Raw Spread Account: ECN Pricing and Commission Explained

By Ken Chigbo, Founder, KenMacro. Published 2026-05-13.

What is raw spread account?

A raw spread account is a broker account configuration where the quoted bid and ask come directly from aggregated liquidity providers, typically tier one banks and non-bank market makers, with no mark-up added by the broker. In exchange for the tighter pricing, the broker charges a separate commission, usually billed per round-turn lot. This contrasts with a standard account, where the broker widens the spread to embed its fee. The desk treats raw spread accounts as an execution structure, not a strategy edge, since the all-in cost still depends on session liquidity, instrument, and trade size.

How traders use raw spread account

Active traders use raw spread accounts when their style is sensitive to per-trade transaction cost. Scalpers, intraday breakout traders, and algorithmic systems benefit most, because they accumulate dozens of fills per session and a half-pip difference compounds quickly. Retail traders typically compare the all-in cost, raw spread plus commission converted into pips, against a standard account’s marked-up spread on the same pair and session. Institutional desks running execution algorithms prefer raw pricing because it allows clean transaction cost analysis: the commission is a known constant, and the residual spread reflects genuine market microstructure rather than broker policy. During the London and New York overlap, major pairs on raw accounts can quote near zero spread, with commission becoming the dominant cost component.

Worked example of a raw spread account cost

Consider a trader executing one standard lot of EUR/USD on a raw spread account during the London session. The displayed spread is 0.1 pips and the broker charges a commission of roughly seven US dollars per round-turn lot. One pip on a standard lot of EUR/USD is approximately ten US dollars, so the spread cost is around one dollar and the commission is seven dollars, giving an all-in cost near eight dollars or 0.8 pips equivalent. On a standard account with the same broker, the same pair might quote at 1.2 pips with no commission, costing twelve dollars. The raw account is cheaper here, but the gap narrows on less liquid instruments.

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Frequently asked

Is a raw spread account always cheaper than a standard account?

Not always. The break-even depends on the instrument and session. On liquid majors during peak hours, raw spread plus commission usually beats a marked-up standard spread. On exotic pairs, illiquid sessions, or during high-impact news, the raw spread can widen sharply while commission stays fixed, narrowing or even reversing the cost advantage. The desk recommends comparing actual logged spreads across both account types over a representative trading week before deciding.

Why do brokers offer raw spread accounts if margins are thinner?

Brokers earn predictable revenue from the commission, which is easier to forecast than spread mark-up income. Raw spread accounts also attract higher volume traders, scalpers and algos, who generate consistent commission flow. Many brokers also use raw spread tiers as a competitive marketing tool to win clients from rivals advertising tight pricing. The structure aligns broker incentives with execution quality, since the broker no longer profits from wider spreads.

Do raw spread accounts have requotes or slippage?

Raw spread accounts execute against live liquidity provider quotes, so requotes are uncommon under normal conditions. Slippage still occurs, particularly during news events or thin liquidity, because the quoted price reflects what is genuinely available at that moment. Negative slippage during volatile prints is a feature of true market access, not a broker flaw. Some brokers offer slippage caps or guaranteed stop orders as optional risk controls.

What minimum deposit is typical for a raw spread account?

Minimum deposits vary widely by broker. Some retail-focused brokers open raw spread accounts from a few hundred US dollars, while institutional-tier accounts at the same firm may require five figures. The desk advises traders to focus less on the minimum and more on whether the commission schedule, available leverage, and regulatory jurisdiction match their strategy and risk tolerance.

Educational analysis only. Past performance does not guarantee future results. Manage risk against your own portfolio.