Raw Spread vs Standard Account

  Choosing between a Raw Spread Account and a Standard Account is one of the most important decisions for forex and CFD traders. The difference primarily lies in pricing structure, commission model, and suitability for trading styles.  

Rank	Broker	Broker Review	Regulators	Minimum Deposit	Visit Broker
🥇		Read Review	ASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSA	$100
🥈		Read Review	FSCA, FCA, DFSA, FSA, CMA	$0
🥉		Read Review	CySEC, MWALI, FSCA	$25
4		Read Review	ASIC, CySEC, FSA, SCB	$200
5		Read Review	FSA, FSCA	$250
6		Read Review	FSA, FSC, FSCA, ASIC, CMA	$20
7		Read Review	FSC, FSCA	$50
8		Read Review	ASIC, CySEC, FSCA, FSA, FSC, CMA	$100
9		Read Review	ASIC, CySEC, IFSC, DFSA, FCA	$5
10		Read Review	FSA, CySEC, FSCA, FSC	$10

What is the difference between Raw Spread and Standard Account?

Raw Spread vs Standard Account refers to two forex pricing models. A Raw Spread Account offers ultra-tight spreads from 0.0 pips with a separate commission, while a Standard Account includes the broker’s fee within wider spreads and charges no commission.  

What is a Standard Account?

• A Standard Account includes the broker’s markup within the spread. There is no separate commission fee, making the pricing model simpler.

Key Characteristics of a Standard Account

Wider Spreads

• Spreads typically start from 1.0–1.5 pips on major pairs.

 No Commission

• Trading costs are fully included in the spread.

Simplified Cost Structure

• Easier for beginners to calculate trade costs.

Best For

• Beginner traders and swing traders have a lower trade frequency.

What Is Raw Spread in Forex?

• A Raw Spread Account (also called ECN or Razor account) provides access to interbank market spreads — often starting from 0.0 pips — with a fixed commission charged per lot traded.

Key Characteristics of a Raw Spread Account

Ultra-Tight Spreads

• Spreads can start from 0.0 pips on major pairs like EUR/USD during high liquidity sessions.

Commission Per Trade

• A fixed commission (e.g., $3–$7 per lot per side) is charged.

Market Execution

• Orders are usually executed with minimal dealing desk intervention.

Best For

• Scalpers, day traders, algorithmic traders, and high-volume traders.

Comparison between Raw Spread vs Standard Account

Trading Cost Example (EUR/USD – 1 Lot)

Raw Spread Account Example

• Spread: 0.2 pips
• Commission: $7 round turn
• Total estimated cost: ~$9

Standard Account Example

• Spread: 1.2 pips
• Commission: $0
• Total estimated cost: ~$12

  Result: Raw accounts are generally cheaper for high-frequency traders.  

Advantages of a Raw Spread Account

• Lower overall cost for active traders
• Tighter spreads during high liquidity
• Better for news trading
• More transparent pricing

Advantages of a Standard Account

• No commission confusion
• Simpler fee structure
• Better for small position sizes
• Suitable for beginners

When Should You Choose a Raw Spread Account?

• You scalp or trade intraday
• You trade large volumes
• You use Expert Advisors (EAs)
• You need the tightest spreads possible

When Should You Choose a Standard Account?

• You are a beginner
• You trade occasionally
• You prefer simple cost calculations
• You hold trades for several days

You might also like:

Frequently Asked Questions

What is the main difference between a Raw Spread and a Standard Account?

The key difference is pricing. Raw Spread accounts offer near-zero spreads with a separate commission, while Standard accounts include the broker’s fee in wider spreads with no additional commission.  

Which account type is cheaper overall?

A Raw Spread account is usually cheaper for high-volume or frequent traders due to tighter spreads. Standard accounts may be cheaper for low-frequency traders who prefer simplicity and avoid commission calculations.  

Are Raw Spread accounts better for beginners?

Raw Spread accounts are not always ideal for beginners because of commission complexity. Standard accounts are more beginner-friendly, offering straightforward pricing with all trading costs built into the spread.  

Do Raw Spread accounts always have 0.0 spreads?

No. Raw Spread accounts can start from 0.0 pips during high liquidity, but spreads are variable and may widen during low-liquidity periods or major market news events.  

Is there a commission on Standard Accounts?

No. Standard accounts do not charge a separate commission. All trading costs are included within the spread, making it easier for traders to calculate their total cost per trade.  

Which account is better for scalping?

Raw Spread accounts are generally better for scalping because tighter spreads reduce entry and exit costs, which is critical for strategies that rely on small price movements and high trade frequency.  

Can I use Expert Advisors on both accounts?

Yes. Both Raw Spread and Standard accounts typically support Expert Advisors. However, Raw Spread accounts are preferred for algorithmic trading due to lower spreads and more precise cost control.  

Are Standard Account spreads fixed or variable?

Standard account spreads are usually variable, not fixed. While they are wider than raw spreads, they can still fluctuate depending on market volatility and liquidity conditions.  

Which account is better for swing trading?

Both can work well for swing trading. Standard accounts are often preferred because spreads matter less for longer-term trades, and the absence of commissions simplifies trade management.  

Can I switch between Raw Spread and Standard Accounts?

Most brokers allow traders to open or switch between account types. This flexibility lets traders test both models and choose the one that best fits their trading style and volume.  

Recommended brokers