Account types: standard vs raw spread

Most brokers offer two main account styles. A standard account bakes the broker's fee into a wider spread with no separate commission, while a raw or zero-spread account shows much tighter spreads and charges a commission per lot instead.

Standard accounts

On a standard account, the price you see already includes the broker's margin. There is no line item for commission, which makes costs feel simple. The trade-off is that spreads are wider, so every entry starts further from break-even.

Raw or zero-spread accounts

Raw accounts (also sold as zero-spread, ECN or pro accounts) display prices much closer to the underlying market. The broker earns through a fixed commission, usually quoted per standard lot. Note that "zero spread" rarely means the spread is always zero; it often means it can drop very close to zero on major pairs at liquid times.

Comparing the true cost

To compare fairly, convert everything into dollars per standard lot.

In this example, the raw account is $3 per lot cheaper. If you traded 20 lots in a month, that would be $60 saved. Change the numbers, though, and the answer can flip, so always run the sum with your own broker's figures.

Which suits whom?

• Standard may suit traders who place few trades and prefer a single, simple price.
• Raw often suits active traders, scalpers and anyone trading larger volumes, where small savings per lot add up.
• Minimum deposits, available instruments and platform choice can also differ between account types.

Key takeaways

• Standard accounts have wider spreads and usually no commission.
• Raw or zero-spread accounts have tighter spreads plus a commission per lot.
• Convert both to a total cost per lot before comparing.
• Higher-volume traders tend to feel the difference most.