Raw spread account in gold trading
A raw spread account passes on close-to-market spreads on gold and charges a fixed commission per lot instead, so the total cost is spread plus commission.
Also called ECN account, Zero spread account, Commission account
A raw spread account is an account type where the quoted spread is close to the underlying market spread, often only a few cents on gold in busy hours, and the provider earns a commission per lot traded instead of a markup. Names vary: raw, ECN, zero or commission account.
How it applies to gold trading
The fair comparison is total cost per round trip, not the headline spread. A standard account might quote XAUUSD at $0.30 with no commission. A raw account might quote $0.10 plus $7 per lot round trip. On 1 lot, $0.30 is $30, while $0.10 + $7 is $17. For a scalper making many trades the difference adds up; for a swing trader making a few trades a month it barely matters compared with swap.
Raw accounts still widen at rollover and around news, because the underlying market widens. Minimum deposits and lot sizes are sometimes higher.
Worked example
Example (hypothetical numbers): a scalper trades 40 round trips of 0.50 lots a month. Standard account at $0.30: 40 × 0.30 × 100 × 0.50 = $600. Raw account at $0.10 plus $7 per lot: 40 × (0.10 × 100 × 0.50 + 7 × 0.50) = 40 × (5 + 3.50) = $340.
A common mistake
Ignoring commission in backtests and journals. Record spread and commission separately so your expectancy reflects real costs.
See also: Commission, Bid, ask and spread, Fixed and variable spread, Scalping.
Frequently asked questions
Is a raw spread account cheaper for gold?
Often for frequent traders, because spread plus commission is lower than a marked-up spread. Compare the total cost per lot during the hours you trade.
Does a raw spread account mean zero spread on gold?
Rarely. Spreads are close to the market but not zero, and they still widen at rollover and around news.