What Is a Raw Spread Account? Broker Pricing Explained

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

A raw spread account is a broker pricing structure where the spread quoted to the trader is the raw spread sourced from the broker’s liquidity providers, with no mark-up applied by the broker. The broker instead earns its revenue from a fixed commission charged per lot traded. On a liquid pair such as EUR/USD during London or New York hours, raw spreads frequently print at 0.0 to 0.3 pips, with the all-in cost arriving via the commission line.

Standard accounts work differently. The broker takes the same raw feed from its liquidity providers and adds a mark-up, typically 1 to 2 pips on EUR/USD, then charges zero commission. The trader sees a wider quoted spread but a cleaner ticket. Both models can deliver similar all-in costs at small lot sizes; the divergence becomes meaningful as turnover rises.

The KenMacro desk views the raw versus standard choice as a function of trading style, not marketing. A scalper trading 50 round-turn lots a day on EUR/USD pays a commission line of perhaps $35 to $70 on a raw account, against an embedded spread cost of $50 to $100 on a standard account for the same volume. For high-frequency intraday work, raw wins on arithmetic alone.

For a swing trader holding positions for days, the picture inverts. Spread cost is paid once at entry and once at exit, so the per-trade mark-up on a standard account is a small fraction of the eventual profit or loss. The simplicity of a single quoted spread, with no commission reconciliation, becomes the more relevant feature.

Commission structures vary by broker. Pepperstone Razor and IC Markets Raw charge roughly $3.50 per side per standard lot on major pairs, totalling $7 round turn. Vantage Raw and Blueberry Raw sit in a similar range. Some brokers tier commissions by volume, rewarding higher-turnover accounts with progressively lower per-lot rates. The KenMacro desk recommends pulling the live commission schedule from the broker’s account-types page before opening.

Liquidity provider quality matters more on a raw account than on a standard one. When the broker is not marking up the spread, the trader is directly exposed to the depth and competitiveness of the underlying feed. A raw account fed by a deep bank-only LP pool delivers tight, stable spreads through news events; a raw account fed by a shallow non-bank pool widens aggressively when volatility arrives. The label says raw, but the feed quality varies.

Execution model interacts with the pricing model. Most raw spread accounts are advertised as ECN, STP, or NDD (no dealing desk), meaning orders are routed to external liquidity rather than internalised against the broker’s book. This reduces conflict of interest but does not eliminate it; brokers can still B-book selected client flow even under an STP wrapper. The desk verifies execution model claims via regulator filings and best-execution reports where available.

Minimum deposits and lot sizes on raw accounts are often higher than on standard accounts. Many brokers set raw account minimums at $200 to $500, against $0 to $100 for standard. Some restrict raw accounts to MetaTrader 4, MetaTrader 5, or cTrader rather than the broker’s proprietary platform. Check the platform and instrument coverage before committing; not every symbol available on standard is available on raw.

Swap rates, financing costs, and inactivity fees are usually identical between raw and standard accounts at the same broker. The raw versus standard decision affects only the cost of opening and closing positions, not the cost of holding them. A trader running carry strategies or overnight portfolio hedges should focus on the swap schedule rather than the spread model.

Currency of denomination also matters. Commission on a raw account is typically quoted in USD per lot, but the trader’s account is denominated in the chosen base currency. This introduces a small FX conversion cost on each commission charge, which the KenMacro desk treats as a rounding item but flags for completeness. Account currency that matches the trader’s reporting currency reduces this friction.

Tax treatment of raw account costs is jurisdiction-dependent. In some regimes the commission is a separately deductible trading expense, while the embedded spread cost on a standard account is buried inside the entry and exit prices. This can affect record-keeping but rarely the headline tax bill. This is general information, not tax advice; the desk recommends consulting a qualified tax professional in your jurisdiction.

Open a Vantage account

Match the account type to turnover

The break-even between raw and standard depends on average spread mark-up, commission rate, and monthly volume. The KenMacro desk’s working rule: if monthly round-turn volume exceeds 20 standard lots on majors, raw is usually cheaper. Below that threshold the cost difference is small enough that platform features and execution quality should drive the choice rather than headline pricing.

Test the feed before committing capital

A demo account on the raw product reveals whether quoted spreads hold up through London open, US data releases, and Asia thin liquidity. Some brokers show advertised average spreads that smooth over volatility-event widening. Record a week of tick data across different sessions, then compare against the broker’s published average. The desk treats this as standard pre-funding diligence.

Confirm execution model and regulator

Raw spread marketing often implies ECN or STP routing, but the binding facts sit in the regulator filings and the client agreement. The desk recommends reading the broker’s order execution policy, checking the regulator register entry, and verifying segregation of client funds. Tight spreads attached to a weakly regulated entity is a poor trade-off at any commission level.

Compare regulated brokers on the desk

Frequently asked

Is a raw spread account cheaper than a standard account?

A raw spread account is usually cheaper for active traders running more than around 20 standard lots a month on major pairs. Below that volume the commission line can exceed the embedded spread cost of a standard account. The break-even varies by broker; check the commission schedule and average spread on each account type.

What commission do raw spread accounts charge?

Most major brokers charge $3 to $3.50 per side per standard lot on raw spread accounts, totalling $6 to $7 round turn on majors. Some brokers tier commissions by volume, with high-turnover accounts paying less. Exotic pairs and metals often carry higher commissions than the major currency pair rate.

Are raw spread accounts truly ECN?

Raw spread accounts are typically routed STP or ECN, meaning orders are passed to external liquidity rather than internalised against the broker’s book. Marketing claims do not equal binding facts; the KenMacro desk recommends verifying execution model through the broker’s order execution policy and regulator filings before opening.

What is the minimum deposit for a raw spread account?

Minimum deposits on raw spread accounts typically range from $200 to $500, higher than the $0 to $100 minimums common on standard accounts. Some brokers set no minimum on raw products as a marketing decision. The KenMacro desk reviews current minimums per broker at kenmacro.com/brokers.

Which brokers offer raw spread accounts?

Pepperstone Razor, IC Markets Raw, Vantage Raw, and Blueberry Markets Raw are well-known examples. Each pairs interbank spread pass-through with a per-lot commission. The KenMacro desk maintains broker-by-broker pricing comparisons, since commission schedules and average spreads shift with liquidity provider changes and competitive repricing.

Should I use raw or standard for scalping?

Scalping strategies benefit from raw spread accounts because the tighter spread reduces the cost of high-frequency entries and exits. The desk does not prescribe a specific account; the right choice depends on broker, instrument, and personal turnover. Test both on demo with realistic position size before committing live capital.

Do raw spread accounts have higher swaps?

Swap rates are generally identical between raw and standard accounts at the same broker, since financing reflects underlying interest rate differentials rather than the broker’s spread model. The raw versus standard decision affects transaction costs, not holding costs. Check the broker’s swap schedule before running carry or multi-day positions.

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