Best MT5 Forex Broker 2020 Comparison

IC Markets Is The Lowest Spread MetaTrader 5 Broker

Below compares the average spreads of the best forex brokers offering ecn style trading accounts with low spreads and commissions. This spread comparison is updated monthly based on the broker’s published spread reports.

IC Markets Raw Account Spreads	EUR/USD AUD/USD EUR/GBP GBP/USD USD/SGD AUD/JPY EUR/JPY USD/JPY USD/CAD	EUR/USD AUD/USD EUR/GBP GBP/USD USD/SGD AUD/JPY EUR/JPY USD/JPY USD/CAD	EUR/USD AUD/USD EUR/GBP GBP/USD USD/SGD AUD/JPY EUR/JPY USD/JPY USD/CAD	EUR/USD AUD/USD EUR/GBP GBP/USD USD/SGD AUD/JPY EUR/JPY USD/JPY USD/CAD	EUR/USD AUD/USD EUR/GBP GBP/USD USD/SGD AUD/JPY EUR/JPY USD/JPY USD/CAD
	0.10	0.20	0.40	0.40	0.30
	0.16	0.27	0.35	0.40	1.07
	0.10	0.20	0.40	0.20	1.30
	0.20	0.20	0.40	0.50	1.50
	0.44	0.42	0.40	0.85	1.30
	0.17	0.30	0.54	0.60	N/A
	0.20	0.40	0.50	0.60	10.00
	0.10	0.50	0.60	0.60	1.30
	0.30	0.50	0.50	0.50	3.00
	0.32	0.94	0.76	0.83	1.55

Data taken from broker website. Accurate as at 01/10/2020

On average, IC Markets has the lowest spreads from their RAW Spread Account. The table does highlight that for some crosses other brokers may have lower spreads such as Pepperstone or IC Markets which should be considered.

How Does IC Markets Achieve Low Spreads

The Raw Spread account works as an ECN broker allowing Straight-Through-Processing (STP) of orders with no dealer intervention. Advanced traders will only choose ECN accounts with Direct Market Access (DMA) to minimise brokerage and achieve optimal execution speeds. IC Markets also has the best access to liquidity pools including financial institutions. 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.

IC Market MetaTrader 5 Commissions

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.

The forex brokerage calculator above shows that IC Markets low commissions make more competitive for some base currencies (eg AUD) compare to others such as EUR. This is why you should determine what base currency you will select when commencing with the forex trading platform before finalising the best broker for your needs. Commissions are the same for individuals who select MetaTrader 4 while cTrader has a different fee structure.

Other Fees To Consider

IC Markets charges no deposit or withdrawal fees with a minimum deposit requirement of $200. Only a $20 fee may be passed on from the bank for international transfers.

Overnight financing fees 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 and 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.

Why IC Markets Is Recommended Based On Spreads

Clients’ trading with IC Markets via MetaTrader 5 (or MetaTrader 4) 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 broker offers the ZuluTrade add-on for social trading. IC Markets is regulated with:

• ASIC (Australia) With AFSL 335692
• CySEC (Cyprus) With Licence No 362/18
• Seychelles With Company Number 8419879-2

FP Markets Offers Offers The Best MetaTrader 5 Share CFDs

Metaquotes upgraded MetaTrader 4 to enhance CFD trading, especially share CFDs. FP Markets are the leader in this space with 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. The broker also offers IRESS for Australian traders only ontop of MetaTrader.

View FP Markets Review >>Visit FP Markets >>

Pepperstone Has Superior MLQ5 Execution Speeds

Automated trading with the MLQ5 code requires a broker offering the fastest Market Order execution speed. The comparison below shows that Pepperstone had the fastest speeds ensuring traders get the price quotes and avoid slippage.

Pepperstone processes most orders in ~30ms* through its superior infrastructure. This includes the use of Equinix servers in New York near liquidity pools. This state of the art facility has the most powerful infrastructure and access to leading financial institution servers.

The superior trading speeds mixed with strong customer service is why the Investment Trends award from actual traders included the:

• Overall Client Satisfaction
• Best Platform Features
• Platform Reliability
• Speed Of Fund Withdrawals

Pepperstone also has won a plethora of awards for customer support and their market depth is unmatched by any competitor globally. The broker is based in Australia but also has FCA regulation in the UK and FSCA regulation in Dubai. Other forex trading platforms offered by Pepperstone include MetaTrader 4 (using MQL4) and cTrader.

Review Of Pepperstone >>Visit Pepperstone >>

FxPro Offers The Most Currency Pairs

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.

View FxPro Review >>Visit FxPro >>

Admiral Markets Excel At Cryptocurrencies

IC Markets and Admiral Markets both offer an extensive range of cryptocurrency when compared to other online brokers.

Cryptocurrency CFD	Admiral Markets	IC Markets
Bitcoin	✔	✔
Bitcoin Cash	✔	✔
Ripple	✔	✔
Ethereum	✔	✔
Ether	✔	✘
Dash	✔	✔
Litecoin	✔	✔
Stellar	✔	✘
Monero	✔	✘
zCash	✔	✘
EOS	✔	✔
Emercoin	✘	✔
NameCoin	✘	✔
PeerCoin	✘	✔

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

Cryptocurrency CFD	FP Markets Minimum Spread	FP Markets Average Spread	IC Markets Minimum Spread	IC Markets Average Spread
Bitcoin (BTC/USD)	2.02	7.66	5.00	10.00
Bitcoin Cash (BCH/USD)	5.00	5.04	5.00	6.00
Litecoin (LTC/USD)	3.30	3.31	3.00	3.50
Ripple (RPL/USD)	0.0005	0.0009	0.015	0.016

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.

