What is a Raw Spread Account
How a Raw Spread Account Works
In a raw spread account, the broker acts as a straight-through processing (STP) provider, connecting your trades directly to liquidity providers. The spread you see is the same as what banks and institutions pay. For example, if the EUR/USD interbank spread is 0.1 pips, you get that exact spread. The broker then charges a fixed commission—usually $3 to $7 per standard lot—to cover their costs. This structure is transparent and ideal for scalpers and algorithmic traders.
Why It Matters for Tajikistan Traders
For retail forex traders in Tajikistan, every pip counts. With a raw spread account, you can reduce your trading costs significantly compared to standard accounts where spreads might be 1-2 pips. If you trade 10 standard lots per month, the difference can save you hundreds of USD. This is especially beneficial when using USDT deposits, as you avoid currency conversion fees and can trade with stable value.
Practical Example in USD
Imagine you open a raw spread account with a $500 deposit via Skrill. You trade 1 standard lot of EUR/USD with a spread of 0.2 pips and a commission of $5 per lot. Your total cost is $2 (spread) + $5 (commission) = $7. In a standard account, the spread might be 1.5 pips, costing you $15. Over 100 trades, you save $800 USD. That’s significant for a Tajikistan trader managing a modest account.