Since the inception of money itself and the progression of systems of trade from barter to currency, the need to increase the efficiency with which these transactions take place has also taken a fast track. Technological advancements have been a major catalyst to the growth of trade and business in general. Innovations such as online money transfers through EFTs has allowed banks to recognize deposits and withdrawals with near, real time accuracy and the now famous MPESA technology pioneered by the leading telecommunications firm in Kenya, Safaricom, are just but a few mentions of what technology has done to the whole trading platform.
Financial instruments have also not been left behind as we see online trading platforms replacing the physical brokers we once knew or famously portrayed in the movie "Wolf of Wall Street". What was once a game of physical auction of shares and stock has been interpolated into the world of technology. The same commission our brokers received are the now the same fees trading online platforms require to function, these fees resulting from the administration of the trading account e.g minimum trading balance, service levies, exchange rates etc. One of the key advancements in the world of online business is the new Cryptocurrency derivative.
Cryptocurrency has tremendously evolved since its generation in the early 21st century and with it, there has come the need for an online platform to trade the derivative. Due to the fact that there is no clear government agency in charge of regulating the currency, there are not many charges tied to transactions in cryptocurrency apart from settlement fees namely maker/taker fees and withdrawal fees.
In any given cryptocurrency transaction, there is the taker; any individual who makes an order for a given number of units in whichever cryptocurrency and the maker: the individual who is able to match the order from their order book. If you are a taker there is a certain transaction fee which you pay and it is also known as the taker fee. This taker fee is usually a percentage of the notional value, in this case the order of the units in bitcoin value. As for the maker, they usually receive rebates once they are able to match the current order. Maker and Taker fees are usually not the same as they differ from one cryptocurrency to another i.e. the taker fees for changing US dollars contracts (USD) to their equivalent in Bitcoin Currency (XBT) is not the same as the taker fees for an order for the same in Lit-coin Currency (LTC). The same goes for maker fees.
The same maker and taker fees differ from one trading platform to another i.e. some companies that own online trading platforms have higher trading fees as compared to their competitors. Apart from the maker and taker fees, some online platforms also charge account management fees as part of the service charges. Again this also varies across the different online trading platforms and one should conduct thorough due diligence to ensure the platform chosen is in line with the individual's needs and objectives.