What is a Raw Spread Account for Mongolia Traders?

What Makes a Raw Spread Account Different?

In a standard forex account, the broker earns money by widening the spread (the difference between the bid and ask price). For example, if the market spread on EUR/USD is 0.2 pips, a standard broker might offer it at 1.5 pips, keeping the 1.3 pip difference as profit. In a raw spread account, the broker passes the raw interbank spread directly to the trader (often 0.0 to 0.5 pips) and instead charges a fixed commission per lot traded. For Mongolia traders, this means you pay a transparent fee — typically $3 to $7 per standard lot (100,000 units) — rather than hidden costs in the spread.

How It Works in Practice

When you open a raw spread account with a broker, you will see two separate costs: the spread (very low) and the commission (fixed). For example, if you trade 1 lot of USD/JPY with a raw spread of 0.2 pips and a commission of $5 per lot, your total cost is roughly $7 (0.2 pips = $2, plus $5 commission). In a standard account, the same trade might have a spread of 1.5 pips, costing you $15 — more than double. For Mongolia traders who trade multiple lots daily, this difference adds up significantly.

Why Mongolia Traders Should Consider This Account

Mongolia's retail forex market is growing, with many traders using USD as their trading currency. Since the local financial authority has limited regulatory oversight, many Mongolia traders turn to international brokers that offer raw spread accounts. These accounts are especially beneficial for scalpers and day traders who rely on small price movements. Additionally, because raw spread accounts often require lower margins, traders can use their capital more efficiently — whether funded via Bank Transfer, Skrill, or USDT.

For Mongolia traders, the raw spread account aligns well with the local trading environment. Many Mongolia-based retail forex traders use international brokers because local options are limited. The ability to fund accounts via Bank Transfer (popular for larger deposits), Skrill (for quick online payments), or USDT (for anonymity and speed) makes raw spread accounts accessible. However, Mongolia traders must be cautious: since the local financial authority does not strictly regulate forex brokers, it is crucial to choose a broker that is licensed by a reputable international regulator (e.g., FCA, CySEC, or ASIC). Using USDT can be faster and cheaper than bank transfers, but it also carries crypto volatility risk. Always verify the broker’s terms for each payment method, as some may charge additional fees for deposits or withdrawals.

1. Choose a Reliable Broker
   Select a broker that offers raw spread accounts and accepts Mongolia traders. Check for regulation by the local financial authority or a top-tier international regulator. Read reviews from other Mongolia traders.
2. Open a Raw Spread Account
   Complete the registration process. You will need to provide identification (passport or national ID) and proof of address (utility bill or bank statement). Some brokers may require a minimum deposit of $100 to $500 USD.
3. Fund Your Account
   Deposit funds using Bank Transfer (for larger amounts, though it may take 2-5 business days), Skrill (instant, with low fees), or USDT (fast and anonymous, but check for crypto volatility). Ensure the broker supports your preferred method.
4. Start Trading with Low Spreads
   Once funded, you can trade with spreads as low as 0.0 pips. Remember that each trade incurs a commission (e.g., $5 per lot). Use a demo account first to practice, especially if you are new to raw spread accounts.

For Mongolia traders, the choice between a raw spread account and a standard account depends on trading frequency and volume. A raw spread account is best for scalpers and day traders who make many trades daily. A standard account is better for swing traders or position traders who hold trades for days or weeks. Also, consider the payment method: if you use USDT, some brokers offer lower commissions for raw spread accounts. If you use Bank Transfer, check if the broker charges additional fees for deposits or withdrawals, as this can offset the savings from low spreads.

When you open a raw spread account, the broker connects you directly to the interbank market or a liquidity provider. The spread you see is the raw market spread — often as low as 0.0 pips on major pairs like EUR/USD or USD/JPY. The broker then charges a fixed commission per trade, usually per standard lot. For Mongolia traders, this means your trading costs are transparent: you know exactly how much you pay for each trade. For example, if you trade 1 lot of GBP/USD with a raw spread of 0.3 pips and a commission of $4 per lot, your total cost is $7 (0.3 pips = $3, plus $4 commission). This is significantly cheaper than a standard account where the spread might be 2 pips ($20).

Let’s say you are a Mongolia trader with a $5,000 USD account funded via Skrill. You decide to trade 2 lots of USD/JPY. In a raw spread account: spread = 0.1 pips ($1 per lot), commission = $5 per lot. Total cost = (2 x $1) + (2 x $5) = $12. In a standard account: spread = 1.5 pips ($15 per lot), no commission. Total cost = 2 x $15 = $30. You save $18 on this single trade. Over 100 similar trades, you save $1,800 — a significant amount for a Mongolia trader. Another example: if you fund via USDT and trade 0.5 lots of EUR/USD, the cost difference is smaller but still favors the raw spread account for active traders.

Forex regulation in Mongolia is still developing. The local financial authority (Mongolian Financial Regulatory Commission) does not directly license forex brokers for retail trading. As a result, many Mongolia traders use international brokers regulated by bodies like the FCA (UK), CySEC (Cyprus), or ASIC (Australia). When choosing a raw spread account, ensure the broker is registered with at least one top-tier regulator. This provides protection such as negative balance protection and segregated client funds. Avoid brokers that claim to be regulated in Mongolia but cannot provide a license number — this is a common red flag.

• Start with a demo account: Before risking real money, practice trading on a raw spread account demo. This helps you understand how commissions affect your profits.
• Compare total costs: For Mongolia traders, a raw spread account is cheaper for large trades but may be costlier for very small trades due to the fixed commission. Calculate your average trade size to decide.
• Use USDT for speed: If you need fast deposits and withdrawals, USDT is often the quickest option. However, be aware of USDT price fluctuations.
• Check withdrawal policies: Some brokers charge fees for Bank Transfer withdrawals to Mongolia banks. Skrill and USDT withdrawals are usually cheaper and faster.
• Stay updated on regulations: The local financial authority may update forex trading rules. Follow local news to ensure your broker remains compliant.

A raw spread account can be a powerful tool for Mongolia traders who trade actively and in large volumes. By offering extremely low spreads and transparent commissions, it reduces trading costs and improves profitability. However, success depends on choosing a reputable broker, understanding the fee structure, and managing risk. If you are ready to explore raw spread accounts, start by researching regulated brokers that accept Bank Transfer, Skrill, and USDT deposits. Open a demo account first to test the waters before committing real funds. For more educational resources tailored to Mongolia traders, visit comparebroker.io.