Spread vs Commission Explained: What Costs You More?

Updated Mar 2026 • 8 min read • 15 brokers compared

Every forex broker uses one of two pricing models: spread-only (where the broker's fee is embedded in a wider spread) or raw spread + commission (where you get interbank pricing plus a fixed per-lot fee). Understanding which model costs less for your trading style can save you thousands per year. We break down both models with real numbers.

The Two Pricing Models

Model 1: Spread-Only (Standard Accounts)

In this model, the broker adds a markup to the interbank spread. You pay no separate commission. For example, if the interbank EUR/USD spread is 0.1 pips, the broker might display 1.0 pips. The 0.9 pip difference is the broker's revenue.

Typical cost: 0.8 to 1.6 pips per trade on EUR/USD (equivalent to $8 to $16 per standard lot).

Model 2: Raw Spread + Commission (ECN/Raw Accounts)

In this model, you receive the raw interbank spread with zero markup. Instead, the broker charges a fixed commission per lot traded. Raw EUR/USD spreads range from 0.0 to 0.3 pips, with commissions typically between $3.00 and $4.00 per lot (round turn).

Typical cost: 0.0-0.3 pip spread + $3.00-$4.00 commission = $3.00 to $7.00 per standard lot on EUR/USD.

Cost Comparison: Real Broker Data

The data is clear: raw spread + commission accounts cost 40-65% less than spread-only accounts at every broker we tested. The savings are most dramatic at Exness, where the raw account costs $3.50 per lot compared to $10.00 on the standard account.

When Standard Accounts Make Sense

Despite costing more per trade, standard accounts have legitimate use cases:

• Low-frequency traders: If you execute fewer than 5 trades per week, the absolute cost difference is small (under $30/week on EUR/USD).
• Cost simplicity: Spread-only accounts make P&L calculation straightforward. Your profit/loss only depends on the price movement minus the spread. No commission to track separately.
• Micro lot traders: Commission on raw accounts is still charged per lot, which can seem disproportionate on very small positions.
• EA/bot testing: Some trading algorithms perform differently when commission is a separate line item vs. embedded in spread.

When Raw Spread Accounts Are Essential

• Scalpers: Taking 10+ trades per day on tight targets. Every pip of spread directly impacts profitability.
• High-volume traders: Trading 10+ lots per day. At 50 lots/day, the difference between $3.50 and $10.00 per lot is $325/day.
• News traders: During high-volatility events, raw spread accounts widen less than standard accounts because the broker has no markup to adjust.
• Gold traders: Gold spread differences between account types are magnified due to the higher pip value.

The Hidden Variable: Execution Quality

Spread and commission are not the only cost factors. Execution quality, including slippage and requotes, can add hidden costs. Raw spread accounts on ECN brokers typically offer market execution, meaning your order is filled at the best available price. Standard accounts on some brokers use instant execution, which can lead to requotes during volatile periods.

In our testing, ECN/raw accounts experienced an average of 0.1 pip positive or negative slippage, while standard accounts had slightly more slippage (0.2-0.3 pips on average) due to the broker's execution model.

Bottom Line

For the majority of active traders, raw spread + commission accounts are cheaper. The math is straightforward: raw accounts save 40-65% on trading costs at every broker we tested. Unless you trade very infrequently or specifically need the simplicity of spread-only pricing, a raw spread account is the better choice.

The lowest total cost in our data belongs to Exness Raw Spread at $3.50 per standard lot on EUR/USD. For traders who want a spread-only option, IC Markets Standard at 0.8 pips ($8.00 per lot) is the most competitive.