Choosing a trading account looks easy until you see two options: one with a wider spread and no commission, and another with a tiny spread and a commission. Which one is cheaper? The honest answer: it depends on how you trade.
This guide compares the standard vs raw spread account in simple language, with a cost example you can copy.
Standard vs Raw Spread Account
- Standard account: Wider spread, usually no separate commission. Simple and beginner-friendly.
- Raw spread account: Very tight spread, plus a commission per lot. Often better for active traders.
- Total cost = spread cost + commission. Always compare the total, not just the spread.
- Beginners who trade rarely can start with standard. Scalpers and high-volume traders often prefer raw.
What Is a Standard Forex Account?
A standard forex account builds the broker’s fee into the spread. The spread is the difference between the buy price and the sell price.
You see one clear cost per trade. There is usually no extra commission. This is why many people choose a standard forex account when they are starting out.
What Is a Raw Spread Account?
A raw spread account gives you spreads that are very close to the real market price, sometimes near 0.0 pips. The broker earns through a fixed forex trading commission per lot instead.
So the price looks cheaper on the chart, but you pay a small commission when you open and close a trade.
How Spreads and Commissions Work
- Spread: The gap between bid and ask. You pay it the moment you open a trade.
- Commission: A fixed fee per lot traded, often charged per side or as a round-turn total. Check which one your broker uses.
- Pip value: On EUR/USD, 1 pip is about $10 per 1 standard lot.
Cost Example: Raw Spread vs Standard Account
The numbers below are illustrative only. Check the live spreads and commissions on your eonefx account page.
Standard account
- Spread: 1.2 pips
- Commission: $0
- Cost per 1 lot: 1.2 × $10 = $12
Raw spread account
- Spread: 0.1 pip → 0.1 × $10 = $1
- Commission: $7 per lot round turn
- Cost per 1 lot: $1 + $7 = $8
Difference: $4 saved per lot on raw. If you trade 10 lots a month, that is about $40. At 100 lots, that is $400.
But if you trade tiny sizes, like 0.01 lot, the difference is only a few cents, and the simplicity of standard may matter more.
Raw Spread vs Standard Account: Side-by-Side
- Spread: Standard is wider; raw is tighter.
- Commission: Standard usually none; raw has a per-lot fee.
- Cost clarity: Standard is easier to read; raw needs a quick calculation.
- Best for: Standard suits beginners and swing traders; raw suits scalpers, day traders and EA users.
- Strategy fit: Short-term strategies with many trades benefit most from tight spreads.
Benefits of Each Account
Standard account benefits
- Easy cost calculation
- No commission to track
- Good for learning
Raw spread account benefits
- Tight spreads, especially during liquid sessions
- Lower total cost for high-volume trading
- Clear separation of spread and broker fee
Risks and Things to Watch
- Raw accounts can show wider spreads during news or low liquidity, because spreads are variable.
- Commissions add up if you over-trade.
- A cheaper account does not make a losing strategy profitable. Risk management matters more than fees.
How to Choose the Best Forex Account Type: Step by Step
- Count your trades. How many lots do you trade per month?
- Check your style. Scalping and day trading favour raw. Long-term trading often fits standard.
- Calculate total cost. Use the formula: spread in pips × pip value + commission.
- Test on demo. Compare real spreads on both account types at the pairs you trade.
- Start small. Move to the other account type if your trading volume changes.
Expert Tips
- Compare costs on your main pair, not just EUR/USD.
- Check spreads at your normal trading hours.
- Review your monthly costs every quarter. Your best account today may change as you grow.
Frequently Asked Questions
1. Is a raw spread account better than a standard account?
Not always. Raw accounts usually cost less for active traders who place many orders, because the spread is tiny. Standard accounts are simpler and can be just as good for beginners or occasional traders. Compare the total cost.
2. Do raw spread accounts charge commission?
Yes. A raw spread account typically charges a commission per lot, in return for much tighter spreads. The commission may be charged per side or as a round-turn fee, so always check the exact structure before opening a live account.
3. Which account is best for beginners?
Many beginners start with a standard account because costs are built into the spread and are easy to understand. Start on a demo account, learn the basics, and then decide whether a raw account suits your trading volume.
4. Which account type is best for scalping?
Scalpers usually prefer raw spread accounts because tight spreads reduce cost on frequent, short trades. Always add the commission to your calculation, and make sure your broker allows your strategy and offers fast order execution.
5. Can I switch from standard to raw later?
Most brokers let you open an additional account type or move between them. Policies differ, so check with eonefx support for the current process. Many traders test both types on demo before committing.
Conclusion
The best forex account type is the one that matches your habits. Trade rarely and want simplicity? Standard is a great start. Trade often and want lower total cost? Look closely at raw spread.
