Compare standard spreads with raw spreads plus commission using per-lot examples, then account for trading frequency, swaps, and currency conversion.

A low advertised spread does not necessarily mean a lower-cost account: a raw spread may come with a separate commission, while a wider spread may include the broker’s charge. Compare what you pay to enter and exit a trade of the same size, then account for trading frequency, holding time, and account currency.

Compare all-in costs, not the account labels

A spread-only account embeds the broker’s charge in the bid–ask spread. A raw-spread account offers a narrower spread but adds a commission, commonly charged on both opening and closing transactions. The labels alone don’t tell you which is cheaper; compare the cost of a completed trade on the same instrument and at the same volume.

For a simple EUR/USD illustration, assume a standard lot has a $10 pip value, the standard account’s spread is 1.2 pips, and the raw account’s spread is 0.2 pips. The standard account’s estimated spread cost is 1.2 × $10, or $12 per round trip. If the raw account charges $7 round turn per standard lot, its estimated cost is 0.2 × $10 + $7, or $9. It is $3 cheaper under these assumptions.

These figures illustrate the method, not broker quotes. Check whether a quoted commission is per side or round turn: a $3-per-side charge, for example, is $6 for opening and closing one lot. Also check whether a spread figure is a typical average or a minimum, and whether it applies to the instrument and account type you plan to trade.

Work out the cost for scalping frequency

For scalpers, small per-trade differences add up quickly. At 100 completed one-lot EUR/USD trades a month, this example produces $1,200 in spread cost on the standard account and $900 in spread plus commission on the raw account. The $3 saving per round trip totals $300 a month before slippage, financing, or other charges.

The spread you actually face depends on when you trade. A raw spread can widen around major news or during quieter market hours, even though the commission remains fixed. Compare typical spreads during your trading sessions rather than relying on a headline minimum that may be available only under particular conditions.

Execution quality matters too. If the raw account’s average execution is 0.3 pips worse than the standard account’s, that difference costs $3 per standard lot when the EUR/USD pip value is $10. It would erase the example’s $3 saving. Slippage varies by order type, market conditions, and broker execution. Where possible, compare your own records, including both positive and negative slippage.

Estimate day-trading costs by trade count

For 20 completed one-lot trades in a month, the same assumptions give $240 in spread cost on the standard account and $180 in spread plus commission on the raw account. That’s a $60 difference before other costs. Use completed round trips in this calculation, not just the number of entries or orders placed.

Scale the estimate to your actual volume. Two lots per trade double the direct costs in the example; a 0.1-lot trade makes them one tenth as large. If your position size changes from trade to trade, calculate each size separately or multiply the per-lot cost by the total lots traded. Confirm whether the broker charges commission on both opening and closing transactions and whether minimum commissions affect small trades.

Don’t apply EUR/USD’s assumed $10-per-pip value to other markets. For indices, metals, and other CFDs, use the contract specifications and the instrument’s tick or point value. Contract size, quote currency, and how a platform displays price movement can all change the cash cost of a spread or price move.

Add holding time to swing-trade comparisons

For four completed one-lot EUR/USD trades in a month, the example gives $48 in standard-account spread cost versus $36 in raw-account spread plus commission. The $12 monthly difference is modest, and overnight financing can outweigh it. Compare each broker’s financing or swap rates against the position size and the number of nights you expect to hold.

Long and short financing rates may differ, and a position’s financing charge can change over time. Some brokers apply several days of financing on a particular weekday to account for the weekend; check the day and calculation in the account’s instrument specifications. For a multi-day trade, estimate charges across the actual holding period rather than multiplying one night’s rate without checking how it applies.

Other holding-related adjustments may apply to some CFDs. Depending on the instrument, these can include dividend adjustments or currency-conversion charges. Check the product terms for the specific market and calculate the effect in your account currency. A spread comparison alone is insufficient if a position is likely to remain open through several financing dates.

Use a break-even test and check hidden charges

In this example, the standard account costs $12 per standard-lot round trip. The raw account is cheaper on direct trading charges whenever its average spread cost plus round-turn commission is below $12. With a $7 commission and a $10 pip value, the raw spread must average below 0.5 pips to beat that standard-account cost, before execution and other charges.

A simple monthly calculation is: monthly cost = (average spread in pips × pip value + round-turn commission) × completed lots. Add financing and conversion charges separately, using the expected holding time and account currency. Apply the calculation to each instrument rather than combining markets with different contract specifications.

Check account terms for minimum commissions, account-maintenance or withdrawal fees, inactivity charges, and any markup for converting deposits, withdrawals, or trading profits into your account currency. Whether a charge applies depends on the broker and account terms. Such charges can matter especially when you trade small sizes or make frequent deposits and withdrawals.

Use typical spreads during your trading hours and include realistic execution assumptions. An advertised minimum spread is not a reliable everyday average. For a fair comparison, keep the instrument, trade size, trading time, order type, and holding period the same, then add any account-specific fees that apply to your use.

Choose the account that fits your trading pattern

Raw spread plus commission can suit frequent traders when the tighter spread reduces direct costs by more than the commission and any account-specific fees. For a trader making many round trips, even a small difference can be material—but only if the raw spread remains competitive during the hours traded and execution doesn’t erase the saving.

Spread-only pricing can be simpler for occasional traders or those who prefer one visible trading charge. It isn’t automatically cheaper: a wider spread may cost more on every trade, and financing, slippage, and conversion can still apply. Choose based on the lower expected all-in cost for your actual products and habits, not the account name.

Before choosing, compare the same instrument, lot size, trading hours, holding period, and account currency across providers. Review account terms and consider the firm’s regulatory status in the jurisdiction where the account will be held, as well as its order-execution arrangements. For a neutral overview of the two pricing models, proforexbrokers.com provides an independent comparison resource.

Key takeaways

• Compare spread cost plus round-turn commission against the standard spread using the same instrument and trade size.
• Trading frequency and volume magnify even small per-trade cost differences.
• Swing traders should include overnight financing and other holding-related charges.
• Use typical spreads and realistic execution assumptions, not advertised minimums, in cost estimates.

Frequently asked questions

Is a raw-spread account always cheaper?

No. Add its spread cost and round-turn commission, then compare the total with the standard account’s spread cost for the same trade size. Include relevant financing, conversion, and execution costs too; a narrower quoted spread alone doesn’t establish that the account is cheaper.

Does spread-only mean there are no other trading costs?

No. Overnight financing, currency conversion, slippage, and instrument-specific charges may still apply. The account’s pricing label describes how spread and commission are presented, not every possible cost of holding or closing a position.

How should I compare accounts if I trade more than one instrument?

Calculate costs separately for each instrument using its contract size, tick or pip value, typical spread, commission, and holding costs. Then scale each result to your expected trade size and frequency. Don’t assume that a pip or point has the same cash value across forex pairs, indices, metals, and other CFDs.

This article is for educational purposes only and is not investment advice. Trading leveraged products involves significant risk of loss.