Raw vs standard accounts: what's the difference in plain language?
A standard account usually charges no commission but has a wider spread. A raw account shows near-zero spreads but charges commission per lot. The total cost can be lower or higher depending on how you trade.
How did you choose?
- your account type and why
- whether you compared the total cost per trade on both
- which is cheaper for your trade size and frequency
Worked cost comparisons are exactly what this thread is for. The trading costs guide has the formula.
Background: The real cost of a forex trade: spread, commission and swap
Every trade has costs, and they are easy to underestimate. Here is how to add up the spread, commission and overnight swap on a position.
What is a spread in forex?
The difference between the bid (sell) and ask (buy) price. You pay it every time you open a trade, and it widens when the market is less liquid.
Is a raw spread account cheaper?
Not automatically. Add the spread and the round-trip commission together and compare the total with a spread-only account's typical spread on the pairs you trade.
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