FP Markets offers a Raw account with tight spreads and a Standard account suitable for beginners. Which account type is better for you?
When it comes to trading, one of the most important decisions a trader must make is choosing the right account type. Different account types offer different features and benefits, so it is crucial to pick the one that best suits your trading style and goals.
One of the best forex brokers for retail traders at the moment is FP Markets. FP Markets is a reputable and trustworthy forex broker based in Australia which offers two types of accounts for different needs, the Standard and Raw accounts.
Standard accounts are the most basic type of trading account and are suitable for beginner traders or those new to the markets. Raw accounts, on the other hand, are designed for more experienced traders who are looking for transparent pricing and tighter spreads.
So, which one is the best for you?
Without further ado, we will delve deeper into the details to help you decide which account is the best fit for your needs.
FP Markets Background Info
FP Markets is a reputable and experienced broker that has been in operation since 2005. The company is based in Australia and is regulated by ASIC (Australian Securities and Investments Commission) and CySEC (Cyprus Securities and Exchange Commission) which ensures that they adhere to strict regulations and standards. Their ASIC registration number is 286354 while their CySEC license number is 371/18.
Keeping positions open overnight won't result in the overnight/rollover fee reducing your earnings, so you don't have to worry about it. FP Markets offers the most competitive swap rates in the industry by introducing Swaps Points in the form of a live swap rates list on the MT4 and MT5 platforms. Here are some examples:
- ACWI: -5.00 for long positions and -2.50 for short positions.
- ADAUSD: -20.00 for long positions and -20.00 for short positions.
- AGG: -5.00 for long positions and -2.50 for short positions.
They offer access to over 10,000 CFD products and tight spreads starting at 0.0 pips. The broker utilizes raw pricing which is streamed directly from top-tier liquidity providers, allowing clients to benefit from a large pool of regulated financial institutions.
FP Markets provides advanced trading platforms such as MetaTrader 4 and 5, IRESS (with three account options), WebTrader, as well as mobile apps for Android and iPhone users. In addition, they provide VPS solutions for auto-traders, EAs, and scalpers, and have minimal restrictions for a wide range of trading strategies.
Where to Find the Information on the Official Broker Site?
- This information is reported per Apr 27 2024.
- We can not ensure if this offering is still available or remain the same in future.
- The broker announcement page may or may not exist anymore, You may explore FP Markets homepage and try to find "Promotion" section on the menu, footer, etc, to ensure the availability and validity of this promotion.
FP Markets Account Types Overview
Conditions | Standard Account | Raw Account |
💰Min. Deposit | AUD 100 or equivalent | AUD 100 or equivalent |
🔢Spreads | From 1.0 pips | From 0.0 pips |
Instruments | 60+ FX pairs, metals, indices, commodities | 60+ FX pairs, metals, indices, commodities |
⚖Max. Leverage | 500:1 | 500:1 |
⚡Execution | ECN-Pricing | ECN-Pricing |
💸Commission per Lot | ❌ | $3 per side |
📈Minimum Trade Size | 0.01 Lot | 0.01 Lot |
🤖EA | ✔️ | ✔️ |
📱Mobile App | ✔️ | ✔️ |
📡VPS | ✔️ | ✔️ |
🕌Islamic Account | ✔️ | ✔️ |
💻Algorithmic Trading | ✔️ | ✔️ |
| ✔️ | ✔️ | |
🌐API Trading | ❌ | ❌ |
Differences Between Standard and Raw Accounts
The main difference between FP Markets' Standard and Raw Accounts is the way they handle spreads and commissions.
A Standard Account typically has wider spreads starting from 1.0 pips, which are the difference between the buy and sell prices of a currency pair or other financial instrument. These spreads can include markups, which are added by the broker to cover their own costs and make a profit.
On the other hand, a Raw Account has tighter spreads, which start as low as 0.0 pips on certain currency pairs. This account does not have any markups on the prices it receives from liquidity providers, which results in more transparent pricing for the trader. Furthermore, FP Markets' Raw account uses ECN/STP execution model which allows for faster execution and reduced slippage.
