Spread vs Commission — Which Account Type Costs Less?
A Standard account charges spread only — typically 1.0-1.5 pips on EURUSD with no commission. An ECN / Raw account charges 0.0-0.3 pips spread plus $3-$7 commission per round-turn standard lot. The breakeven is roughly 30-50 lots/month: scalpers and high-volume traders pay less on ECN, swing traders and beginners often pay less on Standard. Always calculate total cost, not just spread.
How to calculate true cost
Standard account on EURUSD: 1.2 pip spread × $10/pip = $12 cost per round-turn standard lot.
ECN account on EURUSD: 0.1 pip spread × $10/pip + $7 commission = $1 + $7 = $8 cost per round-turn standard lot.
ECN saves $4/lot. Over 50 lots/month that's $200/month or $2,400/year.
Now factor in the rebate. With a TradingEdge $5/lot rebate on Standard ($12 cost - $5 rebate = $7 net), the comparison flips:
Standard with rebate: $7 ECN without rebate: $8 ECN with rebate: depends on whether the rebate is on the commission (rare) or the spread (common). If $3 rebate on ECN: $5.
The "cheapest" account is the one that minimizes (spread × pip value) + commission − rebate. Most brokers show all three numbers; do the math before opening an account.
When Standard wins
Standard accounts beat ECN when:
- Volume is below ~30 lots/month (commissions are flat per lot — they hurt low-volume traders proportionally more) - You hold positions for hours-to-days (the spread is paid once per trade, not on each tick) - You only trade during high-liquidity sessions (London, NY overlap) when ECN spreads aren't materially tighter than Standard - You want simpler bookkeeping (one cost per trade, no commission to track separately)
Standard is the default for most retail traders for these reasons. ECN gets pitched aggressively because it sounds professional, but it doesn't always cost less.
When ECN wins
ECN beats Standard when:
- Volume is high (50+ lots/month) — commissions become a smaller % of total cost - You scalp (hold positions seconds-to-minutes) — the cumulative spread savings dominate - You run EAs / algos that fire many trades per day - You trade exotic pairs where Standard spreads balloon but ECN raw spreads stay narrow - You trade during volatile news where Standard spreads widen 5-10x but ECN holds tighter
Most professional traders use ECN for scalping and Standard for swing — different account types for different strategies, on the same broker.
Frequently asked
Can I have both account types at one broker?
Yes — most brokers let you open multiple accounts of different types. Use Standard for swing trades and ECN for scalping/algo on the same login.
Is the commission negotiable?
For high-volume retail (~$1M+ deposits or 500+ lots/month) — yes, you can request a commission discount. Below that level, commission is fixed.
Why is the ECN spread sometimes negative?
On modern ECN feeds the bid/ask can briefly invert during low-liquidity moments. Brokers usually offer 0.0 pip floor — anything below 0.0 is rounded up.