For thinly traded stocks, which won't see spreads narrow because there are far fewer buyers and sellers, investors still will pay for finer price increments. Christie and some others are suggesting that thinly traded stocks should trade in 5-cent increments. Another problem for big institutions is liquidity. At each penny price point, it is more difficult to find enough buyers and sellers to fill very large orders, which slows down trading and raises costs. Of course, decimals have fans among professional traders, including at electronic exchanges such as Chicago-based Archipelago.
Technology offers the investor the transparency and access to the best prices.