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Trends & Analysis
News

Week Ahead Preview: 17th of March

News

Adobe posts Q1 beat, stock tanks on AI concerns

News

Why did U.S. Stock Indices prices decline, and will they rise again?

News

Crude climbs amid swings in supply-demand dynamics

News

EUR/USD Outlook: price may continue to rise while above this level

News

Bitcoin breaches $83K after Ukraine ceasefire deal

Trends & Analysis
News

Week Ahead Preview: 17th of March

News

Adobe posts Q1 beat, stock tanks on AI concerns

News

Why did U.S. Stock Indices prices decline, and will they rise again?

News

Crude climbs amid swings in supply-demand dynamics

News

EUR/USD Outlook: price may continue to rise while above this level

News

Bitcoin breaches $83K after Ukraine ceasefire deal

Commission definition

In trading and investment, a commission refers to a fee charged by a broker or other financial institution on a trade or providing other financial services. Commission may be charged for a variety of trade execution in a variety of financial markets, including stocks, bonds, currencies, commodities, and derivatives.

Brokers charge commissions as compensation for their services and to cover their operational expenses, such as research and analysis, technology, and market data. The actual cost may be a fixed amount per trade, or it may be a sliding scale, based on a percentage of the value of the transaction.

How is commission calculated?

The amount of commission can vary widely between brokers. Typically, a commission is calculated based on the type of asset being traded and the size of the transaction.

For example, a broker may charge a commission of $5 per stock trade executed, or it may charge a commission of 0.1% of the value of a forex trade. Some brokers may also offer tiered commission structures, where the commission rate decreases as the size of the trade increases. This is especially useful for high-frequency traders and high-net-worth investors who make many trades or very large trades.
It is vital that a trader understands the commission structure of their chosen broker so that they can accurately calculate the amount it would cost them to execute their trades. This can help them assess their trading performance correctly.

Start trading with ADSS

ADSS offers a range of global markets for traders, with opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.

 

See all glossary trading terms


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Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.