Learn Trading Costs Account Types RAW/ECN vs STP

RAW/ECN vs STP (What’s the Difference?)

“ECN” and “STP” are often used as labels, but your trading result depends on what happens in real fills: all-in cost, slippage, and how often orders fail (requotes/rejections).

Risk warning: This content is for educational purposes only and not financial advice. Forex trading involves risk, and you can lose money.

ECN vs STP: quick check

Don’t buy the label. Compare the real trading experience: total cost + fill quality.

Cost: typical spread + commission
Fills: slippage in fast markets
Red flag: frequent requotes/rejections

Ignore labels — measure fills and total cost.

ECN vs STP in plain English

ECN (as marketed): your orders are routed to a pool of liquidity, spreads can be very tight, commission is common.
STP: broker routes orders to liquidity providers (often similar outcome for retail traders), spreads may include markup or come with commission depending on the account.
Reality: many brokers use both terms loosely — you can’t “buy the label”, you verify the behavior.

What to focus on (the only 4 things that matter)

Typical spreads: check the average spread on your main pair during the hours you trade.
Commission: know the exact fee and how it’s charged (per side vs round-turn, per lot).
Slippage in volatility: observe fills during fast markets (news, session opens).
Requotes/rejections: frequent “no fill” or requotes in calm markets is a red flag.

How pricing usually differs

Raw/ECN-style accounts: tight spreads + commission (transparent, but you pay a fee per trade).
STP/Standard-style accounts: spread-only or spread+commission depending on the broker’s setup.
Compare all-in: average spread + commission (if any) is the real number.

Need the full pricing breakdown? See Standard vs Raw and Commission.

Execution differences you may actually notice

Slippage: can be positive or negative; what matters is how often it’s “bad” and how large it is → Slippage.
Requotes / order rejection: you click, but don’t get the fill you expected (or no fill) → Requotes & Rejections.
Spread spikes: even raw spreads can widen in thin liquidity → Why spreads widen.
Market vs limit behavior: limits give price control but may not fill; markets fill faster but can slip → Market vs Limit.

Simple checks before you commit money

Test your exact hours: record typical spreads and fills during the session you trade.
Simulate stress moments: watch behavior around session opens, rollover, and high-impact news.
Track “failed trades”: count requotes/rejections and how often your stop/entry slips.
Do a small withdrawal test: reliability matters more than 0.1 pip.

Which model fits your style?

Scalping: all-in cost + execution quality dominates → Cheaper for scalping.
Swing trading: predictability + swap matters more than tiny spread differences → Better for swing and Swap & Rollover.

Red flags (walk away)

Requotes in calm markets: “normal” volatility shouldn’t cause constant failures.
Marketing only: “0.0 spreads” without typical/average data during real hours.
Costs you can’t verify: unclear commission model or “special conditions” that change fees.
Withdrawal friction: slow/blocked withdrawals are a bigger problem than any account type label.