FP Markets Vs IC Markets Raw Account Comparison

Jerry: Let me answer, man. The difference between 0.0 pip and 0 pip is 0.0 pip more, much cheaper. Example:
which one is the cheapest? 0.01 point or 0.1 point?

0.01 of course, right? So RAW account can be defined by 0.0 pip and it is very different from 0 pip. Before discussing commissions on RAW accounts, you should know that all accounts except RAW accounts use spreads marked by brokers. SO, between one broker and another, the spread fees will be different. This is because brokers send your order to secondary liquidity provider and you as a trader will not get any DoM (Depth of Market).

Whereas in the RAW account, it allows you to view the DOMs including the actual spread, the pure extent. So of course the spread you get will be 0.0. And because the broker cannot make enough profit from this spread, he will charge you a higher commission instead

Jerry: About which account is suitable for beginners? Of course, micro account or cent account if broker; FP and IC both have. Or Standard account with 0.01 lots to trade. While the other standard accounts have higher spreads, they at least offer non-technical trading. I mean no DOM, no variety of runtimes and all that specialized stuff that used by pro and forex expert.

In standard accounts, only basic trades such as basic order matching and indicator tools. With this kind of conditions, believe me, trading will become more comfortable than trading on RAW account and besides, you will avoid higher commissions having specifications like spreads.

@Jerry: The difference between 0.0 pip and 0 pip is that 0.0 pip represents a spread that can fluctuate between 0 and a small fraction of a pip, while 0 pip represents a fixed spread that remains constant at 0. In general, both options offer tight spreads, but a 0.0 pip spread may be more suitable for traders who require more precision in their pricing, while a 0 pip spread may be more suitable for traders who prefer a consistent and predictable spread.

Regarding the standard account offering zero spreads, it's important to note that these types of accounts often have higher commissions or markups built into the pricing structure. This is because the broker needs to make money somehow, and if they're not making money from the spread, they need to make it from other fees or charges.

Regarding the commission structure for RAW spreads, it's important to note that the commission is typically charged per lot, not per trade. So if you open two trading positions of one lot each, you will be charged the commission twice (i.e. $14 in total for IC Markets). The commission structure for RAW spreads can seem expensive compared to other types of accounts, but it's important to consider the overall pricing structure and the quality of the execution.

As for whether the RAW account is suitable for a beginner, it really depends on your trading style and preferences. RAW accounts typically offer tighter spreads and faster execution, but they also require a higher minimum deposit and may have higher trading costs due to the commission structure. It's important to consider your trading goals, risk tolerance, and overall experience level when choosing an account type. It may be helpful to speak with a broker representative or financial advisor to help you make an informed decision.

Keita: RAW accounts are offered by ECN brokers (Although there are brokers that are not ECN brokers). (Read here : What are ECN Brokers)

So what is ECN Broker? It is a secondary forex liquidator with access to many of the primary forex liquidators.

So it's basically like I have a connection with the department that has access to the president. So if you want to meet the president, you have to find me first! and you can also meet the president. Meanwhile, the usual broker has a condition like:
If you want to meet the president, you have to find someone who has a relationship with you, all messages from that person will be delivered by this person and forwarded to you, you to the ministry and the ministry to the president.

And we changed the word "president" to the word "Forex". If another broker passes your message through a broker, that broker will forward the message to the ECN broker and the ECN will forward it to the liquidity provider with access into Forex.

@Keita:Sure, I can help answer your questions about RAW accounts and how brokers are able to offer very low spreads.

Firstly, RAW accounts are offered by brokers who use an ECN (Electronic Communication Network) or STP (Straight Through Processing) model. This means that orders are executed directly in the interbank market without any intervention from the broker. As a result, traders are able to access the raw pricing from liquidity providers and enjoy tighter spreads.

In terms of advantages, RAW accounts offer several benefits to traders. Apart from the low spreads, RAW accounts often come with low commission fees per trade, which can be beneficial for high volume traders. Furthermore, since the orders are executed directly in the interbank market, traders can experience faster trade execution, higher liquidity, and less price manipulation.

However, it's important to note that RAW accounts may not be suitable for all traders, particularly beginners. Since the spreads are variable and may widen during periods of low liquidity or high volatility, traders need to have a good understanding of market conditions and how to manage their trades effectively. Additionally, RAW accounts may require a higher minimum deposit and have stricter margin requirements compared to other account types.

In conclusion, RAW accounts can offer several benefits to experienced traders, particularly those who focus on scalping and high-volume trading. However, beginners should carefully consider their trading goals and experience level before choosing a RAW account, and should always practice proper risk management to minimize potential losses.

@Di Maria: Hey! In straightforward terms, your server choice boils down to your trading habits and platform preferences. If you find yourself predominantly trading within the United States or favor the Metatrader platform, then the New York server stands as your prime selection for faster trading execution. On the other hand, if your trading focus leans more towards European markets or if you have a particular affinity for cTrader, then the London server is the optimal option to ensure superior performance. Your decision should be guided by your primary trading region and the platform you feel most comfortable using. These servers are strategically positioned to cater to distinct market zones, making it possible for you to swiftly execute trades within your favored trading environment.

@bush: FP Markets is an Australian-based broker that holds licenses from the Australian Securities and Investments Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC). The main difference between the two licenses is the level of regulation and protection they offer to traders.

ASIC is the main regulatory body in Australia and has strict guidelines and standards that brokers must adhere to. This includes mandatory segregation of client funds, regular audits, and protection of client funds in the event of the broker's insolvency. CySEC, on the other hand, is the regulatory body for brokers operating in Cyprus, which is part of the European Union. While it also has regulations in place, they are not as strict as ASIC's, and there have been instances of CySEC-regulated brokers engaging in unethical practices.

As an Australian, it is important to choose a broker that is regulated by ASIC to ensure the highest level of protection for your funds. FP Markets' ASIC license means that they adhere to strict standards and guidelines, giving you peace of mind while trading.

@Rayson: NO need so formal dude, I can help you to explain about commision per lot but in more way informal style, okay? Hope you understand it!

The commission per round lot is a big deal when it comes to trading costs. When you're trading stocks, forex, or commodities, brokers usually charge a commission for each standard-sized trade. This commission directly affects how much trading actually costs you.

Basically, the commission per round lot adds an extra fee on top of other charges like spreads. It can eat into your profits or increase your losses, so it's a big deal. If the commission is high, it can really take a chunk out of what you make, especially if you're doing a lot of trading or dealing with big positions. On the flip side, if the commission is low, your overall trading costs go down, and you get to keep more of your gains.

You gotta think about the commission based on your trading strategy and how much you plan to trade. If you're an active trader or handling a big volume of trades, even a small difference in commission can have a major impact on what you end up paying.

About your question, the variation in raw spreads between different brokers can be attributed to several factors. Each broker may have different relationships with liquidity providers, which can affect the spreads they offer. Additionally, brokers may have varying cost structures and profit margins, leading to differences in the spreads they provide to traders.

While a lower spread generally indicates a better deal for traders, it's essential to consider other factors as well, such as the quality of execution, trading conditions, and overall reliability of the broker. Sometimes, a broker with slightly higher spreads may offer better overall trading conditions, including faster execution speeds or more reliable customer support. Hope it can help!