Raw or Standard account for an EA? How trading costs change results

Two ways to pay the broker

Standard account: no commission; the broker’s fee is built into a wider spread.

Raw account (also called ECN or Raw Spread): the spread is close to the market’s own, and you pay a commission per lot instead, typically a few dollars per side per standard lot.

Neither is cheaper for everyone. It depends on the symbol, your broker’s prices, and how often the robot trades.

Work out the cost of one trade

For a round trip (open and close) on one lot: cost = spread in pips × pip value + commission for both sides. Do it for both account types at your broker, on the symbol your robot trades, at the times it trades. Average spreads in the broker’s marketing are often lower than spreads at busy moments.

Then compare the cost with the robot’s average win. If a robot makes a few pips per trade, one pip of extra cost can turn a winner into a loser.

Which EAs need a Raw account

Robots that take small, quick profits (scalping).
Robots that trade around news, when spreads widen most.
Robots that trade very often.

Robots that hold trades for longer and aim for larger moves are less sensitive, and often run fine on either account.

Hedging, not netting

MetaTrader 5 has two account modes. A netting account combines all trades on one symbol into a single position; a hedging account keeps each trade separate. Most EAs, including all of mine, need a hedging account. Check this when you open the account; it usually can’t be changed later.

What my accounts use

Amber Algo NEWS needs a Raw account. GOLD and SS work on either; my live GOLD and SS accounts are Standard. All three are hedging accounts. Gold is a special case: at some brokers it costs the same on both account types; see Raw or Standard for XAUUSD. The brokers and account types are on Brokers & VPS (referral links, disclosed).

Risk. Trading with leverage can lose all the money in an account. Past results do not guarantee future results. This article explains common approaches; it is not financial advice.

More guides