Raw Spread Account vs Standard Account

One of the most common choices traders face when opening a forex account is between a raw spread account and a standard account. Both give you access to the same currency pairs and trading platforms, but they differ fundamentally in how trading costs are structured — and the right choice depends entirely on how you trade.

What Is a Standard Account?

A standard account is the most common account type offered by forex brokers. It uses a no-commission model — all trading costs are embedded within a marked-up spread. The broker adds a profit margin on top of the raw interbank spread and presents this as the all-in price you trade at.

Key features of a standard account:

• No separate commission charged per trade
• Spreads are wider — typically 1.0–2.0 pips on EUR/USD
• Cost is simple and predictable — what you see in the spread is what you pay
• Usually lower minimum deposit requirements
• Suitable for beginners and low-frequency traders

What Is a Raw Spread Account?

A raw spread account — sometimes called an ECN account, pro account, or zero account — provides access to the real interbank spread with minimal or no broker markup. In exchange, a separate commission per lot is charged on each trade.

Key features of a raw spread account:

• Spreads start from 0.0 pips on major pairs (EUR/USD, USD/JPY)
• Commission charged per side or round-turn (typically $3–$7 per lot per side)
• Pricing reflects real market conditions
• More transparent cost structure
• Better suited to active traders and high-frequency strategies

Raw Spread vs Standard Account: Side-by-Side Comparison

Calculating the True Cost: Which Account Is Cheaper?

The answer depends on your trading volume and style.

Example: 1 standard lot, EUR/USD

Raw spread account:

• Spread: 0.1 pips = $1.00
• Commission: $7.00 round-turn
• Total: $8.00

Standard account:

• Spread: 1.5 pips = $15.00
• Commission: $0
• Total: $15.00

The raw spread account is 47% cheaper in this scenario. But now consider a micro-lot trader:

Example: 0.01 lot (micro), EUR/USD

Raw spread account:

• Spread: $0.01
• Commission: $0.07
• Total: $0.08

Standard account:

• Spread: $0.15
• Commission: $0
• Total: $0.15

The raw spread account is still cheaper per trade — but the difference is only $0.07. For a trader placing 10 micro-lot trades per month, the saving is less than $1. In this case, the standard account's simplicity and lower minimum deposit may outweigh the marginal cost difference.

When to Choose a Raw Spread Account

A raw spread account is the better choice if:

• You trade standard or mini lots with any frequency
• Your strategy is scalping, day trading, or high-frequency — where every pip of cost matters
• You want full transparency over your trading costs
• You are an algorithmic trader who backtests strategies and needs accurate cost modeling
• You want to avoid the conflict of interest inherent in market maker models

When to Choose a Standard Account

A standard account is the better choice if:

• You are a beginner learning to trade and want a simple cost structure
• You trade infrequently — a few trades per week or less
• You trade very small sizes (micro lots) where commission savings are negligible
• You want a lower minimum deposit to get started
• You prioritize a simple, all-inclusive cost without calculating commission on every trade

The Hybrid Reality

Many brokers offer both account types, and some experienced traders maintain both:

• A standard account for longer-term swing trades where the wider spread is acceptable relative to the target
• A raw spread account for scalping and day trading where tight pricing is essential

There's no rule saying you can only use one. Understanding the cost structure of each account type empowers you to choose the right tool for each strategy in your trading arsenal.

Image suggestion: Side-by-side cost breakdown diagram showing spread + commission for a raw spread account vs. spread-only cost for a standard account on the same EUR/USD trade.