Raw ECN vs Standard Account: Which Actually Costs Less?
Each faint trail is one simulated future for this strategy. The bold line is the median — half of runs finished above it, half below. The shaded band spans the lucky 10th to unlucky 90th percentile, so an outcome inside the band was reasonable to expect; outside, less so.
- Every account charges you — standard accounts through a wider spread, raw accounts through commission
- Convert both to the same unit (cost per lot, round turn) before comparing
- For most retail traders, raw ECN accounts are cheaper on major forex pairs
- The gap matters most for scalpers and short-term traders with tight stops
- Use the True Friction calculator to compare at your own lot count
Brokers usually offer two account types. The standard account advertises "zero commission". The raw or ECN account advertises spreads "from 0.0 pips" but charges a commission per lot. Neither is free. The question is which one costs you less for the way you trade.
Put both costs in the same unit
The only fair comparison is total cost per standard lot, round turn (open and close). For a pair like EUR/USD where one pip is worth $10 per standard lot:
Standard cost per lot = Typical spread (pips) × $10Raw cost per lot = (Raw spread × $10) + Round-turn commission
Commission is often quoted per side. If a broker charges $3.50 per lot per side, the round-turn cost is $7.00. Always check whether the quote is per side or round turn — it doubles the number.
A worked example
The figures below are illustrative. Real spreads vary by broker, time of day and market conditions — use your own broker's published averages.
| Standard account | Raw / ECN account | |
|---|---|---|
| Typical EUR/USD spread | 1.2 pips | 0.1 pips |
| Spread cost per lot | $12.00 | $1.00 |
| Commission (round turn) | $0 | $7.00 |
| Total cost per lot | $12.00 | $8.00 |
| Cost on 50 lots / month | $600 | $400 |
In this example the raw account is $4 cheaper per lot — a third less. At 50 lots a month, that is $200 a month or $2,400 a year that stays in your account.
When the standard account wins
The raw account is not always cheaper. If the standard spread is tight (under about 0.8 pips on EUR/USD) and the raw commission is high (above $8 round turn), the standard account can come out ahead. Exotic and minor pairs also behave differently: raw spreads on these pairs are wider, so the commission stops being the main cost.
Break-even standard spread = Raw spread + (Commission ÷ $10)With a 0.1 pip raw spread and $7 commission, the break-even is 0.8 pips. Any standard account wider than 0.8 pips costs more than the raw account.
Why this matters more than it looks
Trading costs are charged on every trade, win or lose. They come straight out of your expectancy. If you risk 10 pips per trade, a 1.2 pip spread is 12% of 1R before the trade has done anything. A 0.8 pip all-in cost is 8% of 1R. On a strategy with +0.15R expectancy, that four-point difference is more than a quarter of your entire edge.