Commission
Fees
Commission is the fee charged per trade or per contract. In prop trading it is usually deducted from the trader's profit before the split.
Commission is the fee charged per trade or per contract by the firm''s executing broker. In prop trading, commission is almost always deducted from gross profit before the profit split is calculated — so an "80% split" is on net-of-commission P&L, not gross.
Commission rates vary by asset class and prop firm. Active futures traders can pay several thousand dollars per month in commission on a single funded account; the effective profit split after commission is sometimes 20+ percentage points lower than the headline number.
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