How Does a “Volume Tier” System Interact with the Maker-Taker Model?

A volume tier system typically lowers the maker and taker fees (or increases the maker rebate) as a trader's cumulative trading volume over a period increases. This is a further incentive for high-volume traders, especially market makers, to increase their activity.

It magnifies the benefits of the maker-taker model, allowing high-frequency trading firms to operate with even tighter margins.