Forex Broker Commission Explained
ECN and RAW-spread brokers charge commission on top of the spread — quoted in one of two conventions that are easy to mix up.
Per-lot: commission = lots × rate per lot × sides. Per-million: commission = (units ÷ 1,000,000) × rate per $1M × sides. 'Sides' is 1 for one-way, 2 for round-turn (open + close).
One-way vs round-turn
Round-turn commission is charged across both opening and closing a trade — most ECN brokers quote round-turn rates as a single figure. If your broker lists separate open/close charges instead, that's one-way pricing; double it yourself for the full round-trip cost.
Why this matters for strategy profitability
High-frequency or scalping strategies can have commission eat a meaningful share of profit per trade — always factor exact commission into a strategy's expected value, not just spread.
Try Free Web Tools Mentioned in This Guide
Commission Calculator
Calculate broker commission, quoted per lot or per $1M notional, one-way or round-turn.
Swap Calculator
Calculate overnight rollover cost for a held position, including triple-swap days.
Margin Calculator
Calculate the exact margin required to open a forex position at your broker's leverage.
Frequently Asked Questions
Which quoting convention is more common?↓
Per-lot is more common among retail-facing brokers; per-million notional is more common among institutional/ECN brokers serving larger accounts.
Is commission the same as spread?↓
No — spread is the built-in difference between bid and ask price; commission is a separate, explicit fee charged on top, common on ECN/RAW-spread account types.