Module 2: Trading Fundamentals
Commission
4 min read
Some account types charge a separate commission in exchange for tighter raw spreads.
Two pricing models
Spread-only accounts build the broker's fee into a wider spread. Raw or ECN-style accounts offer tighter spreads plus a commission per lot traded, often charged on both opening and closing.
To compare accounts fairly, convert both into a total cost per round-turn lot.
Example: Comparing costs
Account A: 1.2-pip spread, no commission ≈ $12 per lot on EUR/USD. Account B: 0.2-pip spread + $7 round-turn commission ≈ $9 per lot. (Illustrative numbers only.)
Key takeaways
- Commission is charged per lot traded.
- Compare total cost: spread + commission.
- The cheapest account depends on how you trade.
Educational content only, not financial advice. Trading forex and CFDs involves significant risk of loss.