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Spread Vs. Commission

  • #41
  • May 20, 2009 1:40am May 20, 2009 1:40am
Quoting IndyTrader
It does matter because I've never heard of a broker that penalizes you for not trading 100k.
There is not a broker who will, although there are some extra options such as API which does cost some money but if a particular volume traded there is rebate...

Quoting trederKGB
You said "....if your monthly round turn is not more than 100k you cannot use any real ECN....". I simply asked if you were using 'k' as an abbreviation for million as opposed to thousand as I very much doubt there are any ECN's who stipulate minimum volume of 100,000 per month! Your reply....does it really matter!!! lol, well yes of course it matters! Sheeesh....
You are right, there is no real market where you can trade 100,000, only marketmakers or the cash desk of any bank
  • #42
  • May 20, 2009 4:36am May 20, 2009 4:36am
Quoting streamline

http://i39.tinypic.com/2vxgciv.jpg


lol, I think you've slightly lost the plot there streamline, you've quoted my post but attributed it to some clown called trederKGB (TraderKGB's inadequate plastic imitation), and then you've replied to his post, some nonsense about "very very very big and known well bank".

Can I recommend you cut down on the caffeine, perhaps try decaf
  • #43
  • May 20, 2009 8:03am May 20, 2009 8:03am
Quoting trederKGB
Too many posts from your side dude. I recommend you to spend more time for trading and learn the industry. Perhaps it will be more profitable for you.))
I'm all for more profitable trading but who's going to show me, you Mr 'Plastic Copy' trederKGB?

I dunno I seem to muddle through despite my apparent need to "spend more time for trading and learn the industry", 77 pips today is ok I think. Obviously not up to your standard but I'm happy with it
  • #44
  • Nov 1, 2016 11:36pm Nov 1, 2016 11:36pm
Never got this... People say commission based accounts are better than spread accounts for Scalpers & EA traders? if a broker charged 1 pip spread + $10 Commission (round) is this the same as them charging 2 pips spread with no commission???

Someone please help..
  • #45
  • Nov 1, 2016 11:48pm Nov 1, 2016 11:48pm
Quoting Mario-BC
Never got this... People say commission based accounts are better than spread accounts for Scalpers & EA traders? if a broker charged 1 pip spread + $10 Commission (round) is this the same as them charging 2 pips spread with no commission??? Someone please help..
last post here was 7 yrs ago...

but here you go.
say your fixed spread broker asks 1.2 pips on majors.
what is a spread+ commission costs nowadays on majors?
approx. 0.2 pips+5$ ...or about 0.7 pips total.
when you get to minor or exotic pairs, the difference just grows larger.
say GBPJPY
fixed spread brokers usually has 4-6 pips cost.
spread + commission approx. 1.5 pips + 5$...or about total 2pips.
hope you getting the point
there is always, always another trade!!
  • #46
  • Nov 2, 2016 1:33am Nov 2, 2016 1:33am
Quoting Mario-BC
Never got this... People say commission based accounts are better than spread accounts for Scalpers & EA traders? if a broker charged 1 pip spread + $10 Commission (round) is this the same as them charging 2 pips spread with no commission??? Someone please help..

The point is that you need to be dealt on the tighter spread.

If you miss your T/P by .1 or you get stopped out earlier by having the commission built into the price then it will cost you more than a commission charge.

