How does the indicator function on a 5-digit broker?

For Palil...

I think there is no difference if the indicator you are using is installed on a 4 or 5 digit broker. The most important thing is that you understand how the indicator works.

Thanks.

@ palil:
Technical indicators can be applied on both 4-digit and 5-digit trading platforms. The number of digits is only for price quote precision in the market. Because the fund turnover in the forex market is getting bigger, which means the trading volume is also swelling, the accuracy of price movements must be adjusted by adding 1 digit to the old system (4 digits). Indicators only calculate changes in price movement values, so for 4-digit or 5-digit prices it doesn't matter (only the changes are seen).

then what is the difference between trading with 4 digits and 5 digits? is it only from the price quote reading? or are there advantages and disadvantages here?

@ hilmy:
Currently there are brokers offering spreads smaller than 1, for example at broker FXCM which sets the spread for EUR/USD = 0.3 pip, USD/JPY = 0.4 pip, AUD/USD = 0.5 pip, GBP/USD = 0.7 pip, etc. FXCM is a broker that uses 5 digits. Now, compared to 4 digits, if for example you are trading EUR/USD and the price has risen 0.5 pip, then those trading in 5 digits have already obtained a profit of 0.2 pip (0.5 pip -0.3 pip), while those trading in 4 digits have to wait until the price rises a full 1 pip (for example EUR/USD at a 4-digit broker with a spread of 1 pip).
Another advantage: 5-digit order execution is faster because the price movement is tighter.