Forex is the largest market for currency in the whole world. It is also a vulnerable area for traders since it is unpredictable and extremely volatile. The most important aspects of trading Forex is doing it with accuracy and speed, in order to be able to gain access to high levels of profit and returns. This all depends on the brokers that you are investing with, since each broker provides different elements and promotions. This is where 4-Digit Forex Brokers come in, to differentiate between the different types of brokers.

What is a 4-Digit Forex Broker?

Forex brokers give data and information to clients on what is currently happening in the financial markets. This can include, but is not limited to, information and analysis on forecasts of pricing, the fluctuation of pairs of currencies, and in addition to looking at market signals. By talking about 4-Digits Forex brokers, we simply mean that the price of a currency has four digits after the decimal point. When looking at a price action’s accuracy, the numbers after the decimal point define how accurate it is. With 4-Digit Forex brokers, there is a level of accuracy and transparency in prices and price movements.

For example, if Trader X offers a price of the currency pairs USD/EURO for 1.4001 and there’s a forecast saying it will rise by 0.0007, the fourth digit shows the positive value of the USD against the EUR. It makes it easier to see the amount of loss or profit that a trader can make. This way a trader will be able to see the positive and negative changes that take place in price movements.

 

Here Is a List of Forex Brokers That Use 4-Digits

Broker
Description
Trade Now
Octafx
OctaFX
Regulation: CySec
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.4 pips

Review


IC Markets
IC Markets
Regulation: ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:500
Spreads: Low as 0.0 pips

Review


XM
XM
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.1 pips

Review
Globex360
GlobeX360
Regulation: FSCA
Min. Deposit: No min Deposit
Leverage: 1:500
Spreads: Low as 1.6 pips

Review
XTB
XTB
Regulation: FCA
Min. Deposit: $/€/£ 250
Leverage: 1:30
Spreads: Low as 0.1 pips

Review


IQOption
IQOption


Regulation: CySec
Min. Deposit: $/€/£ 10
Leverage: 1:1000
Spreads: Floating from 1 pip

Review


OlympTrade
OlympTrade
Regulation: IFC
Min. Deposit: $/€/£ 10
Leverage: 1:500
Spreads: Low as 0.0 pips

Review
Etoro
Etoro
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:30
Spreads: Variable

Review

Avatrade
Avatrade
Regulation: ASIC,JFSA,FSCA
Min. Deposit: $/€/£ 250
Leverage: 1:400
Spreads: Floating from 1 pip

Review


 

Why Four Digits?

Profit and loss margins are decided by how many pips a trader gains. With a currency pair with up to four digits, traders can take advantage of small moves in the pricing. There are three main advantages that come with 4-Digit Forex brokers; those are accuracy and timing. Let’s have a closer look at other reasons why.

  1. Accuracy
    Gaining from Forex means a trader needs to be accurate and this comes from understanding and exploiting the smallest of differences in price between pairs of currencies. With the accuracy of 4-Digits Forex brokers, traders will be able to have all the information they need on FX trading to make sound trading decisions, and form reliable trading strategies. Accuracy comes in handy when it comes to the exploitation of the smallest difference that exists in price movements on any FX trading instrument.

 

  1. Timing
    4-Digit Forex brokers allow traders to time their trades well; this is due to the fact that they offer a detailed price for currencies. Traders wait for the small decimal differences that occur within a pair and will make trading decisions based on the time frame. As mentioned above, the smallest difference that exists from a currency pair price movement can cause a significant change in the return of the trader, which is why the trader is very reliable when it comes to the timing of the 4-Digit FX brokers.

 

  1. Trading Platform Friendly

The majority of trading platform has the ability to read FX charts up to four-digit decimal places. This means that investing with a 4-Digital Forex broker will facilitate traders in utilizing these trading platforms and help gain from their technical and financial analysis on price differences of currency pairs.

 

Trading Platforms That Read 4-Digits

The majority of trading platforms can read charts of Forex with 4-Digits. If you choose 4-digit Forex brokers it will help you to use these platforms and gain from the fundamental and technical analysis that they provide. The following trading platforms are the services, where 4-Digit FX brokers provide the accurate information that traders would.

  • MetaTrader4 Trading Platform:

The MT4 trading platform is known for its many popular elements that have made trading easier for users and very thorough its technical analyses. With MT4, it reads up to four digits after the decimal, which makes it very helpful for users to make informed decisions while they trade. Not to mention that with MT4 providing a mobile application, it makes it possible for users to trade, anytime and anywhere.

  • MetaTrader5 Trading Platform:

The MT5 trading platform is renowned for its advanced trading solutions, which is why most experienced traders utilize this particular trading solution. With MT5, it reads up to four digits after the decimal, which makes a significant difference since advanced traders rely on that small change or movement to base their trading decisions on.

In Conclusion

Whether you choose a 4-digit or a 5-digit Forex broker, your main aim is to gain from price differences. However, it’s worth considering that 4-Digit Forex brokers are actually rarer these days as more brokers opt for 5-digits as they provide optimal price differences.

With 4-Digit Forex brokers, there are three main advantages that most traders find crucial in their trading decisions and trading strategies. The first advantage is accuracy, where traders need accurate information on the price changes of the currency pairs. The four digits of the price changes after the decimal, define whether there was a positive or negative change. The second advantage is timing, where traders wait for the right time in order to trade, which can be defined through the four digits that come after the decimal. The final advantage is that the 4-Digit FX brokers are found trading on MT4 and MT5 trading platforms, make it easy for traders to access information.