MT4, MT5 and cTrader: which to pick
What you learn in 3 minutesThe letters MT4, MT5 and cTrader are names of trading platforms. A platform is the screen where orders are placed, prices are shown and the account statement is read. It is not the broker and not the account itself. This lesson shows where each field of one AUD/USD trade is filled in, and what the same trade costs in A$ on each screen. The choice of platform can be changed later. The account type behind it usually cannot, or only at a cost.
One trade, three order tickets, A$6.64 a pip
| Step | Amount | Note |
|---|---|---|
| Instrument field | AUD/USD | the pair is chosen from a list; all three platforms show it the same way |
| Volume field | 0.10 lots | MT4 and MT5 call this Volume or Lots; cTrader calls it Quantity in units, so 0.10 lots is 10,000 units |
| Order type field | Market or Pending | MT4 and MT5 separate Instant and Pending orders; cTrader places the same choice inside one ticket |
| Price field | 0.6640 | the current AUD/USD rate used for this example |
| Stop loss field | 0.6620 | 20 pips below entry, typed in the same box on all three |
| Pip value | A$6.64 | one pip on one standard lot is 10 units of the quote currency; 10 x 0.6640 = A$6.64; on 0.10 lots this is A$0.664 |
| Cost shown before sending | A$0.66 spread plus commission | spread cost on 0.10 lots is 0.664 x 1 pip; commission is quoted separately and varies by broker |
Each broker may round the pip value, quote the spread in points rather than pips, and add a commission or swap that is not in the order ticket. The figures here are for the example only.
The mistake people make here
The common mistake is choosing a platform because a friend uses it, then discovering the account behind it does not offer the instrument or the order type that was wanted. Another mistake is comparing platforms by the look of the chart rather than by the statement. Open the account statement in each platform first and check how spread, commission and swap are listed. If those three lines are clear, the platform choice is easy to reverse later.Check yourself
On 0.10 lots of AUD/USD at 0.6640, what is the pip value in A$?
One pip on one standard lot is 10 units of the quote currency, so 10 x 0.6640 = A$6.64. On 0.10 lots that is A$6.64 x 0.10 = A$0.664.
A stop loss is set 20 pips away on 0.10 lots. What is the loss in A$ before costs?
20 pips x A$0.664 = A$13.28. Costs such as spread and commission are added on top and are not included in this figure.