The best 5 digit Forex brokers are Pepperstone, IC Markets, Avatrade, and XM.
To choose the best 5 digit Forex broker to trade, the availability of accounts offering prices with five decimal places on currency pairs, trading costs (spread and commissions), platform and tools, execution speed, and customer support are the most important criteria.
Pepperstone is the best 5 digit Forex broker overall, it allows 5 digit forex trading, with spreads (0.1 pips on EUR/USD), fast execution (average 30ms), comprehensive platform (MetaTrader, cTrader, TradingView and Proprietary Platform), and active customer support (24/5 availability).
IC Markets, Avatrade, and XM follow Pepperstone as the best Forex brokers that offer 5 digit forex trading, with platform and tools (MT4, MT5, cTrader and Proprietary platforms), and customer support (24/5 availability via phone, email, and chat). IC Markets offers trading costs with spreads from 0.1 pips along a commission of $7 per lot round turn on EUR/USD with an execution speed of 36.5 ms approximately. AvaTrade offers trading costs with fixed spreads of 0.9 pips on EUR/USD with an execution speed of 145 ms approximately. XM offers trading costs with spreads from 0.1 pips on EUR/USD with an execution speed less than 1 second approximately.
Round-up
Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
| Brokers | Five digits available? | Avg EUR/USD spread |
|---|---|---|
| Pepperstone | Yes | 0.00001 pips |
| IC Markets | Yes | 0.00002 pips |
| AvaTrade | Yes | 0.00009 pips |
| XM | Yes | 0.00016 pips |
| FxPro | Yes | 0.00012 pips |
| Plus500 | Yes | 0.00008 pips |
| Forex.com | Yes | 0.00012 pips |
| Oanda | Yes | 0.00010 pips |
| IG Markets | Yes | 0.00014 pips |
| Saxo | Yes | 0.00009 pips |
What are the best 5 digit forex brokers?
Below is our handpicked selection of the top 5-digit forex brokers, outlining their key features and attributes.
Pepperstone
Pepperstone provides MT4, MT5, TradingView, Proprietary Platform and cTrader for five-digit trading. Pepperstone offers spreads from 0 pips. Pepperstone features an average EUR/USD spread of 0.1 pips. Pepperstone enables trading on 90 five-digit pairs without a minimum deposit.
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About Pepperstone
Pepperstone is a global forex and CFD broker founded in 2010 in Melbourne, Australia. Pepperstone offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader and cTrader platforms. Pepperstone is regulated by multiple authorities including ASIC, FCA, and CySEC. Pepperstone is known for competitive spreads, fast execution, and extensive educational resources. Pepperstone serves clients in over 160 countries worldwide. The Pepperstone CEO is Tamas Szabo.
Pepperstone Features
The features of Pepperstone are listed below.
- Pepperstone provides the platforms MT4, MT5, TradingView, Proprietary Platform and cTrader and all of them allow five-digit forex trading.
- Pepperstone clients will find spreads starting from 0 pips, with an average spread on EUR/USD of 0.1 pips.
- 90 five-digit forex pairs are provided by Pepperstone combined with a no minimum requirement, even though the broker recommends a minimum deposit of $0.
Pepperstone Pros and Cons
Advantages of Pepperstone
The advantages of Pepperstone are listed below.
- Stable raw spreads (0,10 pips on EUR/USD on average)
- Caters for algorithmic trading
- Has won over 30 Forex industry awards
Disadvantages of Pepperstone
The disadvantages of Pepperstone are listed below.
- The demo account is not unlimited
IC Markets
IC Markets offers cTrader, MT4, and MT5 for five-digit trading. IC Markets provides spreads starting from 0 pips. IC Markets features an average EUR/USD spread of 0.00002 pips. IC Markets allows trading on 60+ five-digit pairs with a $200 deposit.
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About IC Markets
IC Markets is a global forex and CFD broker founded in 2007 and based in Sydney, Australia. IC Markets offers trading on over 2,250 instruments including currencies, commodities, indices, stocks, and cryptocurrencies. IC Markets provides MetaTrader 4, MetaTrader 5, and cTrader platforms. IC Markets is regulated by multiple authorities including ASIC and CySEC. IC Markets is known for its ECN execution model and low spreads. The IC Markets CEO is Andrew Budzinski.
