A commission is a fixed charge per lot traded, applied by some account types in exchange for a narrower spread. It is paid on the round trip and is therefore independent of how far the market moves, unlike the spread cost on a wide range. When comparing two brokers, the commission plus the average spread together is what matters, not either one alone.
Forex glossary
Commission
Related term
Spread
The spread is the gap between the bid price and the ask price, and it is the cost of opening a trade at the quoted market. A new position starts at zero value a…
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