---
title: "Trading account types: standard, raw, Islamic, demo"
description: "Forex and CFD trading account types in plain words: standard versus raw spread, Islamic swap-free, demo and professional accounts, minimum deposits and bonuses."
canonical: https://thetraderwiki.com/en/trading-account-types/
lang: en
kind: article
published: 2026-09-30
updated: 2026-10-15
author: "Gabriel L." (https://thetraderwiki.com/en/authors/gabriel-l/)
html: https://thetraderwiki.com/en/trading-account-types/
json: https://thetraderwiki.com/en/trading-account-types/index.json
---

# Trading account types: what standard, raw, swap-free and professional accounts change

[Home](https://thetraderwiki.com/en/) › [Guides](https://thetraderwiki.com/en/learn/) › [Account types](https://thetraderwiki.com/en/trading-account-types/)

A trading account type is a package of terms that a forex or [CFD](https://thetraderwiki.com/en/glossary/#cfd) provider puts a name on. Standard, raw [spread](https://thetraderwiki.com/en/glossary/#spread), ECN, Islamic, demo and professional are examples. A CFD is a contract with a provider that pays you, or charges you, the change in a price without you owning the asset. No rulebook sets the names, so each provider decides what its own labels mean. Most of these labels change only a few things: how you pay for each trade, whether you pay overnight charges and which legal protections cover you.

The forex account types you’ll meet are explained here, with the cost of a standard account measured against a raw one. The page looks at minimum deposits, the account currency and what happens when you open a trading account. The last part explains why deposit bonuses have gone wherever [the company that opens your account](https://thetraderwiki.com/en/broker-groups-and-regulators/) is regulated in the EU, the UK or Australia. A demo trading account has its own page ([demo accounts](https://thetraderwiki.com/en/demo-accounts/)).

## Key points

- The spread alone is the charge on a standard account. On a raw spread or ECN account you see a tighter spread, and every trade carries a [commission](https://thetraderwiki.com/en/glossary/#commission).
- To compare two account types fairly, work out the total cost of a round trip at your own trade size. That total is the spread plus the commission for opening and closing.
- An Islamic or swap-free account removes [overnight financing](https://thetraderwiki.com/en/glossary/#overnight-financing). Providers usually replace it with an administration fee, a wider spread or a time limit.
- A professional account at a company regulated in the EU or the UK gives you higher [leverage](https://thetraderwiki.com/en/glossary/#leverage) but takes away the retail protections, including [negative balance protection](https://thetraderwiki.com/en/glossary/#negative-balance-protection) ([becoming a professional client](https://thetraderwiki.com/en/maximum-leverage/#professional)).
- A low minimum deposit tells you how little you can deposit. It doesn’t tell you how much a trade can lose.
- For [retail clients](https://thetraderwiki.com/en/glossary/#retail-client) of a company regulated in the EU or the UK, [ESMA](https://www.esma.europa.eu/) and [FCA](https://www.fca.org.uk/) rules ban bonuses for opening or funding an account ([ESMA Decision (EU) 2018/796](https://eur-lex.europa.eu/eli/dec/2018/796/oj), [FCA PS19/18](https://www.fca.org.uk/publications/policy-statements/ps19-18-restricting-contract-difference-products-sold-retail-clients)).

## Forex and CFD account types compared

Account types at a forex or CFD provider differ in a handful of terms. The table lists what each common label usually changes. Providers define their own labels, so the terms on their own page are the ones that count.

*Common trading account types and what each one usually changes.*

| Account type | How you pay | What it changes |
| --- | --- | --- |
| Standard | Spread only, no commission | The whole trading cost sits inside a wider spread |
| Raw spread, ECN or zero spread | Tight spread plus a commission per [lot](https://thetraderwiki.com/en/glossary/#lot) | The cost is split in two, and the commission is fixed while the spread moves |
| Islamic or swap-free | Spread or commission, plus a fee that replaces the swap | No overnight financing is charged or paid |
| Demo | Nothing: the money is pretend | You learn the platform without risk, and without realistic order fills |
| Professional | Same pricing models as retail | Higher leverage, and the EU or UK retail protections no longer apply |
| Cent or micro | Usually spread only | Smaller trade sizes and a balance shown in cents, mostly offered offshore |
| Corporate | Same pricing models | The account is held by a company, which needs company documents to open it |

## Standard account versus raw spread or ECN account

A standard account and a raw spread account let you pay the same provider for the same trade. What sets them apart is where the charge appears.

