Raw Spread vs Zero Commission: which forex account costs less?
One account prices each trade with a tight spread plus a commission; the other puts the whole cost in the spread. Here is the real cost per lot, where the break-even sits and a calculator for your own numbers.
A raw spread account charges a tight spread plus a fixed commission per lot, while a zero-commission account builds its whole cost into a wider spread. Add both parts together and compare: the raw account is cheaper whenever its commission is smaller than the money value of the extra spread you would pay on the zero-commission account.
The gap per lot is usually small. Volume is what makes it matter: a scalper trading hundreds of lots a month feels every tenth of a pip, while a swing trader placing a few trades barely notices it.
What is the difference between raw spread and zero commission?
Every broker is paid for each trade. The two account types simply put that charge in different places:
- On a raw spread account, prices sit close to what the broker’s liquidity providers quote — often a fraction of a pip on major pairs. The broker’s fee is a fixed commission per lot, shown as a separate line on each trade.
- On a zero-commission account, there is no commission line. Your cost is the spread, which is wider because the broker’s fee is included in it.
Example quotes for illustration. Live spreads move all day on both account types.
What is a raw spread?
A raw spread is the gap between bid and ask with no markup added. On the most liquid pairs it can shrink to almost nothing during busy hours. When a broker combines prices from several providers, the best bid can briefly sit above the best ask — that is where figures like “from −0.4 pips” come from. They are minimums, not the typical spread.
What does zero commission mean?
It means the whole price of the trade is one number: the spread on the chart is the full cost of getting in and out. Many traders value that simplicity — a single figure, visible before they click.
How much does one lot of EUR/USD cost on each account?
To compare the two fairly, both charges have to be in the same unit. The cleanest one is dollars per round-turn lot: what it costs to open and close one standard lot. On EUR/USD and other pairs quoted in US dollars, one pip on a standard lot is worth $10 (our guide to forex trading explains pips and lots).
With example values (0.2 pips plus $7 on raw, 1.3 pips on zero commission), it looks like this:
Example values chosen to show the method. Real figures depend on the account, the pair and the time of day.
Per side or round turn?
Commissions are quoted in two ways. Per side means you pay when you open and again when you close; round turn covers both. A $3.50-per-side commission is $7 round turn. The spread, by contrast, is paid once per trade: you buy at the ask and close at the bid.
Commission in pips: the quick shortcut
Dividing the round-turn commission by the pip value turns it into pips. At $10 a pip, a $7 commission is 0.7 pips, so the raw account’s all-in cost in this example is 0.2 + 0.7 = 0.9 pips, against 1.3 pips. The same logic scales down: commission is usually charged per lot traded, so on a 0.10 lot both costs shrink tenfold.
Raw spread vs zero commission calculator
Enter the spreads you see at the hours you trade, the round-turn commission and your monthly volume. The card returns the cost per lot on each account, the monthly total and the break-even commission.
The numbers below are example values, not HeroFX prices. Replace them with the figures from your own account.
With these numbers, the raw spread account costs $4 less per lot: $80 a month at 20 lots.
Break-even commission: $11 per round-turn lot. Below it, the raw spread account is cheaper; above it, the zero-commission account is.
Results shown for the example values.Results update as you type.
The break-even formula
The break-even commission is the spread gap converted into money: (zero-commission spread − raw spread) × pip value. With 1.3 and 0.2 pips at $10 a pip, that is $11. A raw account charging less than that per round-turn lot is the cheaper one, whatever your volume.
Notice what volume does and does not do. It never flips the answer per lot; it multiplies the gap. A $4 difference is noise on 5 lots a month and $800 on 200.
At HeroFX, the Raw Spread account prices from −0.4 pips plus a fixed commission per lot; the current rate, which varies by instrument class, is shown in your client area before you place a trade. The Zero Commission account starts from 1 pip with no commission.
Check both spreads with live prices
A free demo account shows real market spreads at the hours you trade, so the numbers in the calculator come from the market itself. Virtual money, nothing at risk.
Which account is cheaper for your trading style?
The same cost weighs very differently depending on how far a trade aims to run. A useful measure is the all-in cost as a share of a typical target. With the example figures above (0.9 pips all-in on raw, 1.3 on zero commission):
The meters show relative weight, for illustration only.
| Style | Typical target | Raw (0.9 pips) | Zero (1.3 pips) | Monthly gap |
|---|---|---|---|---|
| Scalper | 5 pips | 18% of target | 26% of target | 200 lots → $800 |
| Day trader | 25 pips | 3.6% | 5.2% | 40 lots → $160 |
| Swing trader | 150 pips | 0.6% | 0.9% | 5 lots → $20 |
Example values: a $4 gap per lot, EUR/USD at $10 a pip. Targets and volumes are typical ranges, not rules.
Scalpers: every tenth of a pip counts
When a trade aims for 5 pips, a 1.3-pip cost takes a quarter of it before the market moves. That is why high-volume traders tend to favour raw pricing and watch the commission closely: across hundreds of lots, the gap adds up.
