Does a raw spread account lower the total cost of your trades? Not automatically: these accounts usually charge a separate commission, so a near-zero spread doesn’t mean a free trade.
For UK traders, the useful comparison is the full cost of a trade, alongside the account’s legal entity and protections. Terms and products can differ between entities, so I’d start with the account details and costs, not the headline spread.
Key Takeaways
- A raw spread can be narrow, but commission applies separately. I compare the spread and round-turn commission for the same trade.
- Minimum spreads aren’t typical spreads. Add likely financing, currency conversion and other relevant fees to estimate the full cost.
- Check the legal entity in your account agreement and its permissions on the FCA Register. A broker’s brand alone doesn’t confirm UK authorisation.
- FCA regulation doesn’t prevent trading losses. UK retail CFD protections depend on the product, account and client classification, as the FCA’s CFD rules explain.
- Compare brokers using the same currency pair, trade size and holding period. Compare forex broker costs and regulation before relying on a headline spread.
Top Raw Spread Brokers in the UK
I treat these names as candidates, not an automatic ranking. A raw spread account is only comparable when the UK contracting entity, retail eligibility, product permissions and full trading costs are clear. Where that evidence is incomplete, I say so rather than importing terms from an overseas account.
Pepperstone Razor for active trading
Pepperstone Limited is the UK entity identified for Pepperstone, with FCA reference number 684312. The Razor account uses raw spreads plus commission, and Pepperstone lists MT4, MT5, TradingView, cTrader and its own platform and app. Platform access can depend on the account and product, so check the terms presented during application.
Pepperstone reports a EUR/USD minimum spread of 0.0 points and an average of 0.1 points. The average covers all trading sessions, including rollover, from 1 to 31 August 2026. These are different measures, and neither guarantees the spread you’ll receive on a future trade.
The UK pricing page lists commission of £2.25 per standard FX lot per side, or £4.50 for opening and closing a one-lot position. Add that to the spread, then consider financing, conversion charges and possible slippage. I’d also confirm that the account is available to you as a UK retail client, and check the FCA Register permissions for the service offered. Our Pepperstone UK costs and account review covers the account differences in more detail.
FxPro UK and FXOpen, subject to account checks
The available information identifies FXPro UK Limited, FCA reference 509956, and FXOpen Ltd, reference 579202. Those register entries do not, by themselves, establish that UK retail customers can open a particular raw spread account through either company.
I would include either broker in a verified comparison only after matching the account agreement and UK product documents to the contracting entity. The FCA permissions must cover the relevant activity, and the broker’s documents must confirm that the raw account is actually offered to UK retail clients. The evidence available here does not confirm those points or provide comparable UK commission and spread figures. Until they do, I wouldn’t present either as a confirmed UK raw spread option.
When an overseas raw account is not a UK option
IC Markets, Tickmill and Vantage may publish raw account prices for customers served by other entities. Those figures should not be presented as UK FCA-authorised retail terms unless the contracting company and UK availability are established. A familiar brand name does not tell you which company holds your account.
Check the legal entity in the client agreement, then match it against the FCA Register and the broker’s UK account documents. Permissions and protections are specific to the entity, product and client classification. This matters as much as the headline spread. For a practical checklist, see our guide to checking a broker’s FCA authorisation.
Compare the real cost, not just the spread
A raw spread is only one part of what you pay. I compare the same currency pair, position size, account currency, trading session and holding period across brokers, then add the charges and execution factors that can affect the final cost. Fees and account terms change, so check each broker’s current UK-specific fee schedule before publication or opening an account.
Add spread and round-turn commission
Commission may apply when you open a trade and again when you close it. Record the rate, currency, lot size and whether the quoted amount is per side or for the full round turn. A rate of £2.25 per standard lot per side, for example, means £4.50 in commission for opening and closing one standard lot, before spread or other charges.
Keep spread figures like-for-like. A minimum spread from one broker is not a fair comparison with another broker’s typical or average spread. Check the account type, currency pair, observation period and trading session behind each figure. For a useful breakdown of spread and commission costs, compare both against the same trade size.
Include funding, conversion and payment fees
If you hold a leveraged position beyond the broker’s daily cut-off, overnight financing or swap charges may apply. Rates can differ for long and short positions, and charges may vary by instrument and account. For a position held several days, financing can outweigh a small difference in entry costs. The FCA-hosted MiFID costs-and-charges guidance includes applicable daily and overnight financing charges in the costs clients should be told about.
Also check currency conversion, deposit and withdrawal charges, inactivity fees and any minimum commission. A minimum commission can make a small trade cost more than a simple per-lot calculation suggests. If your account is in pounds but commission or financing is charged in another currency, conversion may change the amount you pay.
