Key Takeaways
- Brokers offer two account types because there are two trading styles, and one cost structure does not fit both.
- The choice between ECN and Standard is mechanical once you do the maths.
- Most beginners make it backwards.
Almost every CFD broker offers some version of two account types: a "Standard" account with no commission and slightly wider spreads, and an "ECN" or "Raw" account with very tight spreads and a fixed commission per lot. The marketing makes them sound like different products. Mechanically, they are the same trade priced two different ways. The question is which pricing structure is cheaper for the way you actually trade.
What "ECN" actually means
Electronic Communication Network. It refers to a broker's order-routing model where client orders are passed through to a pool of liquidity providers (typically banks and prime brokers) at the prices those providers quote, plus a fixed commission. The broker does not mark up the spread; the broker is paid by the per-lot commission.
A "Standard" account, by contrast, sees the broker take the same underlying price feed, add a small mark-up (typically 0.5–1.5 pips on FX majors) to both the bid and ask, and quote you the wider price. The broker is paid by the spread mark-up; there is no commission line on your statement.
The total cost to the trader is broadly similar at small volumes. At larger volumes, the all-in mathematics diverges meaningfully.
The exact comparison on EUR/USD
Take the most-liquid pair in the world and a 1-lot round-turn:
| Cost line | Standard account | ECN account |
|---|---|---|
| Typical spread | ~1.0 pip | ~0.1 pip |
| Spread cost (1 lot) | USD 10 | USD 1 |
| Commission (round-turn) | USD 0 | USD 7 |
| All-in cost (1 lot) | USD 10 | USD 8 |
ECN is USD 2 cheaper per round-turn lot on EUR/USD. On 100 lots a month, that is USD 200 of savings; on 500 lots a month, USD 1,000.
Where the gap widens — exotic and minor pairs
The above example is on the tightest pair in the FX market. As you move out the curve:
- On GBP/JPY: Standard typically ~3 pips (USD 27/lot), ECN ~0.5 pips + USD 7 commission (USD 12/lot). ECN saves USD 15/lot — almost 60%.
- On USD/ZAR: Standard often 30+ pips (USD 16+/lot, with ZAR pip value), ECN ~5 pips + USD 7 (USD ~10/lot). ECN saves 35-40%.
- On gold (XAU/USD): Standard typically 30 cents (USD 30/lot), ECN ~10 cents + USD 7 (USD 17/lot). ECN saves USD 13/lot, around 45%.
The pattern is consistent: the wider the Standard spread, the more ECN saves. For traders who concentrate on majors and stay at low volumes, the saving is modest. For traders who trade crosses, exotics, or large monthly volumes, ECN becomes the obvious choice.
Where Standard wins — small accounts, infrequent trading
The above analysis assumes you actually pay USD 7 commission per round-turn. On an ECN account that is a fixed cost regardless of whether the trade is profitable. If you trade 2 lots per month, your commission bill is USD 14/month — perfectly fine in absolute terms, but the "saving" relative to Standard is only USD 6 (USD 20 Standard vs USD 14 ECN on the same 2 lots), and the operational simplicity of one cost line instead of two has value.
For accounts under USD 5,000 trading fewer than 10 lots per month on majors only, the Standard account is operationally simpler and cost-wise equivalent. There is no need to overthink it.
The other variables that quietly matter
Minimum deposit
At TopWealth, Standard accounts start at USD 50; ECN accounts at USD 200 (these are illustrative — refer to current account specifications for exact figures). Cent accounts, which are a Standard variant denominated in cents instead of dollars, start at the equivalent of a few dollars and are designed for very small starting capital.
Execution speed
ECN orders route directly to liquidity providers; Standard orders may pass through an internal aggregator first. In practice, on retail-sized orders, the difference is measured in milliseconds and rarely affects retail strategy outcomes. For scalpers operating on M1 charts with sub-pip targets, it matters; for everyone else, it does not.
Slippage
Both account types can experience slippage during fast markets. ECN tends to slip less on tight stops because the underlying liquidity pool is broader, but the difference is not as dramatic as some broker marketing suggests.
The 60-second decision framework
- Estimate your monthly volume in lots. Be honest: include both winners and losers, round trips not one-way.
- Multiply by USD 10 (Standard cost on EUR/USD) — that is your monthly Standard cost.
- Multiply by USD 8 (ECN cost on EUR/USD) — that is your monthly ECN cost.
- The difference is your monthly saving (or extra) from one account type.
- If you trade primarily non-major pairs, repeat with the typical spreads for your instruments. The ECN advantage grows.
Below 20 lots per month on majors: account choice is essentially cosmetic. Use whichever has the deposit threshold and platform support that suits you.
20–80 lots per month: ECN starts to pay for itself, especially if you trade beyond the tightest majors.
Above 80 lots per month, or any volume on wider-spread instruments: ECN is the right answer by a meaningful margin and the choice is straightforward.
One thing that is not a deciding factor
Whether the broker "makes more money" on Standard versus ECN. Both account types are profitable for the broker; that is not your problem to optimise. Your problem is your own all-in cost, calculated from your own volumes on your own instruments. Do the maths once, pick the account that wins, and stop thinking about it.
This article is general information about CFD account types and does not constitute personal advice. Spreads, commissions, minimum deposits, and execution behaviour vary with market conditions and the specific instrument; please refer to our published account specifications for current rates.
