The MetaTrader 5 trading platform was designed for trading CFDs from shares, currency pairs to cryptocurrencies wile MetaQuotes other forex trading platform (MetaTrader 4) are focused on forex trading making it a favourite for ecn forex brokers.
View the top MT5 brokers by category from low spreads, features to CFD range.
By Justin Grossbard / Updated: Tuesday, February 18th, 2020
MetaTrader 5 Forex Broker Spreads + Features
The table below shows the average spreads, products available and MT5 broker features for 2020.
IC Markets Raw Spread account type provides forex traders’ access to tight ECN-like spreads. When compared to other online brokers’, IC Markets offers the lowest spreads in four out of six currency pairs. For the EUR/USD fx pair, average spreads are as low as 0.1 pips. The top forex brokers’ tight spreads stem from the brokers deep liquidity, allowing traders’ using retail investor accounts to trade in an ECN-like environment. With over 25 liquidity providers, ultra-fast order execution, and no dealing desk intervention, IC Markets clients’ offers one of the most competitive trading environments for retail investors.
When trading forex on MetaTrader 5 (MT5) via IC Markets Raw Account, there is no markup on the institutional-grade spreads. Rather than including commission in the spread, clients’ pay a flat-rate commission fee. For MT5 users’, commission fees are $7 per lot round-turn in Australian and US Dollars.
IC Markets Round-turn Commission Fee
Other Fees To Consider
Overnight financing fees (Aka swap rates or rollover rates) will apply for any positions kept open until the next trading day. Swap Rates depend on multiple factors, including the currency pair being traded, whether a trader is long or short as well as interest rate differentials. IC Markets clients’ should note that swap rates are 3x the standard rate on Wednesday nights. When using MT5, swap rates are converted to the base currency of the Raw Spread account, simplifying fee calculations.
IC Markets is an online broker with some of the lowest non-trading fees when compared to competitors. Clients’ face no deposit or withdrawal fees except for international transfers that carry a $20 Australian Dollar charge. Additionally, there are no inactivity or account fees, meaning customers can trade with virtually no non-trading costs, very competitive commission fees and low swap rates.
Why IC Markets Is Recommended Based On Spreads
Clients’ trading with IC Markets via MetaTrader 5 gain access to institutional grade spreads averaging 0.1 pips (EUR/USD) while paying low trading and account fees. For this reason, many scalpers, Expert Advisors, and day traders’ prefer trading on MT5 with IC Markets.
The overall rating is based on review by our experts
10 / 10
10 / 10
9 / 10
5 / 10
Range of Markets
8 / 10
10 / 10
FP Markets Offers The Largest Range of Share CFDs
With an impressive 10,000 Share CFDs to choose from, FP Markets offers far greater market access to international stock markets when compared to other online brokers’. Shares from three different continents are available to trade.
Share Market News and Data Subscription Fees
For an additional fee, FP Markets clients’ can access additional market data and news relevant to equity markets. Fees vary between news and data sources, with the ability to receive rebates of fees if a specific number of trades are made per month.
Share CFD Financing Fees and Benefits
With long positions, the trader is required to pay a financing fee for each CFD. If the trader is short, they may be paid interest. Financing fees only apply to positions held for longer than a day, with rates calculated with the face value of the position (including leverage).
Interest rates by adding the brokers base rate + 3% -4%, with FP Markets current base rate at 1.5% as of February 2020. Additionally, short positions carry a stock borrow fee that starts at 1.5%.
Commission Fees When Trading Share CFDs
Commission charges are dependent on the exchange’s location. Minimum commission charges apply to all exchanges except Australia. For Share CFDs, fees are calculated on a percentage basis, ranging from 0.08-0.3% for Australia, Singapore, Hong Kong, London and Frankfurt. While US exchanges such as NY NYSE and NY NASDAQ charge USD $0.02 per CFD.
Share CFD Dividends
A long position in Share CFDs will receive a dividend usually on the ex-dividend date, while traders’ in short positions will see a debit from their trading accounts. The value of the dividend equates to the gross unfranked dividend, derived from the CFDs underlying shares.
MT5 and Share CFD Trading
Due to MetaTrader 4’s restrictions with Share CFD trading, MetaQuotes developed MT5 to cater to traders’ wanting to gain exposure to equity markets. MT5 offers a range of tools and features to enhance a users’ trading experience, including depth of market, multiple order types and Expert Advisor (EA) functionality.
In addition to Share CFDs, FP Markets clients’ can trade a range of instruments including Metals, Forex and other CFDs.
With access to over 70 major, minor and exotic currency markets, FxPro offers an impressive range of fx pairs to trade. While many forex brokers only provide frequently traded major forex pairs to choose from, FxPro offers exotic currencies such as the Russian Ruble, Norwegian Krone, Polish Zloty and Turkish Lira against major currencies such as the US dollar and Euro.
When trading forex with FxPro, commission fees are included in the spread, with no additional commission charges on top of the spread.
Although commission is included in forex spreads for MT5, additional trading fees may apply. The online broker provides calculators on their website to forecast fees such as swap rates.
In addition to the wide range of forex pairs, FxPro clients can trade over 173 Commodity, Stock and Index CFDs.
IC Markets + Admiral Markets Offer the Best Cryptocurrency Range
IC Markets and Admiral Markets both offer an extensive range of cryptocurrency when compared to other online brokers.
When trading with IC Markets, 10 different Crypto CFDs are available to choose from, all vs the USD. On the other hand, Admiral Markets offers 11 Crypto CFDs, available vs The US Dollar or Euro.