Another difference between the two accounts is the commission. Raw account has a commission of $3 per side and the standard account doesn't have a commission at all.
In summary, the Standard Account is more suitable for traders who are willing to pay a slightly higher spread for the convenience of a more user-friendly interface, while the Raw Account is better for traders who want the tightest possible spreads and transparent pricing.
Which One to Choose?
Choosing one account over the other depends on your trading style and your preference to have tighter spreads or no commissions. Short-term forex traders who use scalping and day trading as their main strategy typically prefer to have tighter spreads and will likely choose the Raw account. Traders that hold positions for longer periods or trade less frequently may choose the Standard account to have a more simple trading experience.
It is important to take time to research and compare different account types so you can choose one that offers the features and benefits that align with your needs and trading style.
FP Markets is a trusted global broker offering more than 10,000 CFD products across forex, shares, indices, commodities, and cryptocurrencies. This broker supports low commissions and tight raw spreads from 0.0 pips that are made possible by their partnership with leading banking and non-banking financial institutions.
11 Comments
Jan 27 2023
I have a question regarding the comparison between the Standard Account and the Raw Spread Account. It turns out that the execution is ECN price. After checking the official website of FP Markets, I found that they also offer prices other than ECN prices, i.e. DMA prices. As a new trader, I don't understand what the difference between the two pricing is and the connection with execution that comparison table show. can these execution pricing affected my trading fees; spread and commissions? I would also like to know which type of price applies to which trading account.
By the way, I'm new to FX. And, after all, if I'm a newbie, which of these accounts should I choose? IS Standard Account or RAW account? Off course after I pass the demo account.
Jan 27 2023
Lucas: That is a good question, man. I will explain to you:
DMA pricing is an execution model in which traders receive a supply of authentic exchange prices from the underlying market they are trading in, whether from an exchange's order book or a liquidator provider.
Or with simple language, brokers allow you to trade directly with liquidator providers. With this order matching system, you can submit buy or sell orders directly to the underlying market's order book. But from a liquidation provider's point of view, brokers still trade with them. Therefore, sellers looking for maximum transparency and control can use this price.
While,
ECN pricing, you can get a price feed directly from FP Market liquidity providers. As a result, he can achieve the best competitive spreads, very low latency execution and minimal slippage. It can also allow trades to be matched and executed at a better price. And FP Market ECN price is best for scalpers and EAs because of this execution speed. so choose your price wisely when you login to FP Market.
For beginners? In my opinion, it is better to use the standard account.
Jan 27 2023
James: Thanks for the explanation but really if we can choose the price why the article only talk about ECN price and when I read your explanation, I don't see any difference between the two price models because if you speaking of transparency, I think DMA and ECN have the same transparency because broker allows us to see the market through liquidation provider, right?
Sorry, but I still can't tell the difference between these two, what about spread and commission? Why does the standard account have higher spreads while the ECN has no spreads at all, but the pricing and execution model still uses ECN pricing? If they can see through the market, they can get all the real price without raising the price, right?
Jan 27 2023
Lucas: Okay, DMA Pricing is trading with indirect liquidator provider. So, basically when you buy apple, you buy in the fruit store. You know the quality of the apple, you can control how much you want the apple, and where the apple from. And DMA pricing also has that conditions too, you can control the price that you want, and also fast execution.
Meanwhile ECN Pricing is just like when you buy apple, you buy directly from the farmers. So, you really get the real price without any fees like transportation fees just like the fruit store. Because of that, the farmers can't sell you with the price that same with apple store. So, ECN Pricing allows you to get the fast execution that faster than DMA and also you can see the all the process and fees that has in the market. Read the article below to know about ECN it self :
What are ECN
Jan 27 2023
Can someone explain to me how spreads and real commissions are calculated? Since I don't have a benchmark to calculate commissions and spreads, and how do trading fees actually work? Since I am very new to Forex, I really don't understand why we have to choose another account to trade. Ok, in the article about Standard and Raw accounts, I don't understand what the 3$ side is and why the standard account has no commission?
Jan 27 2023
Adam: Spread is counted everytime you trade one position. Spread's unit calculation is pips.
