Direct answer: what to check
For MT5 brokers, the key items to check are the published costs that affect the price you effectively receive: spreads and any separately listed fees (often commission and financing charges). Spreads and fees are “inputs” published by a provider, but the execution outcome also depends on variable conditions such as market volatility and liquidity.
Because MT5 is a trading platform, not a pricing model, the platform typically does not determine your cost. Instead, the broker’s quoting and fee schedule—combined with real market conditions—drives the final cost.
Mechanism and definitions: spreads vs fees
Spread is the difference between the quoted ask (buy) and bid (sell) prices at a given moment. Brokers may present spreads as fixed or variable. A fixed spread stays constant under normal quoting rules, while a variable spread can widen or tighten as conditions change.
Fees are additional charges that may be separate from the spread. Common categories include:
- Commission per trade (e.g., charged on entry, exit, or both).
- Financing or swap charges for holding positions overnight (the exact trigger is broker-specific).
- Account or platform-related fees, if any are published.
When you trade, your effective cost is not only “the spread you saw,” but also how orders are filled. Published spread information is typically a reference, while actual fills reflect the provider’s execution process.
Evidence and example: separate published vs realized costs
A practical way to verify cost components is to separate (1) what is published from (2) what actually happened in your account statements.
Example assumption (so the math is clear): you observe a quoted spread of 1.2 “pips-equivalent” at the moment you place an order, and you also know the broker charges a commission per side. Your realized cost will then be influenced by:
- whether the order was filled at prices consistent with the observed quote,
- the size and timing of the fill, and
- any financing charges during holding.
Even if the quoted spread looked narrow, realized cost can change if the spread widened between quote display and fill, or if slippage occurred. Slippage means the execution price differs from the intended price due to fast price movement or liquidity changes.
Limitations and failure modes: why comparisons can mislead
At least one important limitation applies in most comparisons:
- Published spreads can differ from realized fills. The biggest failure mode is assuming quoted spreads equal the spread you actually pay.
Other variable factors that can change outcomes include:
- Market volatility (fast moves can widen spreads and increase slippage).
- Liquidity and trading hours (spreads can behave differently outside peak liquidity).
- Order execution conditions (how the broker routes or handles orders).
- Position duration (financing charges depend on holding time and rollover rules).
A historical relationship between quoted spreads and past results does not establish future results, especially in changing market conditions.
Verification and next question
To independently verify what matters, check three things in the broker’s published materials and your execution records:
- Spread type (fixed vs variable) and whether it’s defined per instrument.
- All fee categories listed clearly (commission, financing/swap, and any account-related charges).
- Your fills vs your quote by reviewing order and deal history (timestamps and execution prices).
Next question to ask yourself: for the instruments you trade on MT5, which parts of your cost are clearly published (spread definition and fee schedule), and which parts remain variable (fill quality, slippage, financing timing)?”