What brokers usually mean by raw spread
Raw-style pricing commonly separates two components: a spread reflecting available quotes and a separately billed commission. The headline spread can start very low under favourable market conditions. But its minimum does not reveal how frequently that value occurs or how the spread behaves during rollover, news or a thin-liquidity session.
The commission may be charged per lot per side, per round turn, or by traded notional value. For example, a fee advertised as $3.50 per lot per side implies $7 for opening and closing a one-lot position under otherwise identical terms. Before comparing accounts, check the denomination and whether metals, indices and currency pairs share the same fee schedule.
What a zero-spread account really promises
“Zero” is a marketing label that requires careful interpretation. A broker may offer a zero bid–ask spread on selected instruments for certain intervals, quote a minimum of zero without promising a stable average, or replace part of the spread with a higher commission. Availability can vary by legal entity and account category.
A trader should therefore ask: Does zero apply to EUR/USD throughout the normal session, or only at the best observed moments? Is commission different by symbol? Are orders exposed to variable liquidity and slippage? Neither name answers these questions without the instrument’s documented pricing rules.
Worked comparison: identical EUR/USD exposure
Assume a hypothetical USD-denominated account where one standard EUR/USD lot represents 100,000 EUR and is worth approximately $10 per pip. Suppose Account R quotes a 0.2-pip spread and charges $3.50 per lot per side. Account Z quotes a 0.0-pip spread at a particular observation but charges $5.00 per side. Both calculations assume a complete one-lot round trip and omit swap and slippage.
| Illustrative metric | Account R — Raw | Account Z — Zero |
|---|---|---|
| Quoted EUR/USD spread | 0.2 pip | 0.0 pip |
| Spread component | $2.00 | $0.00 |
| Opening + closing commission | $7.00 | $10.00 |
| Estimated total round turn | $9.00 | $10.00 |
Illustrative arithmetic only, not a comparison of actual broker accounts or measured fill costs.
Account R appears cheaper in this invented snapshot, even though Account Z displays the lower spread. That finding may reverse at a different hour, with another symbol, or if commissions vary by trading volume. The fair question is the total expected cost under the same conditions—not which marketing label sounds cheaper.
Why average spreads and execution matter
Choosing by a minimum figure alone can systematically underestimate a trading strategy’s friction. Average spreads are more informative if the broker discloses the instrument, sampling window, account and calculation method. Even a well-documented average is not a guaranteed execution price for a particular order.
Additional slippage can occur when the market moves between sending and filling an order, especially in fast conditions. No standard account name guarantees an absence of requotes, better fill quality or access to a particular liquidity venue. Review the broker’s execution disclosures independently of its commission page.
How to compare raw and zero accounts step by step
- Select the same instrument, lot size, account currency and trading session.
- Identify whether the listed spread is a minimum, average or current indicative price.
- Convert the spread to monetary cost using the verified contract and pip size.
- Add both sides of commission, including minimum ticket or conversion charges.
- Add overnight financing when the strategy crosses the broker’s rollover cutoff.
- Check the platform, order execution mode and country-specific availability before deciding.
Begin with our complete trading-cost methodology and the Standard vs Raw Spread guide. Then use the True Trading Cost Calculator to compare consistent trade profiles, paying particular attention to any pricing-basis and verification indicators. The broker cost research hub connects more specialised comparisons.
Frequently Asked Questions
Does a zero-spread account mean free EUR/USD trading?
No. Commission, variable spread conditions, slippage, swaps and other fees may still apply.
Is a raw spread always lower than a standard account spread?
It can be narrower, but the useful result is the combined spread-plus-commission cost for your position and trading conditions.
Should scalpers automatically choose zero spread?
No. Frequent trading magnifies both commission and execution differences. Compare documented costs and fill conditions, not a minimum-spread headline.
Editorial and risk notice: Figures are educational assumptions, not current quotes or observed executions. Account conditions and eligibility vary by provider and jurisdiction. Leveraged forex and CFDs carry substantial risk of loss.