Simple example like this, when you trade GBP/USD for example, you are trading a long position at 1.23792. For many times, the current price is 1.23802 and you close the position with a profit: 1.23792-1.23802 = 0.00010. Pip is the fourth number after the decimal, so the number of pips you can get is 10 pips.
Ok, now you get 10 pips profit and considering the trading conditions provided by FP Market, for example you are using standard account, trading volume 1 lot, and the spread that applied is 1 pip. So, the obvious profit you can get is 9 pips because 1 pip is for the broker. Imagine if 1 pip = $10, the total you can get is $90, while the broker is $10.
To be remembered, because spread basically using pips as its unit calculation, when you trade with small trading volume (such as mini (0.1 lot), 1 pip =$1 and micro (0.01 lot), 1 pip = $0.1)
While,
The commission is a contingency fee if the trader reaches the deadline to meet the contingency fees, such as reaching a certain trading volume or as specified by the broker and some brokers even don't applied commissions such as FP Market.
For example, when viewing FP Market offers from Raw Spread, it shows $3. This means that when you open a position you are charged $3 and after closing you are charged $3 again. With the same GBP/USD price above, you get 10 pips = $100, $6 to the broker because of the commission and you get a net profit of $94.
Still confused to choose between the fees, you can read the details and the guide in here : Which is better, spread and commission?
Feb 11 2023
When comparing these accounts, I'd go with the standard account, which has lower fees than the ECN account.Since you're charged per position open, I don't understand why the raw spread fees are higher and you're more likely to spread not. I'm not sure how profitable scalping is because it requires opening a lot of positions and puts a strain on the scalper.
By the way, that's just my opinion, and for the time being, I agree with the author on the ease of trading experienced if you decide trade for a standard account. I don't think ECN can be used as it is presented.
Feb 11 2023
Yerren Green: I think you misunderstand some points. First, the FP Market Raw Spread account does not state that it is an ECN account. They offered only raw spreads with very little markup price from the broker. In other words, STP brokers can offer tight spreads just like ECN brokers.
Second, about the commissions itself. Yes, commissions are calculated based on open and closed positions. However, you misunderstood that the fee is calculated per lot, not per transaction. Therefore, you need to trade 1 lot to get charged. Example if a trade uses 0.01 lot and you need 100 trades to get 1 lot. To find the fee per transaction, simply divide the fee by 100. In this case, the total FP market is $6, or $0.06 per 0.01 lot.
So you will only be charged $0.06, have a spread of 0.0 and a minimum commission of $0.1 per trade. It's perfect yet inexpensive!
Feb 11 2023
Yerren Green: Dude, you should know that the brokers with the biggest profits come from trades that consist of spreads and commissions. Also if you choose raw spreads, broker usually charged less spreads and it will affect the broker's income. So, for example: the brokers can get $0.95 per standard lot, in Raw spread, they maybe only can get $0.01 per standard lot. And to cover its operational cost, they charged commissions per side. As they can up their profit but not too much burden the traders.
By the way, the commission is also per lot. Commissions are not charged directly for every 0.1 or 0.01 lot trade. It is therefore worthwhile for both scalpers and brokers.
Feb 11 2023
There are only two regulations in the FP market. I'm a little curious as to why brokers need so much regulation. And even there, some brokers are regulated by 5 or more regulators.
On the other hand, some rules are set to follow only one rule. For example, when I trade with FP Market, two regulators certify that FP Market is regulated, ASIC and CYSEC, but when I trade, the only term we follow is CySEC. So what's the other point of many regulator if you only use one trading term.
Feb 11 2023
Tio: You should know that entering some countries and getting dealers from there requires you to be regulated. You can source merchants from these countries if they are not regulated. Therefore, brokers must demand regulation and meet deadlines in order to attract more traders. Terms may refer to trading conditions, so the broker should set trading conditions that comply with the country's trading rules.
For this reason, many trading terms are not the same as in other countries. For example, Australia trader has a leverage of 1:30 only and you can get 1 : 500 if you are not Australians
That's why many brokers get many regulators. Because of the dealer factor.