Quick Answer:
MT4 is ideal for forex traders focused on simplicity and currency pairs like USD/ZAR. MT5 offers advanced features, multi-asset trading (stocks, futures, crypto), and better tools for professional or diversified strategies.
Key Differences:
- MT4: Best for forex trading, fewer technical indicators (30), 9 timeframes, and simpler design.
- MT5: Supports forex + stocks, futures, and more; offers 38 indicators, 21 timeframes, economic calendar, and faster backtesting.
| Feature | MT4 | MT5 |
|---|---|---|
| Focus | Forex trading | Multi-asset trading |
| Technical Indicators | 30 | 38 |
| Timeframes | 9 | 21 |
| Programming | MQL4 | MQL5 (64-bit, faster testing) |
| Order Types | 4 | 6 |
| Market Depth | Basic | Advanced |
| FSCA Support | Yes | Yes |
Recommendation:
- Choose MT4 if you’re a beginner or focused on forex.
- Choose MT5 for advanced tools, multi-asset trading, or automated strategies.
Both platforms are supported by FSCA-regulated brokers in South Africa, ensuring secure and compliant trading environments.
MT4 & MT5: What are the differences between the two? FBS tutorial
Platform Structure and Markets
MT4 and MT5 have different server designs and market access, which directly affect trading in South Africa. Let’s break down how each platform is structured.
MT4 Server System
MT4 is built specifically for forex trading, making it a go-to for trading currency pairs like USD/ZAR. Its single-threaded server design ensures stable performance and quick execution – key features for strategies like high-frequency trading and scalping.
MT5 Multi-Market System
MT5, on the other hand, uses a multi-threaded architecture, allowing it to handle various asset classes. This setup gives South African traders access to forex pairs, local stocks (including JSE-listed shares), futures, and even cryptocurrencies. It’s designed to handle complex, multi-market operations with ease.
Platform Features Comparison
The structural differences between MT4 and MT5 can help traders decide which platform better suits their trading style:
| Feature | MT4 | MT5 |
|---|---|---|
| Server Architecture | Single-threaded | Multi-threaded |
| Market Access | Primarily forex | Multi-asset (stocks, futures, crypto) |
| Strategy Testing | Single-threaded | Multi-threaded |
| Execution Model | Netting system | Hedging enabled |
| Programming Language | MQL4 | MQL5 |
MT5’s multi-threaded design supports more complex strategies and allows for faster, more in-depth strategy testing compared to MT4. South African traders need to weigh whether they prefer a forex-focused platform or one with broader market access.
Analysis Tools and Charts
Trading Tools Overview
MT5 comes packed with 38 built-in indicators and 21 timeframes – offering more than MT4, which provides 30 indicators and 9 timeframes. This expanded range gives traders greater options when analysing ZAR currency pairs and local markets. Additionally, MT5 includes a built-in economic calendar, making it easier to track events like South African Reserve Bank updates and key economic data that impact the rand and other currencies.
Professional Trading Features
One standout feature of MT5 is its advanced Depth of Market (DOM), which shows real-time order book data for JSE-listed shares and futures. This allows traders to make more precise decisions on when to enter or exit positions.
| Analysis Feature | MT4 | MT5 |
|---|---|---|
| Technical Indicators | 30 | 38 |
| Timeframes | 9 | 21 |
| Graphical Objects | 31 | 44 |
| Economic Calendar | Not available | Built-in |
| Market Depth (DOM) | Basic | Advanced |
Technical Tools Comparison
The enhanced tools in MT5 have significantly boosted its popularity, with a 45% increase in adoption since 2020. By early 2025, it accounted for 54.2% of the combined trading volume.
"Choose MT5 if you want advanced features, access to multiple asset classes, enhanced charting, faster backtesting, and flexibility for future-proof trading strategies." – Gerald Segal, FX News Group
MT5 offers 44 graphical objects compared to MT4’s 31, giving traders more advanced options for chart analysis. This expanded set of tools is particularly useful for analysing complex market trends in volatile ZAR pairs and allows for multi-timeframe analysis across various asset classes.
Its charting capabilities include timeframes ranging from 1-minute to monthly, enabling traders to spot opportunities across different trading sessions. For example, traders can assess how Asian market activity impacts the rand or analyse trends around New York’s closing prices.
While MT4 remains a solid choice for traders focused primarily on forex and major ZAR pairs, MT5’s broader feature set is ideal for those using diverse technical analysis methods across multiple South African market segments. These advanced tools play a key role in making informed decisions about trade execution and managing risk, which will be discussed in the next section.
