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Key Takeaways
- Raw Spread Accounts offer interbank pricing starting from 0.0 pips, with a separate commission per trade (typically $3-$7 per lot).
- Total Cost: Raw spread + Commission is often cheaper than standard accounts for traders executing 5+ lots per month.
- Best For: Scalpers, day traders, and anyone who trades frequently during high-liquidity sessions.
- Top Brokers: IC Markets ($7/lot), Pepperstone ($7/lot), and FP Markets ($6/lot) offer excellent raw spread accounts.
- Minimum Deposit: Raw accounts typically require $200-$500, though some brokers offer them from $100.
Table of Contents
What is a Raw Spread Account?
A Raw Spread Account (also called a Razor, Zero, or ECN account) gives you direct access to interbank pricing with no broker markup on the spread. The spread you see is the actual rate quoted by liquidity providers—banks, hedge funds, and other major institutions.
Unlike standard accounts where spreads are "marked up" by the broker (e.g., 1.0-1.5 pips on EUR/USD), raw spread accounts can show spreads as low as 0.0 pips during high-liquidity periods. The tradeoff? You pay a fixed commission per trade.
Example: On a standard account, you might pay 1.2 pips spread on EUR/USD (no commission). On a raw account, you pay 0.1 pips spread + $7 commission per lot. For a 1-lot trade, that's $1.20 spread vs $1 + $7 = $8... wait, that seems more expensive! Read on to understand when raw accounts actually save money.
How Raw Spreads Work
Raw spreads come directly from the broker's liquidity providers (LPs). These are large financial institutions that quote real-time bid/ask prices based on actual currency supply and demand.
An ECN broker aggregates quotes from multiple LPs and shows you the best available price at any moment:
- LP 1 (Bank A): EUR/USD 1.10501 / 1.10503 (spread 0.2 pips)
- LP 2 (Bank B): EUR/USD 1.10500 / 1.10504 (spread 0.4 pips)
- LP 3 (Hedge Fund): EUR/USD 1.10502 / 1.10503 (spread 0.1 pips)
The ECN combines these to show you the tightest available: 1.10502 / 1.10503 = 0.1 pips spread. This is "raw" because there's no additional markup from the broker.
Understanding Commission Costs
Since brokers don't mark up raw spreads, they charge a commission per trade to stay profitable. Commissions are usually quoted per lot per side (opening or closing) or per round turn (complete trade).
| Broker | Commission (Round Turn) | Avg EUR/USD Spread | Total Cost (1 Lot) |
|---|---|---|---|
| IC Markets | $7.00 | 0.1 pips | $8.00 |
| Pepperstone | $7.00 | 0.17 pips | $8.70 |
| FP Markets | $6.00 | 0.2 pips | $8.00 |
| Tickmill | $4.00 | 0.1 pips | $5.00 |
| Exness | $7.00 | 0.0 pips | $7.00 |
Pro Tip: Always compare total cost (spread + commission), not just spreads. A broker with 0.0 pips spread but $10 commission is more expensive than 0.3 pips spread + $4 commission.
Raw Spread vs Standard Account: Cost Breakdown
Let's run the numbers for a trader executing 10 trades per day on EUR/USD (1 lot each):
| Account Type | Spread | Commission | Cost/Trade | Daily Cost (10 Trades) | Monthly Cost |
|---|---|---|---|---|---|
| Standard | 1.2 pips | $0 | $12.00 | $120.00 | $2,400 |
| Raw Spread | 0.2 pips | $7.00 | $9.00 | $90.00 | $1,800 |
Result: The raw spread account saves $600 per month for this trader. However, for someone trading 1-2 lots per month, the savings are minimal, and a simpler standard account might be preferred.
Best Raw Spread Brokers in 2026
Based on our testing, here are the top raw spread brokers for different needs:
- Lowest Commission: Tickmill — $4/lot round turn with consistently tight spreads.
- Best Allrounder: IC Markets — Deep liquidity, 0.0 pips possible, great for scalpers.
- Best Regulation: Pepperstone — FCA and ASIC regulated with robust client protection.
- Best for High Leverage: Exness — Unlimited leverage (up to 1:2000) on raw accounts.
- Best for cTrader: FP Markets — Excellent cTrader integration with $6 commission.
See our complete Best Raw Spread Brokers comparison for detailed reviews.
Who Should Use a Raw Spread Account?
✅ Ideal For:
- Scalpers: Every 0.1 pip matters when targeting 3-5 pip profits. Scalping brokers must offer raw spreads.
- Day Traders: Multiple daily trades mean commission costs are offset by spread savings.
- Expert Advisors: Bots execute many trades; lower per-trade costs compound into significant savings.
- High-Volume Traders: Trading 10+ lots/month? Raw spreads are almost always cheaper.
❌ Not Ideal For:
- Beginners: The commission structure adds complexity. Start with a standard account first.
- Swing Traders: If you hold trades for days, the spread difference is negligible compared to swap fees.
- Low-Volume Traders: Trading 1-2 lots/month? The commission overhead isn't worth it.
Frequently Asked Questions
What is a raw spread account in forex?
A raw spread account provides direct access to interbank pricing with no broker markup. You get the actual spreads from liquidity providers (often 0.0-0.3 pips on majors) and pay a separate commission per trade instead.
Is raw spread better than standard?
For high-frequency traders (scalpers, day traders), yes—the total cost is usually lower. For beginners or swing traders making few trades per month, standard accounts are simpler and just as cost-effective.
What is the commission on raw spread accounts?
Commissions typically range from $4 to $10 per standard lot round turn. Top brokers like Tickmill ($4), IC Markets ($7), and Pepperstone ($7) are competitive.
Can I scalp on a raw spread account?
Yes, raw spread accounts are specifically designed for scalping. The tight spreads and fast execution are essential for strategies targeting small pip gains. See our Best Scalping Brokers guide.
What is the minimum deposit for raw spread accounts?
Most brokers require $200-$500 for raw accounts. However, IC Markets and Exness offer raw spread access from $200, and some like Tickmill start from $100.
Do raw spread accounts have swap fees?
Yes, overnight positions incur swap fees just like standard accounts. If you need swap-free trading, look for brokers offering raw spread Islamic accounts.
What is the difference between raw spread and ECN?
They are often the same thing. "Raw Spread" describes the pricing (no markup), while "ECN" describes the execution method (Electronic Communication Network). Most raw spread accounts use ECN execution.
Why are raw spreads 0.0 pips?
During high-liquidity periods (London session), competition between liquidity providers can drive the bid/ask to identical prices momentarily, resulting in a 0.0 pip spread. This is rare but possible on major pairs.
Are raw spread accounts regulated?
Yes. Reputable brokers offering raw spreads are regulated by FCA, ASIC, CySEC, etc. Always verify the broker's license before depositing funds.
Can I use Expert Advisors (EAs) on raw spread accounts?
Yes, EAs work on raw spread accounts and often perform better due to lower trading costs. Make sure to factor in commissions when backtesting your strategy's profitability.
What platform is best for raw spread trading?
cTrader and MT5 are popular for raw spread trading due to their advanced order types and faster execution. MT4 works too but is considered older technology. See our Trading Platforms Guide.
How do I calculate total trading cost on raw accounts?
Total Cost = (Spread in pips × $10 per pip per lot) + Commission. For example: 0.2 pips × $10 = $2 spread + $7 commission = $9 total per lot. Compare this to your standard account spread to see which is cheaper.
