MT4, MT5 and cTrader: which to pick
What you learn in 3 minutesThis lesson compares MT4, MT5 and cTrader so you can see where each one asks you to fill in a field, and how that changes the cost of a single trade in shillings. Using one EUR/USD trade at around 1.0850, you will work out the pip value on one standard lot and see why the platform is easy to change but the account type behind it is not. The goal is a repeatable cost check you can run before you place any order.
One EUR/USD trade, three platforms, one pip value
| Step | Amount | Note |
|---|---|---|
| Instrument | EUR/USD | The pair is the same on all three platforms. |
| Price used | 1.0850 | A round number for the example only. |
| Volume | 1 standard lot | 100,000 units of the base currency. |
| One pip | 0.0001 | The fourth decimal place on EUR/USD. |
| Pip value in quote currency | 10 units | 100,000 x 0.0001 = 10. |
| Pip value in KSh | KSh 1,085 | 10 x 1.0850 = 10.85 units, converted at the current rate. The rate varies between brokers. |
| MT4 field to check | Volume in lots | You type 1.00 for one standard lot. |
| MT5 field to check | Volume in lots | Same entry, but MT5 shows more order types and more instruments. |
| cTrader field to check | Volume in units | You type 100000, not 1.00. This is the field people get wrong. |
The broker may round the pip value, charge a spread or commission on top, and quote a different conversion rate. Check the cost preview on your own platform before you send the order.
The mistake people make here
The common mistake is to pick a platform because a friend uses it, then open the account type that platform defaults to. MT4, MT5 and cTrader all place the same EUR/USD trade, but the account behind each one can have different spreads, commissions and minimum sizes. Changing platform later is usually simple; changing account type may need a new application and new documents. Before you deposit, write down the pip value in KSh for one standard lot on your chosen account, then compare it with the figure the platform shows. If the two do not match, ask the broker which cost you have missed.Check yourself
On one standard lot of EUR/USD at 1.0850, what is one pip worth in KSh?
One pip is 0.0001. 100,000 x 0.0001 = 10 units of the quote currency. 10 x 1.0850 = 10.85 units. At the current rate this is about KSh 1,085. The rate varies between brokers.
You want 0.10 lots on cTrader. What number do you type in the volume field?
cTrader uses units, not lots. 0.10 lots is 10,000 units, so you type 10000. On MT4 and MT5 you would type 0.10.
If the platform shows a pip value of KSh 1,085 but your account charges a commission, is your cost the same?
No. The pip value is only the price move. Commission and spread are charged on top, so your total cost is higher. Check the cost preview before you send the order.