How bonus credit looks in MT4 and MT5: balance, credit and equity explained
How balance, credit and equity are laid out in MT4 or MT5 when you open an account that received a bonus, and how to read them.
Published ・ MyBrokerBonus Editorial
When you open an account that received a bonus in the trading platform, a “Credit” row can appear next to the usual balance. The account looks bigger, but this is not the same as your own money. This guide shows how balance, credit and equity are laid out on the MT4 and MT5 screen, and what happens to the credit when you withdraw.
Row names and their order differ by platform, version and broker. The figure is a sketch that shows where things are, not the real screen. How credit is treated is set in each broker’s terms and in the terms of each offer, so check them.
The rows of account figures
The “Trade” screen of the platform lists the account figures from the top down.
Equity = balance + credit + floating profit or loss. Free margin = equity - margin. Which rows show, and in what order, depends on the platform and the broker.
- Balance: the money you deposited plus the profit or loss of closed trades. It does not include the floating profit or loss of trades still open.
- Credit: the amount placed in the account as a bonus.
- Floating profit / loss: the current profit or loss of trades that are still open.
- Equity: the balance plus the credit plus the floating profit or loss.
- Margin: the deposit held for the positions you have open.
- Free margin: equity minus the margin in use. It shows the room left for new trades.
- Margin level: equity ÷ margin in use × 100.
In an account with no credit, the Credit row is missing or shows 0.
What equity is made of
In the example in the figure, the balance is 1,000, there is 500 in credit, and a floating loss of 200. Equity is 1,000 + 500 − 200 = 1,300.
The credit counts toward equity, so the margin and the margin level are worked out with it. It is not cash you can withdraw.
Credit counts toward equity, so the room for trading and the margin level are worked out with the credit added. In other words, credit is money that can serve as a guarantee for trades. But it is not money you can withdraw as cash. The loss-cut check often uses this figure with the credit included, but that depends on the broker.
Caution
Even if equity looks large, the credit inside it cannot be withdrawn. If you trade larger because there seems to be room, the margin level falls faster when a floating loss appears.
What happens to the credit when you withdraw
At many brokers, asking for a withdrawal makes the credit disappear, or shrink in proportion to the share you withdraw. Which of the two applies, and when, differs by broker and by offer.
Everything is removed
The remaining credit and the bonus-only profit are removed.
Removed in proportion
Only the matching share of the bonus is removed.
The numbers are made up to show the difference. They are not any broker's terms.
If you withdraw before meeting the conditions (trading volume or a deadline), not only the credit but also the profit made from that offer can be cancelled. Read the part of the terms about withdrawal before you apply. How to read it is explained in how to read bonus withdrawal conditions.
Losses and the order of credit
When an account with credit takes a loss, whether the credit goes first or your own funds go first also depends on the broker. It is covered with the forced-closing level in loss-cut and zero-cut explained.
What to read next
How to place orders is in how to place orders in MT4 and MT5. How to work out the margin and the margin level is in leverage and margin explained. The bonuses running now are collected in the bonus list.
Risks to keep in mind
Even with a bonus you can lose money quickly when you trade. Credit is not money you can withdraw, and it can disappear if the conditions are not met. This guide explains how to read the screen and does not promise any profit. Trade only with money you can afford to lose.
