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Commission

Commission is a per-trade fee charged by raw/ECN accounts alongside tight spreads - the honest way to price execution.

Quick answer

Commission is a per-lot fee on raw/ECN accounts alongside tight spreads, typically $3-7 per side. Add it to the spread for the true round-trip cost.

Definition

Commission is a fixed fee per trade charged by raw or ECN accounts on top of a tight raw spread, typically $3-7 per lot per side. It is the transparent alternative to the spread-only model, where the broker hides its cost inside a wider spread. For active traders the commission model is usually cheaper; for occasional traders spread-only is simpler. Total cost is what matters: spread plus commission on the round trip.

How It Works

  • Charged per standard lot, per side (open and close)
  • Raw spreads are tighter because the commission carries the broker's cost
  • Spread-only accounts build the same cost invisibly into wider spreads

Trading Tips

1

Compare round-trip cost: (spread + 2x commission) per lot

2

Scalpers and high-frequency traders nearly always do better on commission accounts

3

Check whether the commission is per side or per round trip - they differ between brokers

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