A detailed breakdown of Eightcap's Raw account commission structure of $3.50 per side USD. This guide explains how total trading costs are calculated, compares Raw vs Standard accounts, provides real-world examples, and offers essential risk controls to help you trade efficiently.
Raw Account The Eightcap Raw account is an ECN (Electronic Communication Network) style trading account designed for traders who demand the tightest possible spreads and transparent pricing. Unlike a Standard account where the broker adds a markup to the spread, the Raw account provides access to raw interbank spreads directly from top-tier liquidity providers.
Because the spreads are essentially the same as those available to institutional traders, they can be as low as 0.0 pips on major pairs like EURUSD. To compensate for offering these ultra-tight spreads, Eightcap charges a small commission on each trade. This commission is separate from the spread and is clearly defined as $3.50 per side per standard lot (USD).
Eightcap is a multi-regulated broker, with licenses from top-tier authorities including the FCA (UK), ASIC (Australia), CySEC (Cyprus), and FSCA (South Africa). This regulatory oversight ensures fair pricing and transparent execution, which is critical when trading with a commission-based account.
The term "per side" in Eightcap's commission structure refers to each leg of a trade. Every complete trade consists of two parts: opening the position and closing the position. Eightcap charges $3.50 for each of these actions, resulting in a total round-turn cost of $7.00 per standard lot.
Let's break it down:
This structure applies to all forex pairs and most CFD instruments. For other asset classes like indices, commodities, or cryptocurrencies, the commission structure may differ, so it's always best to check the specific contract specifications on Eightcap's official website.
The commission is calculated based on the trade size:
When trading on the Raw account, your total trading cost is the sum of the raw spread (in pips) and the commission. To accurately calculate this, you need to know the pip value for the instrument you are trading.
Formula: Total Cost = (Spread in Pips × Pip Value) + Round-Turn Commission
Choosing between the Raw and Standard account depends on your trading style. The Standard account has no commission but wider spreads, while the Raw account has tight spreads plus a commission. The table below illustrates the total cost for a 1-lot EURUSD trade under different spread conditions.
| Account Type | Spread (EURUSD) | Commission (Round-Turn) | Total Cost (1 Lot) |
|---|---|---|---|
| Standard Account | 1.0 pip (average) | $0 | $10.00 |
| Raw Account | 0.2 pips (low volatility) | $7.00 | $9.00 |
| Raw Account | 0.0 pips (ideal) | $7.00 | $7.00 |
| Raw Account | 0.5 pips (high volatility) | $7.00 | $12.00 |
Data based on typical spreads. Raw spreads vary with market conditions. Always check live spreads on the platform.
As shown, the Raw account is significantly cheaper when spreads are tight. However, during periods of high volatility (e.g., news events), spreads may widen, potentially making the Standard account more competitive for that specific trade.
Let's examine how these costs affect different types of traders.
Trader: Sarah, a scalper who makes 10 round-turn trades per day on EURUSD, using 1 lot per trade.
Standard Account Cost: 10 trades × $10 = $100/day.
Raw Account Cost (0.2 pips): 10 trades × $9 = $90/day.
Savings: $10/day. Over 20 trading days, Sarah saves $200/month by using the Raw account.
Trader: James, a swing trader who places 5 trades per month, holding positions for several days. He trades 2 lots per trade.
Standard Account Cost (1.0 pip): 5 trades × ($10 × 2 lots) = $100/month.
Raw Account Cost (0.2 pips): 5 trades × ($9 × 2 lots) = $90/month.
Savings: $10/month. While less significant than for a scalper, the Raw account still offers a cost advantage.
Trader: Maria, who trades 0.1 lots (mini lots) and executes 3 trades per week.
Standard Account Cost: 3 trades × ($10 × 0.1) = $3/week.
Raw Account Cost: 3 trades × ($9 × 0.1) = $2.70/week.
For smaller trade sizes, the cost difference is minimal, but the Raw account still provides slightly lower costs and tighter spreads, which can be beneficial for entry/exit precision.
Many traders misinterpret commission structures. Here are some of the most frequent misunderstandings about Eightcap's Raw account commission.
Effective risk management is crucial, especially when dealing with commission-based accounts. Here are essential controls to prevent costs from eroding your profits.
Trading forex and CFDs involves significant risk. You can lose more than your initial deposit. According to FCA data, approximately 74% of retail investor accounts lose money when trading CFDs. Costs like commissions and spreads contribute to these losses if not managed properly.
For authoritative guidance on trading risk, refer to the CFTC's retail forex education materials and the BIS publications on foreign exchange. These sources offer independent, non-commercial advice on navigating market volatility and managing trading costs.
Eightcap charges a commission of $3.50 per side per standard lot. This means $3.50 when you open a trade and $3.50 when you close it, totaling $7.00 for a full round-turn trade.
"Per side" refers to each leg of a trade (open and close) and is calculated per standard lot. The commission scales linearly with trade size (e.g., 2 lots = $7.00 per side, $14.00 round-turn).
The total round-turn commission for a 1-lot trade is $7.00 ($3.50 to open + $3.50 to close).
No, the spread on the Raw account is variable. It reflects the underlying interbank market and can fluctuate based on liquidity, volatility, and market conditions. However, it is often as low as 0.0 pips.
Yes, the Raw account commission applies to Forex and most CFD trades. However, the commission rate may differ for specific asset classes like indices or commodities. Always check the contract specifications on the platform.
The Raw account is generally cheaper for active traders due to the significantly tighter spreads. However, during periods of extreme spread widening, the Standard account (which has no commission) can become more cost-effective for that specific trade.
No, the commission is a transaction fee for opening and closing trades. It does not include overnight swap fees (rollover interest), which are calculated separately if you hold positions past the daily cutoff time.
Use the formula: Total Cost = (Spread in Pips × Pip Value) + Round-Turn Commission. For example, a 1-lot EURUSD trade with a 0.2 pip spread and $7 commission costs $2 + $7 = $9.