What Is a Raw Spread in Forex? How Raw Pricing Works and What It Means for Costs
BY TIOmarkets
|March 22, 2026When you place a forex trade, the spread is one of the main costs you pay. On a standard account, that spread includes a markup added by the broker. On a raw spread account, the markup is removed and you trade closer to the prices sourced from liquidity providers, paying a separate commission instead.
Understanding the difference, and how to calculate total cost under each model, helps you choose the account structure that suits your trading style and volume.
What Is a Spread in Forex?
The spread is the difference between the buy price (ask) and the sell price (bid) quoted for a currency pair at any given moment. When you open a trade, you enter at the ask price. When you close it, you exit at the bid. The difference is the spread, and it represents an immediate cost on every trade you place.
Spreads in forex are variable. They narrow during periods of high liquidity and widen during low-liquidity periods, major news events, and market open and close times. The spread you see quoted is always a snapshot, not a guaranteed figure for the life of your trade.
What Is a Raw Spread?
A raw spread, sometimes called an interbank spread or market spread, is the spread that exists in the underlying market before any broker markup is applied. It reflects the difference between the best available buy and sell prices sourced from multiple liquidity providers at that moment.
On a standard or commission-free account, the broker typically widens this spread before passing it to the trader. The difference between the raw price and the wider quoted price is how the broker covers its costs and earns revenue on each trade. On a raw spread account, this markup is not added. The trader sees pricing that is much closer to the underlying market, and the broker charges a fixed commission per lot instead.
Raw spreads on major pairs like EURUSD can be as low as 0.0 pips during liquid market conditions, though they are variable and can widen during periods of low liquidity or around high-impact news. The commission is the consistent, predictable element of cost on a raw account.
How Commission Works on a Raw Spread Account
The commission on a raw spread account is charged per round turn lot. A round turn covers both the opening and the closing leg of a trade. At TIOmarkets, the Raw account charges USD 6 per round turn lot. The full commission is charged when the position is opened, and it covers both the open and the close of the trade.
For smaller lot sizes, the commission scales proportionally. At 0.1 lots, the commission is USD 0.60. At 0.01 lots, it is USD 0.06. For accounts held in a base currency other than USD, the commission is converted at the prevailing exchange rate at the time the trade is opened.
Calculating Total Cost: Raw Spread vs Standard Spread
To compare the true cost of a raw spread account against a standard account, you need to add the commission back into the effective spread. This gives you the total cost of entering and exiting a trade.
On the Raw account with a spread of 0.0 pips and a USD 6 commission per standard lot, the total cost is USD 6. In spread-equivalent terms on EURUSD, where one pip on a standard lot is worth USD 10, USD 6 represents 0.6 pips. The effective all-in cost on a raw account is therefore approximately 0.6 pips per standard lot when the raw spread is at its minimum.
On the Standard account with a spread from 1.1 pips and no commission, the total cost at minimum spread is 1.1 pips, or USD 11 per standard lot on EURUSD. On the VIP Black account, the spread starts from 0.3 pips with no commission, giving a minimum cost of USD 3 per standard lot.
These are minimum figures under favourable conditions. All spreads are variable and typically higher than the minimum figures shown. The comparison shifts depending on current market conditions and the currency pair being traded.
For traders placing a high volume of trades or trading larger lot sizes, the predictable per-lot commission structure of a raw account can result in lower overall costs than a wider-spread zero-commission account, particularly when spreads are tight. For lower-frequency traders or those trading smaller sizes, a zero-commission account with a wider spread may work out similarly or lower in total cost. Running the numbers for your typical trade size and frequency is the most reliable way to assess which structure suits you.
Which Pairs Are Available on the Raw Account?
The Raw account at TIOmarkets gives access to the same range of instruments available across all accounts, covering forex, indices, commodities, stocks, and crypto CFDs. This includes 70+ currency pairs spanning major, minor, and exotic pairs. The Raw account is available on both MT4 and MT5.
Raw Account Conditions at TIOmarkets
The Raw account at TIOmarkets has a minimum deposit of USD 250, or the currency equivalent. The spread starts from 0.0 pips and commission is USD 6 per round turn lot. Leverage is available up to 1:500 on request, subject to change depending on market conditions and applicable regulatory requirements. The minimum trade size is 0.01 lots and the maximum lot size per trade is 20. The maximum number of open and pending orders per client is 200. Hedging is supported. Margin call is set at 100% and stop out at 30%.
The Raw account is available with base currencies in USD, GBP, EUR, CAD, AUD, CZK, ZAR, and AED. It is available on MT4 and MT5 across desktop, web, and mobile. The Raw account must be opened separately via the client area. A Standard account is created automatically on registration; Raw and VIP Black accounts can be opened at any time under the same user profile.
Spreads on the Raw account are variable and fluctuate with market conditions. They can widen during periods of high volatility and around major news releases. Orders are executed at the best available market price, which may result in positive or negative slippage. Demo accounts often execute instantly and may not fully replicate live slippage conditions.
When a Raw Spread Account May Suit You
A raw spread account tends to suit traders who place a meaningful number of trades, trade larger lot sizes, or use strategies where entry and exit precision matters and the cost per trade is a recurring consideration. Scalping strategies that target small pip moves can benefit from the tightest available spread, with the commission as a known, fixed cost per lot rather than a variable markup embedded in the quote.
Position traders and swing traders who hold trades for extended periods and trade lower frequency may find the cost difference between account types less significant than other factors such as overnight swap conditions, platform features, or available instruments.
Neither model is universally cheaper. The right choice depends on how you trade.
FAQ
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