Raw Spread vs Standard Account — Which Saves You More?

The most common question new traders ask: should I choose a commission-free Standard account or a Raw Spread account with commission? The answer is simple math — here it is.

Understanding the Two Pricing Models

Forex brokers use two main pricing models. The Standard account (also called Classic or Commission-Free) charges zero commission but adds a markup to the raw spread. This markup is how the broker earns revenue. On IC Markets, the Standard account averages from 1.0 pips on EUR/USD — that includes both the raw spread and the broker's markup.

The Raw Spread account (also called ECN, Pro, or Zero) passes you the raw interbank spread with no markup. The broker instead charges a fixed commission per lot traded. On IC Markets Raw Spread MT4/MT5, the commission is $7.00 per standard lot round turn ($3.50 per side).

The question is: which model results in a lower total cost per trade? And the answer depends on one key factor — how tight the raw spread actually is.

The Math — IC Markets Real Numbers

Let us use IC Markets' actual pricing from our spread test. On EUR/USD:

At standard pricing, the Raw MT4/MT5 and Standard accounts cost roughly the same ($8.00/lot). The Raw cTrader account is slightly cheaper ($7.50). But with our commission discount, Raw Spread accounts become notably cheaper — $6.50 all-in on both MT4/MT5 and cTrader.

This means the Raw Spread account with our discount saves you 26-35% on every trade compared to the Standard account. There is no scenario where the Standard account is cheaper.

When Does the Standard Account Make Sense?

The Standard account only makes sense in a few specific scenarios. If you are a complete beginner who finds the idea of commission confusing and wants simple, all-inclusive pricing — the Standard account eliminates one variable. If you trade very small positions (micro-lots), the commission per lot can feel disproportionately large relative to your position size.

If you trade a strategy that holds positions for days or weeks (swing trading), the spread difference matters less because your profit target is much larger than a few pips. A 0.7 pip cost difference is irrelevant when you are targeting 100+ pip moves.

However, if you day trade, scalp, or trade any strategy that involves frequent entries and exits, the Raw Spread account is unquestionably better. The cost savings compound with every trade, and over a month of active trading, the difference adds up to hundreds or thousands of dollars.

The Hidden Advantage of Raw Spread Accounts

Beyond pure cost savings, Raw Spread accounts offer a hidden advantage: better fills and execution. When spreads are tighter, your market orders fill closer to the price you see on your chart. This reduces negative slippage and improves the accuracy of your entries and exits.

On a Standard account with from 0.7 pip spread, your market buy order fills 0.4 pips above the mid-price (half the spread). On a Raw Spread account with 0.1 pip spread, you fill just 0.05 pips above mid-price. For scalpers targeting 5-10 pip moves, this difference is significant — it affects your win rate, not just your costs.

Raw Spread accounts also give better limit order fills. With tighter spreads, your limit orders are more likely to execute at your desired price because the spread does not have to narrow enough to reach your level.

Our Recommendation

For any trader who trades more than a few times per week, the Raw Spread account is the clear winner. Combined with TradersFXPartner's commission discount (up to 21% off), it delivers the lowest possible all-in trading costs at IC Markets.

Our specific recommendation: open a Raw cTrader account with our commission discount. This gives you the lowest commission ($5.50/lot), the tightest spreads, and access to cTrader's superior charting and Level II pricing. If you prefer MetaTrader, the Raw MT4/MT5 account at $5.50/lot is also excellent.

For a detailed comparison of all IC Markets account types and platforms, see our account types guide. To see how IC Markets compares to other brokers on cost, read our cheapest forex broker 2026 analysis.

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Raw Spread vs Standard Account — FAQ