### What is a standard account?

A standard account is one where the spread is the only trading cost you see. The spread is the gap between the price you can buy at and the price you can sell at. Your provider widens that gap a little beyond what it gets from its own price sources, and the extra is its pay. You’ll see no commission line on your statement, which makes the sums easy. Many providers call this account classic or simply the default ([costs and fees](https://thetraderwiki.com/en/costs-and-fees/#spread)).

### What is a raw spread account?

A raw spread account passes on the provider’s own price feed with little or no extra added, and charges a commission per lot instead. A lot is the standard unit of trade size in forex. The spread on a busy pair can be close to zero at quiet times, so some providers call this a zero spread account. The commission is charged when you open a trade and again when you close it, so the advertised spread is only part of what you pay.

### What is an ECN account?

At most retail providers, an ECN account is another name for a raw spread account. The letters stand for electronic communication network. That’s a system matching buy and sell orders from many participants. STP, or straight-through processing, means no dealer handles your order and the provider passes it on. Both labels describe how a provider says it gets its prices and [hedges](https://thetraderwiki.com/en/glossary/#hedging) your trades, meaning how it offsets them elsewhere. Whatever the account is called, a CFD is still a contract between you and the provider, who remains your [counterparty](https://thetraderwiki.com/en/glossary/#counterparty) ([how a trade works](https://thetraderwiki.com/en/how-cfd-trading-works/)).

## A worked cost comparison: standard against raw

*Illustrative figures: a made-up example, not a forecast or a quote.*

The cost comparison works with made-up numbers for one round trip of one standard lot on a major currency pair. On that pair, one [pip](https://thetraderwiki.com/en/glossary/#pip) is worth $10. A pip is the smallest standard step in a currency price. The standard account quotes a spread of 1.2 pips and has no commission, while the raw account quotes 0.2 pips and charges $3.50 per lot each way.

*Illustrative cost of one round trip of one lot. The figures are an example and describe no real provider.*

| Cost | Standard account | Raw spread account |
| --- | --- | --- |
| Spread | 1.2 pips × $10 = $12.00 | 0.2 pips × $10 = $2.00 |
| Commission to open | $0 | $3.50 |
| Commission to close | $0 | $3.50 |
| Total for one round trip | $12.00 | $9.00 |
| Total for 100 round trips | $1,200 | $900 |
| Same trade when spreads widen by 1 pip around news | $22.00 | $19.00 |

Here the raw account works out $3 cheaper per trade, and that gap only matters if you trade often. With different numbers the answer can flip. At a standard spread of 0.8 pips, the standard account would cost $8 and beat the raw account’s $9. So compare the two using the averages a provider publishes, since a “from” figure is the lowest it ever gets.

## What is an Islamic or swap-free account?

An Islamic account, or swap-free account, is one in which your provider doesn’t charge or pay overnight financing. This financing is often called the swap, and it’s an interest-based charge for holding a leveraged trade past the daily cut-off, known as the [rollover](https://thetraderwiki.com/en/glossary/#rollover). Providers offer the account for people whose faith forbids paying or receiving interest.

Swap-free doesn’t mean free. Your provider still has its own financing cost, so it usually recovers that money another way. Most often, you pay a fixed administration fee for each night once a few free nights have passed. Other methods are a wider spread, a higher commission, or a limit on how long a trade can stay open. Some markets may be left out of the account altogether. If you hold a trade for weeks, the replacement fee can come to more than the swap would have ([costs and fees](https://thetraderwiki.com/en/costs-and-fees/#overnight-financing)).

