What you'll learn
- Compare the two pricing models in pips per lot
- Choose an account type for your volume
- Recognise other account labels brokers use
The arithmetic
A standard EUR/USD spread of 1.2 pips costs 12 dollars per standard lot per round trip. A raw spread of 0.1 pips plus a 3.5-dollar commission per side costs 1 dollar plus 7 dollars, 8 dollars. The raw account is a third cheaper for the same trade. On a pair where the raw spread is wider, the gap narrows; in the exotics, where spreads dominate commissions, it can vanish.
Who each suits
| Standard | Raw or ECN | |
|---|---|---|
| Cost per lot, majors | Higher | Lower |
| Cost transparency | One number | Two numbers to add |
| Minimum deposit | Often lower | Often higher |
| Suits | Occasional trades, small sizes, beginners | Daily trading, scalping, larger sizes |
Other labels
- Pro or Zero: usually raw-spread accounts under another name.
- Cent: a standard account denominated in cents, so 1,000 units is a lot; useful for practising with real but tiny money.
- Islamic or swap-free: either account type with swaps removed; covered in the next lesson.
- Premium, VIP or Prime: better pricing for deposits or volumes above a threshold.
Switching
Most brokers let you hold both account types under one login and move money between them. Start on standard, keep a record of your monthly volume, and switch when the commission would save you money. The profit and loss calculator on this site accepts both pricing models.
Key takeaways
- Standard is spread only; raw is market spread plus commission.
- Raw is usually cheaper for active trading in the majors.
- Labels vary; the pricing model underneath is one of the two.
- Switch when your volume justifies it.
Knowledge check
Trading forex, CFDs and other leveraged products carries a high risk of losing money. This lesson is general education, not advice. Risk disclosure.