10 Best 5 Digit Forex Brokers for 2023

A “5 digit forex broker” refers to a forex (Foreign Exchange) brokerage firm that offers pricing with five decimal places on currency pairs, excluding the Japanese Yen pairs (which would be three decimal places). This is also called “fractional pip pricing.”

For example, a 4-digit broker might quote EUR/USD as 1.1234, while a 5-digit broker would quote it as 1.12345.

This additional decimal point is a reflection of a tighter spread and more accurate pricing. The fractional pip, or the fifth decimal, is often called a “pipette.”

In this post, we have featured some of the top ten best 5-figure forex brokers.

In this post, we have featured some of the top ten best 5-figure forex brokers.

We have taken the following factors into consideration to provide you with the most reliable list possible

• Platforms available with 5-digit forex trading
• Spreads
• Number of forex pairs
• Minimum deposit

Round-up

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.

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:

• MetaTrader 4
• MetaTrader 5
• cTrader

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.