MT4, MT5 and cTrader: which to pick
What you learn in 3 minutesThis lesson compares MT4, MT5 and cTrader by what each one shows you about cost, because the platform is reversible but the account behind it often is not. Using EUR/USD around 1.0850, one pip on one standard lot is 10 units of the quote currency, which converts to about ₦15,400 at that rate. You will see the same trade entered in three terminals and which fields you fill in on each.
One EUR/USD trade of 0.10 lots in three terminals
| Step | Amount | Note |
|---|---|---|
| Position size | 0.10 lots | One tenth of a standard lot, so the pip value is one tenth of ₦15,400 |
| Value of one pip | ₦1,540 | 10 units of the quote currency per pip on one standard lot, converted at 1.0850 and divided by ten |
| MT4 order ticket | Volume 0.10, Stop Loss, Take Profit | MT4 asks for volume in lots and two price fields; it does not show commission in the ticket |
| MT5 order ticket | Volume 0.10, Stop Loss, Take Profit, commission line | MT5 adds an order type menu and can show the commission before you send the order |
| cTrader order ticket | Quantity 10,000, Stop Loss, Take Profit | cTrader asks for quantity in units of the base currency, so 0.10 lots is written as 10,000 |
| Round-trip cost at ₦1,540 per pip | ₦3,080 for two pips | Two pips of spread on this position, before any commission |
The broker may round the pip value, charge a commission per lot, or quote a wider spread on the platform you choose. These figures vary between brokers and between account types, so check the contract specification before you trade.
The mistake people make here
People pick a platform because a friend uses it, then discover the account type behind it charges a commission they did not expect. The platform is easy to change; the account type usually is not. Before opening anything, ask for the contract specification and work out the cost of two pips on the size you plan to trade. If the commission is not shown in the order ticket, find it in the statement before you place a second trade.Check yourself
If one pip on one standard lot of EUR/USD is 10 units of the quote currency and the rate is 1.0850, what is one pip worth in naira on 0.10 lots?
10 units times 1.0850 is 10.85 units of the quote currency per pip on one standard lot. At 0.10 lots that is 1.085 units, which converts to about ₦1,540 at 1.0850.
You see a spread of two pips on a 0.10 lot EUR/USD trade. What does that cost in naira at ₦1,540 per pip?
Two pips times ₦1,540 is ₦3,080. That is the spread cost before any commission.
In cTrader the ticket asks for quantity in units. What number do you enter for 0.10 lots of EUR/USD?
10,000. One standard lot is 100,000 units, so 0.10 lots is 10,000 units.