A raw-spread account is cheaper only when the spread saving exceeds the commission for the same completed trade. Trading more often does not change that comparison by itself. Start with the same instrument, position size, platform and account currency.
The two models
- Spread-only account. The quoted spread includes a markup, with no separate trading commission for the instrument being compared. Financing and other account charges can still apply.
- Raw-spread plus commission account. The spread and a separate trading commission both contribute to the cost. Check the rate and its unit: a charge per lot is different from a charge per million of traded value.
Do not infer the commission basis from an account name. cTrader's documentation supports commission per lot, per million USD of volume and as a percentage of volume. The broker's account and instrument specification determines which applies. See the cTrader fee-per-million explanation and worked example.
Working out which is cheaper for you
The figures below are hypothetical inputs, not a broker quote or a market average. Assume one standard EUR/USD lot of 100,000 EUR, a USD account, the same spread at entry and exit, and no change in the market midpoint. One pip is 0.0001 USD per EUR, so its value is 100,000 × 0.0001 = $10.
- Raw account: a 0.2-pip spread costs $2. Add $3 commission on opening and $3 on closing: $8 total, equivalent to 0.8 pips.
- Spread-only account: a 1.2-pip spread costs $12 total, with no separate trading commission in this example.
This simplified round trip counts one full spread, not a full spread twice. It excludes slippage, overnight financing, currency conversion and other charges.
With a $6 round-turn commission and a $10 pip value, the raw account needs to save more than 0.6 pips in spread to cost less. At exactly a 0.6-pip saving, the two trading-cost totals are equal. A smaller saving makes the spread-only account cheaper under these assumptions.
Does trading more make a raw account cheaper?
If both accounts' costs scale proportionally with volume, the cheaper option for one comparable trade remains cheaper when you repeat it. More trades increase the total cost and the total difference; frequency alone does not decide the winner.
Check minimum commissions, volume tiers and currency conversion before scaling a one-lot example down to a small position. For a commission based on USD traded value, calculate the opening and closing charges separately using the applicable values. Do not substitute a fixed per-lot figure.
Compare the quote you can actually trade
A minimum advertised spread is not an average or an executable quote. IC Markets' Australian spreads page, for example, distinguishes minimum and average spreads and directs clients to their account's electronic trading system for the most accurate specifications. That source does not establish another entity's terms or country eligibility.
Use the same trading hours and holding period when comparing accounts. Then add any overnight holding costs separately. The cost examples let you vary trading volume; confirm the actual entity, account and platform inputs before using them.
If an account does not publish a numeric commission, leave that cost unknown until you have a quote. The STARTRADER vs Vantage worked example shows how the missing rate affects the comparison.
Sources
Read on 20 October 2026:
- cTrader: commission calculation types.
- IC Markets Australia: spreads and account specifications, scoped to its Australian offering.
Educational information, not personal financial advice. The arithmetic example does not predict execution or returns.