TL;DR — Raw spread accounts typically offer lower spreads but charge a commission per lot, while standard accounts have wider spreads with no separate commission. When comparing raw spread vs standard account, cashback is usually calculated on the spread portion, so standard accounts often earn higher per-lot rebates, but the total cost—spread plus commission minus cashback—is what really matters.
Understanding raw spread vs standard account
Forex and gold brokers commonly offer two main account types: raw spread and standard. The raw spread account provides access to interbank pricing with spreads as low as 0.0 pips, but charges a fixed commission per lot traded. The standard account has a wider spread—often 1.0 to 1.5 pips on EUR/USD—and no explicit commission; the broker's revenue is built into the spread.
For traders, the choice affects not just execution costs but also how cashback is calculated. Cashback platforms like Expaid work with brokers to return a portion of the broker's commission or spread revenue. Understanding which account type earns more cashback requires looking at both the spread and the commission structure.
How cashback is calculated on each account type
Cashback is typically calculated per lot traded and is based on the broker's revenue from that trade. On standard accounts, the broker earns from the spread, so the rebate is a fraction of that spread. On raw spread accounts, the broker earns from the commission, so the rebate is a fraction of the commission.
Because standard account spreads are wider, the absolute cashback per lot is often higher on standard accounts than on raw spread accounts. However, the total cost per lot includes both the spread and any commission, so a higher cashback on standard does not automatically mean it is cheaper.
To illustrate: if a standard account has a spread of 1.2 pips and no commission, and a raw account has a 0.1 pip spread with a $7 commission, the raw account may still be cheaper overall despite lower cashback. The calculation must always be: total cost = spread cost + commission (if any) − cashback.
Comparing total costs: spread, commission, and cashback
When deciding between raw spread vs standard account, you need to compare the all-in cost per lot. Here is a step-by-step approach:
- Determine the average spread for the currency pair or gold on each account type.
- Calculate the spread cost in dollars: for example, on a standard lot of EUR/USD, 1 pip is worth about $10, so a 1.2 pip spread costs $12 per lot.
- Add any commission: raw spread accounts often charge $7 per lot round turn.
- Subtract the cashback you would receive on each account type (check the broker's rate on Expaid's rebate calculator).
- Compare the final net cost.
Use the table below as a template for your own comparison:
| Account Type | Spread (pips) | Commission per lot | Cashback per lot | Net cost per lot |
|---|---|---|---|---|
| Standard | 1.2 | $0 | $8 (example) | $12 − $8 = $4 |
| Raw Spread | 0.1 | $7 | $3 (example) | $1 + $7 − $3 = $5 |
In this hypothetical example, the standard account is actually cheaper by $1 per lot. But the numbers vary by broker and account type, so always run the calculation with current rates.
In our view — Many traders focus on the headline spread and ignore commission, but the true cost is spread plus commission minus any cashback. A raw spread account with a high commission can end up costing more than a standard account with a lower spread, especially after cashback is factored in. Always compare the net cost, not just the spread.
Why standard accounts often earn higher cashback
Cashback is usually a percentage of the broker's revenue per lot. On standard accounts, the broker's revenue is the entire spread, which is larger than on raw accounts. Therefore, the cashback amount tends to be higher on standard accounts.
For example, if a broker pays 40% of its revenue as cashback, and the standard account spread is 1.2 pips ($12 per lot), the cashback might be $4.80. On a raw account with a 0.1 pip spread ($1 per lot) and a $7 commission, the broker's revenue is $8, so 40% cashback would be $3.20. In this case, the standard account gives more cashback per lot.
However, some brokers pay cashback only on the spread portion even on raw accounts, or they may include commission in the revenue share. Check the specific broker's terms on Expaid's broker rate board to see how cashback is applied.
Which account type suits different trading styles?
Your choice should also depend on your trading style:
- Scalpers and high-frequency traders: They may prefer raw spread accounts because tighter spreads reduce slippage and transaction costs, even if commission per lot is higher. Cashback on raw accounts can still add up over many trades.
- Swing and position traders: They trade less frequently, so the spread difference matters less. A standard account with higher cashback might be more beneficial because the wider spread is a smaller percentage of the overall trade cost.
- Gold (XAUUSD) traders: Gold spreads can be wider and more volatile. Compare the spread costs and cashback on gold specifically—see Expaid's gold cashback page for details.
If you trade a lot of lots per month, even a small difference in net cost per lot becomes significant. Use Expaid's switch calculator to estimate how much you could save by switching account types or brokers.
How to choose the best account for cashback
To make an informed decision, follow these steps:
- List the brokers you are considering and their account types.
- For each, note the average spread on the pairs you trade (e.g., EUR/USD, XAUUSD) and the commission per lot.
- Check the cashback rates offered on Expaid—these are shown per account type on the forex cashback page.
- Calculate the net cost per lot using the formula above.
- Consider other factors like execution speed, platform reliability, and regulation.
Remember that cashback should be part of your overall cost analysis, not the only factor. A broker with slightly lower cashback but better execution might still be more profitable for you.
Where to go next
Now that you understand the difference between raw spread and standard accounts, compare live rates on Expaid's broker comparison page to see which account type offers the best net cost for your trading style. If you already have an account, check how much cashback you're missing with the switch calculator—and when you're ready, sign up to start earning rebates on every lot you trade.