In the Stocks specifications, the commission is stated as 0.7%. But what does this percentage mean?
The stock commission is calculated as 0.7% from the current stock price (bid or ask) multiplied by the number of stocks you want to trade.
Let's see an example:
You open a sell order for the Apple stock in 0.03 lot volume.
Since 1 lot equals 100 stocks, 0.03 lot equals 3 stocks.
The current bid price for the stock is 134.93.
This way, the commission will be calculated as follows:
134.93 * (0.03 * 100) * 0.007 = $2.83
Thus, $2.83 is the commission to be paid for the 0.03 lot sell Apple order.