Commission tiers: how to work out what a tier is really worth
Posted: Sat Oct 31, 2026 6:14 pm
Many brokers offer tiered commission by monthly volume. Whether chasing the next tier makes sense is simple arithmetic.
A worked example with illustrative numbers:
Risks of chasing a tier:
Does your broker apply tiers to the whole month or only above the threshold?
A worked example with illustrative numbers:
- Standard: $7 per lot round turn.
- Over 50 lots a month: $6.
- Over 200 lots: $5.
Risks of chasing a tier:
- Trading more to reach it. Extra trades that aren't good trades cost far more than the discount saves.
- Rebates paid later or under conditions, rather than charged at the lower rate.
Does your broker apply tiers to the whole month or only above the threshold?