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4 Digit & 5 Digit Brokers

  • #1
  • First Post: Dec 7, 2009 11:27am Dec 7, 2009 11:27am
I have a question in regards 4 and 5 digit brokers, the thing that i dont understand is if a 5 digit broker moves 10 pips.. is that just 1 pip for the 1 4 digit broker ??

for example:

Price on a 5 digit is 1.47612 and if it moves 10 pips its 1.47622

but the same move on a 4 digit broker is: 1.4761 and then after the 10 pip move is 1.4762 so its just 1 pip

i was wondering if this is correct.. and if so.. what does it mean ?? wich one is better ?? and when people talk about stop loss and profit by pips could be very confusing if someone is talking about a 30 pip SL or a 50 pip profit and is using a 4 digit account it would mean that its actualy a 300 SL and a 500 profit..

I hope someone can help out cause i find this very confusing..

Thanks!!
  • #2
  • Dec 7, 2009 11:41am Dec 7, 2009 11:41am
The extra digit is equal to 0.1 pips. MT4 doesn't have the capability to understand fractional pips so a 10 pip move will show up as 100 on the screen for a 5 digit broker.
  • #3
  • Dec 7, 2009 4:18pm Dec 7, 2009 4:18pm
so its basically the same thing then ?
  • #4
  • Dec 8, 2009 6:53pm Dec 8, 2009 6:53pm
yes it is.
  • #5
  • Mar 19, 2013 4:45am Mar 19, 2013 4:45am
But check out this screen shot, and i have tried it with both the broker, Oanda and Fxopen, Oanda is demo and Fxopen is live.

This doesnt seem the same, i tried the trade with both the systems and Oanda goes into possitive profit much quicker than Fxopen.

I aint no expert but i am just a bit confused here.
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  • #6
  • Mar 19, 2013 6:18am Mar 19, 2013 6:18am
Quoting zahmed
But check out this screen shot, and i have tried it with both the broker, Oanda and Fxopen, Oanda is demo and Fxopen is live.

This doesnt seem the same, i tried the trade with both the systems and Oanda goes into possitive profit much quicker than Fxopen.

I aint no expert but i am just a bit confused here.

IMO these feeds are different from broker to broker according to their servers.
  • #7
  • Mar 19, 2013 7:42am Mar 19, 2013 7:42am
Quoting zahmed
But check out this screen shot, and i have tried it with both the broker, Oanda and Fxopen, Oanda is demo and Fxopen is live.

This doesnt seem the same, i tried the trade with both the systems and Oanda goes into possitive profit much quicker than Fxopen.

I aint no expert but i am just a bit confused here.
Come on, this is because the spread is a lot wider on your FxOpen example, it has nothing to do with the 4 or 5 digits.
That's basic maths ... You have a spread of 2,2 pips on Oanda and 10 pips on FxOpen (almost 5 times more !)

0,001 = 0,00100, compared to 0,00022
  • #8
  • Mar 19, 2013 9:18pm Mar 19, 2013 9:18pm
So you think all feeds are equal - LOL check this out - Alpari demo vs FXDD Live - these crooks just running those limits.

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  • #9
  • Dec 20, 2018 8:52pm Dec 20, 2018 8:52pm
Quoting acereto
I have a question in regards 4 and 5 digit brokers, the thing that i dont understand is if a 5 digit broker moves 10 pips.. is that just 1 pip for the 1 4 digit broker ?? for example: Price on a 5 digit is 1.47612 and if it moves 10 pips its 1.47622 but the same move on a 4 digit broker is: 1.4761 and then after the 10 pip move is 1.4762 so its just 1 pip i was wondering if this is correct.. and if so.. what does it mean ?? wich one is better ?? and when people talk about stop loss and profit by pips could be very confusing if someone is talking...
Can anyone explain this matter in details. How the 0.1 will be counted to profit?
I am also confused.
  • #10
  • Dec 23, 2018 7:23am Dec 23, 2018 7:23am
Finally you will receive a little bit different data and if you use any calculations, it will be not so pretty as with 5 digits. Besides, mostly all professional traders use 5 digits for more accuracy.
  • #11
  • Dec 24, 2018 4:17am Dec 24, 2018 4:17am
Quoting Zamry
{quote} Can anyone explain this matter in details. How the 0.1 will be counted to profit? I am also confused.
The way your broker displays the price shouldn't affect your trading, since pip value (0.0001 change of the exchange rate) can be calculated by multiplying lot size by 0.0001

For example for one standard lot (100000 base currency units) whether your broker quotes 1.1345 or 1.13451 pip value will be 10$.
But it's a matter of taste and choice which quotes to choose. I got used to 5-decimals with Hotforex and Tickmill, although I don't do scalping at all.
  • #12
  • Last Post: Dec 27, 2018 10:25pm Dec 27, 2018 10:25pm
Quoting dispersion
{quote} The way your broker displays the price shouldn't affect your trading, since pip value (0.0001 change of the exchange rate) can be calculated by multiplying lot size by 0.0001 For example for one standard lot (100000 base currency units) whether your broker quotes 1.1345 or 1.13451 pip value will be 10$. But it's a matter of taste and choice which quotes to choose. I got used to 5-decimals with Hotforex and Tickmill, although I don't do scalping at all.

Thank you dispersion with ur explaination.
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