IC Markets also offers Standard Trading Account with zero commission and spread starting from 1.0 pip. The Australian-licensed forex broker provides Raw Spread Trading Account with spreads starting from 0 pip and commission fees of $3.0 per standard lot. You can compare both spread and commission fees that are charged by your chosen broker to make sure which one will incur lower costs for your trading strategies.įor example, IC Markets, a pioneer who popularized the term "raw spread" throughout the world. Actually, applying a longer-term strategy can give you more freedom in choosing trading accounts you're not bound to pick the one with the most accurate pricing, unlike short-term strategies which highly depend on it. But if you are a swing trader or position trader, the standard trading account might be more advantageous. If you are a scalper and need to profit from minor changes in asset prices, the raw spread trading account might be more suitable. Your Spread based on your Ask and Bid price.Įvery trader may have a different opinion in accordance with their own trading style. Even so, your profit will always be 2 pips less than what it should be. In order to close the trade in the green, EUR/USD has to rise at least 3 pips. It means you are going to incur a loss of 2 pips as soon as you entered the trade. If you have a standard trading account, you probably could only buy it at an ask price of 1.2102. As soon as the price rises to any level, you can close the position with considerable profit (although you have to make sure the gain will offset the commission fee as well). If you have a raw spread account, you will probably be able to buy it at 1.2100. Spreads are usually higher, while commission fee for each trade will be cheaper or even free.įor example, let's assume you want to buy the EUR/USD which is currently traded at 1.2100. Some forex brokers charge the fees for each opening and closing trade ("per side"), while some others may charge fees after one full round-turn.Ī standard trading account offers asset prices that have been added a certain amount of markup by the broker. However, traders have to pay a higher commission fee for each trade executed. Forex brokers will not add any markup on asset prices, so spreads usually are extremely low or even zero. Raw Spread vs Standard Account ComparisonĪ raw spread trading account, also often called an ECN account, offers real market prices for all instruments. Still, we could compare general circumstances of raw spread vs standard account apart from those specific terms. This makes it difficult to decide which type of account is better without knowing in which broker you are going to open the accounts. Standard trading account in different brokers would most probably have different fees, maximum leverage, margin requirements, and so on. So, here comes the crucial question: which is better, raw spread or standard trading account?Īctually, each forex broker may establish different terms and conditions for their trading accounts. After practicing in the forex demo account, beginners may choose micro or mini account at their starting point, but then they will have to choose between raw spread vs standard account when they are going to upgrade their trading environment. Two of the most popular offerings are raw spread trading account and standard trading account. Many forex brokers nowadays provide several types of trading account. Main differences between raw spread trading account and standard trading account lie in trading costs, namely spread and commission fees.
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