As a true ECN forex broker, Vantage FX offer two types of forex trading accounts, but which account should you choose and why? We take a look at each account and answer the question below.
The RAW ECN forex trading account allows you to trade institutional grade liquidity direct from the world’s largest banks and institutions with no spread mark-up, just a small $3.00 commission.
This is Vantage FX’s flagship trading account and is meant for professional traders on a larger trading account.
The Standard STP forex trading account on the other hand, gives traders direct access to still tight, transparent spreads, but with absolutely no commissions
While still allowing Vantage FX clients to trade the same liquidity, we have applied a small spread mark-up on this account to allow for not charging commissions. This trading account is perfect for small to mid-sized accounts.
Which Account Should I Choose?
So which pricing model is right for you? The RAW pricing with commission, or the Standard account with spread mark up added. When choosing which account is right for you, it is important to consider total trading costs.
Through our own testing, it is clear that lower trading costs can be realised on the RAW ECN trading account that includes a markup free spread + commission.
The final benefit of choosing a RAW ECN account is that if you use but or sell stops in your forex trading strategy
Imagine that you have a buy limit order at 1.17518 or conversely a sell stop at 1.17512.
On a Standard STP account, your limit order would not be triggered, but your stop order would. On a RAW ECN account however, your limit order would be triggered, but your stop order would not.
If you like to trade forex with resting limit and stop orders in the market, it is much more advantageous for you to trade on a RAW ECN account that includes no spread markup and a small commission because you are more likely to have your take profits triggered, but less likely to have your stop losses hit as a result of the tighter spread.
Source: Vantage FX Blog