It&#x27;s interesting people always cite the UK&#x27;s stamp duty on share transactions as an example for how to stop high frequency trading. The rate is 0.5% when buying and 0% when selling. Market makers (of which high frequency traders are a subset) do not pay this.<p><a href="http:&#x2F;&#x2F;www.legislation.gov.uk&#x2F;ukpga&#x2F;1997&#x2F;16&#x2F;section&#x2F;97" rel="nofollow">http:&#x2F;&#x2F;www.legislation.gov.uk&#x2F;ukpga&#x2F;1997&#x2F;16&#x2F;section&#x2F;97</a><p>Edited extract:<p>&quot;Stamp duty shall not be chargeable on an instrument transferring stock of a particular kind on sale to a person or his nominee if—
(a)the person is a member of an exchange
(b)the person is an intermediary&quot;<p>&quot;an intermediary is a person who carries on a bona fide business of dealing in stock and does not carry on an excluded business&quot;