Spread vs Commission Explained
Leer en español →Every trade has a cost. Knowing how spreads and commissions work helps you choose the cheapest account for your trading style.
What is the spread?
The spread is the difference between the buy (ask) and sell (bid) price. If EUR/USD is 1.1000 / 1.1001, the spread is 1 pip. You pay it automatically on every trade — it's the most common way brokers earn.
What is commission?
Commission is a separate fixed fee per lot traded, usually on "raw" accounts that offer near-zero spreads in return. For example, about $4 per standard lot on Aion Trade's Raw account.
Standard vs Raw accounts
- Standard — slightly wider spread, no commission. Simple; great for beginners.
- Raw — near-zero spread plus a commission. Often cheaper for high-volume traders and scalpers.
For frequent, high-volume trading, raw spread + commission usually wins. For occasional trades, a commission-free standard account is simpler and often cheaper overall.
Don't forget swaps
If you hold a position overnight you are usually charged a swap (overnight financing). Day traders who close positions before the daily rollover avoid it entirely.
Aion Trade offers three account types: Standard (EUR/USD 1.0 pip, no commission, from a $20 deposit), Pro (0.78 pip, no commission, $1,000 in live funds) and Raw (0.10 pip + about $4 commission per lot, $5,000 in live funds) — pick whichever fits your style.
Put this into practice
Open an account and trade 99 instruments — forex, crypto, indices, commodities and metals — from a $20 minimum deposit.
Open Account ▶Educational content only. Not investment advice. Trading involves risk.