Who can open an Islamic forex account depends on the provider. Some ask you to state your faith, some offer it only in certain countries, and some give it to anyone. Whether an account follows religious rules is for you and a scholar you trust to decide. A provider’s label doesn’t settle it, and no regulator certifies these accounts.

## What is a professional trading account?

A professional trading account is an account where your provider has classed you as a [professional client](https://thetraderwiki.com/en/glossary/#professional-client). A retail client is any ordinary customer. The law gives retail clients more protection when the company that opens your account is regulated in the EU or the UK. You can ask an EU company for professional status if you meet two of three tests. The tests are ten significant trades a quarter over the last four quarters, a portfolio worth more than €500,000, or at least a year in a relevant job in finance ([Directive 2014/65/EU](https://eur-lex.europa.eu/eli/dir/2014/65/oj), Annex II).

At those companies, professional status buys you higher leverage, but you give up the full set of retail protections in return. The leverage caps disappear, along with the [margin close-out](https://thetraderwiki.com/en/glossary/#margin-close-out) rule that shuts your trades when your balance drops too far. You also lose negative balance protection, so you can end up owing your provider more than you paid in. Bonuses are no longer banned and the standard risk warning no longer applies ([becoming a professional client](https://thetraderwiki.com/en/maximum-leverage/#professional)). Spreads and commissions normally match what you’d pay on a retail account.

## Minimum deposit, account currency and trade size

Minimum deposit, account currency and smallest trade size are terms that sit beside the account type but get less attention. Cent and micro accounts, built for very small balances, come last.

- **Minimum deposit**: The minimum deposit is the smallest first payment a provider accepts for an account type. Raw spread accounts often ask for more than standard ones, and some providers set no minimum at all. A small deposit still has to cover the [margin](https://thetraderwiki.com/en/glossary/#margin) on each trade, the money held against it. So a tiny balance can be closed out by a small price move ([leverage and margin](https://thetraderwiki.com/en/leverage-and-margin/)).
- **Account currency**: Your balance, profits and fees are held in the account currency. Providers often refer to this as the account’s [base currency](https://thetraderwiki.com/en/costs-and-fees/#currency-conversion). That’s a different thing from the base currency of a pair. If you trade a market priced in another currency, your provider converts each profit, loss and charge, and takes a conversion fee. You usually can’t switch the currency once the account is open.
- **Smallest trade size**: Whether a small balance can follow a sensible risk rule depends on the smallest trade size. An account that only allows large trades forces a small balance to risk too much on each one ([pips and lots](https://thetraderwiki.com/en/pips-lots-and-position-size/)).
- **Cent and micro accounts**: Cent and micro accounts are built for very small balances. Balances in a cent account are shown in cents, so a small deposit looks like a large number. You can trade a hundredth of a standard lot with a micro account. Mostly you’ll find these accounts at offshore providers.

## How to open a trading account: what the process involves

Opening a trading account with a company regulated in the UK or the EU needs three steps, and one of them is a legal duty the provider can’t skip.

1. **Application form** The application form asks who you are, where you live, what you earn and where your money comes from. On the same form you choose the account type, the platform and the account currency.
2. **Appropriateness test** The appropriateness test is a set of questions about your knowledge and experience of the product. Asking these questions is a duty for a UK provider ([FCA COBS 10.2](https://www.handbook.fca.org.uk/handbook/COBS/10/2.html)). The provider has to warn you if your answers suggest the product isn’t appropriate for you, and then decides whether to let you go ahead ([FCA COBS 10.3](https://www.handbook.fca.org.uk/handbook/COBS/10/3.html)). EU providers have the same duty under MiFID II ([Directive 2014/65/EU](https://eur-lex.europa.eu/eli/dir/2014/65/oj), Article 25).
3. **Funding the account** To fund the account, you send your first deposit by bank transfer, card or a payment service, in your own name. Withdrawals normally return by the same route ([payment methods](https://thetraderwiki.com/en/payment-rails-by-country/)).

