Account types: standard, raw spread, cent
What you learn in 3 minutesThis lesson shows how the same trade can cost different amounts depending on which account type you choose. Using USD/INR at around 83.2500, you will see how a standard account charges mainly through the spread, while a raw spread account charges a smaller spread plus a separate commission. By the end, you will be able to work out the total cost in rupees for one round trip on each account type.
One round trip on USD/INR: standard versus raw
| Step | Amount | Note |
|---|---|---|
| Standard account spread | 3 pips | Typical spread quoted by the broker on USD/INR |
| Standard account cost per standard lot | ₹30 | 3 pips × ₹10 per pip |
| Raw spread account spread | 1 pip | Narrower spread quoted by the broker |
| Raw spread account spread cost per standard lot | ₹10 | 1 pip × ₹10 per pip |
| Raw spread account commission per standard lot (round trip) | ₹20 | Commission charged separately by the broker; this figure varies between brokers |
| Raw spread account total cost per standard lot | ₹30 | ₹10 spread cost + ₹20 commission |
Brokers may round pip values, charge commission per side or per round trip, and add other fees. Always check the exact commission and spread on your account before trading.
The mistake people make here
A common mistake is to look only at the spread and assume a raw spread account is always cheaper. The commission is easy to overlook because it appears as a separate line on the statement. Instead, add the spread cost and the commission together to get the true cost of a round trip. Compare that total with the standard account's spread-only cost, and remember that the commission amount varies between brokers.Check yourself
On a standard account with a 3-pip spread on USD/INR, what is the cost of one round trip on one standard lot?
3 pips × ₹10 per pip = ₹30.
On a raw spread account with a 1-pip spread and a ₹20 commission per standard lot round trip, what is the total cost?
Spread cost: 1 pip × ₹10 = ₹10. Total cost: ₹10 + ₹20 = ₹30.
If the raw spread account commission were ₹25 instead of ₹20, what would the total cost be?
Spread cost remains ₹10. Total cost: ₹10 + ₹25 = ₹35.