Top Raw Spread Forex Accounts Comparison
Best Raw Spread Broker in 2024 - eToro
Forex Brokers With Raw Spread Account 2024
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eToro — EUR/USD spread - , GBP/USD spread -
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OANDA — EUR/USD spread - 0,15, GBP/USD spread - 0,2
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IG Markets — EUR/USD spread - 0,8, GBP/USD spread - 1
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Trading.com — EUR/USD spread - 0,6, GBP/USD spread - 0,7
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FOREX.com — EUR/USD spread - 0,2, GBP/USD spread - 0,4
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Interactive Brokers — EUR/USD spread - 0,2, GBP/USD spread - 0,3
The forex market is vast and complex, so it's important to know all the different types of accounts available in order to make informed decisions when it comes to trading. Raw spread accounts are one of the accounts to look at if you’re into high volume trading and are looking to reduce trading costs as much as possible.
ECN/Raw spread accounts provide market quotes in the Forex market, implying a narrow spread from 0.1 pips. These brokers do not add a markup to the spread; instead, they earn from a small commission, typically ranging from $1.5 to $4 per lot. Traders Union has compiled a list of brokers offering ECN/Raw spread accounts and conveniently compared their trading conditions based on key parameters.
Raw Spread Accounts Comparison
| Broker | EURUSD avg. | GBPUSD avg. | ECN/Raw Commission $ per lot | Demo account | |
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0,15 |
0,2 |
3,5 |
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0,8 |
1 |
2,3 |
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0,6 |
0,7 |
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0,2 |
0,4 |
5 |
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0,2 |
0,3 |
2 |
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0,12 |
0,18 |
2,5 |
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Raw Spread Forex Brokers Reviews
eToro
The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA. eToro Profile Details
| 💻 Trading platform: | MobileTrading, WebTrader |
| 🏛 Liquidity provider: | n/a |
| ⭐ Trading features: | Cryptocurrency trade; Structural investment portfolios; Copy Portfolios; Trading Central. |
| 🔧 Instruments: | Currencies, assets of stock and commodity markets, cryptocurrencies |
| 💰 Account: | USD |
OANDA
The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.
| 💻 Trading platform: | WebTrader, MetaTrader4, Mobile platforms, MetaTrader5 |
| 🏛 Liquidity provider: | J.P. Morgan, Deutsche Bank AG, Royal Bank of Canada |
| ⭐ Trading features: | Advisors; Availability of a demo account; A large number of training materials. |
| 🔧 Instruments: | FX, Indices, Bullion, Commodities, Crypto |
| 💰 Account: | USD, EUR, HKD, SGD |
IG Markets
IG Markets has been providing brokerage services for retail traders since 2014. It was established in 1974 in London to work with professional traders. It is a part of the IG Group with representative offices in 17 countries. IG Markets stocks are traded on the London Stock Exchange as a part of the FTSE 250 index. The broker is regulated by FCA (Financial Conduct Authority | the UK), CySec (Cyprus Securities and Exchange Commission), ASIC (Australian Securities and Investments Commission), BaFin (the Federal Financial Supervisory Authority | Germany), FINMA (Swiss Financial Market Supervisory Authority), and NFA (National Futures Association). The IG Group global representative office is supervised by BMA (the Bermuda Monetary Authority). The broker provides services of trading Forex and different CFDs through MetaTrader 4 and its in-house platforms for retail and professional traders.
| 💻 Trading platform: | MetaTrader4, API, ProRealTime, IG Trading Platform |
| 🏛 Liquidity provider: | Large banks |
| ⭐ Trading features: | Leverage depends on the instrument and the regulator; Hedging and EAs are allowed. |
| 🔧 Instruments: | Forex; CFDs on indices, commodities, and stocks; Cryptocurrencies, options, interest rates, sectors, bonds, knock-outs, ETFs, and Futures on indices and commodities |
| 💰 Account: | USD |
Trading.com
Trading.com is a UK broker whose full name is Trading Point. Previously, it was called XMUK, but in 2019 it was rebranded and the company began to operate under its new title: Trading.com. The company offers to trade six asset classes such as currency pairs, metals, as well as CFDs on stocks, stock indices, commodity futures, and energy resources. More than 1,250 assets are available in total. The main office is located in London, the broker is regulated by the FCA (Financial Conduct Authority), and its registration number 705428.