## Deposit bonuses and no deposit bonuses

Deposit bonuses, welcome bonuses and no deposit bonuses are banned for retail clients when the company that opens your account is regulated in the EU. ESMA, the EU’s markets regulator, stopped EU providers from giving retail clients any payment or benefit linked to a CFD account, except for information and research tools ([ESMA Decision (EU) 2018/796](https://eur-lex.europa.eu/eli/dec/2018/796/oj)). From 1 August 2019, the FCA made this ban permanent for firms in the UK ([FCA PS19/18](https://www.fca.org.uk/publications/policy-statements/ps19-18-restricting-contract-difference-products-sold-retail-clients)).

Australia followed. From 29 March 2021, [ASIC](https://asic.gov.au/) banned inducements like trading credits, rebates and free gifts for retail clients of companies regulated in Australia ([ASIC 20-254MR](https://asic.gov.au/about-asic/news-centre/find-a-media-release/2020-releases/20-254mr-asic-product-intervention-order-strengthens-cfd-protections/)).

A forex sign-up bonus advertised today comes from a company outside those rules, usually a global company in the group, licensed by its own country’s regulator ([offshore entities](https://thetraderwiki.com/en/offshore-brokers/)). The terms matter more than the headline. Often, a bonus is credit you can trade with but not withdraw, and any profit may be locked until you’ve traded a set volume. Some terms allow the provider to reclaim the bonus when you request a withdrawal. Regulators banned bonuses because they encourage people to trade more than they would otherwise.

## No account type changes the odds

> **Risk warning.** No account type changes the odds of the product. A raw spread lowers the cost of each trade, and a swap-free account shifts a charge from one line to another. The leverage and the risk remain unchanged. National regulators found that between 74 % and 89 % of retail accounts lost money, as ESMA reported in 2018 ([ESMA press release](https://www.esma.europa.eu/press-news/esma-news/esma-agrees-prohibit-binary-options-and-restrict-cfds-protect-retail-investors)). A professional account removes the rules made in response to those figures.

## Account type questions people ask

Mostly, when people ask about account types, they want to know about cost, protection and what a label really means.

### What is a demo trading account?

A demo trading account copies your provider’s platform and uses pretend money. It displays real or slightly delayed prices and offers the same order types as a live account, so you can learn the platform at no cost. It doesn’t copy how live orders are filled, and it doesn’t copy how a real loss feels, so demo results tend to look better than live ones ([demo accounts](https://thetraderwiki.com/en/demo-accounts/)).

### Is a raw spread account cheaper than a standard account?

A raw spread account works out cheaper only when the spread you pay plus the commission is smaller than the spread on a standard account. Whether that happens depends on your provider, the market and the time of day. Take the average spread, add the commission for both opening and closing, then set that total against the standard account’s average spread ([costs and fees](https://thetraderwiki.com/en/costs-and-fees/#commission)).

### Does a swap-free account have no overnight costs?

A swap-free account has no swap. In its place, it usually carries a different cost. Providers commonly charge an administration fee after a set number of nights, widen the spread, raise the commission or limit how long a trade can stay open. The account’s terms show which of these apply.

### What is the minimum deposit for a forex account?

The minimum deposit for a forex account varies by provider and account type, and some providers have none. A different question is how much you need to trade sensibly. That depends on the margin your trade size calls for and on the share of your balance you’re ready to lose on a single trade ([risk management](https://thetraderwiki.com/en/risk-management/#position-sizing)).

### Which brokers offer ECN, Islamic or no-minimum accounts?

Brokers differ in which ECN, Islamic and no-minimum accounts they offer, and the same brand can offer different accounts in different countries. TheTraderWiki doesn’t rank providers. Our comparison shows what each one publishes about its accounts, costs and regulator so you can check for yourself ([compare brokers](https://thetraderwiki.com/en/compare-brokers/), [choosing a provider](https://thetraderwiki.com/en/choosing-a-provider/)).

