MT4, MT5 and cTrader: which to pick
What you learn in 3 minutesA reader asked: 'I want to try a demo trade on USD/ZAR. Does it matter if I use MT4, MT5 or cTrader, and will it change what I pay?' This lesson answers that. The platform is just the screen you click on. The account behind it decides your costs, your instruments and how orders are handled. On a USD/ZAR trade of 0.10 lots, the spread alone can differ by R18 or more between platforms, so the choice is worth ten minutes. The good news: changing platform later is usually free. Changing account type is not.
One USD/ZAR trade in three terminals: which fields you fill in
| Step | Amount | Note |
|---|---|---|
| Instrument | USD/ZAR | All three platforms list it, but MT5 and cTrader may show more ZAR pairs and CFDs than MT4. |
| Volume | 0.10 lots | On USD/ZAR, 1 lot is 100,000 USD. 0.10 lots is 10,000 USD. |
| Entry price | 18.4100 | The mid price used for this example. Your fill will be at the bid or ask. |
| Spread cost | R18.00 | If the spread is 10 pips and 1 pip on 0.10 lots is R1.80, then 10 x R1.80 = R18.00. |
| Order type field | Market or Pending | MT4 and MT5 separate these. cTrader uses a single order panel with a type selector. |
| Stop loss field | 18.3900 | 20 pips below entry. On 0.10 lots that is 20 x R1.80 = R36.00 at risk. |
| Take profit field | 18.4300 | 20 pips above entry. Same R36.00 potential, before costs. |
Your broker may round the pip value, charge a commission per lot, or quote a wider spread at news times. These figures vary between brokers and account types.
The mistake people make here
The common mistake is choosing a platform because a friend uses it, then discovering the account type behind it charges a commission per lot or does not offer the instrument you want. People also assume MT5 is simply 'MT4 with more' and open an MT5 account without checking whether their broker's MT5 feed handles USD/ZAR the same way. Instead, decide the account type first: check the spread, the commission and the minimum deposit in rand. Then pick the platform that supports that account and the instruments you need. The platform is reversible. The account type usually is not, without closing and reopening.Check yourself
On 0.10 lots of USD/ZAR, 1 pip is worth R1.80. If the spread is 12 pips, what is the spread cost in rand?
12 x R1.80 = R21.60.
You set a stop loss 25 pips away on 0.10 lots. What is the risk in rand, before any commission?
25 x R1.80 = R45.00.
If one platform quotes a 10-pip spread and another quotes a 15-pip spread on the same 0.10-lot trade, what is the difference in cost?
15 - 10 = 5 pips. 5 x R1.80 = R9.00 more on the wider spread.