Raw Spread Forex

What is a Raw Spread in Forex?

A raw spread in forex refers to the unfiltered, interbank market spread that brokers offer to their clients without adding any markups. In simpler terms, it’s the direct cost of trading as provided by liquidity providers, such as banks or financial institutions, to the broker. The spread is the difference between the bid price (the price at which you sell a currency pair) and the ask price (the price at which you buy a currency pair).

Unlike standard accounts where brokers may add a markup to the spread to generate profit, raw spread accounts offer the tightest possible spreads, often starting from 0 pips. However, brokers offering raw spread accounts typically charge a commission per trade to compensate for the lack of markup. This makes raw spread accounts particularly appealing to traders who prioritize low trading costs and transparency.