Raw Spread
Also known as: raw spread account, zero spread account, ECN spread, unmarked-up spread
What is it?
Raw spread is the bid/ask gap passed to you exactly as your broker receives it from its liquidity providers, with no markup added. The broker earns from a separate, visible commission instead of from a widened price. That split is the whole point, and it is where most cost comparisons go wrong. On a raw-spread account EUR/USD might quote 0.1 pips with a 3.50 dollar commission per side, per standard lot.
| One EUR/USD round turn, 1 standard lot | Raw-spread account | Commission-free account |
|---|---|---|
| Quoted spread | 0.1 pips | 1.2 pips |
| Spread cost at $10 per pip | $1.00 | $12.00 |
| Commission ($3.50 each way) | $7.00 | $0.00 |
| All-in cost per round turn | $8.00 | $12.00 |
| Cost across 40 round turns | $320 | $480 |
At the same moment, the same broker's commission-free account quotes 1.2 pips and charges nothing extra. These are not two different prices; they are one cost wearing two outfits. One standard lot is 10 dollars per pip, so the raw route costs 1 dollar of spread plus 7 dollars of round-turn commission, or 8 dollars in total, while the commission-free route costs 12 dollars of spread and nothing else. The reason this matters far more to automated trading than to discretionary trading is frequency.
A four-dollar difference per trade is noise if you take three trades a week. A scalping bot taking forty round turns a day pays that difference 200 times a week, and the account type quietly becomes one of the largest single line items in the strategy's results.
Why it matters: A raw spread looks dramatically tighter than an all-in spread, but the two are only comparable once you add the separate commission back into the number.
All-in cost (pips) = raw spread + (round-turn commission / pip value)
On a high-frequency strategy the gap between a genuinely raw route and a marked-up one compounds across every round turn the bot takes.
Real-world example
A scalping bot taking 40 EUR/USD round turns a day paid 320 dollars on a raw account at 0.1 pips plus 7 dollars commission, against 480 dollars on the same broker's 1.2-pip commission-free account.
How SignalBots handles it
SignalBots quotes signal entries and targets in price rather than in net pips, so you can subtract your own account's raw spread and commission and see what a setup actually leaves you. See /risk-warning.
Pro tip
Convert both account types to a single number, the all-in cost per round turn in your account currency, before choosing. The headline spread on its own tells you nothing.
Common pitfalls
Reading an advertised 0.0-pip spread as free execution and ignoring the commission line, which on most raw accounts is the larger half of the real cost.
Frequently asked questions
Is a raw spread account always cheaper?
Usually for frequent traders, but not automatically. Once commission is added, a raw account only wins if the markup baked into the alternative account is larger than the commission you end up paying.
Can a raw spread really reach 0.0 pips?
Momentarily, yes. When the best bid from one liquidity provider matches the best ask from another, the aggregated top of book can touch zero. It does not stay there, and the commission still applies.
Why do brokers offer both account types?
Because they suit different traders. Someone taking a few trades a week often prefers one all-in number, while a high-frequency bot benefits from the tighter raw price and accepts paying commission on volume.
Does raw spread mean there is no dealing desk?
Not necessarily. Raw pricing usually accompanies straight-through routing, but the two are separate claims. Check how the broker says orders are routed rather than inferring it from the account name.
How can I check my broker's raw spread is genuine?
Log the quoted spread every second across a full session and compare it against the same symbol at another raw broker. A persistent offset that never narrows, even in quiet hours, suggests a markup.
Trading involves substantial risk of loss. Historical and backtested results do not guarantee future performance. Read the full risk warning.