Consider execution and platform limits
Your actual cost can differ from the quoted price. Slippage, spread widening, rejected orders and platform delays can affect the fill, especially during fast markets or around rollover. I check the broker’s execution policy and compare the requested price with the price received across ordinary trades. How slippage affects forex execution explains why a displayed price is not a guaranteed fill.
A platform’s charting and research tools are separate from order execution. A polished chart does not prove that trades will fill at better prices, and marketing claims about execution are not evidence of consistently lower costs. Check account restrictions and order types, then compare actual trading conditions using the same assumptions for every broker.
Check UK regulation, protections and product access
A broker’s trading name tells you little about the company that will hold your account. I check the legal entity, its FCA permissions and the exact terms offered to UK retail clients before comparing any raw spread account. A familiar brand does not make different group companies interchangeable.
Confirm the legal entity and retail account terms
Start with the company named in the account agreement, then match its full name and FCA reference number against the FCA Register. Check that its permissions cover the service and product you intend to use. An authorised firm may have permission for some activities but not others, and a register entry alone does not confirm that a particular raw spread account is available to UK retail clients.
I also compare the agreement with the broker’s website details and payment instructions. This helps identify a mismatch, including a possible clone firm using a genuine company’s name or reference number. For a broader explanation of how jurisdiction and legal entities affect account terms, see our guide to forex broker regulation in Europe.
Before applying, check the details that can change what you may trade and what protections apply:
- Whether you will be classified as a retail or professional client.
- Which instruments the account offers, such as CFDs, spot forex or other products.
- Which company handles complaints, and whether an eligible complaint can be escalated to the Financial Ombudsman Service.
- What client-money and compensation arrangements apply to that entity.
The FCA’s retail CFD restrictions include safeguards such as leverage limits, margin close-out rules and negative balance protection for eligible retail accounts. These rules are product- and client-specific. Professional clients may not receive the same protections, and compensation arrangements do not cover ordinary trading losses.
Understand leverage and the risk of loss
Leverage lets you control a larger position than the money you put up as margin. That magnifies gains when the market moves in your favour, but it also magnifies losses when it moves against you. A small price change can therefore have a large effect on your account balance.
Volatility can widen spreads and make execution less predictable. A market gap, where prices jump between available quotes, or poor liquidity can also mean an order fills at a worse price than expected. Stops can help manage orders, but they do not guarantee a particular exit price in fast or thin markets.
A raw spread account changes the pricing structure, usually by pairing a narrower spread with a separate commission. It does not make forex or CFD trading safer, improve the chance of a successful trade, or remove financing and execution risks. I compare its total costs, but assess the product’s risks separately.
Frequently Asked Questions
The account label alone won’t tell you what a trade costs or which protections apply. I compare the full charges and check the legal entity named in the account agreement.
Are raw spread accounts cheaper than spread-only accounts?
Neither model always costs less. A raw spread account may have a narrower spread but charge commission on opening and closing; a spread-only account includes the broker’s charge in its spread. I compare both using the same instrument, trade size, account currency and holding period, then include financing, conversion and other relevant charges. Our guide to fixed versus variable spreads explains why spread figures need to be compared on the same basis.
Is a zero-pip spread account commission-free?
No. A spread advertised as starting at zero can still have a separate commission, often charged per side. Also, a minimum spread is not the same as an average or typical spread, and live spreads can widen as market conditions change. Check the fee schedule for the specific account and instrument before estimating the cost.
Can UK retail traders use IC Markets raw pricing?
I can’t verify that UK retail traders can open an IC Markets Raw Spread account through a UK-authorised entity. The FCA Register lists IC MARKETS (EU) LTD as cancelled since 11 December 2023, and its warning about IC Markets Global does not establish UK retail eligibility. Overseas prices and protections should not be treated as UK terms; check the contracting entity and account agreement before relying on any quoted rate.
What does commission per side mean?
A per-side commission is charged separately when you open and close a position. For example, £2.25 per standard lot per side would mean £4.50 in total commission for a completed one-lot trade, before spread or other charges. Check the broker’s stated unit, lot size and account currency, as rates may be quoted differently.
Do raw spread brokers offer negative balance protection?
They may, but the answer depends on the client’s contracting entity, jurisdiction, product and retail or professional classification. UK retail CFD protections include negative balance protection in applicable circumstances, as set out in the FCA’s CFD rules. I wouldn’t assume every customer of a broker brand receives the same cover; check the written account terms and see our guide to negative balance protection.
Conclusion
The best raw spread broker in the UK depends on verified access to the right account, the full cost of a typical trade, execution conditions and the protections that apply to your account. A low headline spread or a broker ranking can’t answer those questions on its own.
Before choosing, compare current UK account documents and fee schedules on the same trade assumptions. Check the contracting entity and relevant protections, and remember that trading carries a risk of loss.
