Open a trading account and you're immediately asked to choose a type — and the names rarely explain themselves. The good news: there are only a handful, they differ in ways that genuinely matter, and once you understand what each is for, the right choice is usually obvious. Here's the plain-English version.
Demo — where everyone should start
A demo account trades with virtual money on live prices. It costs nothing and risks nothing, and it's the single best way to test a broker's platform, execution and your own strategy before real money is involved. Use it to learn the platform and to trial a broker on their live server — not just to "win" imaginary trades. Every serious plan starts here.
Classic — one all-in cost
A Classic (sometimes "Standard") account folds your entire trading cost into the spread. No separate commission, nothing else to track — the price you see includes the broker's cut. It's the simplest model, and for occasional or smaller-size trading it's usually the cheapest once you account for the commission you're not paying. Best for traders who want simplicity.
Raw — tight spread plus commission
A Raw (or "ECN"/"Raw Spread") account shows you the market's near-zero raw spread and charges a separate, fixed commission per lot instead. For frequent or larger-size trading, the tight spread compounds and the total cost often comes out lower than Classic. We break the maths down in Raw vs Classic accounts. Best for active and higher-volume traders.
Swap-free (Islamic) — no overnight interest
A swap-free account removes the overnight interest (swap) charged on positions held past rollover, in keeping with Shariah principles. If that matters to you, confirm the broker genuinely offers it and read the terms — some substitute a fixed admin fee. Important for many traders in the UAE and wider region.
How the types actually differ
Strip away the names and there are really only a few variables:
- Cost model — spread-only (Classic) vs raw spread + commission (Raw).
- Minimum deposit — varies by type; higher-tier accounts sometimes ask more.
- Overnight financing — standard vs swap-free.
- Execution — reputable brokers give every account type the same market execution and liquidity; only the cost packaging changes.
Choosing yours in one line
- New? → Demo first, always.
- Trade occasionally or in smaller size? → Classic — simplest, no commission to track.
- Trade often or in larger size? → Raw — the tight spread wins over many lots.
- Need no overnight interest? → Swap-free, if the broker offers it.
The type only changes how you pay, not the quality of what you get. Do the cost sum on your real pair and typical size, and pick the one that's cheaper for your trading. Compare the full line-up on the accounts page.
This article is general information for educational purposes only and is not investment advice. Trading leveraged products carries a high risk of loss.
