Standard, Raw, ECN and Zero accounts: what the names actually mean
Verdict
- Account type names are not standardised across the industry — "Zero" at one broker can mean what "Raw" means at another, so the name alone does not tell you the cost structure without checking the specific terms.
- The two variables that actually define an account type are whether a separate commission is charged and whether the typical spread is fixed/wider or variable/near-market — every account name is really just a label for a combination of those two.
- Standard accounts typically fold the broker's revenue into a wider spread with no separate commission; Raw, ECN and Zero-style accounts typically narrow the spread toward the market rate and add an explicit commission instead.
- Minimum deposit, available platforms, and swap-free eligibility can all differ between account types at the same broker, not just the cost structure — the account type is a genuinely different product, not a pricing toggle.
- The right account type depends on trading frequency and style far more than on which name sounds more professional — a Raw/ECN account is not automatically the better choice for every trader.
Account type names promise more standardisation than actually exists. "ECN," "Raw," "Zero" and "Standard" are marketing labels, not a regulated taxonomy, and the same word can mean different things at different brokers. What actually matters is checking the two variables underneath the name, not the name itself.
The two variables that actually define an account type
Underneath every account name are really just two questions: is there a separate commission per lot, and is the typical spread fixed/wider or variable/near-market? Every common account type is a specific combination of answers to those two questions, and knowing the combination tells you far more than the label does.
- Commission + near-zero spread: the combination usually labelled Raw, ECN or Zero, though the exact name varies by broker.
- No commission + wider spread: the combination usually labelled Standard or Classic.
- A few brokers blend the two, charging a small commission alongside a modestly widened spread — check the specific terms rather than assuming from the name.
Why the same word means different things at different brokers
There is no regulatory or industry-wide standard defining what "ECN" or "Raw" must mean, so brokers apply the labels according to their own marketing conventions. One broker's "Zero" account might charge $3 commission per lot with a genuinely near-zero spread; another's might charge $7 with a slightly wider one. The label tells you the broker's chosen category, not the actual number — always check the specific commission and typical spread figures rather than assuming from the name alone.
It's a different product, not just a different price
Account types commonly differ in more than cost. Minimum deposit requirements, available platforms, swap-free eligibility, and sometimes even which instruments are offered can vary between a broker's own account types. Choosing an account type is choosing among genuinely different products the broker offers, not just selecting a pricing tier on an otherwise identical account.
- Some brokers restrict their lowest-cost account type to a higher minimum deposit than their Standard account.
- Swap-free eligibility is not guaranteed to be identical across a broker's own account types — check separately for each.
- Platform availability can differ by account type at the same broker, as covered in our platform guide.
Choosing the right one for your trading style
A commission-based, near-market-spread account generally suits frequent, execution-sensitive trading — day trading and scalping specifically — where the all-in cost per round trip at volume favours the lower-spread, commission structure. A no-commission Standard account is often simpler and perfectly adequate for occasional or longer-term trading, where the cost difference at low frequency rarely justifies tracking a separate commission line. Neither is objectively better; the right choice depends on how often you actually trade.
What is the difference between a Standard and an ECN account?
A Standard account typically has no separate commission and a wider spread that carries the broker's revenue on its own. An ECN account typically narrows the spread toward the market rate and charges a separate, explicit commission per lot instead. The all-in cost, not the label, determines which is actually cheaper for your trading pattern.
Is a Zero account really commission-free?
Usually not — despite the name, most 'Zero' accounts refer to a near-zero spread, not zero cost, and pair it with a separate commission per lot. Check the specific fee schedule rather than assuming from the name.
Why does the same account type name mean different things at different brokers?
There is no industry-wide standard defining what 'Raw,' 'ECN' or 'Zero' must specifically mean, so brokers apply these labels according to their own conventions. Always check the actual commission and typical spread figures rather than assuming consistency from the name.
Which account type is best for a beginner?
A no-commission Standard account is often simpler for occasional, lower-frequency trading, since there's no separate commission line to track. Commission-based accounts generally pay off more clearly at higher trading frequency, which matters less for a beginner still trading infrequently.