| 💻 Trading platform: | MT5 |
| 🏛 Liquidity provider: | Not disclosed |
| ⭐ Trading features: | $5/month – payment for inactivity on the account |
| 🔧 Instruments: | Currency pairs (57), CFD on shares (1200+), commodity group (8), indices (14), metals (2), energy resources (5) |
| 💰 Account: | EUR, USD, GBP, CHF, AUD, PLN, HUF |
FOREX.com
Forex.com is a company owned by GAIN Capital Holdings, Inc. (NYSE: GCAP) and has earned a reputation as a reliable broker in the trading industry for its transparent work and high quality of services. The company cooperates with clients in 140 countries. The broker is registered in the Cayman Islands and supervised by CIMA (Certified Institute for Management Accountants). The license number is 25033. The parent company of the Forex.com broker is registered in England and Wales under the number 1761813 at the UK Companies House. It is licensed by one of the most reputable regulators in the world, FCA (No. 113942).
| 💻 Trading platform: | FOREX.com, MT4, MT5 |
| 🏛 Liquidity provider: | N/a |
| ⭐ Trading features: | There is a cryptocurrency trading |
| 🔧 Instruments: | Forex, cryptocurrencies, indices, commodities, stocks |
| 💰 Account: | USD, EUR, GBP |
Useful Forex Facts & Insights
Top 3 Brokers With the Tightest Spreads
The spread size is crucial for active trading styles and bot trading. STP/ECN brokers typically offer the lowest spreads for EUR/USD, with an average spread of around 0.1 pips. Additionally, these brokers usually charge a small commission per standard lot, ranging from $1.5 to $3.5. Traders Union prepared a list of the top 3 brokers in your country with the lowest spread for the EUR/USD and GBP/USD currency pairs.
| Broker | Avg. EUR/USD Spread | Avg. GBP/USD Spread |
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0,12 |
0,18 |
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0,15 |
0,2 |
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0,2 |
0,3 |
What Is a Raw Spread Forex Account?
A raw spread forex account is a type of trading account that provides a direct link between the broker and the market. This means that there are no marked-up spreads or commissions, allowing traders to benefit from lower costs per trade. Forex brokers with ECN technology typically offer raw spread accounts. ECN stands for Electronic Communication Network, and it's the most sophisticated form of trading available today. It allows traders to access the full depth of the market, and it's incredibly fast and efficient. An ECN broker provides access to the ECN trading platform. They give you access to the best trading conditions and the lowest possible spreads, which means you can get the best prices on trades.
A key advantage of this type of network is that it allows for raw spread accounts and better transparency as there are fewer hidden fees and costs associated with trading in the markets. Furthermore, traders also benefit from tighter spreads than those available on standard accounts, increasing their chances for success when it comes to their trades. With greater control over their transactions due to reduced fees and faster execution times, raw spread forex accounts provide an ideal platform for experienced traders who want to maximize profits through active trading strategies.
What Is a Typical Raw Spread?
On Raw spread/ECN accounts, there is typically a market spread, which for the most liquid currency pairs like EUR/USD can start from 0.1 pips. The difference in spreads between different brokers is therefore minimal, but it can still exist because brokers attract different liquidity providers. Higher liquidity leads to less spread fluctuation during volatility spikes in currency pairs.
How Do Forex Brokers With Raw Spread Accounts Make Money?
Here are a few ways Forex brokers with raw spread accounts can make money:
Commission fees. Many raw spread brokers will charge a small commission per trade, often around $1-5 per lot. This adds up over time and allows them to profit.
