Motivated by the lower central series of a group, we define the notion of a grope cobordism between two knots in a 3-manifold. Just like an iterated group commutator, each grope cobordism has a type that can be described by a rooted unitrivalent tree. By filtering these trees in different ways, we show how the Goussarov-Habiro approach to finite type invariants of knots is closely related to our notion of grope cobordism. Thus our results can be viewed as a geometric interpretation of finite type invariants. The derived commutator series of a group also has a three-dimensional analogy, namely knots modulo symmetric grope cobordism. On one hand this theory maps onto the usual Vassiliev theory and on the other hand it maps onto the Cochran-Orr-Teichner filtration of the knot concordance group, via symmetric grope cobordism in 4-space. In particular, the graded theory contains information on finite type invariants (with degree h terms mapping to Vassiliev degree 2(h)), Blanchfield forms or S-equivalence at h = 2, Casson-Gordon invariants at h = 3, and for h = 4 one finds the new von Neumann signatures of a knot. (C) 2003 Elsevier Ltd. All rights reserved.