5 digit brokers | 5 decimal pricing Forex brokers
Forex brokers who offer 5 digit (5 decimal) pricing
5 digit vs 4 digit broker
Not so long ago the 5th digit in Forex pricing was rare, now it is a normal fact - a result of growing competition for clients among Forex brokers. Quotes with 5 decimal places allow better transparency and better fills for investors. Banks have been using the system of fractional quotes for centuries. When large money is involved, the smallest variation in quotes makes a significant impact.
For traders the 5th digit means better transparency and ability to catch better deals. Forex brokers call it "precision pricing".
Trading with 5 decimal pricing
Adding 5th decimal to the price quotes requires traders to adjust own pip calculations, such as profit and stop values, trailing stops, limit orders etc.
For example, when trading with 4 decimal quotes, if a trader wants to capture 30 pips of Profit, he sets a Profit target value to 30.
Expert Advisors trading with 5 digit brokers
Be sure to check if your Expert Advisor supports 5 decimal pricing. Not every EA does this, and you can get in trouble, or most likely will be unable to take any trades with such EA.