Trade Execution and Risk Tools
Position Management Systems
MT4 offers a hedging system, allowing traders to hold both long and short positions on the same currency pair simultaneously. On the other hand, MT5 uses a netting system, which consolidates positions into one, making management simpler but removing the ability to hedge. This distinction is especially relevant for ZAR pairs, where market volatility often demands more adaptable position management. Let’s now look at how order types and execution methods influence trade control.
Order Types and Execution
MT5 provides six types of pending orders, compared to MT4’s four, giving traders more precise control over their trade entries and exits. The additional order types and the ability to partially fill orders improve efficiency, particularly during high-volatility periods like the overlap of the JSE and London trading sessions. MT5 also introduces an Exchange execution model alongside the Dealing Desk and No Dealing Desk options, offering more flexibility when trading with local brokers.
Order Features Table
| Feature | MT4 | MT5 |
|---|---|---|
| Pending Order Types | Buy/Sell Stop, Buy/Sell Limit (4 types) | Buy/Sell Stop, Buy/Sell Limit, FOK, IOC (6 types) |
| Position Management | Hedging System | Netting System |
| Order Fill Policy | Fill or Kill | Fill or Kill, Immediate or Cancel, Return |
| Market Depth | Basic | Advanced with real-time order book |
| Partial Order Filling | Not Available | Available |
These tools provide a strong foundation for more advanced automated trading strategies, which will be explored in the next section.
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Automated Trading Options
Coding Languages
MT4 and MT5 each use their own programming languages for automated trading. MT4 is built on MQL4, while MT5 uses MQL5, which offers more advanced features. MT4 operates on a 32-bit architecture, which limits its ability to handle large datasets, especially for ZAR pairs. On the other hand, MT5’s 64-bit processing allows for more complex algorithmic strategies.
MQL5 makes it possible to monitor multiple timeframes and currency pairs at once. This is particularly useful for traders focusing on major ZAR pairs like USD/ZAR and EUR/ZAR, where market conditions can shift quickly during overlapping trading sessions. This programming upgrade also improves the efficiency of strategy testing.
| Feature | MQL4 | MQL5 |
|---|---|---|
| Architecture | 32-bit | 64-bit |
| Memory Management | Limited | Advanced |
| Multi-currency Testing | No | Yes |
Strategy Testing Tools
MT5 also brings significant improvements to strategy testing tools. Its multi-threaded testing system processes historical data much faster than MT4’s single-threaded approach – up to 21 times faster, according to reports. This speed is critical for developing automated strategies, especially for volatile ZAR pairs.
Here’s how MT5’s testing environment stands out:
1. Processing Power
MT5 uses multi-core processors efficiently, allowing users to test strategies across multiple currency pairs and timeframes at the same time. This capability is particularly helpful for optimising strategies during JSE trading hours.
2. Data Integration
MT5 supports advanced data sourcing, enabling traders to include third-party market data for backtesting. This is crucial when developing strategies based on historical ZAR pair movements or specific local market events.
3. Optimisation Capabilities
MT5 employs genetic algorithms for strategy optimisation, automatically finding the best parameter combinations. According to technical documentation, this system can process complex strategies up to 20 times faster than older methods.
| Testing Feature | MT4 | MT5 |
|---|---|---|
| Processing Type | Single-threaded | Multi-threaded |
| Testing Speed | Standard | Up to 21x faster |
| Data Points Capacity | Limited (32-bit) | Extensive (64-bit) |
| Parameter Optimization | Basic | Advanced genetic algorithms |
South African Regulations and Support
FSCA-Licensed Brokers
The Financial Sector Conduct Authority (FSCA) oversees non-banking financial activities in South Africa. Brokers licensed by the FSCA are required to keep client funds separate from their own and undergo regular audits. Since 2019, Forex brokers in South Africa must also secure an Over-the-counter Derivative Provider (ODP) licence, adding an extra layer of oversight. Popular trading platforms like MT4 and MT5 are commonly used by FSCA-regulated brokers to meet these requirements. This regulatory framework creates a secure trading environment and ensures access to accounts denominated in South African Rand (ZAR).
Local Currency Accounts
Thanks to these regulations, many brokers now offer trading accounts in ZAR on platforms like MT4 and MT5. This allows traders to deposit, trade, and withdraw directly in South African Rand, avoiding currency conversion fees. Transactions are also processed faster through local banking systems. To ensure compliance, traders should confirm their broker’s FSCA licence using the official FSCA portal.
