A raw spread account usually combines a narrower bid–ask spread with a separate trading commission. A standard account usually builds more of the dealing charge into a wider spread, often without a separate forex commission. Neither structure is automatically cheaper: the answer depends on the spread, commission, trade size and execution you actually receive.
The useful comparison is the cost of opening and closing the same position under each account’s terms. Account names alone tell you very little about that bill. This guide focuses on retail forex pricing; charges on shares, indices and other products may follow different rules. For the broader context, see our guide to broker spreads and pricing models.
What Changes Between Raw Spread and Standard Accounts?
In a common raw spread model, the broker quotes a relatively narrow spread and charges commission separately. That commission may be expressed per standard lot, per side, per completed round trip or per amount traded. You need to know which convention applies before comparing prices.
A standard account commonly uses a spread markup instead. The broker incorporates its dealing charge into the difference between its buying and selling prices. You still pay a trading cost, even when the account advertises no commission.
For US Forex Dealer Members and introducing brokers, a commission-free claim must appear near a prominent explanation of how the firm receives compensation. The NFA’s forex regulatory guide on commission-free advertising makes that distinction explicit. No commission does not mean no charge.
These are common pricing structures, not universal account specifications. A standard account may charge commission on certain instruments, while a raw account’s commission can vary by product or platform. Compare the fee schedule for the instrument you intend to trade, rather than treating the account name as a complete description.
Do not confuse a standard account with a standard lot, either. The former describes an account offering; the latter commonly means 100,000 units of a forex pair’s base currency. Either account may permit smaller positions.
Compare Spread Plus Commission, Not Spread Alone
For a simple forex comparison, put both charges into the same currency and use the same position size. Under the assumption that the spread remains unchanged between entry and exit:
Estimated round trip dealing cost = spread in pips × pip value for the position + opening commission + closing commission.
This covers spread and commission, not financing, currency conversion or execution differences. Comparing spreads while overlooking other charges can give a misleading result. The FCA’s review of CFD pricing and value identified gaps where firms focused on spread costs without adequately considering other charges.
A Worked EUR/USD Comparison
Assume a USD account trading one standard lot of EUR/USD. A one-pip movement is worth $10 for that position. The following prices are hypothetical, not current broker quotes or claims about typical market rates. Assume unchanged spreads, no slippage and no overnight holding charge.
| Cost component | Standard account | Raw spread account |
|---|---|---|
| Quoted spread | 1.2 pips | 0.2 pips |
| Spread cost | $12 | $2 |
| Opening commission | $0 | $3.50 |
| Closing commission | $0 | $3.50 |
| Total round trip dealing cost | $12 | $9 |
The raw account costs $3 less in this example. Its spread is one pip narrower, saving $10, but the $7 round trip commission absorbs most of that saving. Comparing 0.2 pips with 1.2 pips without including commission would exaggerate the advantage.
At 0.1 lot, the costs become $0.90 and $1.20 respectively, provided commission scales proportionally with volume and no minimum charge applies. For other pairs or account currencies, calculate the correct pip value rather than carrying over the $10 figure. Our guide to calculating forex spread costs in pips and money covers that conversion.
Find the Break Even Spread
You can express commission as a pip equivalent:
Commission in pips = round trip commission ÷ pip value for the position.
Here, $7 divided by $10 equals 0.7 pips. Add the raw spread of 0.2 pips and its combined cost becomes 0.9 pips. Assuming the standard account has no commission, it is cheaper below 0.9 pips, equal at 0.9 pips and more expensive above it.
Trade frequency multiplies the dollar difference; it does not change which account is cheaper when every charge scales proportionally. In this illustration, 50 completed one-lot trades would produce $150 of savings on the raw account. A minimum commission, volume discount or different product mix could change the calculation.
Do Not Count the Spread Twice
If the quote stays unchanged, buying at the ask and immediately selling at the bid loses one full spread, not two. Adding a full spread at both entry and exit would overstate the round trip cost.
When spreads differ between entry and exit, a midpoint-based estimate allocates half the entry spread and half the exit spread to the trade, assuming a constant pip value. Also avoid adding estimated spread costs to a platform profit-and-loss figure that already reflects your actual buying and selling prices. Check whether that figure includes commission separately.
Why “Spreads From Zero” Does Not Settle the Comparison
A minimum spread tells you the narrowest quoted price difference available under the stated conditions. It does not tell you how often that price occurs, what trade size it supports or what commission accompanies it.
