Trading Fee
Trading fee is a platform charge applied when you execute trades, raising break-even levels and reducing net results.
Definition
A trading fee is a platform charge applied to executed trades. Fees should be treated separately from microstructure costs like effective spread.
Why it matters
Fees raise your break even probability and reduce net edge. In bounded price markets, even small fees can dominate small edges.
How it connects
• Fees are one component of overall fees and cost modeling.
• Fee schedules can follow a maker taker model.
Common pitfalls
Comparing venues without fees: Same spread does not mean same net cost.
Ignoring both sides: Some platforms charge on entry and exit.