Crypto CFD Spreads
FP Markets Minimum Spread
FP Markets Average Spread
IC Markets Minimum Spread
IC Markets Average Spread
Bitcoin Cash (BCH/USD)
Cryptocurrency CFD spreads are shown in the above table and are similar between the two brokers. Admiral Markets spreads on the most popular Crypto, Bitcoin, are more competitive than IC Markets with a minimum of 2.02 compared to IC Markets 5.00.
IC Markets charges no commission fees on top of cryptocurrency spreads. As traders’ are buying and selling Crypto CFDs and not the underlying asset, clients’ can go long or short and leverage their positions up to 5:1. Likewise, Admiral Markets allows traders to trade Crypto CFDs on 5:1 leverage.
Traders’ using XM are required to make an initial minimum deposit of as little as USD $5. No deposit or withdrawal fees are charged, regardless of the funding method.
XM clients’ can deposit and withdraw funds via:
Visa and Mastercard
Wire Transfer (minimum $60)
Local Bank Transfer
Neteller, Skrill and Perfect Money
Western Union and MoneyGram
Any currency can be deposited, with XM automatically converting the funds into the base currency of the traders’ account. Base currencies available include EUR, USD, CHF, GBP, JPY, RUB, PLB, HUF and AUD.
Overall, IC Markets Is The Best MetaTrader 5 Broker
When comparing top forex brokers offering the MetaTrader 5 trading platform, IC Markets wins due to its tight spreads, low fees and 64 forex pairs. Spreads for currency pairs such as EUR/USD are on average 0.1 pips when trading forex under a Raw Spread Account type, while round-turn commission fees are competitive at $3.50.
Software developer MetaQuotes offers two of the most popular trading systems used by retail investors. In 2010, MetaTrader 5 (MT5) was released by MetaQuotes to meet the demand for a multi-asset CFD trading platform that provided access to Share CFD trading and more advanced features. Our MT5 review found the benefits of MT5 include:
The ability to trade Share CFDs
More intuitive and user-friendly interface
Improved charting and analysis tools
Expert Advisors and MQL5
A range of order types
Share CFD Trading with MT5
Although MetaTrader 4 is the gold standard for forex trading, Share CFD trading is prohibited leading to the demand for MT5. The trading system is popular among retail investors as hedging is allowed with no FIFO rule. As well as Share CFDs, multiple asset classes are available to trade on the MT5 platform.
Compared to MT4, MT5 is easy to install and use. The MetaQuotes software is available as a desktop platform, webtrader platform as well as iOS and Android apps. The desktop and webtrader interfaces allow retail investors to trade in a professional environment, with extensive tools and features available to trade forex and CFDs. Similarly to the desktop and webtrader platforms, MT5’s mobile apps allow for easy access to financial markets while and fast order execution while a trader is on the move.
Traders using MT5 can utilise the platforms 21 timeframes, much more than MT4’s 9 and an excellent upgrade suited to day traders and scalpers. In regards to technical analysis, MT5 offers 38 indicators (compared to MT4’s 30) to assist traders’ with complex trading strategies. Fundamental analysis tools are also available on MT5 and include an economic calendar with news, upcoming events and market conditions.
Buy Limit: A buy order that can only be executed at below the market price. A buy limit order is usually placed when the price of a CFD has fallen and it’s expected to rise.
Sell Limit: A sell order that can only be executed above a certain price. A useful pending order when a instruments price has risen and it is to decrease.
Buy Stop: Used if a CFD price is increasing and expected to continue to increase. A Buy Stop order is placed above the current price.
Sell Stop: An order to be executed below market price. A Sell Stop is useful if the instruments price is decreasing, and is anticipated to continue decreasing.
Buy Stop Limit: An order that is a combination of a Buy Limit order and a Buy Stop order.
Sell Stop Limit: Features of a Sell Limit order and a Sell Stop order.
Stop Loss: This order automatically closes out positions when a CFDs price moves in an unfavourable direction to limit losses during times of volatility.
Take Profit: A Take Profit order automatically closes out an open position when a CFD has increased to a certain price. This allows traders to secure profits when securities are rising in price.
Expert Advisors and MQL5
Expert Advisors (EAs) are trading robots that perform technical analysis and automate trading activities. EAs allows markets to be monitored 24 hours a day while following an algorithm that increases trading efficiency. Analysing markets manually can be time-consuming, yet when using EAs large amounts of data can be calculated nearly instantly. Therefore when markets become volatile, algorithmic trading strategies such as EAs can execute orders quickly ensuring traders benefit from favourable price movements.
A benefit of MT5 over MT4 includes the multi-thread backtesting abilities. When backtesting automated trading strategies on MT4 only a single currency can be tested, while MT5 allows for multi-currency backtesting. This allows traders to test EA strategies against historical data prior to executing orders in the real market.
The MetaQuotes Language 5, aka MQL5, is an advanced programming language that allows traders to write algorithmic trading strategies as well as technical indicators. Compared to MQL4, the upgraded MQL5 is easier to use and a more efficient coding language.
When trading complex instruments such as CFDs, retail traders should be aware of the high risk of losing money. As well as being aware of the high risk that leverage creates in forex markets, retail investors should check whether a broker is regulated by top-tier financial authorities such as ASIC (Australian Securities and Investment Commission), CySEC (The Cyprus Securities and Exchange Commission), and the FCA (Financial Conduct Authority). Prior to trading CFDs with real money it is recommended to utilise demo accounts, a feature is offered by many top forex brokers.