What is a Raw Spread Account? A Complete Guide for Morocco Traders

What is a Raw Spread Account?

A raw spread account, also known as an ECN or STP account, provides traders with the actual market spreads from liquidity providers. Instead of a broker marking up the spread (e.g., 1.2 pips on EUR/USD), you get spreads as low as 0.0 pips, but you pay a fixed commission per lot traded. This structure is ideal for scalpers and day traders who need minimal slippage and tight execution.

How Does a Raw Spread Account Work?

When you place a trade on a raw spread account, your order goes directly to the interbank market or a pool of liquidity providers. The broker acts as an intermediary, passing the order through without adding a markup. For example, if the market spread on EUR/USD is 0.1 pips, you get that spread. However, you pay a commission of, say, $3 per lot per side. So for a 1 lot trade, your total cost is $6 (round turn) plus the 0.1 pip spread.

Why Use a Raw Spread Account in Morocco?

For Morocco traders, raw spread accounts are particularly beneficial because they reduce the impact of spreads on small price movements. If you trade the USD/MAD or major pairs, tight spreads mean you can enter and exit positions more cost-effectively. This is crucial when trading with a limited capital or when using scalping strategies. Additionally, with payment methods like Bank Transfer, Skrill, and USDT, you can fund your account quickly and start trading with minimal delay.

Practical Example in USD

Imagine you want to trade 1 standard lot of EUR/USD. With a standard account, the spread might be 1.2 pips, costing you $12. With a raw spread account, the spread is 0.1 pips ($1 cost) plus a commission of $6 (round turn), totaling $7. You save $5 per trade. Over 100 trades, that's $500 saved – a significant amount for a Morocco trader.

For traders in Morocco, raw spread accounts are increasingly popular due to the growing interest in retail forex trading. Local payment methods like Bank Transfer are widely used for depositing funds, while Skrill and USDT offer faster, lower-cost alternatives. The local financial authority in Morocco has been taking steps to regulate forex brokers, but many traders still opt for international brokers with raw spread accounts to access better liquidity and tighter spreads. It's important to choose a broker that accepts Morocco clients and supports your preferred payment method. Additionally, due to the volatile nature of the MAD, trading major pairs like EUR/USD or GBP/USD on raw spreads can help mitigate currency conversion costs.

1. Choose a Broker Offering Raw Spread Accounts
   Research brokers that accept Morocco traders and provide raw spread accounts. Look for those regulated by reputable authorities and supporting Bank Transfer, Skrill, or USDT deposits.
2. Open and Verify Your Account
   Complete the registration form, submit required documents (ID, proof of address), and choose a raw spread account type. Ensure your account currency is USD to avoid conversion fees.
3. Fund Your Account
   Deposit funds using your preferred method: Bank Transfer for larger sums, Skrill for speed, or USDT for crypto-based funding. Minimum deposits vary, but $100 is common.
4. Start Trading with Raw Spreads
   Log in to your trading platform, place trades, and monitor the low spreads. Use a demo account first to practice, then switch to live trading with small lots to manage risk.

Raw Spread vs. Standard Account: Raw spread accounts offer lower spreads but charge commission. Standard accounts have higher spreads but no commission. For Morocco traders, raw spreads are better for high-volume trading or scalping, while standard accounts suit beginners or those trading small lots. Also, raw spread accounts often provide faster execution and fewer requotes, which is crucial during volatile markets. However, they may require higher minimum deposits. Choose based on your trading style and capital.

When you open a raw spread account, your broker connects you directly to multiple liquidity providers (banks, hedge funds, etc.) through an ECN (Electronic Communication Network) or STP (Straight Through Processing) system. Your trade orders are matched with the best available bid/ask prices in the market. The broker does not add a markup to the spread; instead, they charge a fixed commission per lot. For example, if the market spread on EUR/USD is 0.2 pips, you get that spread. But you pay a commission of $3 per lot per side. So for a 1 lot trade, your total cost is $6 (round turn) plus the 0.2 pip spread ($2), totaling $8. This transparency allows Morocco traders to know exactly what they are paying per trade.

Example 1: Ahmed in Casablanca wants to trade 2 lots of GBP/USD. With a raw spread account, the spread is 0.3 pips (cost = $6 per lot x 2 = $12) plus commission of $6 per lot round turn ($12 total). Total cost = $24. With a standard account (1.5 pip spread), cost would be $30. Ahmed saves $6 per trade.

Example 2: Fatima in Rabat trades 0.5 lots of USD/JPY. Raw spread: 0.1 pip spread ($0.50) + $3 commission per lot round turn ($1.50) = $2. Standard account: 1.0 pip spread = $5. She saves $3. These savings add up over many trades, especially for scalpers.

Regulatory Context for Morocco: The local financial authority in Morocco oversees financial markets, including forex brokers operating within the country. However, many Morocco traders choose offshore brokers regulated by bodies like the FCA (UK), CySEC (Cyprus), or ASIC (Australia) for raw spread accounts. These international regulators provide investor protection, negative balance protection, and dispute resolution. Before opening an account, check if the broker is authorized to offer services to Morocco residents and if they comply with local anti-money laundering (AML) laws. Using a regulated broker ensures your funds are segregated and you have recourse in case of disputes.

• Start with a Demo Account: Before risking real money, practice trading on a raw spread demo account to understand how the low spreads and commissions affect your profitability.
• Compare Commissions: Not all raw spread accounts are the same. Compare commission rates per lot and check if there are any hidden fees like inactivity charges.
• Use Limit Orders: With raw spreads, market orders can sometimes slip. Use limit orders to control your entry price, especially during high volatility.
• Monitor Spreads During News: Even raw spreads can widen during major economic news. Avoid trading during these times if you want to maintain low costs.
• Keep an Eye on Currency Conversion: If you deposit in MAD but trade in USD, check your broker's conversion rates. Some brokers offer better rates for Bank Transfer deposits.

In summary, a raw spread account is an excellent choice for Morocco traders who want to minimize trading costs and access interbank spreads. By paying a small commission instead of a wider spread, you can save money on each trade, especially if you trade frequently. To get started, choose a regulated broker that supports Bank Transfer, Skrill, or USDT, open a raw spread account, and practice with a demo first. Remember to always trade responsibly and stay informed about the risks. For more educational resources tailored to Morocco traders, explore our other guides on comparebroker.io.