MT4, MT5 and cTrader: which to pick
Compare how each platform receives an order
MT4 was built for currencies. Its order ticket asks for a symbol, a volume in lots, a stop loss and a take profit. It holds the order until the market reaches your price or you cancel it. That design suits one pair at a time.
MT5 keeps the same ticket but adds more fields. You can choose a fill policy, such as fill or kill, which cancels the order if it cannot be filled at your price. You can also set an expiry date. Those fields exist because MT5 handles more than currencies, including shares and futures.
cTrader shows the same choices in a different order. It asks for volume in units, not lots, and shows the cost before you send. The difference matters when you compare two platforms side by side, because the same order can appear to cost more on one screen simply because that screen shows a fee the other hides until later.
Check the account type behind the platform
A platform is software. The account type is a contract with the broker. One broker may offer three account types on the same platform, each with a different spread, commission and minimum trade size. Two brokers may offer the same platform with different account types again.
In Kenya, the broker must be licensed by the CMA. The CMA licence covers the broker, not the platform. So two brokers can both be licensed and still offer different account terms. The platform name tells you nothing about the spread you will pay.
Changing platform is usually a download and a login. Changing account type may need a new application, new documents and a new deposit. If you later find the spread is too wide, the platform change is easy. The account change is the part that costs time.
Work out the cost in shillings before you deposit
Take one standard lot of EUR/USD at 1.0850. One pip is 0.0001. Multiply 100,000 by 0.0001 to get 10 units of the quote currency. Multiply 10 by 1.0850 to get 10.85 units. At the rate your broker uses, that is about KSh 1,085. The rate varies between brokers and between days.
Now add the spread and any commission. If the spread is one pip, your cost on the round trip is about KSh 1,085 before commission. If the account charges a commission, add it. The platform may show the pip value alone, which is not your total cost.
Write down the pip value in KSh for 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. Do this before you deposit, not after.
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.
Doing it once, step by step
You will open a demo account on one platform, place a small EUR/USD order, and record the costs. Do this once for each platform you are considering.
- 01
Open a demo account
Choose one broker licensed by the CMA. Open a demo account, not a live one. Use the same account type you would use with real money. Write down the account type name.
- 02
Find the order ticket
Open the EUR/USD chart. Find the button that opens a new order. On MT4 and MT5 it is usually called New Order. On cTrader it is usually called New Order as well. Do not send the order yet.
- 03
Enter the volume
On MT4 and MT5, type 0.10 in the volume field. On cTrader, type 10000, because cTrader uses units. Check that the platform shows the same notional size on both. If it does not, you have typed the wrong number.
- 04
Read the cost preview
Before you send, look for the cost preview or the margin required. It may show the spread, the commission and the pip value. Write down each figure. If the platform does not show a cost preview, note that as a gap.
- 05
Send the order and close it
Send the order on the demo account. Then close it immediately. The loss or gain will be small. The point is to see the actual cost deducted. Compare that figure with the one you wrote down.
- 06
Repeat on the other platforms
Do the same on the other two platforms. Use the same broker if possible. Compare the three cost figures in shillings. The platform you find clearest is the one to use, provided the account type behind it fits your budget.
The mistake most 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.
Questions that come up next
Can I use the same account on more than one platform at the same time?
It depends on the broker. Some brokers let one account log in to both MT4 and MT5. Others issue separate account numbers for each platform. You may need to move funds between them. Ask the broker before you assume one login works everywhere.
If I switch platform, do I have to close my open trades?
Usually you do not close them. The trades sit on the broker's server, not on your computer. You can log in to the new platform and see the same positions. Check that the new platform shows the same trade numbers before you rely on it. If the broker uses separate accounts per platform, you cannot see them at all.
Does cTrader always show the full cost before I send an order?
It shows a cost preview, but that preview may not include every charge. Swap or overnight fees are often added later. Commission may be shown separately. The preview is a guide, not a final bill. Compare it with your account statement after the trade closes.
How do I know which account type my platform defaults to?
The platform does not choose the account type. The broker does. When you open an account, the broker assigns a type or asks you to pick one. The platform then shows the spreads and commissions for that type. If you are unsure, ask the broker which type your login uses.
Can I change the pip value shown on my platform?
No. The pip value is fixed by the lot size and the exchange rate. You can change the lot size, which changes the pip value. The platform may round the figure. It may also use a different conversion rate from the one you used. Check the cost preview before you send the order.
What should I do if the platform shows a different pip value from my own calculation?
First check the lot size and the exchange rate you used. Small differences come from rounding. A large difference usually means you missed a charge, such as commission or a wider spread. Ask the broker which cost you have not included. Do not place the order until you understand the gap.
The words used on this page
- order ticket
- The window on a platform where you type the details of a trade. It asks for the symbol, the size and any stop levels. Each platform arranges these fields differently.
- fill policy
- A setting that tells the platform what to do if it cannot fill your order at your price. Fill or kill cancels the order instead of filling it at a worse price. Not every platform offers this field.
- volume
- The size of your trade. MT4 and MT5 ask for it in lots. cTrader asks for it in units. One standard lot is 100,000 units.
- commission
- A fee charged by the broker on top of the spread. It is usually a fixed amount per lot or per trade. Some account types charge it, others do not.
- cost preview
- A screen that shows the estimated cost of a trade before you send it. It may include the spread and commission. It may leave out swap fees. Treat it as an estimate, not a final figure.
- CMA
- The Capital Markets Authority. It is the regulator that licenses brokers in Kenya. A licence covers the broker, not the platform. Two licensed brokers can still offer different account terms.
What to take away
- The platform is software you can change; the account type is a contract that is harder to change.
- Check the account type behind the platform before you deposit, because the spread and commission come from the account, not the platform.
- Work out the pip value in KSh for one standard lot on your chosen account, then compare it with the platform's cost preview.
- If the two figures do not match, ask the broker which cost you have missed.