Platform Selection Guide
Here’s how specific trading platforms cater to different strategies and needs:
Forex Scalping with MT4
MT4 is well-suited for forex scalping, thanks to its simple interface and quick order processing. Its lightweight design ensures fast trade execution, even during high-frequency trading sessions. The platform supports automated scalping strategies through its Expert Advisors (EAs), which operate efficiently on client terminals. With strong encryption to protect your trades and a variety of third-party tools available, MT4 offers a reliable environment for scalping.
Multi-Market Trading with MT5
MT5 is ideal for managing a diverse portfolio across various markets, including:
- Global stock indices
- Commodities
- Futures and options
- Forex pairs
The platform offers 21 timeframes, an integrated economic calendar, and advanced Depth of Market (DOM) tools for detailed multi-market analysis. These features allow traders to align their strategies with global market trends. MT5’s economic calendar and market depth tools make it easier to track and adapt to shifting conditions across different trading sessions.
Automated Trading Setup
MT5 takes algorithmic trading to the next level with its 64-bit, multi-threaded design. This setup speeds up backtesting and reduces the strain on local devices, making automation more efficient. The platform also supports flexible order execution options like Fill or Kill (FOK) and Immediate or Cancel (IOC). For South African traders, MT5 enhances security with two-factor authentication (2FA) while maintaining consistent performance for automated strategies.
Conclusion
Pick MT4 for straightforward forex trading or MT5 for access to multiple markets. MT4’s user-friendly design and forex-specific features make it perfect for trading currency pairs and for beginners. Its lower system requirements have also contributed to its continued popularity.
On the other hand, MT5 offers enhanced tools for trading across various markets and improved backtesting capabilities. This makes it a strong choice for traders looking to diversify, reflected in its growing user base since 2020. These differences highlight the technological strengths of each platform, supported by a solid regulatory framework.
Both platforms can be accessed through FSCA-licensed brokers, ensuring compliance with South Africa’s financial standards.
Here’s a quick comparison to help you decide:
| Trading Focus | Recommended Platform | Key Advantages |
|---|---|---|
| Forex Trading | MT4 | Easy-to-use interface, established EA community, works well on lower-spec systems |
| Multi-Asset Trading | MT5 | 21 timeframes, 38 built-in indicators, built-in economic calendar |
| Automated Trading | MT5 | Advanced MQL5 programming, better backtesting, modern platform architecture |
As Eugenia Mykulyak, Founder and Board Member of B2PRIME, explains:
"Seeing Africa’s increasing importance in global finance, B2PRIME Group’s move into South Africa shows our dedication to building strong local partnerships, making financial services more accessible, and promoting best practices." – Eugenia Mykulyak
FAQs
What makes MT5 a better choice than MT4 for South African traders?
MT5 provides South African traders with enhanced features and flexibility, making it a strong choice for those looking to diversify their trading strategies. It offers advanced charting tools, more timeframes, and a wider variety of technical indicators, allowing for deeper market analysis.
Additionally, MT5 supports a broader range of financial instruments, including stocks, futures, and options, alongside forex. The platform also includes a built-in economic calendar, which helps traders stay updated on key global and local market events. For those who value faster order execution and improved functionality, MT5 is a more modern, versatile option compared to MT4.
How does choosing between MT4 and MT5 impact automated trading strategies for South African traders?
The choice between MT4 and MT5 can significantly influence your automated trading strategies, especially regarding technical features and execution capabilities. MT5 is more advanced, offering features like additional timeframes, more pending order types, and faster execution speeds, which are ideal for complex or high-frequency strategies. It also supports more sophisticated Expert Advisors (EAs) and a broader range of tradable assets, making it a versatile choice for algorithmic traders.
On the other hand, MT4 is simpler and often preferred for straightforward forex strategies. It’s user-friendly and remains a reliable option, particularly for traders focused on currency pairs and less complex automation. The platform you choose should align with your trading goals, strategy complexity, and the tools you need to succeed in South Africa’s dynamic forex market.
Why should South African traders choose FSCA-regulated brokers when using MT4 or MT5?
Choosing an FSCA-regulated broker is crucial for South African traders as it ensures they are protected under local financial laws and regulations. The FSCA (Financial Sector Conduct Authority) oversees brokers to ensure they operate transparently and fairly, providing traders with a layer of security and peace of mind.
If a broker engages in misconduct or faces financial difficulties, FSCA regulation offers a framework for resolving disputes and recovering funds. This local oversight is essential when trading on platforms like MT4 or MT5, as it adds an extra layer of trust and accountability tailored to South Africa’s trading environment.