Key takeaways
- Account labels mostly describe the pricing model, not quality.
- Standard builds the fee into the spread; Raw and ECN split it into a small spread plus commission.
- Convert both models to cost per round-turn lot to compare them fairly.
- Active traders in liquid pairs often benefit from raw pricing; occasional small-size traders may not.
- Regulation, safety and execution policy should be checked separately from the account name.
Account names like Standard, Pro, ECN and Raw sound like a ladder from basic to advanced. In practice they mostly describe one thing: how the broker charges you. Once you see that, the choice becomes a piece of arithmetic rather than a matter of prestige.
What the labels usually mean
There is no industry-wide definition, so names differ from broker to broker. The patterns below cover most of what you will meet, but always confirm in the account's fee page.
| Account label | Typical pricing | Typical minimum deposit | Often suited to |
|---|---|---|---|
| Standard | Wider spread, no separate commission | Low | Beginners, infrequent traders, small sizes |
| Raw / Razor / Zero-style | Very tight spread plus a per-lot commission | Moderate | Active traders in liquid pairs |
| ECN | Spread reflecting liquidity-provider quotes plus commission | Moderate to high | Traders who care about price transparency |
| Pro / Premium | Reduced spread or commission tiers by volume | High | Larger accounts and eligible professional clients |
Notice that the first column does not tell you about execution quality, safety or regulation. The same company may run all of these account types from the same trading servers. The difference is the markup it adds to the underlying price, and whether it collects that markup as spread or as an explicit commission.
Spread-only versus spread plus commission
A Standard account typically builds the broker's fee into the spread. You pay a single number, which is easy to see on the chart. A Raw or ECN account displays something closer to the wholesale price and charges commission separately, often a fixed amount per lot, per side or per round turn. Commission looks like an extra cost but is often outweighed by the narrower spread.
Worked example: where the break-even lies
The following example is illustrative and uses simplified, round numbers. Take a major currency pair where one pip is worth 10 units of account currency per standard lot.
| Item | Standard account | Raw account |
|---|---|---|
| Average spread | 1.2 pips | 0.2 pips |
| Commission | None | 6.00 per round-turn lot (0.6 pip equivalent) |
| Cost for 1 lot | 12.00 | 2.00 + 6.00 = 8.00 |
| Cost for 0.1 lot | 1.20 | 0.20 + 0.60 = 0.80 |
| Saving on 20 round-turn lots a month | - | 80.00 saved |
Here the Raw account is cheaper by 4.00 per lot. But now imagine the Raw spread widens to 0.9 pips at a busy time while the Standard spread widens to 1.8 pips. Raw costs 9.00 + 6.00 = 15.00 and Standard costs 18.00, so Raw is still cheaper, but the gap shrinks. If you only trade very small sizes and the commission has a minimum charge per ticket, Standard could win. The only reliable method is to measure.
Illustrative figures in account currency, using the example above.
What does not change between account types
- Regulation: the legal entity and its protections are the same unless the broker states otherwise.
- Leverage and margin rules: set by the entity and jurisdiction, though some account types carry different limits.
- Platform: most brokers offer the same platforms on all accounts.
- Overnight financing: swaps normally apply on every account type, so a tight spread does not make long holds cheap.
Misunderstandings about ECN
ECN stands for electronic communication network. In theory it means orders are matched against a pool of liquidity providers, with the broker acting as an intermediary and charging a fee. In marketing it often means only that the pricing model is raw-spread-plus-commission. The label alone does not prove how your orders are handled, a topic we cover in our article on execution models. Ask the broker how orders are routed and read its order execution policy.
Choosing between account types
- List your real trade sizes. Your average lot size and number of trades per month decide whether commissions or spreads dominate.
- Collect the full price list. Record average spreads, the commission formula, minimum deposit and any volume tiers.
- Convert to a single unit. Express everything as cost per standard lot round turn, using the pip value of your actual instrument.Tip: Pip values differ by instrument and account currency.
- Measure live spreads. Watch spreads over several sessions, including around news, rather than relying on the minimum or average quoted on the website.
- Review after three months. Compare your actual statements with your estimate and move to a different account type if the numbers justify it.
Frequently asked questions
Is an ECN account always better?
No. It can be cheaper for active traders, but commissions and higher minimum deposits can make it worse for small or infrequent trading.
Why do some brokers have no commission on any account?
They build their fee into the spread. The cost is still there; it is simply less visible.
Can I switch account types later?
Many brokers let you open an additional account of another type under the same profile. Check whether fees or verification apply.
Do Raw accounts have lower swaps?
Typically not. Financing is usually set per instrument rather than per account type, but some brokers differ, so check the swap table.