How standard and raw pricing works
The spread is the difference between an instrument’s bid and ask price. A pip is a standard unit of price movement for many currency pairs. In a spread-only account, the broker generally quotes a spread that includes its markup, with no separate FX commission on that account. In a raw account, the spread may be closer to the underlying market price, while the broker charges commission, commonly per lot and per side.
Compare the full cost, not the headline spread
| Cost component | Standard / spread-only | Raw spread |
|---|---|---|
| Spread | Typically wider; variable | May start near 0 pips; variable |
| Commission | Often no separate FX commission | Usually charged per lot / side |
| Overnight financing | May apply to positions held overnight | May also apply; check instrument and account |
| Best comparison | Actual spread + swaps + any other fees | Spread + round-turn commission + swaps |
Simple example: if an account’s spread is 0.8 pips and the commission-free quote includes that spread, estimate the spread cost from pip value × 0.8. For a raw account, add the spread cost to the commission for opening and closing the same position. Pip value depends on pair, position size and account currency. Use the broker’s calculator and verify the commission unit (per side vs round turn).
Who may prefer each account?
A standard account may be practical if you:
- are new and want fewer line items to understand;
- trade smaller sizes or infrequently;
- hold trades longer, making overnight financing a material cost;
- find the spread-only account cheaper for your instruments after calculation.
A raw account may be practical if you:
- trade frequently or use strategies sensitive to entry/exit spread;
- place enough volume that the tighter spread offsets commission;
- need transparent commission reporting for performance analysis;
- have confirmed that the specific instrument has a competitive all-in cost.
Checklist before opening an account
- Compare live average spreads during your normal trading hours, not just “from” figures.
- Calculate the round-turn commission for your usual position size.
- Check swaps, conversion charges, inactivity fees, minimum deposits and withdrawal charges.
- Confirm the account is available through the legal entity serving your country.
- Test the platform on a demo account, then recheck pricing in the client portal.
Costs change with liquidity, volatility, instrument and jurisdiction. Read our guide to spreads, commissions and swaps, verify the broker’s legal entity and licence, and browse our broker profiles before deciding.
Compare accounts with your own numbers
Try both account types in demo mode and log the quoted spread plus stated commission for the pairs and hours you trade. Select an account only after checking its current terms and regulatory entity.
Compare the relevant account specifications in the side-by-side broker tool, then use the cost calculator with an identical trading profile for each account. Check the source date and pricing basis before interpreting a difference. The broker cost guides explain why minimum spreads, average spreads and incomplete records must be treated differently.
Educational information only, not investment advice. CFDs and leveraged forex trading are high risk and can result in losses exceeding expectations. Account terms vary by country.
Frequently Asked Questions
Is a raw spread account always cheaper?
No. Add the spread, round-turn commission and any financing or other fees for the same trade size. Compare actual conditions during your trading hours.
What does commission per side mean?
It normally means a fee is charged when opening and again when closing. Confirm whether a quoted amount is per side or for the complete round turn.
Can a beginner use a raw account?
Yes, if they understand how spread and commission combine. A demo account can help compare statements and execution without risking real funds.