When I get quote on ITOT or IEMG and some times on IWM, I see quotes in sub penny. reuters also confirms that it happens, Can a ordinary investor put limit orders in sub-penny ?
I am not asking about penny stocks or thinly traded stocks.
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In order to attract orders and trading volume, ECNs offer maker-taker fees. In general, if you provide liquidity, they'll provide a sub-penny discount if filled and they charge you the increment for taking liquidity. A decent broker will pass 'provided liquidity' this rebate along to you.
I recall reading about one ECN that provides a rebate for takers. The intent was to encourage investors and brokers who are trading at the market to trade there. This ECN, if still in existence, is a hotbed for HF traders looking for price discovery.
As for placing orders at sub-penny increments, that would depend your broker's software.