When you open an account, the broker offers a menu of account types with names like Standard, Raw and ECN. They mostly differ in one thing: how you pay to trade. Understand that and you can pick the account that actually costs you least for the way you trade, rather than the one with the flashiest name.
01 Two ways to pay: spread or spread plus commission
Almost every account is a variation on two models. A standard account charges no separate commission but gives you a slightly wider spread, with the cost baked in. A raw or ECN account gives you a very tight, near-interbank spread but adds a fixed commission per trade. Neither is free. They just collect the fee in a different place.
02 Which is actually cheaper
It depends on how much you trade. The raw account's tight spread plus commission often works out cheaper for active traders who place a lot of volume, because the commission is fixed while the spread saving adds up. The standard account can be simpler and perfectly fine for someone trading occasionally. The only honest way to compare is to add the spread and the commission together into one all-in cost per trade, then see which wins for your style.
Say a standard account offers EUR/USD at a 1.2 pip spread and no commission, while a raw account offers 0.2 pips plus a commission that works out to about 0.6 pips per trade. All in, the standard costs 1.2 and the raw costs 0.8. The raw account is cheaper here, and the gap grows the more you trade. Flip the numbers and the answer can flip too, which is exactly why you compare the total rather than the label.
03 A couple of other options
You may also see a cent account, where balances are shown in cents so a small deposit can be traded in tiny sizes, which is handy for cautious beginners. And a swap-free or Islamic account removes overnight interest charges for religious reasons, sometimes replaced by an administration fee. Useful to know they exist, but not something to agonise over at the start.
04 Which to pick as a beginner
Keep it simple. A standard account, ideally in micro or cent sizing, is an easy and low-cost place to learn, with no commission maths to think about. Once you are trading regularly and the volume justifies it, moving to a raw or ECN account can lower your costs. There is no prize for choosing the "pro" account before you are trading like one.
- How does a standard account charge you, compared with a raw account?
- What is the only fair way to compare the two on cost?
- Which account style suits most beginners to start?
Show answers
1) A wider spread with no commission, versus a tight spread plus a fixed commission. 2) Add spread and commission into one all-in cost per trade. 3) A standard account, ideally micro or cent sized.
- Standard accounts bake the cost into a wider spread. Raw and ECN accounts use a tight spread plus commission.
- Which is cheaper depends on your volume, so compare the all-in cost, not the name.
- Start simple with a standard, micro or cent account, and move to raw later if your trading justifies it.
An account that gives you very tight, near-interbank spreads and charges a separate fixed commission per trade. It suits active traders because the total cost is often lower once you trade enough volume.
A standard account is usually the simpler start, with the cost in the spread and no commission to track. Move to a raw or ECN account once you trade regularly and the volume makes the tighter spread worthwhile.
Whichever has the lower all-in cost, spread plus commission, for how often and how large you trade. Raw accounts tend to win for high volume, standard accounts for occasional trading.
Further reading: Basic principles of trading operations, the official MetaQuotes explanation of execution modes and spreads.
See account types and real costs compared in our broker guide →