Most brokers offer two account styles for the same markets. Picking the wrong one quietly costs you money on every trade. Neither is "cheaper" in the abstract — it depends on how you trade.
The two models
- Spread-only (standard) account. No separate commission. The cost is baked into a wider spread — say 1.2 pips on EUR/USD.
- Raw-spread (ECN) account. A much tighter spread — often near 0.0–0.3 pips — plus a fixed commission per lot (commonly around $3 per side, $6 round turn).
Both are charging you for the same thing. They just split it differently.
Working out which is cheaper for you
Convert both to the same unit. On EUR/USD, 1 pip on a standard lot is roughly $10, and a typical round-turn commission of $6 is about 0.6 pips.
- Raw account: 0.2 pip spread + 0.6 pip commission ≈ 0.8 pips all-in.
- Standard account: 1.2 pips all-in, nothing extra.
In that example the raw account is cheaper. But flip the numbers — a broker with very tight standard spreads and high commission — and the standard account can win. Do the arithmetic with the actual broker's figures.
Rules of thumb
- Trade often / large size? Commission is a per-lot cost, but raw spreads are so much tighter that active traders usually come out ahead on a raw account.
- Trade rarely / small size? A spread-only account is simpler and the commission saving is marginal.
The catch
Headline raw spreads ("from 0.0 pips") are best-case snapshots. Real average spreads — especially around news and at the daily rollover — are what you actually pay. Compare typical spreads, not the marketing minimum.
See the all-in cost comparison to model both. Figures are indicative; verify with the broker. Educational content, not financial advice.