch the level and be filled. A taker, on the other hand, will place a market order which will get filled at the current price resting in the book closest to the current level.
Some exchanges will charge the maker a higher fee than a taker. At Bokka, we do even better by bringing you below the market fees, discounts and even zero fees for makers. You can benefit from both, getting your order filled immediately with a low fee using a market order or using a limit order. Bokka’s advanced order types are at your disposal to lock in more profit and lose less on fees and slippage.
At Bokka, you are rewarded with 0% fees when you are a maker. Using limit orders means you can trade for free just by adding liquidity to the book. However, even as a taker, you are able to get fees from just 0.075% to as low as 0.0375%. Looking around, these fees are well beneath market average and, as you grow your account trading, these all add up over time.
Apart from bringing you low fees, Bokka also offers discounts on your trading volume based on a 30 day period. That means the more trades you make, the lower your fees will become.