What is a standard account in Forex?
Asked 3 years ago
Hi, can someone please tell me what the standard account in Forex is? I'm also wondering how the raw spread differs from the standard account. If anyone here could explain it to me, I'd appreciate it.
Friday, August 20, 2021
The difference in Forex currency exchange trading is that in a commission account, traders are charged commission fees but pay only the raw spread; in a standard account, traders are not charged any commission but pay additional spread. Their spread is inflated and they pay almost as much as traders using a commission account.
Wednesday, September 08, 2021
The standard account in forex is the most common account to have when you are trading currencies.
The most basic components of a standard forex account include having access of up to $100,000, receiving 100:1 leverage, tapping into ultra-competitive spreads with no commissions, and playing with 35 different currency pairs.
It is a perfect outlet for beginner forex traders.
Now, the difference is between raw spread and standard account. This is where you need to possess a rudimentary knowledge of forex trading.
So, now, what is raw spread? It represents real market prices without forex brokers adding any markup on the pairs. This means that spreads are generally really low or zero.
For example, if you are interested in trading the USD/CAD currency pair, and it is priced at 1.2688 (September 8, 2021), you will likely buy in at this price. In many cases, if you initiate the trade at this spread, you will get in at 1.2690, meaning you are immediately down two pips.
Indeed, if you are well versed in forex and you better skilled than a novice trader, you might be more suitable to find a forex account with raw spread since you have access to the best conditions in the overall forex market, although you will likely pay large fees per lot. A standard account, on the other hand, will extend to you competitive features that the broker maintains, including zero fees.
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