Introduction to 4 Digit Broker
4 Digit Broker refers to the brokers who are using 4 decimal pricing such as 1.2345. Traders in the Forex market use currency prices up to 4 digits after the decimal. Orders are executed at the 4 decimal digit, not the usual 5 digits, of the currency in which the trading is being done.
The 4 decimal digits help to simplify the calculation of the difference between two different currency prices. For example, if a trader is offering a currency pair such as USD/EURO for 4.0003 with a forecast of the price rising to 4.0009. This means there is a positive change in the value of the dollar against the euro. This could be determined by the change in the last decimal digit of both the prices. This price point movement can be both negative or positive.
Why 4 Digit Brokers?
When we are dealing with the exchange of currency, the smallest price movement is denoted by pips. These pips represent the point change in the price of a currency pair. Traders take utmost consideration about the changes in the pips as it determines the possible gains or losses. Pips also help in understanding even the small changes in the 4 digit currency prices. More pips the trader gains more is the profit.
4 digit brokers are quite useful and easy when you are dealing with decimal values of currency. Following are the advantages of the 4 digit Broker:
- Accuracy: Accuracy and profit go hand in hand in the forex market. Accuracy comes if a person is well aware of even the slightest change in the currency pair price and knows how to exploit such changes. The 4 digit forex broker helps in such accuracy in the market.
- Timing: Timing is very important while trading as there are changes in the market prices every millisecond. The 4 Digit forex brokers have a detailed knowledge of the changes in the price of a currency pair. Acting upon these changes at the correct time can prove to be beneficial as even the smallest decimal changes in the price can give a huge profit or a huge loss.
- Trading Platform: Trading platforms like MT4 and MT5 possess the skills to read the Forex charts up to 4 digit decimal prices in the forex market. 4 digit forex brokers are well versed with the knowledge of the technical and fundamental analysis of the market and help the investor to utilize this knowledge towards gaining access to these trading platforms.
4 Digit Trading Platforms
To get access to the Forex Market as a trader, a trading platform, or a currency trading platform is needed. This trading platform is provided by the broker to the investor. And it can be accessed through many means such as a mobile app, web portal, etc. two of the most preferred currency trading platforms are MetaTrader4 and MetaTrader5.
Both MetaTrader4 and MetatRader5, read up to 4 digit decimal prices and provide detailed information on the market trend making it convenient for the user to make sound decisions. These trading platforms are also accessible through mobile applications so the traders can get all the information and make transactions anywhere, anytime.
The Final Verdict of 4 Digit Forex Broker vs 5 Digit Forex Broker
You can come across both 4 Digit or 5 Digit brokers but the objective of both the brokers is to gain maximum from the slightest point change in the currency price. It is evident that 5 digit brokers provide a more optimal price difference as compared to the 4 digit broker. But the 4 digit broker provides more accuracy and timing of the market that helps to notice whether there is a positive or negative change in the price. Moreover, with trading platforms like MT4, it becomes an even more preferred and easily accessible concept in the Forex Market.
Finding a broker that matches your portfolio and your expectations from the investment you are planning is difficult and time-consuming, especially when you are not aware of the options available to you. The following is a guide to some of the best 4 digit brokers that can help you towards achieving your investment goals.
Selecting The 4 Digit Broker
To get the most suitable broker, in accordance with the investor’s needs, one must look for certain factors. Some of these important factors are:
- Check if your 4 digit broker is dealing in the international market as well. He may be enrolled in the training and seminar presentations which will show his presence in the international market.
- If there are any disputes or misunderstandings in the trading, the 4 digit broker may have the ability to become the arbitrator in that situation. This may be possible if the broker is associated with a regulation under the jurisdiction or at least has the knowledge of it to prevent any future misconduct.
- Customer support also plays a big role in displaying the 4 digit brokers’ reputation in the market. It may also be considered while selecting the broker that if he has a justified number of customer support. Consider more than 15 good.
- Deposits and withdrawals can take time which may cause delays. So look for a broker who can help you with the processing within 2 or 3 days.
- A 4 digit broker with considerable experience in the market is always a good option. Make sure your broker has a relevant trading history of 2 or more years.
- Since trading is not taking place locally. It is an international platform and communication can be a barrier in some situations. Find a broker who has the sources to appoint translators for your convenience.
Comparing The 4 Digit Brokers
Out of the pool of the 4 digit brokers in the market, the investor must look towards the following aspects of the broker. These aspects will help him shortlist and choose the most suitable broker that meets his/her portfolio demands.
- What each brokerage offers you to trade?
- What are the 4 digit brokers’ available funding methods?
- What is the minimum deposit required in order to open a trading account?
- What is the spread type of each brokerage?
- Which trading platform are brokers able to offer?
- What is the value of the customer support offered by the broker?
