Learn Trading Costs Account Types Standard vs RAW Account

Standard vs RAW Account (Which One Is Better?)

Standard and Raw accounts are the same market — only the pricing model changes. A Standard account hides the fee inside a wider spread. A Raw account shows a tighter spread and charges a separate commission. What’s “cheaper” depends on your trading style and how often you trade.

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

Standard vs Raw

Standard hides the fee in the spread. Raw shows tight spreads and charges commission.

Compare: all-in cost
Standard: simple, fewer trades
Raw: active trading + tight spreads

Compare all-in cost, not just “tight spreads”.

Standard vs Raw: what actually changes

Standard: spread-only pricing (broker markup is inside the spread).
Raw: tight spreads + a separate commission per trade.
Same chart, different bill: your fills and execution still matter (spreads can widen, slippage can happen).

All-in cost (the only comparison that matters)

Standard all-in: average spread (that’s basically it).
Raw all-in: average spread + commission.
Simple rule: if the Raw spread is smaller by more than the commission “equivalent”, Raw is cheaper.

If you want to go deeper on fees: commission explained and fixed vs variable spreads.

When a Standard account is usually the better pick

You trade less often: swing trades, occasional setups, longer holds.
You want simplicity: one visible cost (spread) instead of spread + commission math.
You trade small sizes: commission can feel “heavier” psychologically on tiny positions.
You’re still learning execution: focusing on clean rules matters more than squeezing 0.2 pips.

When a Raw account is usually the better pick

You trade frequently: scalping or many intraday entries/exits.
You care about tight spreads: especially around liquid sessions where raw spreads stay low.
You use precise entries: tighter spreads can help on breakouts, stop entries, and quick management.
You’re comparing brokers properly: average spreads + commission + execution quality.

Common traps (why “Raw” is not automatically cheaper)

Commission is per trade: more trades = more commission. Great if spreads are truly tight, bad if you overtrade.
Spreads still widen: news, rollover and thin liquidity can blow out raw spreads too.
Execution can dominate costs: slippage/requotes can cost more than the spread difference.
Some “Raw” accounts aren’t truly raw: always verify the full pricing + execution model.

Useful deep dives: execution, slippage, and why spreads widen.

Quick checklist before you choose

Average spread (not minimum): check typical spreads during the hours you trade.
Commission details: per side or round-turn, and per lot size.
Execution notes: do you see slippage, rejections, or “weird” spread spikes?
Your style: scalper/intraday vs swing → pick the model that fits the frequency.
Other costs: swap if you hold overnight → swap & rollover.

Simple beginner conclusion

New traders: Standard is often fine while you build consistency.
Active traders: Raw can be cheaper if the spreads are genuinely tight and execution is clean.
Always compare all-in: spread + commission + execution.