If you are a scalper then its a no brainer ..
  • #47
  • Nov 3, 2016 9:27am Nov 3, 2016 9:27am
Quoting lasty
{quote} The point is that you need to be dealt on the tighter spread. If you miss your T/P by .1 or you get stopped out earlier by having the commission built into the price then it will cost you more than a commission charge. If you are a scalper then its a no brainer ..
Ok, so you are saying it has nothing to do with the actual cost but with the way you view T/P etc? i think i got it, thanks.
  • #48
  • Nov 3, 2016 2:48pm Nov 3, 2016 2:48pm
but indeed it has lot to do with the actual cost. else just set your TP/SL further...
there is always, always another trade!!
  • #49
  • Nov 17, 2016 12:26pm Nov 17, 2016 12:26pm
I think it would more preferable to pay commission, since that's what is visible and you are sure there is no other charges lying around somewhere. Sometimes there are usually some hidden charges somewhere with some brokers who do not charge commission!
  • #50
  • Feb 7, 2017 4:29am Feb 7, 2017 4:29am
It doesn’t matter if your broker is charging you through spread or commissions. If they don’t charge you through spread or commissions and not through commission or spread, it is absolutely fine because any how you are paying through your profits.
People who scalp usually look for tighter spreads so they look for ECN account types with commissions and low spreads. However for news traders, the huge spreads doesn’t matter.
  • #51
  • May 2, 2017 6:01am May 2, 2017 6:01am
Anyone knows broker with max 0.4 spread eurusd with commisions?
  • #52
  • May 2, 2017 8:27am May 2, 2017 8:27am
For me is better to pay commision because without spread I have bigger win ratio and easier to me when I scalping.
"The essence of Discipline is that there are no exceptions" - Jack Schwager
  • #53
  • Jun 2, 2017 8:34am Jun 2, 2017 8:34am
If you want to get maximal result by scalping first of all you have to make sure the lowest trading spreads , otherwise it will be more difficult to scalp in a proper way.
  • #54
  • Nov 25, 2017 7:00pm Nov 25, 2017 7:00pm
ActiveTraders - gives one of the best non-commissioned spreads.
But as a rule, brokers who charge a commission provide the best conditions for ECN accounts. For scalping, many need a narrow spread.
  • #55
  • Dec 18, 2025 9:37am Dec 18, 2025 9:37am
Quoting welshguy2000
Getting back on track here - The deciding factor is the amount of trades you do, i.e. if you are doing 20 / 30 trades a day then commission is not the way forward. If you go for a fixed spread, I'd advise you to pick one which : A) doesn't bet against you B) is not known for slippage as those to factors will really effect your trading performance! In my way you will have enough things to worry about and should not be spending time trying to get out of a trade. A broker should be easy to use and do what it says on the tin Cheers WG
I mostly agree with you, trade frequency really is the key factor here.
For anyone doing high-frequency or intraday trading, execution quality matters just as much (if not more) than whether the cost comes from spread or commission. A fixed spread can work well if it’s genuine and the broker isn’t trading against the client.
Slippage is a big one too. Even a “cheap” setup becomes expensive fast if entries and exits aren’t respected. At that point, the spread vs. commission debate almost becomes secondary.
End of the day, I’m with you on this, the broker should be the least stressful part of the process. Plenty of things to manage already without fighting the platform as well.
  • #56
  • Jan 13, 2026 1:23pm Jan 13, 2026 1:23pm
In theory, a brokers that charge commission, should give you the best price available to them. Meaning from the quotes they are getting from all their accredited liquidity providers. So in theory, once in a while you should get negative spread. (better price then they quoted you). A few years back some brokers were fined for not doing so. But ECN Broker does not mean much if that Brokers does not have agreements with many LP or Banks. They use the EC network but they can not buy or sell from all of them.
Some broker charge commission + small spread. Basically market price+ some 0.00005 pip. Specially the ones that do not exchange much volumes.
Some do not charge commission, but only spread. So it is market + lets say 1-2 pip.
Some are fixed spread, rare now days.
All business model are legit. But not all conduct themselves as they should.

Regarding a Broker "trading against you", the concept need to be understood. In essence a broker may sell you the euros you want without covering their ass .
Meaning temporarily (seconds) the do not buy them from anybody, so if the market goes in you favor/against them, they usually resort to grab a few orders in their books to breakeven. Notice that a brokers does not know were the price is going, so, they will screw us only when you buy it or sell it. Sometimes we get screw by having purchase orders or stops. So , do not have visible stops nor buy orders.

Another point is that many times prices do not exist in a sequential 0.00001 pip. The consequence is Slippage. It is real and happens all the time. Specially during news, most banks and LP do not fill orders. (take liquidity out) . Brokers usually have a clause that they will fill you order at the best price possible. And sometimes means is far away from the entry price you want. Understand it , do not fight it. If Banks do not quote during news, why we should want to trade during that time. Trust that no Bank or broker wants to lose money by selling you something at a price that not even them can get during those times.
  • #57
  • Mar 4, 2026 12:03am Mar 4, 2026 12:03am
The main takeaway I see is that execution quality depends more on the broker’s liquidity relationships and model than just the ECN label, and that slippage + spread structure are normal parts of real market mechanics especially during news.
Also agree that understanding how brokers manage internal risk (rather than assuming they’re hunting you) helps traders focus more on timing and liquidity conditions instead of conspiracy theories.
  • #58
  • Mar 4, 2026 8:02am Mar 4, 2026 8:02am
Quoting JordanAdan
The main takeaway I see is that execution quality depends more on the broker’s liquidity relationships and model than just the ECN label, and that slippage + spread structure are normal parts of real market mechanics especially during news. Also agree that understanding how brokers manage internal risk (rather than assuming they’re hunting you) helps traders focus more on timing and liquidity conditions instead of conspiracy theories.
yes, once traders understand how brokers manage internal risk, it shifts the focus away from conspiracy theories and back to what actually matters: timing, liquidity, and risk management
  • #59
  • Last Post: Mar 11, 2026 12:04am Mar 11, 2026 12:04am
Quoting Bushramujhta
{quote}yes, once traders understand how brokers manage internal risk, it shifts the focus away from conspiracy theories and back to what actually matters: timing, liquidity, and risk management
Exactly. Once you start looking at it from that angle, a lot of the broker hunting my stops talk stops making sense. Most of the time it’s just liquidity, spreads widening, or how orders get filled in fast markets. Understanding that helped me focus more on when I trade and how I manage risk rather than worrying about what the broker is doing in the background.
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