How Raw Spread Accounts Work
In a raw spread account, the broker passes the raw spread from liquidity providers directly to you. The spread can be as low as 0.0 pips for major pairs like EUR/USD. Instead of earning from the spread, the broker charges a fixed commission, typically $3 to $7 per lot round turn (both buy and sell). This model is transparent and often cheaper for active traders.
Why It Matters for Lebanon Traders
Lebanon traders face unique challenges: currency volatility, limited access to international banking, and high inflation. A raw spread account helps you minimize trading costs, which is vital when every pip counts. For example, if you trade 1 standard lot of EUR/USD with a 0.1 pip spread instead of 1.5 pips, you save $14 per trade. Over 100 trades, that’s $1,400 saved.
Example with USD
Suppose you deposit $5,000 via USDT into a raw spread account. You buy 1 lot of USD/JPY at a spread of 0.0 pips. Your broker charges $5 commission per lot. If you close the trade at a 10-pip profit, your net profit is $100 (10 pips × $10 per pip) minus $5 commission = $95. In a standard account with a 1.5-pip spread, you'd pay $15 in spread cost, netting only $85. The raw spread account saves you $10 per trade.