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What is a commission in the FX/CFD market?

This is the fee that the broker charges when a given order is executed in the market.

Brokers differ in the way they charge fees – depending on their operating model. Brokers operating in the market model(ECN / sending orders to a liquidity provider) most often add an additional percentage commission to each transaction concluded by the trader. This is compensation for the broker’s services.

Another type of fees are extended spreads (used by MM brokers). In other words, the broker widens the difference between the bid and ask price(spread) by adding his fee.

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