Raw Spread vs Standard Account: Which Is Cheaper?
Raw spread and standard accounts price costs differently. Compare all-in trading costs with realistic examples before you switch account types.
Raw spread vs standard account debates usually focus on headline spreads, but the answer depends on commission, trade frequency, and average holding time. This article walks through realistic cost examples so you can model your own workflow.
Numbers below are illustrative teaching examples — always use your broker's live quotes and fee schedule.
How each account type typically prices trades
Standard (spread-only) accounts
The broker embeds compensation in a wider spread. You may see no separate commission line, but you still pay via spread.
Raw spread (plus commission) accounts
Spreads start closer to interbank, with a per-lot commission charged each side or round turn. Total cost = spread + commission + any slippage.
Worked example: EURUSD round turn
Assume a 1.0 standard lot EURUSD trade (100,000 units) entered and exited once.
Standard account illustration
Marketing spread: 1.2 pips each way.
Spread cost ≈ 1.2 × $10 + 1.2 × $10 = $24 round turn (using $10/pip per standard lot on EURUSD as a teaching default).
Raw spread account illustration
Raw spread: 0.2 pips each way.
Commission: $3.50 per side per lot (example rate).
Spread cost ≈ 0.2 × $10 × 2 = $4; commission ≈ $7; total ≈ $11 round turn before slippage.
In this illustration, the raw account is cheaper for the same round turn. Your broker's commission tier and typical spread during your session may differ.
When standard accounts can make sense
Very low trade frequency where commission fixed fees weigh more.
Small lot sizes where minimum commissions dominate on raw accounts.
Simplicity preference for beginners still learning pips.
Active trader perspective
Scalpers multiplying hundreds of round turns per month should model totals carefully — see scalping broker guide. Swing traders should add swap for multi-day holds.