Commission per Lot

Commission per lot is an explicit trading fee charged in proportion to volume rather than buried inside the spread, quoted as an amount per standard lot traded. Raw-spread and ECN-style accounts use this model: the quoted spread stays close to the underlying market and the broker earns a transparent, separately itemised charge instead of a markup. The fee is normally applied when a position opens and again when it closes, so the round-turn cost is double the one-way figure. Because it scales directly with size, per-lot commission is easy to model before a trade and easy to compare between brokers — but it only describes half the picture, since the prevailing spread has to be added to it to see the real cost. Worked example: a $3.50 per-lot, per-side commission on one standard lot costs $3.50 to open and $3.50 to close — $7.00 round turn. On EUR/USD, where one pip on a standard lot is about $10, that $7.00 is worth roughly 0.7 pips. So an account quoting 0.1 pips plus that commission costs about 0.8 pips all in. Compare that total against a spread-only account’s quoted spread; comparing the 0.1 against a 0.8 compares half a cost to a whole one.