Commission basics
In this article, you will learn the key commission components, namely: Commissions, Profiles, and Commission rules, as well as understand the basics of commission configuring.
The BP gives you the flexibility to configure and manage brokerage commissions for traders, accounts, account groups, markets, market groups.
Long story short
Commission management in the BP is based on a combination of commission rules and profiles.
You can create your own:
Rules: To detect orders with specific parameters.
Profiles: To store commission rates for different markets.
For each order, a commission rule and commission are selected according to set priorities.
The Admin can set a minimum fee, in RAT. When set, the BP will use the higher value between this minimum fee and the pre-calculated commission for any order. This ensures a safeguard by maintaining a baseline fee.
As a result, you get a flexible system for configuring and managing individual commissions based on order parameters.
Commissions
Commissions are fees that a trader pays to the broker for executing orders on the brokerage platform. The commission is charged only after the order is executed (partially or fully).
For Spot trading: Though the commission is charged regardless of the side of the order, it's always deducted from the quote assets. Therefore for buy orders, the commission is held in advance; for sell orders, it's calculated and charged after a trade.
For CFD trading: The commission amount is deducted from the account balance according to the UMAA priority after the trade (no funds are halted in advance).
The commission can be applied to a market OR market group. If no market or market group is specified, the set fee rate is applied to all markets.
For Spot markets, the commission can be set as a fixed percentage per traded volume. For CFD markets, two options are available: fixed percentage per volume or per lot.
The commissions are grouped into profiles.
Profiles
Profile is a set of commissions that are grouped and ranked by the Admin. Profiles enable you to set different fees for different markets.
Each profile may contain one or more commissions. Commissions within a profile are ranked according to their priority (1 is the highest priority). This means that if multiple commissions are applicable to a given order, the one with the higher priority will be applied.
The BP has the default profile containing a default commission with the fee rate set to 0%. The Admin can change the fee rate but other parameters of the default commission can't be edited. The default profile and default commission can't be deleted; the default commission always has the lowest priority.
There are two commission types supported:
Per volume: Traders pay a commission based on the trade volume. This option is applicable to both Spot and CFD markets.
Per lot: Traders pay a fixed commission, in RAT, per each traded lot. This option is applicable to CFD markets only.
Commission rules
Commission rule is a set of conditions that determines when a particular profile must be applied.
The commission rule can be configured based on User & Account criteria and Market criteria.
The User & Account criteria support the following conditions and their combinations:
User: The profile is applicable to a specified trader.
Account group: The profile is applicable to accounts included in a specified account group.
User + Account: The profile is applicable to a specified account of a specified trader.
User + Account group: The profile is applicable to accounts of a specified trader that are included in a specified account group.
If none of the above is specified, the rule is applied to all traders and accounts registered on the BP.
The Market criteria support the following conditions:
Market: The profile is applicable to a specified market.
Market group: The profile is applicable to a specified market group.
If none of the above is specified, the rule is applied to all markets available on the BP. Note that either Market or Market group can be specified, the Market + Market group combination isn't supported.
The Market criteria can be combined with any possible User & Account criteria.
Similar to the commissions in profiles, commission rules are ranked according to their priority (1 is the highest priority). The commission rule with higher priority is applied.
The BP has the default commission rule. It can't be edited or deleted, and it always has the lowest priority.
The minimum fee amount
For each rule, you can optionally specify the Minimum fee amount value, in RAT. This parameter ensures that an order's commission will not be lower than the specified minimum amount.
If specified, this value is compared against the pre-calculated commission amount for an order. The higher value is used.
For Spot markets, where commissions are charged in the quote assets, the pre-calculated value is first converted to the RAT, and then is compared to the specified minimum. For CFD markets, where commissions are charged in RAT, no additional conversion is required.
In case of partial order execution, the minimum fee amount is charged with the first trade. Additional commissions are applied once the cumulative fee exceeds the minimum fee during the partial executions.
Example
Conditions:
Market: ETH/USDT
Order size: 30 ETH
Market price: 100 USDT per ETH
Fee rate: 0.1%
Minimum fee: 2 USD
Cross-currency rate: 1 USD = 1 USDT
Executions 2 to 3
Executed volume: 5 ETH + 5 ETH
Pre-calculated fee: 0.5 USDT + 0.5 USDT
Applied fee: 2 USDT
Cumulative fee: 2 USDT
The cumulative pre-calculated fee remains equal to the minimum threshold. Therefore, no additional fee is applied for these executions. The system ensures the minimum fee is applied only once during the first execution.
How it works
The process for determining the appropriate commission amount for a particular order is as follows:
The BP checks the order against the configured commission rules by comparing the user, account group, account, market, and market group parameters.
Among the rules whose conditions are met in the order, the rule with the highest priority is selected.
If no rules are applicable to the order, the default commission rule is applied.
From the selected rule, the BP extracts the profile.
In the profile, the BP selects commissions applicable to the order by comparing the market and market group parameters.
Among the applicable commissions, the commission with the highest priority is selected.
From the selected commission, the BP extracts the fee rate and pre-calculate the fee amount for the order.
If the minimum fee amount is set for the rule, the BP extracts this value to compare it against the pre-calculated fee.
For Spot markets, an additional step involves converting the fee from the quote asset to RAT.
The higher fee amount is applied to the order.
Examples
All steps, names, and values given in this section are for demonstration purposes only and do not constitute a recommendation.
When you start working with the BP, it already has the default commission rule linked to the default profile containing the default commission. The fee rate is initially set to 0%. This means that zero commission is applied to all orders on the platform.
Step 2
The Admin creates a new profile Profile 1.
In Profile 1, the Admin creates a new commission with the market group = BTC and fee rate = 1.5%.
The Admin creates a new commission rule Rule 1 and links Profile 1 to it. The newly created commission is automatically assigned a higher priority than the default commission.
→ The 1.5% commission is now applied to all orders placed on markets included in the BTC group. For orders placed on other markets the commission is still 2%, as the rule doesn't apply them.
Step 3
The Admin creates another commission in Profile 1, with market = BTC/USD and fee rate = 0.5%.
The Admin changes the priority so that the newly created commission has a higher priority than the previous one.
→ The 0.5% commission is now applied to orders placed on the BTC/USD market, the 1.5% commission is applied to the other markets included in the BTC group, and the 2% commission is applied to all other orders.
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