Commission — The per-contract fee charged for executing a trade, usually quoted per side or per round turn.
How commission works in prop trading
Futures commissions are quoted two ways and the difference is a factor of two. A round turn covers both the entry and the exit; a per-side rate covers one. Prop firm rates typically run from around $2 to $5 per round turn on full-size index contracts and less on micros, and the figure normally includes exchange and clearing fees — though not always, so check what is bundled.
For anyone trading frequently, commission is the most under-weighted number in a prop firm comparison. A trader taking ten round turns a day at $4 spends $40 a session, $800 a month — more than the account fee, and enough to make the difference between two firms far larger than a ten-point difference in profit split.
Key points
- A round turn covers entry and exit; a per-side rate is half a round turn.
- Typical prop rates run roughly $2 to $5 per round turn on full-size index contracts.
- Check whether exchange and clearing fees are included in the quoted rate.
- For an active trader, commission usually outweighs the profit split as a cost.
Example
Ten round turns a day at $4 is $40 a session and roughly $800 a month — larger than most monthly account fees.
Also known as
- round turn
- RT commission
- trading fees
- per-side commission
Frequently asked questions
What is a round turn in futures?
One complete trade — the entry and the exit together. A round-turn commission covers both sides. A per-side rate covers only one, so a $2 per-side rate is a $4 round turn.
Do prop firm commissions include exchange fees?
Usually yes, but not always. Some firms quote an all-in round turn including exchange and clearing fees; others quote their own commission and add the exchange fee separately. Ask for the all-in figure when comparing.
Put this into practice
Commission is described here as a plain-language educational definition. Firms, platforms, and account programs may apply different conditions or calculations. Verify the current official terms before using this definition to make an account decision.