Standard vs ECN account: which one is cheaper?
My broker offers a standard account without commission and an ECN account with commission. Which costs less?
For education only. This is not financial advice. Trading carries a high risk of loss.
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1 Answer
Best answer
It depends on how you trade. A standard account usually has wider spreads and no commission. An ECN or raw spread account has very tight spreads plus a commission per lot.
To compare, add the commission to the spread and calculate the total cost per lot for your pair. Active traders and scalpers often find ECN cheaper, while someone who trades rarely may not notice a big difference.
Also check execution quality, because the cheapest quoted spread is not always what you get during news.
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