Trading Basics

What are trading commissions?

A trading commission is a transparent fee charged for executing an order, usually separate from the spread.

Trading commissions are fees charged for processing trades. They are one way brokers charge for access to markets and execution.

Some accounts charge no separate commission and include the broker cost in the spread. Other accounts offer tighter raw-style spreads and charge a separate commission.

Commission vs spread

Forex brokers usually price trading costs in two main ways.

Spread-only pricing

The broker cost is built into the difference between the bid and ask price. You do not see a separate commission line, but the spread is wider than raw market pricing.

This structure is simple and is commonly used on Standard accounts.

Commission pricing

The broker provides tighter raw-style prices and charges a clear commission when you trade.

This structure is commonly used by active traders, scalpers, and automated strategies that need very tight spreads.

How commission is calculated

Forex commissions are usually based on trade volume, measured in lots.

They can be charged:

  • When opening a trade
  • When closing a trade
  • As a round-turn amount covering both sides

For example, if a commission is $3.50 per side per standard lot, the full round-turn commission is $7.00 per standard lot.

TabTrade account examples

Standard Account

The Standard Account has no separate trading commission. Trading cost is included in the spread.

This can suit traders who prefer simpler pricing or hold trades for longer periods where a slightly wider spread may matter less.

Edge Account

The Edge Account is designed for traders who want tighter spreads with a separate commission.

On Edge, commission is $3.50 USD per side, or $7.00 round turn, per standard lot traded.

Which structure is best?

Choose spread-only pricing if you want simpler cost visibility and do not trade frequently.

Choose commission pricing if you trade actively, scalp, automate strategies, or need tighter entry and exit pricing.

The best structure depends on trade frequency, holding time, position size, and strategy.

Read more about spreads.