Other aspects such as Islamic, VIP, micro, and standard account of brokers may also be considered.
Top 15 4 Digit Brokers of 2020
The following are the top 4 digit brokers, and their comparison on the basis of fees, headquarters, benefits, funding methods, deposits, and regulations.
More About The 4 Digit Brokers
After comparing the top 4 digit brokers on the basis of their fees, regulation, headquarters, trading platform, deposit, and customer support, the next step is to get more details about these brokers in order to get clear with what each broker has to offer.
Let’s take a look into a more detailed approach in the 4 Digit Brokers.
Explaining the 4 Digit Brokers
The market is a very uncertain place and sometimes even the experienced brokers fail to predict an upcoming trend correctly. In such cases, the more detailed information of the brokers helps you to consider the best broker amongst them. The trading platforms they are offering and their individual innovation approach determine their market position. To be successful with your investment, a trustworthy relationship between the broker and the investor is a must. The broker must ensure the investor that he is confident with his trading skills and the investor can rely on him with his decisions.
6 Factors You Must Consider While Choosing The Broker
Following are the questions that one must ask themself before choosing a suitable broker.
Q1. Is your 4 digit broker established and trusted?
A broker’s position in the market can be considered by the broker’s track record. The longevity of the broker tells how accurate and established his approach is in the market. Through this, investors can evaluate the strategy towards the market.
Amongst the top 4 Digit brokers, eToro is the highest-rated broker. With its headquarters in Cyprus, UK, eToro was established in 2006 and has been operating for the past 12 years.
eToro is regulated which indicates that its conduct is checked and regulated by the Financial Conduct Authority (FCA), the Cyprus Security and Exchange Commission (CySEC) regulatory bodies.
The next popular broker, after eToro, is Plus500. With its headquarters in Israel, Plus500 was established in 2008 and has been operating for the last 11 years.
Plus500 is also regulated which means it is also checked and supervised for its conduct by the Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) regulatory bodies.
Q2. What is the position of the 4 digit broker in the world market?
As discussed before, the trading platforms offered and the innovative approach of the broker help in understanding his market position. The industry leaders can always give you the facilities that not everyone can offer. As the industry-leader, eToro offers over 100 instruments and segregates the clients (investors) funds. It also gives its clients easy access to the market by offering both mobile platforms and online trading platforms. eToro supports various third-party trading platforms by allowing access to a variety of markets worldwide that can be traded with the assistance of expert advisors or a customizable automatic trading strategy.
As the world leader in terms of innovation, eToro is always working towards improving themselves and maintaining their position in the market.
After eToro, Plus500 holds the next position in the industry and it only provides CFDs and offers over 2000 instruments.
Q3. How much fees or commission is the 4 digit broker charging?
Brokers’ commission and fees are something that an investor must not neglect while getting into business with the broker. Make sure to ask the broker about his/her commission or fees and also consider comparing it with that of his competitors.
The top-rated eToro’s minimum deposit is 200 and it has a variety of competitive offerings that includes Cryptocurrency, CFDs, Forex, Social Trading, Stocks, Commodities, Indices, etc.
As the 2nd top-rated $ digit broker, Plus500 has a minimum deposit of 100 and it offers CFDs.
Q4. How is the customer support service offered by the 4 digit broker?
Customer support of a broker gives a glimpse of the future assistance you can expect from your selected broker. What type of customer service is your broker offering, how prompt he is with the assistance and queries, how quickly can your broker act upon your decisions regarding the training, installation, upgrading, and cancelation? It can also include general customer services like email support, live chat, and tele-calling.
eToro supports various languages including English, French, German, Italian, and Spanish.
Plus500 supports a plethora of languages including Arabic, Bulgarian, Chinese, Czech, Danish, Dutch, English, French, German, Hebrew, Italian, Norwegian, Polish, Portuguese, Slovak, and Spanish.
Both eToro and Plus500 customers can obtain help through their customer service that is available through call chat or email.
Q5. What are the resources that the 4 digit broker can avail?
It is always better when the broker offers complementary resources like risk management tools, education, and analysis. eToro and Plus500 are supported by the wealth of knowledge from top analysts and work together to bring the latest news and insights to traders.
For many traders, novice or experts, the most difficult part is pursuing their edge. Yes, it is important to have an edge along with organized money management, this is not the only thing that can prepare you for the market. The most crucial thing still remains the selection of the broker and access to the market.
Q6. Is the broker checked by a regulatory body?
The job of the regulator is to guard the interests of the traders. If the selected broker’s conduct is checked and supervised by a regulatory body it ensures the security of the traders’ funds that the trader is entrusting with the broker. Sometimes brokers can cause financial harm to the traders by using their investment as their working capital. This type of fraud can only be prevented if there is a regulator to check upon the broker’s work.