IC Markets Features
The features of IC Markets are listed below.
- IC Markets is a broker that offers five-digit forex trading on cTrader, MT4, and MT5.
- Spreads with IC Markets start from 0 pips, with an average of 0.00002 pips on the EUR/USD forex pair.
- On IC Markets you can trade over 60 five-digit forex pairs with a $200 minimum deposit.
IC Markets Pros and Cons
Advantages of IC Markets
The advantages of IC Markets are listed below.
- Low-latency trading environment
- Institutional level liquidity
- MT4, MT5, cTrader platforms are all available
Disadvantages of IC Markets
The disadvantages of IC Markets are listed below.
- Small amount of educational tools for new traders
- Small range of tradable assets compared to other CFD/Forex brokers
AvaTrade
AvaTrade offers MT4, MT5, AvaOptions, and proprietary platforms for five-digit trading. AvaTrade charges fixed spreads. AvaTrade features an average EUR/USD spread of 0.00009 pips. AvaTrade allows trading on 60+ five-digit pairs with a $100 deposit.
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About AvaTrade
AvaTrade is a global forex and CFD broker founded in 2006 and headquartered in Dublin, Ireland. AvaTrade offers trading on currencies, commodities, indices, stocks, bonds, ETFs, and cryptocurrencies. AvaTrade provides proprietary platforms alongside MetaTrader 4 and 5. AvaTrade is regulated by multiple authorities including CySEC, ASIC, and FSA. AvaTrade serves over 300,000 clients worldwide. AvaTrade is known for competitive spreads and extensive educational resources. The AvaTrade CEO is David Dryzin since 2016.
AvaTrade Features
The features of AvaTrade are listed below.
- AvaTrade offers five-digit forex trading on an array of platforms including MT4, MT5, AvaOptions, and its proprietary platform.
- AvaTrade charges fixed spreads with an average of 0.00009 pips on the EUR/USD forex pair.
- $100 is the minimum deposit an AvaTrade client needs to make in order to start trading over 60 five-digit currency pairs.
AvaTrade Pros and Cons
Advantages of AvaTrade
The advantages of AvaTrade are listed below.
- Tight fixed spreads from 0.6 pips (0.9 pips for retail traders)
- The mobile apps are well designed
- Can be connected to ZuluTrade and Duplitrade
Disadvantages of AvaTrade
The disadvantages of AvaTrade are listed below.
- High inactivity fees
- The demo account is limited to 30 days
XM
XM uses MT4 and MT5 platforms for five-digit trading. XM starts spreads from 0.1 pips. XM features an average EUR/USD spread of 0.00016 pips. XM provides 55+ five-digit pairs with a $5 minimum deposit.
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About XM
XM is a global forex and CFD broker founded in 2009, offering trading on currencies, commodities, indices, stocks, and cryptocurrencies. XM provides MetaTrader 4, MetaTrader 5, and proprietary platforms. XM is regulated by multiple authorities including CySEC, ASIC, and IFSC. XM is known for competitive spreads, extensive educational resources, and multilingual customer support. XM serves over 5 million clients from 196 countries. XM offers various account types and a no-requote policy.
XM Features
The features of XM are listed below.
- XM enables five-digit forex trading on their MetaTrader platforms, MT4 and MT5.
- XM spreads start from 0.1 pips with an average of 0.00016 pips on EUR/USD.
- Clients can trade among 55+ XM five-digit forex pairs, with a minimum deposit starting from $5 depending on your account choice.
XM Pros and Cons
Advantages of XM
The advantages of XM are listed below.
- There’s a wide range of account types
- The demo account at XM is unlimited
- Wide range of educational resources
Disadvantages of XM
The disadvantages of XM are listed below.