### Are no deposit bonuses legal in forex?

No deposit bonuses are banned for retail clients of providers regulated in the EU, the UK and Australia ([ESMA Decision (EU) 2018/796](https://eur-lex.europa.eu/eli/dec/2018/796/oj), [FCA PS19/18](https://www.fca.org.uk/publications/policy-statements/ps19-18-restricting-contract-difference-products-sold-retail-clients), [ASIC 20-254MR](https://asic.gov.au/about-asic/news-centre/find-a-media-release/2020-releases/20-254mr-asic-product-intervention-order-strengthens-cfd-protections/)). Providers licensed elsewhere may still offer them. You usually can’t withdraw the bonus, and profits are often locked until you’ve traded a set volume.

## Sources

The original documents this page cites, in the order they first appear.

1. [European Securities and Markets Authority](https://www.esma.europa.eu/), ESMA
2. [Financial Conduct Authority](https://www.fca.org.uk/), FCA
3. [ESMA Decision (EU) 2018/796 of 22 May 2018 to temporarily restrict contracts for differences in the Union](https://eur-lex.europa.eu/eli/dec/2018/796/oj), Official Journal of the European Union (EUR-Lex), 2018-05-22
4. [PS19/18: Restricting contract for difference products sold to retail clients](https://www.fca.org.uk/publications/policy-statements/ps19-18-restricting-contract-difference-products-sold-retail-clients), FCA, 2019-07-01
5. [Directive 2014/65/EU on markets in financial instruments (MiFID II)](https://eur-lex.europa.eu/eli/dir/2014/65/oj), EUR-Lex, 2014-05-15
6. [COBS 10.2 Assessing appropriateness: the obligations](https://www.handbook.fca.org.uk/handbook/COBS/10/2.html), FCA Handbook
7. [COBS 10.3 Warning the client](https://www.handbook.fca.org.uk/handbook/COBS/10/3.html), FCA Handbook
8. [Australian Securities and Investments Commission](https://asic.gov.au/), ASIC
9. [20-254MR ASIC product intervention order strengthens CFD protections](https://asic.gov.au/about-asic/news-centre/find-a-media-release/2020-releases/20-254mr-asic-product-intervention-order-strengthens-cfd-protections/), ASIC, 2020-10-23
10. [ESMA agrees to prohibit binary options and restrict CFDs to protect retail investors](https://www.esma.europa.eu/press-news/esma-news/esma-agrees-prohibit-binary-options-and-restrict-cfds-protect-retail-investors), ESMA, 2018-03-27

## Related pages

- [Demo trading account: what it teaches and what it hides](https://thetraderwiki.com/en/demo-accounts/): What a demo copies and leaves out, how to set one up like a real account, a practice plan, and when to stop.
- [CFD and forex trading fees: spread, swap, commission](https://thetraderwiki.com/en/costs-and-fees/): Every cost of a CFD trade: spread, commission, overnight financing, weekend charges and account fees.
- [Choosing a forex broker or CFD broker without a ranking](https://thetraderwiki.com/en/choosing-a-provider/): Licence checks, how your money is protected, all-in costs, execution, withdrawals and red flags.
- [Is forex and CFD trading safe, legal or a scam?](https://thetraderwiki.com/en/is-forex-and-cfd-trading-safe/): Legal in most countries, risky everywhere: how to tell a real product from a fraud, country by country.
- [CFD and forex broker comparison: leverage and platforms](https://thetraderwiki.com/en/compare-brokers/): Six brokers in nineteen countries, compared on facts you can check yourself.

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CFDs are complex, leveraged products, and the regulators’ own figures show that most retail accounts lose money. Nothing on TheTraderWiki is investment advice. Read the full [risk disclosure](https://thetraderwiki.com/en/risk-disclosure/), and if you’re unsure, talk to a qualified adviser. Broker details can change and they can be wrong. Before you open an account, confirm them with the broker and the regulator’s register.