Commission
Commission is a per-trade fee charged by raw/ECN accounts alongside tight spreads - the honest way to price execution.
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.
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
Compare round-trip cost: (spread + 2x commission) per lot
Scalpers and high-frequency traders nearly always do better on commission accounts
Check whether the commission is per side or per round trip - they differ between brokers
Commission Example
Say your ECN broker charges $3.50 per side per lot. One standard-lot round trip costs $7 in commission on top of a 0.2-pip raw spread, about $2, for $9 all in. The spread-only account quoting 1.0 pip costs $10 for the same trade.
How Traders Use Commission
Always compare all-in cost, never headline spread. Active traders usually win on raw-plus-commission. Casual traders may prefer spread-only simplicity. Ask for the per-million rate to compare brokers honestly.
Related Terms
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