Swap fees. Brokers earn money from the overnight swap fees charged on positions held past the market close. These swap rates account for interest rate differences between the currencies being traded.
Additional services. Brokers offer things like VPS services, signals/analysis tools, account management, and more that users can pay extra for. These generate additional income streams.
So in summary, raw spread brokers rely much more on volume over large client bases rather than per-trade profitability. But commissions, swap fees, small spread markups, and additional services allow them to remain profitable.
Should I Choose a Raw Spread Account?
Choosing the right forex account can be a difficult decision, and it's important to select one that best suits your trading style and goals. A raw spread forex account offers many advantages for experienced traders looking to maximize profits from their trades without incurring excessive costs. With tighter spreads than those available on standard accounts, as well as reduced fees associated with each trade, these accounts are ideal for those who want to capitalize on market fluctuations with greater accuracy. Learn also about raw spread vs standard account comparing to know which account is better for beginners.
Raw spread accounts also provide faster execution speeds which allow traders to take advantage of market movements more quickly and efficiently.
Moreover, most US-based brokers offering raw spread accounts provide comprehensive packages tailored towards different types of traders such as beginner friendly educational resources or advanced analytical tools which allows them further control over their transactions. Therefore if you are looking for an efficient and cost-effective way of trading in the forex markets then a raw spread account may be the perfect solution for you.
All in all, choosing a raw spread account allows forex traders to enjoy tighter spreads with faster execution speeds while benefiting from greater cost savings and improved transparency compared with other types of trading accounts.
Expert Opinion
Raw spread accounts are the optimal choice for active traders whose strategies depend heavily on the size of direct or indirect commissions. Since the spread size among such brokers is generally similar, traders should pay attention to parameters such as broker regulation, liquidity providers, availability of VPS, and other useful features for active traders or automated strategies when choosing. Before starting trading on a live account, it is highly recommended to check the broker's trading conditions on a demo account to get a more accurate understanding of its trading terms.
FAQ
What is a raw spread broker?
Raw spreads are spreads without any markup. Forex raw Spread accounts offer the lowest spreads by streaming prices directly from liquidity providers. No markups/markdowns are applied to spread, but commissions are charged. For scalping, raw Spread accounts are the best option.
Which forex broker does not have spread?
With Raw spread brokers offering the highest liquidity, the spread can be as low as 0.1 pips. Traders Union has compiled a list of such brokers.
Is raw spread better for scalping?
Raw spread accounts offer minimal or borderline zero spreads. You have a much higher chance of earning good profits when you are closer to the actual market price when scalping. Each position and lot in a raw spread account is charged a fixed commission.
Do brokers make money on the spread?
Traders pay a spread for their trades when the actual instrument price differs from the price they pay for the trade. Prices brokers provide for buys are higher than actual prices, and prices they sell are lower. On trade instruments, brokers mark up the price and pocket the difference.
Methodology for compiling our ratings of Forex brokers
Traders Union applies a rigorous methodology to evaluate brokers using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
Regulation and safety. Brokers are evaluated based on the level/reputation of licenses and regulations they operate under.
User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified.
Trading instruments. Brokers are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Fees and commissions. All trading fees and commissions are analyzed comprehensively to determine overall costs for clients.
Trading platforms. Brokers are assessed based on the variety, quality, and features of platforms offered to clients.
Other factors like brand popularity, client support, and educational resources are also evaluated.
Find out more about the unique broker assessment methodology developed by Traders Union specialists.
Glossary for novice traders
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1
Broker
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
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2
Trading
Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.
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3
ECN
An ECN, or Electronic Communication Network, is a technology that connects traders directly to market participants, facilitating transparent and direct access to financial markets.
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4
CFD
CFD is a contract between an investor/trader and seller that demonstrates that the trader will need to pay the price difference between the current value of the asset and its value at the time of contract to the seller.
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BaFin
BaFin is the Federal Financial Supervisory Authority of Germany. Along with the German Federal Bank and the Ministry of Finance, this government regulator ensures that licensees abide by eurozone laws.
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Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).