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There already are trading fees. Each exchange charges a small fee for every trade. It's how they make money and is why they have an incentive to increase volume

There already are trading fees. Each exchange charges a small fee for every trade. It's how they make money and is why they have an incentive to increase volume. For example, on the CME futures exchange the fee per energy contract is usually 50 cents. Of course, those are only for trades that are actually filled. For quoting there are no transaction costs, but there are often rules to limit quoting (transactions/fills under a certain threshold, a total number of transactions per day, etc.). If these rules are broken, they often come with a fine.

xntrk 13y ago
This isn't true. "Each exchange charges a small fee for every trade" Not all exchanges charge fees for posting liquitity. Smaller ECNs will actually pay traders to provide liquitity. If you hit or lift someones bid or offer you will get charged a fee but if you post an order that does not cross against the current market you can get paided for. these rebates are very importatn for HFT desks.