For an account comparison, an average spread over your trading hours is more useful than an isolated minimum. Even that average needs context: a figure covering the whole day may not represent the period when your orders execute. Use comparable instruments, hours and order sizes.
A zero quote also does not make an account free. The commission remains payable unless the terms say otherwise, and a zero minimum does not establish that the spread will remain zero. Our separate guide to zero-spread account fees and conditions examines those offers in more detail.
For a practical estimate, calculate costs across the trades your strategy would place. Weight the results by volume rather than giving a tiny order the same influence as a much larger position.
Which Account Structure Fits Your Trading?
Frequent Trading With Small Price Targets
For a strategy targeting small movements, dealing costs take a larger share of each potential gain. A one-pip cost consumes 20% of a five-pip gross winning move, before considering losing trades or other charges. That makes the combined spread and commission worth close attention.
A raw account deserves consideration when its narrower spread more than offsets its commission. It does not deserve an automatic preference because the strategy is called scalping. A standard account with a lower combined cost would still be the cheaper choice.
Occasional Trading and Small Positions
A standard account can make cost estimates simpler because the dealing charge is concentrated in the spread. That convenience does not prove it costs less. Conversely, paying a separate commission is not a reason to reject a raw account.
For small positions, check minimum commissions and rounding rules. If a charge scales proportionally, the raw account’s relative advantage can remain unchanged as size falls. If a minimum fee applies, that fee can make a small trade more expensive per unit. Calculate the charge at your intended size, not at a headline one-lot example.
Raw Pricing Does Not Guarantee Better Execution
A narrow displayed spread is useful only alongside acceptable execution. Review the prices your orders receive, whether orders are rejected, how partial fills are handled and how the platform applies stop orders. Compare the same order types under similar conditions.
Do not interpret “raw” as proof of direct exchange access or the absence of a dealer counterparty. In US retail OTC forex, customers trade against their dealer rather than on an open exchange. The CFTC’s advisory on OTC forex trading explains this counterparty relationship and the dealer’s control over its trading platform.
The pricing label and the execution arrangement answer different questions. One concerns how charges appear; the other concerns how orders are handled and who takes the other side. A raw account name does not establish either the broker’s full revenue model or its hedging arrangements.
This distinction matters when comparing ECN and market maker pricing. Read the execution policy and customer agreement rather than inferring the arrangement from an account badge.
In the earlier example, the raw account saves 0.3 pips after commission. An additional 0.3 pips of adverse execution across the completed trade would erase that saving. This is a sensitivity calculation, not a claim that either account type necessarily receives worse fills.
Check Costs That Continue After Entry
For positions held overnight, compare financing alongside spread and commission. Check the rate for each direction, the charging cutoff, the calendar used for multi-day adjustments and any stated administration charge. Use the expected holding period, not just the opening transaction.
Funding terms can differ enough to change the cheaper choice. The FCA’s October 15, 2026 findings on CFD charges reported considerable variation in overnight funding fees between firms and products, alongside continuing concerns about disclosure.
Suppose a raw account saves $3 on entry and exit but costs an extra $1 per night for the same position. After three charged nights, the advantage disappears. Those figures are illustrative, but the comparison method is the same with actual disclosed rates.
Check conversion charges where commissions or trading results need conversion into your account currency. Review platform, inactivity and withdrawal charges where applicable, without assuming either account type includes or excludes them.
Keep this account comparison separate from a full broker assessment. Our guide to total trading costs across spreads, commissions and financing covers the wider calculation.
How to Compare Accounts Before Switching
Build a short comparison using your usual pairs, position sizes, trading hours and holding periods. Record the quoted spread, commission convention and relevant financing terms. Then calculate the cost for each trade and add the results across the same sample.
Use transaction confirmations to check what was charged, rather than relying only on an account summary page. For US Forex Dealer Members, NFA Compliance Rule 2-36 on transaction disclosures requires applicable per-trade disclosure of commissions and fees, together with price markups or midpoint spread costs depending on the processing arrangement.
Also confirm that the account is available through the legal entity permitted to serve you. Do not assume that pricing advertised for another country, platform or client category applies to your account.
Choose a raw spread account when its commission is more than offset by spread savings and the other terms remain suitable. Choose a standard account when its combined cost is lower or its simpler charging structure is worth any measured difference. The better account is the one supported by the calculation, not the more impressive name. Lower fees help, but they do not remove the market risk of the position.