Definition of Commission
A fixed fee charged by a broker per trade or per lot traded. Some account types charge commissions alongside tighter spreads; others include the cost entirely in the spread.
At a glance
Term
Commission
URL slug
commission
Category
Trading costs
Short answer
A fixed fee charged by a broker per trade or per lot traded.
Deep dives
Full A–Z glossary
Example
Example: a 1.2-pip spread plus commission equal to 0.6 pip is ~1.8 pips of entry cost. Put “Commission” into the R:R math before judging a strategy.
Common mistake
Common mistake: ranking brokers on teaser “from” prices without measuring “Commission” on the same session and symbol.
Professional tip
Tip: log “Commission” at London–New York overlap and at quiet hours — the gap shows true strategy cost.
Practice tools:
Related terms
FAQ
A fixed fee charged by a broker per trade or per lot traded.
All-in cost (spread, commission, financing) often hinges on “Commission”. Skipping it distorts profit/loss expectations.
Common mistake: ranking brokers on teaser “from” prices without measuring “Commission” on the same session and symbol.