MT4, MT5 and cTrader: which to pick

MT4 was built for currencies. It sends each order as a separate ticket. If you open two 0.10-lot USD/ZAR trades, you see two tickets and you close them one at a time. The platform does not net them into one position. That matters when you want to take half your profit and let the rest run. You can do it, but you must manage two tickets.

MT5 handles orders differently. It can net opposite trades into one position. If you buy 0.10 lots and later sell 0.10 lots on the same account, MT5 may show a single position of zero lots instead of two closed tickets. Some brokers also run MT5 in hedging mode, which behaves more like MT4. The mode is set by the broker, not by you. You cannot switch it yourself.

cTrader uses a different order engine again. It shows the full depth of market for some instruments, meaning you can see the sizes other participants are quoting. For USD/ZAR that depth is often thin outside London and New York hours. Thin depth means the price can jump between the best buy and best sell price. On a 0.10-lot trade, a jump of 5 pips is R9.00. None of the three platforms changes the underlying market. They only change how the order is recorded and shown.

The spread is the difference between the buy price and the sell price. It is not a separate line on your statement. It is built into the price you get. If USD/ZAR is quoted at 18.4100 to buy and 18.4088 to sell, the spread is 12 pips. On 0.10 lots, 1 pip is worth R1.80. So the spread cost is 12 times R1.80, which is R21.60. You pay that the moment you open the trade, whether the price moves for you or against you.

Some accounts add a commission per lot on top. That commission is a separate line. It is charged when you open and often again when you close. A commission of R40 per lot round turn on 0.10 lots is R4.00. That is on top of the spread. An account with a 10-pip spread and no commission costs R18.00 on 0.10 lots. An account with a 5-pip spread and R40 per lot round turn costs R9.00 plus R4.00, which is R13.00. The cheaper spread is not always the cheaper total.

Swap is the third cost. It is charged if you hold the trade overnight. Swap rates vary between brokers and can be positive or negative. They also change with interest rates. You cannot compare swap between platforms because the platform does not set it. The account type and the broker set it. On a USD/ZAR trade held for three nights, swap can be larger than the spread. Check the swap rate before you hold.

A demo account uses live prices but fake money. You can open one on MT4, MT5 or cTrader. The demo will show you the spread, the commission and the swap for that account type. Write down the spread on USD/ZAR at 10:00 and again at 20:00 South African time. The difference between those two numbers tells you more than any review. If the spread widens from 12 pips to 30 pips, that is R32.40 more on 0.10 lots.

Place a demo trade of 0.10 lots with a stop loss 25 pips away. The risk is 25 times R1.80, which is R45.00. Then place the same trade on a second platform. Compare the entry price, the exit price and any commission line. Do this three times on different days. You are looking for consistency, not one good fill. A single tight spread at a quiet moment proves nothing.

The platform choice is reversible. Most brokers let you download a different terminal and log in with the same account. The account type is not reversible without closing and reopening. If you open a commission-based account and later want a spread-only account, you usually have to apply for a new account. Your open trades may need to be closed first. So test the account type on demo before you fund anything. The FSCA regulates brokers in South Africa, but it does not set spreads or commissions. Those are commercial decisions.