NDD Glossary
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Markup

An additional amount added to the raw spread by a broker as a revenue model, widening the effective spread for the client.

Last updated: February 1, 2026
1

The broker receives raw bid and ask prices from LPs.

2

A fixed or variable amount is added to the raw spread (e.g., 0.2-0.5 pips).

3

The client sees and trades on the marked-up price, not the raw LP price.

4

Markup is the broker's revenue in zero-commission or low-commission models.

5

The markup amount may vary by instrument, account type, or trading volume.