When traders compare spread vs commission, they’re usually asking one simple question:
What actually costs more when I trade?
At IC Markets, the answer depends less on advertised numbers and more on how you trade in real conditions.
This article explains:
how spreads and commissions work at IC Markets
which one has a bigger impact on your results
how to choose the cheaper option based on your trading style
No hype. Just real trading costs, explained clearly.
What Is the Difference Between Spread and Commission?
Before comparing costs, let’s clarify the basics.
What Is a Spread?
The spread is the difference between the buy (ask) and sell (bid) price.
It is:
built directly into the price
paid every time you open a trade
unavoidable, regardless of profit or loss
Wider spreads mean:
higher break-even points
more pressure on short-term strategies
What Is a Commission?
A commission is a fixed fee charged by the broker for executing a trade.
At IC Markets:
commissions apply only to Raw Spread accounts
they are charged per lot, per side (open + close)
the amount is transparent and predictable
Unlike spreads, commissions do not fluctuate with market volatility.
IC Markets Account Types and How Costs Are Applied
IC Markets uses two main pricing models.
Standard Account (Spread-Only Pricing)
Key features:
Commission: $0
Spreads: higher, all-inclusive
Typical EUR/USD spread: ~0.8–1.0 pips
Best for:
beginners
low-frequency traders
traders who prefer simplicity
You don’t see a commission, but you pay more through the spread.
Raw Spread Account (Low Spread + Commission)
Key features:
Spreads: from 0.0 pips
Commission: $3.50 per lot per side (MetaTrader)
Typical EUR/USD spread: 0.0–0.2 pips
Best for:
active traders
scalpers and day traders
algorithmic and EA users
This model separates market cost (spread) from broker cost (commission).
Real Trading Cost Comparison (1-Lot EUR/USD Example)
Let’s compare a standard 1-lot EUR/USD trade.
Standard Account
Spread: ~1.0 pip
Cost: ~$10
Raw Spread Account
Spread: ~0.1 pip ≈ $1
Commission: ~$7 (round turn)
Total cost: ~$8
📉 Even on a single trade, the Raw Spread account is cheaper.
Over dozens or hundreds of trades, the difference compounds quickly.
So, What Costs More in Real Trading?
In most real-world scenarios, spreads cost more than commissions.
Why?
spreads are paid on every trade
wider spreads reduce strategy efficiency
short-term trades are especially sensitive to spread size
Commissions, on the other hand:
are fixed
easy to calculate
often cheaper for active traders
👉 This is why professional traders usually prefer commission-based pricing.
When the Standard Account Still Makes Sense
Despite higher spreads, the Standard account can be suitable if you:
trade only occasionally
hold positions for longer periods
are still learning execution mechanics
want all costs built into the price
For very low trading frequency, the cost difference may be minimal.
When the Raw Spread Account Is Clearly Better
The Raw Spread account is usually the better option if you:
scalp or day trade
trade multiple times per week
use automated strategies
rely on precise entries and exits
Lower spreads allow:
tighter stop losses
improved risk-to-reward ratios
more consistent execution
For these traders, spread reduction matters more than avoiding commission.
Why Many Traders Misjudge Their Real Costs
A common beginner mistake is focusing on:
“zero commission”
minimum advertised spreads
Real costs depend on:
average spread (not the minimum)
number of trades
lot size
trading style
Ignoring spread impact often leads to unnecessary losses over time.
How to Choose the Cheaper Option for Your Style
Ask yourself:
How often do I trade?
Do a few pips matter to my strategy?
Am I more active or more patient?
General rule:
Low frequency → Standard account
Medium to high frequency → Raw Spread account
Choosing the right pricing model can save hundreds or even thousands of dollars per year.
Final Verdict: Spread vs Commission at IC Markets
At IC Markets:
spreads usually cost more than commissions in real trading
commission-based pricing is more efficient for active traders
the Raw Spread account is often the cheaper long-term option
Understanding this difference helps you:
reduce trading costs
improve expectancy
trade with clearer expectations
Check Current IC Markets Pricing
Traders who want to review current spreads, commissions, and account options can do so directly on the official IC Markets website:
👉 https://icmarkets.com/?camp=31397
(This article may contain a referral link. Trading involves risk.)
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