- No social trading features available
- The account availability changes depending on the location of the trader
- High minimum deposit to invest in securities ($10000 for the XM Shares account)
FxPro
FxPro provides MT5, MT4, and cTrader for five-digit trading. FxPro offers spreads as low as 0 pips. FxPro features an average EUR/USD spread of 0.00012 pips. FxPro supports trading on 70+ five-digit pairs with a $100 deposit.
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About FxPro
FxPro is a global online broker founded in 2006, offering trading on forex, CFDs, stocks, indices, commodities, and cryptocurrencies. FxPro provides multiple trading platforms including MetaTrader 4, MetaTrader 5, cTrader, and its proprietary FxPro Platform. FxPro is regulated by multiple authorities including FCA, CySEC, SCB, FSC and KNN. FxPro serves clients in over 170 countries and has won numerous industry awards. The FxPro CEO is Charalambos Psimolophitis.
FxPro Features
The features of FxPro are listed below.
- Several platforms such as MT5, MT4, and cTrader are made available to be used by FxPro, with the possibility to have access to five-digit forex trading.
- Spreads at FxPro can be as low as 0 pips, with an average spread of 0.00012 pips on the pair EUR/USD.
- Remember that FxPro also charges fixed five-digit spreads on the 7 major pairs on the MT4 account.
- FxPro provides 70+ five-digit forex pairs to be traded after opening an account with a minimum deposit of just $100.
FxPro Pros and Cons
Advantages of FxPro
The advantages of FxPro are listed below.
- Regulated and Trusted Forex broker
- Diverse Trading Platforms
- Wide Range of Instruments
Disadvantages of FxPro
The disadvantages of FxPro are listed below.
- Inactivity Fee
- Limited Educational Resources
- No Guaranteed Stop-Loss Orders
Plus500
Plus500 uses a proprietary platform for five-digit trading. Plus500 starts spreads from 0.6 pips. Plus500 features an average EUR/USD spread of 0.00008 pips. Plus500 enables trading on 60+ five-digit pairs with a $100 deposit.
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About Plus500
Plus500 is a global fintech company founded in 2008, offering online Futures trading services in different markets such as Agriculture, Cryptocurrencies, Metals, Commodities, Forex, Interest Rates, Energy and Equity Indices. Plus500 provides proprietary web and mobile trading platforms. Plus500 is regulated by multiple top-tier authorities including FCA, ASIC, and CySEC. Plus500 is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. The Plus500 CEO is David Zruia since April 2020.
Plus500 Features
The features of Plus500 are listed below.
- The proprietary platform provided by Plus500 allows for five-digit forex trading.
- The spreads charged by Plus500 start from 0.6 pips, with an average of 0.00008 pips on EUR/USD.
- Plus500 clients can trade among 60+ five-digit forex pairs with a minimum deposit which needs to be met of $100.
Plus500 Pros and Cons
Advantages of Plus500
The advantages of Plus500 are listed below.
- Well-regulated CFD provider
- Over 2000 tradable CFDs
- Unlimited demo account offered
Disadvantages of Plus500
The disadvantages of Plus500 are listed below.
- Limited Regulatory Protections for Professionals
- Inactivity fees
- Limited deposit methods
Forex.com
Forex.com offers MT4, MT5, and proprietary platforms for five-digit trading. Forex.com features spreads from 0.5 pips. Forex.com provides an average EUR/USD spread of 0.00012 pips. Forex.com enables trading on 80+ five-digit pairs with a $100 deposit.
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About Forex.com
FOREX.com is a global forex and CFD broker founded in 2001, offering trading on currencies, commodities, indices, stocks, and cryptocurrencies. FOREX.com provides proprietary platforms alongside MetaTrader 4 and 5. FOREX.com is regulated by multiple top-tier authorities including FCA, ASIC, and CFTC. FOREX.com is known for competitive spreads, fast execution, and extensive educational resources. FOREX.com serves over 450,000 clients worldwide. The FOREX.com’s parent company “StoneX Group Inc.” CEO is Sean O’Connor.
Forex.com Features
The features of Forex.com are listed below.
- MT4, MT5, and a proprietary platform are what Forex.com offers their clients to engage in five-digit trading.
