ECN, Raw Spread and Standard: how trading accounts differ

Two ways to charge

• Standard / Classic: no commission, the broker widens the spread (mark-up). From the official conditions: IC Markets Standard — spreads from 0.8 pips with no commission; Tickmill Classic — from 1.6 pips.
• Raw / ECN / Razor / Zero: a spread close to interbank plus a fixed commission per lot. Examples: Pepperstone Razor — from $3.50 per side, Tickmill Raw — $3, Fusion Markets Zero — $2.25.

How to calculate the full cost

Full round-turn cost = average spread × pip value + commission × 2. For EUR/USD one pip on 1 lot ≈ $10. A $3.50 per side commission = $7 round turn = 0.7 pips. With an average raw spread of 0.2 pips the full cost is ≈ 0.9 pips; on a standard account with a 1.0-pip mark-up it is about 1.0–1.2 pips (a worked example, not a quote).

What "ECN" in the name means

It is a marketing name for an account type. The execution model (who the counterparty is, whether a liquidity aggregator is used) is described in the legal entity's agreement and order execution policy. For example, Alpari's ECN account has no commission while its Pro ECN does; at FXOpen all accounts of the UK entity are called ECN.

Which one to choose

• Frequent trades and Expert Advisors — usually a commission account: its cost is predictable and depends less on spread widening.
• Infrequent large trades — the difference between account types is smaller; swap and regulation matter more.
• Always compare average, not minimum, spreads, and in the hours when you trade.