📖 Financial Lexicon Term
What is Commission?
A fee charged by brokers per trade, usually expressed per lot (e.g., $3.50 per lot). ECN and Raw-spread accounts typically charge commissions alongside tighter spreads.
Detailed Explanation
Commissions are the primary execution fees charged on ECN or Raw Spread accounts. Because the broker passes the raw interbank market spread (which can be 0.0 pips) directly to the client, they make their revenue by charging a flat, transparent commission per lot round-turn.
💡 Practical Trading Example
A broker charges a commission of $7.00 per standard lot. If you trade 0.1 lots, your commission fee will be $0.70.