Day traders: a difference worth calculating
With targets of 15 to 40 pips, the difference is real but modest. This is where the calculator matters most: the answer depends on the exact commission and the spreads at the hours they trade.
Swing traders: simplicity and swap
A 150-pip target makes a 0.4-pip difference close to irrelevant. For positions held for days, the overnight swap usually outweighs the entry cost, so many swing traders pick the simplest pricing and watch swap instead. Traders who need a swap-free account can use the Islamic account, which replaces swap with a fixed administrative fee per instrument.
Which account holds up better during news and quiet hours?
Advertised figures such as “from −0.4 pips” or “from 1 pip” are minimums reached in liquid conditions. Real spreads move all day on both account types, and widen most at predictable moments:
- Major releases — around a central bank decision or a big data release, liquidity thins and spreads can widen several times over.
- The daily rollover — at 17:00 New York time (21:00 UTC while New York is on daylight-saving time, 22:00 UTC the rest of the year), when one trading day hands over to the next, spreads commonly widen for a few minutes.
- Quiet sessions and less liquid pairs — minors, exotics and late-evening hours carry wider spreads than EUR/USD in the London–New York overlap.
Neither account is shielded from wider spreads. The commission on a raw account stays the same per lot, so in those moments only the spread part of its cost grows. The most useful comparison uses spreads noted at the hours you actually trade, not the headline minimums.
Lower costs do not make a strategy profitable. A strategy without an edge loses money on any account, and leverage magnifies losses as much as gains. Many traders test a strategy on demo before putting real capital behind it.
Raw Spread and Zero Commission accounts at HeroFX
HeroFX offers both pricing models, so the choice comes down to the numbers and to how you trade:
| Feature | Raw Spread | Zero Commission |
|---|---|---|
| Spreads | From −0.4 pips | From 1 pip |
| Commission | Fixed per lot, shown in your client area before you place a trade | None |
| How the cost appears | Tight spread + commission line | All in the spread |
| Often chosen by | Scalpers and high-volume traders | Traders who want one number to watch |
HeroFX also offers swap-free Islamic, 100% Bonus and Hero10X accounts; the account types page lists them all, and our HeroFX review collects what clients say about them. If you are comparing brokers rather than accounts, the guide to forex brokers with low spreads covers what to check beyond price.
Choose the pricing that fits how you trade
Raw Spread from −0.4 pips with a fixed commission per lot, or Zero Commission from 1 pip. Open an account in minutes and practise on a free demo first.
Key takeaways
- Cost per round-turn lot = spread in pips × pip value + commission. Compare both accounts in that unit.
- Raw spread is cheaper per lot while its commission stays below the spread gap in money: (zero-commission spread − raw spread) × pip value.
- Volume never changes which account is cheaper per lot — it multiplies the difference.
- Scalpers feel the gap most; swing traders usually pay more in swap than in entry costs.
- “From” spreads are minimums: the fair comparison uses live spreads at the hours you trade.
Raw spread vs zero commission FAQs
Is raw spread better than zero commission?
Neither is better for everyone. Raw spread is cheaper per lot whenever its round-turn commission is smaller than the extra spread on the zero-commission account, which makes it popular with scalpers and high-volume traders. Zero commission puts the whole cost in one number, which many beginners and swing traders find easier to follow. The calculator above shows which one comes out ahead with your own figures.
What is a raw spread in forex?
A raw spread is the difference between bid and ask with no markup added by the broker, so it sits close to the prices liquidity providers quote. On major pairs it is often a fraction of a pip. Because the spread carries no fee, the broker charges a fixed commission per lot instead.
How do you calculate the cost per lot in forex?
Multiply the spread in pips by the value of one pip for the lot size, then add the round-turn commission, if there is one. On EUR/USD a standard lot is worth $10 per pip, so a 0.2-pip spread with a $7 commission costs $9, while a 1.3-pip spread with no commission costs $13. Both sets of figures are examples, not live prices.
Is a zero commission forex account free to trade?
No. Zero commission means there is no separate fee per lot: the broker’s charge is included in the spread, so the spread is the cost of every trade. It is a simpler way to price trading, not a free one. An overnight swap may also apply to positions held past the daily rollover, on either account type.
Is forex commission charged per side or per round turn?
It depends on the broker. Per side means the commission is charged when a trade opens and again when it closes; round turn quotes the total for both. A fair comparison uses round turn: a $3.50-per-side commission is $7 round turn. The spread, by contrast, is paid once per trade.
Does a wider spread affect both accounts the same way?
Around major releases, the daily rollover and quiet hours, spreads widen on both account types. What differs is what sits on top: on a Raw Spread account the commission stays fixed while the spread moves, so a wider spread simply adds to it; on a Zero Commission account the broker’s cost is already inside the spread. Our guide to trading the economic calendar explains why spreads widen around news.
Can I hold a raw spread and a zero commission account at the same time?
Often, yes: many brokers let one profile hold several account types. At HeroFX, Raw Spread and Zero Commission accounts can sit side by side under one profile, and funds can be moved between them from the client area, so the same strategy can be compared on both before settling on one. The calculator above shows where the break-even sits.