View IC Markets Review >>Visit IC Markets >>

View Admiral Markets Review >>Visit Admiral Markets >>

XM Requires The Lowest Minimum Deposit

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.

Funding methods

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
• Cryptocurrency Deposit

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.

View XM Review >>Visit XM >>

FXTM Is The Ideal Beginner Forex Broker

There are five retail investor accounts including three ECN accounts for beginner forex traders to choose from. All these retail investor accounts offer the MT5 trading platform. As shown below, two of these accounts offer the highest leverage of any forex broker at up to 2000:1.

FXTM also has copy trading facility with FXTM Invest. Is a beginner trader doesn’t feel confident making their own trades, through copy trading they can select another strategy manager and duplicate their trades. This will make the individual shadow the trader’s profit or losses as trades are made.

FXTM (ForexTime) is Regulated with CySEC in Cyprus with the licence 185/12, FSCA in South Africa with FSP No 46614 and FCA in the UK with number 600475.

View FXTM Review >>Visit FXTM >>

AvaTrade Has The Lowest Fixed Rate Spreads

Very few MT5 brokers offer fixed spreads with AvaTrade been one exception. Not only that, but their fixed spreads are the lowest of any foreign exchange broker (across all forex platforms). Below shows the latest fixed spreads across the lowest fee providers.

Fixed Spreads	EUR/USD AUD/USD EUR/GBP EUR/JPY GBP/USD	EUR/USD AUD/USD EUR/GBP EUR/JPY GBP/USD	EUR/USD AUD/USD EUR/GBP EUR/JPY GBP/USD	EUR/USD AUD/USD EUR/GBP EUR/JPY GBP/USD	EUR/USD AUD/USD EUR/GBP EUR/JPY GBP/USD
	0.90	1.10	1.50	1.80	1.60
	1.20	1.50	2.00	2.20	1.70
	1.60	1.70	1.70	1.80	1.80
	1.60	1.90	1.70	2.40	2.10
	1.80	2.50	3.20	3.70	2.50
	3.00	3.00	3.00	3.00	3.00
	4.00	4.00	3.00	5.00	5.00
	3.00	4.00	4.00	6.00	4.00

Data taken from broker website. Accurate as at 01/10/2020

AvaTrade had global regulation from Canada, Australia to Ireland.

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.

Open a demo account >>Visit IC Markets >>

MetaTrader 5 Broker Comparison Table

Background To MetaTrader 5

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.

MT5 Interface

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.

Technical Analysis

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.

Order Types

Pending Orders

• 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.

Market Orders

• 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.

Why Choose MetaTrader 5?

1) Improved Timeframes and Charting

MetaTrader 5 offers 21 timeframes compared to just 9 for MT4. There are also unlimited charting options with over a hundred that can be open at one time.

2) Fundamental Analysis Availability

There is an inbuilt MT5 forex calendar that has features such as schedules, new events, forecasts, expected impacts and other elements. These are perfect for traders who prefer fundamental analysis to make their trading decisions.

3) Commerce Integration

Unlike MT4, the newer platform has commerce integration allows traders to rent of purchase currency (forex) products directly. This can be done through the market tab.

4) Extra Indicators

MetaTrader 5 has 38 inbuilt indicators and 22 analytical objects along with 46 graphical objects. Compare this to MT4’s 30 indicators and it’s the financial instruments advancements made.

5) A Plethora Of Market Order Ability

MT5 allows for 2 market orders and 6 pending orders as well as 2 stop orders. Compare this to MT4 which only allows 2 markets orders and 4 pending orders.

Major Benefits of MT5

One of the major benefits of the Metatrader 5 platform is that traders are not confined to just utilise the built-in analytical resources such as the Metatrader 5 tables, graphs and market indicators. Thanks to MQL5, a high-performance programming language, traders can create their very own technical indicators. With a bit of coding know-how, traders can even create trading robots often called “Expert Advisors.” Trading robots can automatically implement nearly any trading strategy based on several key input calculations, affording traders the ability to access highly accurate market analysis and forecasts.

Why is Metatrader 5 Better?

Many people question the difference between the Metatrader platforms and what makes Metatrader 5 better than its predecessors Metatrader 3 and Metatrader4. The answer is quite simple. Companies evolve and adapt to changes in the market and the needs and demands of their key stakeholders. In 2005 when Metatrader 4 was released, it provided traders with a revolutionary new tool enabling them to create their programs. This gave rise to automated or algorithmic trading. Metatrader 4 addressed clients’ needs to test and optimise their trading strategies.

With automated trading continually evolving and gaining in popularity, MetaTrader 5 was created to allow traders the ability to take advantage of all the benefits of the Metatrader has to offer across nearly every financial market. Algorithmic trading has become commonplace and the programming language offered with the Metatrader 5 product is far superior to MT4. Advanced trading signals (discussed in our best forex signal providers guide), moving trades and other enhancements have further helped traders analyse and execute trades.

Risk Warning

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) for Australian traders, 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. Traders should consider all brokers offering MT5 and read their product disclosure statements.