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What is the difference between raw spread and standard account in the context of cryptocurrency trading?

avatarJordan FlamesDec 17, 2021 · 3 years ago1 answers

Can you explain the distinction between raw spread and standard account in the context of cryptocurrency trading? How do these two types of accounts differ from each other and what are the implications for traders?

What is the difference between raw spread and standard account in the context of cryptocurrency trading?

1 answers

  • avatarDec 17, 2021 · 3 years ago
    In the context of cryptocurrency trading, raw spread and standard account refer to different pricing models offered by brokers. Raw spread accounts provide traders with direct access to the market's bid and ask prices without any additional markups or fees. This means that traders can trade at the most competitive prices available. On the other hand, standard accounts have fixed spreads that include markups or fees. These markups or fees are how brokers generate their revenue. The advantage of a raw spread account is that traders can potentially benefit from lower trading costs due to the absence of markups. However, the spreads may be more variable and less predictable compared to standard accounts. Standard accounts, on the other hand, offer more stability in terms of spreads but may have slightly higher trading costs. Traders should consider their trading strategy, risk tolerance, and cost preferences when choosing between raw spread and standard account.