Orders & execution
What are Maker-Taker fee models and how do they influence order routing choices?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Maker-taker pricing models charge a fee to traders who take liquidity (market orders) while rebating those who add liquidity (limit orders resting on the book), influencing where brokers route orders.
How it works
Exchanges use these fee structures to attract liquidity providers. Smart order routers may favor venues offering better rebates, which can affect execution quality and speed for retail trades.
An example
A broker's router sends a limit order to an exchange offering a rebate for adding liquidity, rather than one charging a taker fee, to reduce overall trading costs.
Risk & limitations
Order routing decisions driven by rebate economics do not always align with achieving the best possible execution price for the individual investor.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.