Also known as:ECN Account, Zero Spread Account, Raw Account, Commission Account
What is Raw Spread Account?
A raw-spread account passes clients the direct interbank bid/ask price with little or no broker markup — often starting at 0.0–0.2 pips on EUR/USD — and charges a fixed commission per lot instead. The trader pays the true market spread plus a transparent fee rather than an inflated spread.
The economics are simply repackaged. On a standard account the broker's revenue is baked into a wider spread, say 1.5 pips on EUR/USD. On a raw-spread account the same broker shows a 0.1-pip spread and charges a separate commission, typically $3.00–$3.50 per side per standard lot (about $6–$7 round-turn). For a high-volume trader, the total cost is usually lower and far easier to measure.
Key takeaways
Near-zero spreads plus a fixed commission, versus a wider all-in spread on standard accounts.
Typical commission is around $6–$7 round-turn per standard lot.
Preferred by scalpers and algo traders — the highest-volume client segment.
IB rebate per lot is lower than on markup accounts but offset by far higher volume.
Not ideal for nervous beginners who dislike a visible per-trade fee.
Raw-spread accounts are the preferred vehicle of scalpers, algorithmic traders, and other high-frequency participants whose profitability depends on razor-thin transaction costs. Brokers such as IC Markets, Pepperstone, and FP Markets built their reputations partly on raw/ECN offerings with commission-based pricing.
The trade-off is psychological and structural. Beginners sometimes dislike seeing an explicit commission deducted on every trade, even when total cost is lower. And because the broker's margin per trade is thin, the IB rebate per lot on raw accounts is usually smaller than on markup accounts — a gap the higher volume of these clients is meant to offset.
How it works
The broker aggregates quotes from multiple liquidity providers or an ECN and shows the best available raw bid/ask with essentially no markup. Revenue is decoupled from the spread and moved into a transparent per-lot commission charged on entry and exit. Because the price feed is unmanipulated, spreads float with real market conditions — near zero in liquid sessions and wider during news or thin liquidity.
For the partner, the rebate is a slice of that commission rather than of a spread markup. If the broker charges $7 round-turn and pays the IB $2.50 of it per lot, a client trading 200 lots a month generates $500 in rebates — which is why partner economics on raw accounts live or die on volume, not on balance size.
Why it matters for partnership: Raw-spread accounts attract the highest-volume 'whale' traders — scalpers and algos — whose lot counts dwarf casual clients. IBs earn a share of the fixed commission, and because these traders churn huge volume, total rebates can exceed those from markup accounts despite the lower per-lot rate.
Formula
Total cost per round-turn lot = Raw spread cost + Fixed commission (both sides)
Real World Example
A forex reviewer records live footage of a 0.0-pip EUR/USD spread on a Pepperstone Razor account, then drops their IB link. A scalper in the audience opens an account and trades 250 lots in the first month. At a $2.50 per-lot rebate, the partner earns roughly $625 from one client — far more than a swing trader on a markup account would ever generate.
Raw-spread vs standard (markup) account
Feature
Raw-spread / ECN
Standard / markup
EUR/USD spread
0.0–0.2 pips
1.2–1.8 pips
Commission
~$6–$7 round-turn
None (built into spread)
Cost transparency
High — spread and fee separate
Lower — all-in spread
Best client
Scalpers, algos, high volume
Casual, low-frequency traders
IB rebate per lot
Lower
Higher
Pro Tip
When negotiating an IB deal on raw-spread accounts, ask whether you can add a small markup to the commission — for example turning a $6 round-turn into $8 and keeping the $2 difference per lot as your margin.
Common Pitfalls
Marketing raw-spread accounts to absolute beginners: the visible per-trade commission deduction confuses and frustrates novices even when their total cost is actually lower, driving early churn.
FAQ
Are IB payouts lower on raw-spread accounts?
Usually, yes. The broker's margin per trade is thin, so the per-lot rebate is smaller than on markup accounts — but the much higher volume these clients generate often makes total rebates larger.
Is a raw-spread account cheaper than a standard account?
For active traders, typically yes. Once the near-zero spread plus commission is added up, total cost per lot is usually lower than a wide all-in spread, and it is easier to measure.
Is a raw-spread account the same as an ECN account?
The terms are used almost interchangeably in marketing. Both mean tight, near-raw pricing with a separate commission, though a true ECN routes orders to a network of liquidity providers.
Can beginners use a raw-spread account?
They can, but many find the visible commission off-putting and the low-cost benefit only matters at higher volume, so a standard account is often a gentler start.
Why do raw spreads sometimes widen?
Because the feed reflects real market liquidity. During news or thin sessions, liquidity providers thin their quotes and even a raw spread can jump from near zero to several pips.
Do all brokers offer raw-spread accounts?
No. Pure market-maker brokers may only offer markup spreads. Brokers like IC Markets, Pepperstone, and FP Markets built their name specifically on raw/ECN pricing.
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