- Forex.com has some of the lowest spreads in the industry starting at 0.5 pips, with an average spread of 0.00012 pips on EUR/USD.
- Over 80 five-digit forex currency pairs are available with a minimum deposit of $100 to start.
Forex.com Pros and Cons
Advantages of Forex.com
The advantages of Forex.com are listed below.
- Regulatory Assurance
- Low Forex Fees
- Comprehensive Educational Resources
Disadvantages of Forex.com
The disadvantages of Forex.com are listed below.
- Limited Product Portfolio
- Higher Spreads on Standard Accounts
- No Guaranteed Stop-Loss Orders for U.S. Clients
Oanda
Oanda provides MT4 and a proprietary platform for five-digit trading. Oanda starts spreads at 0.6 pips. Oanda features an average EUR/USD spread of 0.00010 pips. Oanda offers 70+ five-digit pairs without a minimum deposit.
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About Oanda
OANDA is a global multi-asset broker founded in 1996, offering trading on forex, CFDs, commodities, indices, and cryptocurrencies. OANDA provides proprietary platforms and API solutions. OANDA is regulated by multiple authorities including FCA, ASIC, and MAS. OANDA is known for competitive spreads, fast execution, and currency data services. OANDA serves both retail and institutional clients worldwide. The Oanda Chief Executive Officer is Gavin Bambury since August 2019.
Oanda Features
The features of Oanda are listed below.
- There is no minimum deposit requirement from Oanda to open an account.
- Oanda provides a proprietary platform, as well as the MT4 platform for their clients.
- Oanda has spreads that start at 0.6 pips or lower depending on your location, with an average spread of 0.00010 pips on the forex pair EUR/USD.
- There are 70+ five-digit Oanda currency forex pairs to choose from with no minimum deposit requirement.
Oanda Pros and Cons
Advantages of Oanda
The advantages of Oanda are listed below.
- Comprehensive Platforms
- Robust Education
- Highly Regulatory Trust
Disadvantages of Oanda
The disadvantages of Oanda are listed below.
- Higher Spreads
- Proprietary Platform Limitations
- Inactivity Fees
IG Markets
IG Markets provides MT4, L2 Dealer, ProRealTime, and proprietary platforms for five-digit trading. IG Markets starts spreads from 0.6 pips. IG Markets features an average EUR/USD spread of 0.00014. IG Markets offers trading on 80+ five-digit pairs with a $250 deposit.
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About IG Markets
IG Markets is a global online trading provider founded in 1974, offering access to over 17,000 financial markets including forex, stocks, indices, commodities, and cryptocurrencies. IG Markets provides proprietary trading platforms alongside MetaTrader 4 and ProRealTime. IG Markets is regulated by multiple top-tier authorities worldwide, including the FCA and ASIC. IG Markets is known for competitive spreads, extensive educational resources, and innovative features like weekend trading. The IG Markets’ parent company “IG Group” CEO is Breon Corcoran.
IG Markets Features
The features of IG Markets are listed below.
- IG Markets offers several platforms which enable the five-digit forex trading: MT4, L2 Dealer, ProRealTime, and proprietary platforms.
- Spreads at IG start from 0.6 pips, with an average spread of 0.00014 on EUR/USD.
- 80+ five-digit forex pairs can be traded at IG Markets from a minimum deposit of $250.
IG Markets Pros and Cons
Advantages of IG Markets
The advantages of IG Markets are listed below.
- Low spreads from 0.6 pips on Forex
- Wide range of financial instruments
- 40 years of experience in the Forex industry
Disadvantages of IG Markets
The disadvantages of IG Markets are listed below.
- No copy trading features
- No social trading features
Saxo
Saxo offers SaxoTraderGO and SaxoTraderPro for five-digit trading. Saxo features an average EUR/USD spread of 0.00009 pips. Saxo provides 185+ five-digit pairs for trading with a $2000 minimum deposit.
