Commission
Also known as: trading commission, broker commission, per-lot fee, round-turn commission, per-trade commission, ecn commission
What is it?
Commission is a direct fee your broker charges for executing a trade, billed separately from the spread. It is most visible on raw or ECN accounts, where you get a very tight spread but pay an explicit charge per lot traded. For example, a broker might quote EUR/USD with a near-zero spread but charge 7 dollars per standard lot round-turn, meaning roughly 3 dollars and 50 cents when you open and the same again when you close.
| Raw / ECN account | Standard account | |
|---|---|---|
| Spread | Near-zero (tight) | Wider |
| Commission | $7 per lot round-turn | No line-item charge |
| Is it free? | Cost is the visible fee | Cost is hidden in the spread |
| What you compare | Spread + commission | Spread + commission |
| Hurts most | Scalpers: every round-turn stacks up | Scalpers: every wider spread stacks up |
On a standard account you usually see no line-item commission at all, but that does not mean trading is free: the cost is simply baked into a wider spread instead, so you pay it through worse prices on entry and exit. Either way the money leaves your account, and the smart move is to compare the all-in cost (spread plus any commission) between account types rather than chasing whichever one looks cheapest in isolation. The common pitfall is judging an account by a single advertised number, like spread alone or commission alone, instead of adding both together for the instruments you actually trade.
Commission is a real, recurring drag on net results, and it bites hardest on high-frequency strategies that open and close many positions, because every round-turn fee stacks up regardless of whether the trade won or lost. A scalper paying 7 dollars per lot across fifty trades a day pays 350 dollars in commission daily before a single pip of profit is counted, so understanding this fee is part of knowing whether a fast strategy can survive its own costs over time.
Why it matters: Commission is a fixed cost you pay on every trade win or lose, so it quietly shrinks net results and can sink a high-frequency strategy whose edge is thinner than its fees.
Total commission = per-lot rate x lots traded x number of round-turns
Commission is charged on every trade regardless of outcome, so it directly reduces net results and compounds fast for active traders.
Real-world example
On a raw account charging 7 dollars per standard lot round-turn, ten one-lot trades cost 70 dollars in commission, separate from any spread.
How SignalBots handles it
Because SignalBots delivers entries with sub-10ms latency to your MT4/MT5 Connector or browser extension, commission and spread become the dominant cost you control, and any net-result figures we show are historical estimates with a /risk-warning link, not guarantees.
Pro tip
Compare account types on all-in cost (spread plus commission) for the pairs you actually trade, not on either number alone.
Common pitfalls
Picking an account by its low spread or low commission in isolation instead of adding both together for a true cost comparison.
Frequently asked questions
What is the difference between spread and commission?
Spread is the gap between the buy and sell price built into the quote, while commission is a separate fee the broker charges per trade or per lot. Raw accounts use a tight spread plus a commission; standard accounts hide the cost inside a wider spread.
Why does my raw account charge a commission?
Raw and ECN accounts pass you the tightest market spread and take their cut as an explicit commission instead. The total cost can still be lower than a commission-free standard account, so compare the two together.
What does round-turn commission mean?
Round-turn is the total commission for both opening and closing one position. A 7 dollar round-turn typically means about 3 dollars and 50 cents charged when you open and the same when you close.
Do I pay commission on a standard account?
Usually there is no separate line-item commission, but you are not trading for free. The cost is built into a wider spread, so you pay it through worse entry and exit prices.
Does commission matter more for some strategies?
Yes. High-frequency strategies like scalping open and close many positions, so every round-turn fee stacks up and the total cost grows quickly, while a position trader holding for weeks pays it far less often.
Trading involves substantial risk of loss. Historical and backtested results do not guarantee future performance. Read the full risk warning.