Kraken, one of the leading bitcoin exchange has made it more attractive for its users by reducing trading fees. Apart from reducing the trading fee, the company has also introduced a new model that rewards those who provide liquidity to the platform.
According to Kraken, the new model, known as “Maker Taker” model is introduced due to increasing demand from its users. In this Maker Taker model, the makers are those who offer liquidity to the market. The reduced fees will be applicable to makers.
Makers can add liquidity to Kraken platform in two ways. They can either choose to place a sell order for price above the current market value or set a buy order for bitcoins at prices lower than the market value. If these maker orders are taken up by new incoming orders, a fee will be provided to the maker as soon as the order in executed.
The new Maker Taker model will kick into effect from the first day of next month. The overall reduced fee will make trading cheaper on Kraken. In the new model, the Maker fee can range from anywhere between 0 to 0.16 percent depending upon the amount being traded. Takers will be paying 0.10 percent more than Makers and it may range anywhere between 0.10 to 0.26 percent.
Even with a 0.10 percent increase in Taker fee, it will still be cheaper than existing transaction fee structure as there will be an overall reduction in the fees.
This new model will allow Kraken to compete with other players in the market as the trading fee will be less than the current industry average. The Maker Taker model will also be applicable for Kraken’s crypto-crypto pairs except for the dark pool. The company has decided to omit dark pool from the model as users can’t access order book.