Fee optimization reduces structural friction and improves net return. In the execution module it is treated as a continuous efficiency lever.
Who this is for
- Traders executing many trades with high cumulative costs.
- Those who want to choose venues objectively.
- Those running strategies with thin operating margin.
In plain terms — Small fees on many orders add up. Optimising costs does not create new edge, but avoids destroying existing edge.
Prerequisites — Complete first silver-path (min.: market-order, slippage, active-management, position-sizing). Foundation: bronze-path.
Optimisation plan
Analyse explicit fees by venue, instrument, maker-taker, and volume tier. Measure total cost: commissions, spread, slippage, funding, and rebates. Rebalance routing toward more efficient configurations at equal fill quality. Avoid overtrading that generates cost without improving expectancy. Review quarterly agreements, tiers, and strategy compatibility.
Example — High-turnover strategy with average total cost of 28 bps. Optimising routing and maker/taker mix cuts cost to 19 bps. The annual net improvement exceeds variation in entry signal.
Card
- Objective: lower total cost per trade.
- Key inputs: fee schedule, volume, execution quality.
- Alert signal: high turnover with stagnant net PnL.
- Typical mistake: optimising fees while ignoring slippage and spread.
- Practical action: monthly total-cost dashboard per strategy.
Gold path — Module: Professional execution. Part of gold-path.