What is a Raw Spread Account
How Raw Spread Accounts Work
Raw spread accounts work by passing the raw interbank spread directly to the trader, with the broker charging a fixed commission per standard lot traded. For example, if the EUR/USD interbank spread is 0.2 pips, a raw spread account will show 0.2 pips plus a commission of $5 per lot. In contrast, a standard account might show a spread of 1.0 pip with no commission, meaning the broker profits from the wider spread.
Cost Comparison for Argentina Traders
For a Argentina trader trading 10 standard lots of USD/JPY per month, a raw spread account with 0.0 pips spread and $5 commission per lot costs $50 in commissions. A standard account with 1.0 pip spread costs $100 in spread costs (10 lots x $10 per pip). The raw spread account saves $50 per month, which adds up significantly over time.
Why It Matters for Retail Forex Trading in Argentina
Argentina traders often face currency volatility and high inflation, making cost-efficient trading crucial. Raw spread accounts allow traders to keep more of their profits, especially when using USD as base currency. Additionally, many brokers offering raw spread accounts support local payment methods like Bank Transfer, Skrill, and USDT, enabling fast and low-cost deposits and withdrawals.