NDD Glossary
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Commission

A fixed or per-lot fee charged by a broker for executing a trade, often used in A-book/NDD models as an alternative to spread markup.

Last updated: February 1, 2026
1

The broker charges a fixed fee per lot traded (e.g., $3.50 per lot per side).

2

Commission is typically separate from the spread, making total cost transparent.

3

The fee is deducted from the client's account at the time of trade execution.

4

Commission structures may vary by account type, instrument, or volume tier.

5

In NDD/A-book models, commission is the primary revenue source, replacing spread markup.