It’s easier to see th price changes in 5 digits and yes, it is better for scalping
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The only difference i’ve noticed is with 5 digit there is no requote and is faster.
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in a 5 digit platform how do you figure your profit? I had a trade that I thought I made 2500 pips on but it turns out it was only 250 because of the 5 digit spread.
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That’s right, because 5 digits is like 1/10th of a pip, so 2500 / 10 = 250.
Someone made the point that with 5 digits, someone can offer 1.9-pip spreads as opposed to 2-pip spreads.
If you are a day or position trader, even a pip difference in the spread is not going to make that big a difference in the bottom line.
I’d rather have a good reliable broker, than a small pip spread. If you have poor execution, like FXCM, they might offer low spreads, but what differnce is it if you can’t get in the trade. I don’t like my current broker, but one thing is I have no problems getting my trades executed.
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I agree with for example alpari nz I pay 0.5 pips for eur/usd that’s what I call a deal
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The one complaint I have seen about 5 digits is that it makes it harder to calculate the spread, especially on MT4. Maybe metaquotes will create a better layout in MT5 to make the 5th decimal superscript or something.
I know that this quote was from a wile back on this thread, however it may be worth mentioning that you can get a custom indicator which actually displays the spread on the MT4 screen while your watching price move. I use this, and it helps quite allot with respect to wanting to know the spread it, but at the end of the day, when i want a specified price, i pay the going spread anyway.
Regards
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