In 2016 the SEC partnered with FINRA to evaluate whether or not widening the tick size for small-cap stocks impacts trading, liquidity, and market quality. The SEC’s goal for this test is to improve execution quality for small-cap companies. If you trade low-priced stocks with low trading volume, you may have to place orders in $.05 increments.
The list of Tick Size Pilot Program stocks is updated daily, and we’ll cancel any open order for a stock that’s selected for the TSPP if it isn’t in a $0.05 increment. We’ll send you an email if your order is canceled.