Raw spread account
Also called Raw account, Raw spread, Raw ECN account, Commission-based account
A raw spread account is a trading account where the broker passes on the market's own bid-ask spread with little or no markup, and charges a separate fixed commission per lot traded instead.
A raw account does not remove your trading cost. It splits the cost into two parts: a small spread and a commission. To compare it with a standard account, add the two parts together. If you trade often with small targets, or run an EA, that total decides whether the account is cheaper for you.
What "raw" means in a raw spread account
The raw spread is the gap between the buy and sell price as it comes from the broker's liquidity providers, the banks and firms that quote prices to the broker, before the broker adds anything. On a major pair in busy hours that gap can be very small, sometimes close to nothing.
A standard account works the other way. The broker widens the spread by a markup and charges no commission. The fee is inside the price, so you never see it as a separate line.
The picture below shows both accounts around the same mid price. The raw account keeps the narrow gap, and the standard account adds the broker's markup to it.
On a raw account the broker earns from commission: a fixed fee per lot, charged in money. It is usually quoted per round turn, which means opening and closing the trade together. Some brokers quote it per side, which is half of the round turn.
Brokers sell this account under different names, such as "Raw", "ECN", "Zero" or "Pro". Don't go by the name. Check how the account is priced: a spread close to the market's own plus a separate commission per lot.
What one trade costs on raw versus standard
The figures here are an illustrative example, not quotes from any broker. You buy 1 standard lot (100,000 units) of a USD-quoted pair, so 1 pip is worth $10.
- Raw account: spread 0.2 pips, commission $7 per lot round turn.
- Standard account: spread 1.2 pips, no commission.
The calculation below adds up both accounts.
Most of the raw cost is commission, not spread.
Turning the commission into pips to compare accounts
The quickest comparison is in pips. The formula is: commission ÷ pip value per lot = commission in pips.
The decision rule is: if raw spread + commission in pips is lower than the standard spread, the raw account is cheaper. If not, the standard account is.
In the example, $7 ÷ $10 = 0.7 pips, so the raw account costs 0.9 pips all-in against 1.2 pips on standard.
In this example the raw account stops being cheaper once its spread reaches 0.5 pips (0.5 + 0.7 = 1.2).
Both costs scale with trade size, so the answer does not change with your lot size. On 0.1 lot in the same example, raw costs $0.90 and standard costs $1.20. The exception is a minimum commission per trade, which some brokers set. It makes very small lots relatively more expensive.
The gap matters most when you trade often with small targets. Paying 0.9 pips instead of 1.2 is a large share of a 5-pip target. It is a small share of a 100-pip target.
If you scalp or run an EA with many trades and small targets, do the all-in comparison first. If you take a few trades with wide targets, the difference is small and a standard account's single cost may be simpler.
Why a raw-account trade looks cheaper than it is
A common misread is to see a trade open only slightly negative and think the cost was tiny. The spread part was small, but the commission is charged separately and comes off your balance.
Two things matter here:
- Commission is charged on its own. It is listed apart from the trade's floating profit, both on the open trade and in your account history, so the profit figure shows only the spread.
- The timing depends on the broker.
Checks before you trade a raw spread account
- Convert a per-side commission before you compare. In the example above, $3.50 per side is the same $7 round turn.
- Ask if there is a minimum commission per trade. If there is, redo the comparison at the smallest lot size you trade.
- Check the currency of the commission. If it is charged in a currency other than your account currency, the amount you pay moves with the exchange rate.
- Compare spreads at the hours you trade. Raw spreads still widen around news, at the daily rollover and in thin sessions.
- Test a strategy on the same account type you will trade live. A backtest that uses raw spreads with no commission understates the cost.
- Look at the average spread, not the minimum. An advertised "from" figure is the best case, not the usual one.
- On pairs where one pip is not worth $10 per lot, redo the pip conversion with that pair's pip value.
- Pick the account type when you open the account with the broker. You can't change it in the order window. To switch, you normally open a second account of the other type.
FAQ
Do I still pay swap on a raw spread account?
Yes, unless the account is swap-free. Swap is the overnight financing charge or credit on a position you hold past the daily rollover. It is separate from spread and commission, and a raw account does not remove it.
Can the spread on a raw account really be zero?
It can touch zero for moments when the best buy and sell prices from the liquidity providers meet. It does not stay there, and you still pay commission on the trade.
Does a raw spread account need a bigger deposit?
That depends on the broker. Some set a higher minimum deposit for raw accounts than for standard ones, and others use the same minimum for both. Check the account comparison page before you fund.
Does a raw spread account make stop-losses behave differently?
The rule is the same on both accounts: a sell stop triggers on the bid price and a buy stop on the ask price. Most charts draw the bid price. The stop on a short trade is a buy stop, so it triggers on the ask, which sits above the price you see. With a narrower spread the ask is closer to the chart price, so that stop is less likely to be hit while the chart is still below it.