Does Fidelity offer rebates under the maker taker fee system.
Summary of User Inquiry and Responses:
- The main problem reported by the user, Brian, is whether Fidelity offers rebates for traders who provide liquidity by waiting on the bid or ask to get filled.
- Fidelity clarified that they do not currently offer rebates for providing liquidity to the market.
- Fidelity also explained that while they do not receive payment for order flow on equity and ETF trades, they do receive rebates from exchanges for orders that provide liquidity.
- For options trades, Fidelity does receive payment for order flow, but these payments cannot be negotiated or solicited for price improvement.
Here’s the full thread
I’m curious if Fidelity offers rebates under the maker- taker system.
Thanks for reaching out to us!
Fidelity does not receive payment for order flow (PFOF) from market makers on equity and ETF trades. We do receive rebates from exchanges on orders that provide liquidity but are also charged for orders that take liquidity per the exchanges schedule. For options, we do receive PFOF where residual economics are generated no matter what and could not be put into price improvement, but we do not negotiate or solicit those payments.
Using the link below, you can view Fidelity’s 606 report which has specific details around the nature of those economics and descriptions of the material economic relationships with each market center.
Fidelity’s Commitment to Execution Quality: https://www.fidelity.com/trading/execution-quality/overview 🟢
@FidelityMarian No but i’m curious if say a trader waits on the bid or ask to get filled will they recive a rebate from fidelity?
for providing liquduity to the market.
Hi, Brian. This is not something that we currently offer.🟢
I see, thank you.
You’re welcome. Please let us know if you have additional questions. 🟢