What Is a Raw Spread Account? A Complete Guide for Czech Republic Traders

How a Raw Spread Account Works

In a raw spread account, your broker passes the raw bid/ask spread from liquidity providers directly to you. For example, on EUR/USD, the raw spread might be 0.1 pips. Instead of widening it to 1.2 pips like a standard account, the broker charges a separate commission, typically $3–$7 per standard lot per side. This structure is common for ECN (Electronic Communication Network) and STP (Straight Through Processing) brokers.

Why It Matters for Czech Republic Traders

For Czech traders trading in USD, a raw spread account can save significant money on high-volume trading. If you trade 10 standard lots per month, the difference between a 0.1 pip raw spread + $7 commission vs a 1.2 pip spread can be hundreds of dollars. With local payment methods like Bank Transfer, Skrill, and USDT, funding is convenient. However, you must ensure the broker is regulated by the local financial authority (Česká národní banka) to protect your funds.

Example: EUR/USD Trade in USD

Imagine you open a raw spread account with $5,000 USD and trade 1 standard lot of EUR/USD (100,000 units). The raw spread is 0.1 pips ($1.00) and commission is $7 per side ($14 round turn). Total cost = $15.00. On a standard account with 1.2 pip spread, the same trade costs $12.00 per side? No — 1.2 pips on 1 lot = $12.00 total. So raw spread is slightly more expensive here. But if you trade 5 lots, raw spread costs $75 vs standard $60? Actually, standard costs $60, raw costs $75? Wait — let's recalc: 1.2 pips on 1 lot = $12.00. Raw: 0.1 pips = $1.00 + $14 commission = $15.00. So raw is $3 more per lot. But for scalpers trading 20 lots daily, raw spread becomes cheaper because commission stays fixed while spread costs multiply. Always compare based on your volume.

For Czech Republic traders, raw spread accounts are particularly relevant because many local brokers offer them alongside standard accounts. The local financial authority (Česká národní banka) requires brokers to clearly disclose all costs, including spreads and commissions, so you can make an informed choice. Payment methods like Bank Transfer are widely used for larger deposits, while Skrill and USDT offer quick, low-fee transfers for smaller amounts. Some Czech brokers also allow deposits in CZK, but most raw spread accounts are denominated in USD, so watch for conversion fees. Retail forex trading in Czech Republic has grown steadily, and raw spread accounts are popular among active day traders and scalpers who need tight spreads. However, if you trade infrequently or with small lots, a standard account with no commission might be more cost-effective. Always check the broker's regulatory status and read the fine print on commissions and spreads before opening an account.

1. Check Your Trading Volume
   Calculate how many standard lots you trade per month. If you trade more than 10 lots, raw spread likely saves money. For fewer than 5 lots, standard may be cheaper.
2. Choose a Regulated Broker
   Only open a raw spread account with a broker regulated by the local financial authority (Česká národní banka) or a trusted EU regulator. This ensures your funds are safe and costs are transparent.
3. Fund Your Account
   Deposit USD via Bank Transfer (1-3 business days), Skrill (instant), or USDT (crypto, 10-30 minutes). Compare fees — Bank Transfer may have lower fees for large amounts.
4. Test with a Demo Account
   Most brokers offer demo raw spread accounts. Trade for at least 2 weeks to see if the commission structure works for your strategy before depositing real money.

Raw Spread vs Standard vs Islamic Account
Raw spread accounts are best for active traders who want transparency and low spreads. Standard accounts suit beginners or low-volume traders. Islamic (swap-free) accounts are for traders who cannot earn or pay interest due to religious reasons — they may have wider spreads or higher commissions. For Czech traders, raw spread accounts are most cost-effective for scalping and day trading, while standard accounts work for position trading. Always check if the broker offers all three account types so you can switch as your strategy evolves.

A raw spread account works by connecting you directly to liquidity providers through an ECN or STP model. The broker does not mark up the spread — you see the actual interbank bid/ask difference, which can be as low as 0.0 pips on major pairs like EUR/USD. Instead, the broker charges a fixed commission per trade, usually per standard lot per side. For example, if you trade 1 lot of USD/JPY with a raw spread of 0.2 pips and a commission of $5 per side, your total cost is $2 (spread) + $10 (commission) = $12. This is transparent and predictable for Czech traders who prefer to know exact costs upfront.

Example 1: Scalping EUR/USD
You deposit $10,000 via Bank Transfer from your Czech account. You trade 5 standard lots of EUR/USD 20 times per month. Raw spread: 0.1 pips ($5 per trade) + $14 commission = $19 per trade. Total monthly cost: $380. Standard account at 1.2 pips: $60 per trade, total $1,200. Raw saves $820 per month.

Example 2: Swing Trading GBP/USD
You trade 2 lots per week (8 per month). Raw: 0.2 pips ($4) + $14 = $18 per trade, total $144. Standard: 1.5 pips = $30 per trade, total $240. Raw saves $96. But if you trade only 1 lot per month, raw costs $18 vs standard $15 — standard is cheaper.

In Czech Republic, retail forex brokers must be authorized by the local financial authority (Česká národní banka, CNB). If a broker offers a raw spread account and claims to be regulated, you can verify their license on the CNB's official register. CNB regulation ensures client fund segregation, negative balance protection, and transparent pricing. Some international brokers also accept Czech clients under EU passporting rules (MiFID II). Always avoid brokers that are not regulated by a reputable authority, as raw spread accounts from unregulated brokers may have manipulated spreads or hidden commissions. For your safety, only deposit funds via regulated brokers and use local payment methods like Bank Transfer or Skrill for traceability.

• Compare Total Costs: Always calculate spread + commission together. A raw spread account with 0.0 pips and $7 commission per side costs $14 per lot. A standard account with 1.0 pip spread costs $10 per lot. Choose based on your volume.
• Use Local Bank Transfer for Large Deposits: For deposits over $2,000, Bank Transfer from a Czech bank (e.g., Česká spořitelna, ČSOB) often has lower fees than Skrill or USDT.
• Check for Hidden Fees: Some brokers charge extra for withdrawal or inactivity. Read the fee schedule carefully, especially for raw spread accounts.
• Test with Small Amounts First: Deposit $100 via Skrill or USDT to test the broker's execution and withdrawal speed before committing larger funds.
• Monitor Spreads During News: Raw spreads can widen during high volatility (e.g., ECB announcements). Avoid trading during these times if you need tight spreads.

A raw spread account offers Czech Republic traders transparent pricing and potentially lower costs for high-volume trading. By understanding how spreads and commissions work, you can choose the right account type for your strategy. Always compare total costs, use regulated brokers, and test with a demo account first. Ready to start? Check our list of top brokers offering raw spread accounts to Czech traders — all regulated by the local financial authority. Remember to fund via Bank Transfer, Skrill, or USDT for convenience. Trade smart and stay safe.