Commission
A fee a broker charges for handling your trade, usually a fixed amount per lot or a percentage of the…
In plain English
A fee a broker charges for handling your trade, usually a fixed amount per lot or a percentage of the trade's size.
A commission is the broker's service charge. Some forex brokers charge commission plus a tight raw spread; others charge no commission and widen the spread instead. Either way, you pay.
Compare the total cost per trade, spread plus commission, not just one or the other.
Worked example
Comparing two accounts
- Account A: 1.2-pip spread, no commission.
- Account B: 0.2-pip spread + $7 per standard lot round trip (about 0.7 pips).
- Total cost: A = 1.2 pips, B ≈ 0.9 pips.
Bottom line: The 'commission-free' account was the dearer one here.
Keep this word for good
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