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About Saxo
Saxo is a Danish investment bank and online trading platform founded in 1992. Saxo offers trading in forex, stocks, CFDs, futures, options, and other financial instruments across global markets. Saxo provides proprietary trading platforms and white-label solutions for institutional clients. Saxo is regulated by multiple authorities including the Danish FSA and UK FCA. Saxo serves retail and institutional clients in over 170 countries. The Saxo CEO and co-founder is Kim Fournais.
Saxo Features
The features of Saxo are listed below.
- Saxo provides two top-notch proprietary platforms, SaxoTraderGO and SaxoTraderPro, where you can engage in five-digit forex trading.
- Spreads at Saxo start competitively, with an average spread of 0.00009 pips on EUR/USD.
- Saxo offers 185+ five-digit forex pairs which can be traded after a minimum deposit of $2000.
Saxo Pros and Cons
Advantages of Saxo
The advantages of Saxo are listed below.
- Regulation and Trust
- Extensive Product Range
- Advanced Trading Platform
Disadvantages of Saxo
The disadvantages of Saxo are listed below.
- High Minimum Deposits for Premium Accounts
- Lack of Spread Betting Options
- Custody Fees in Certain Regions
Why are 5 digits important with forex brokers?
5-digits give forex traders more accuracy on their trading decisions, and there is a lot more information with the extra digit as prices can be broken down further. The addition of this extra digit allows traders who don’t have large accounts to trade half pips instead of full pips.
For scalpers, this is great news as the extra digit can give them pin-point accuracy. Another important reason for the importance of a 5-digit pricing system is that it has reduced the cost to trade making it cheaper for traders to execute trades.
Before 5 digits became the norm with forex brokers, many if not all brokers were using a 4-digit price system. However, most forex brokers have started using a 5-digit price system on their platforms now.
Price movements: 5-digit vs 4-digit Broker
Here is an example of the old 4-digit spread vs the new and improved 5-digit spread. For example, say we had a 4-digit price on the EUR/USD of 1.5840 bid/1.5842ask (2 pips).
And now let’s examine what a 5-digit spread would be like in comparison to the 4-digit one; EUR/USD of 1.58401 bid/1.58428 ask (2.8 pips).
You can see the difference between the two, where you get 0.8 extra pips of information with 5 digits which is more accurate when compared to the 2 pips with the 4 digits.
Here’s another example; let’s say we have a bid/ask price on GBP/USD of 1.4123 bid/1.4123 ask. You can see that there is a spread of 0 pips when using a 4-digit price system.
However, when we consider a 5-digit price system we get more information leading to more accuracy. 1.41230 bid/ 1.41234 ask, which is a spread of 0.4 pips. Again we can see here that we have more information to work with because with 4-digits you can’t detect spreads lower than 1 as it always appears to be 0 without the decimals.
The accuracy given by the 5th digit means better transparency for traders, which forex brokers call precision pricing.
What are the Forex Trading platforms with 5-digit pricing?
More and more trading platforms are conforming to the 5-digit pricing system, such as the following:
Expert Advisors Trading with 5-digit brokers
Some expert advisors that have been built on the basis of 5-digit pricing systems are not compatible with forex brokers who offer 4-digit prices. So keep this in mind when you are looking for a forex broker, as you will need to find out if they can handle expert advisors that have been calibrated using 5-digits.
Furthermore, in the case that they are compatible they run the risk of being less efficient, which in turn will have a negative impact on your trading results. The reason for this is due to the fact that 5-digit robots are more precise and efficient, but only when they have the relevant data to work with.
What are the benefits of a 5-Decimal Pricing System?
There are some pros when dealing with a 5-decimal pricing system, which include the likes of lower spreads. It also incentivizes higher trading volume by reducing overall trading costs, and this will entice traders to join a platform, so they aren’t paying as much to be able to trade.
One of the most attractive things about a 5-decimal pricing system is its level of accuracy and precision when it comes to filling orders. Accuracy is everything when it comes to trading, as it could mean the difference between being filled and missing a profitable trade.
It also promotes high-frequency trading, which is a method of trading that includes the use of high-level programs to compute large amounts of orders in a fraction of a second. It also uses powerful algorithms that are capable of analyzing multiple markets at once.