What it means
An MT4 expert advisor does not automatically run on MT5 because the programming environments differ. Account credentials are also platform-specific. MetaQuotes lists more pending-order types and timeframes for MT5, plus an economic calendar and a multi-threaded strategy tester. A broker may still offer a different instrument list or account conditions on each server.
The most useful way to learn this topic is to connect the definition to an actual order ticket. A platform may use abbreviations, decimal formatting or account labels that differ from another broker. Open the instrument specification and confirm how that provider defines contract size, minimum volume, trading hours, margin and charges. Do not assume that a familiar label creates identical conditions across accounts.
Keep the measurement separate from the decision. A term can describe what happened without proving that a trade was sensible. Good decisions also require an affordable risk limit, a reason for entering, a clear exit plan and an understanding of what could invalidate the idea. This distinction is especially important in leveraged products, where a small market move can produce a large change in account equity.
Worked example
A trader with a custom MQL4 expert advisor may prefer MT4 until the program is properly ported and tested. A trader wanting exchange-traded instruments or deeper testing features may prefer MT5, if the broker supplies those markets. Platform capability does not guarantee that every broker enables every feature.
This example is deliberately simplified. A live result can also include spread, commission, financing, currency conversion and slippage. Prices can gap between available quotes, and a broker can change margin requirements when risk rises. Use the example to understand the calculation, then repeat it using the live contract specification and fee schedule for the precise account.
How to use this knowledge
| Key point | What to do |
|---|---|
| MT4 uses MQL4 and MT5 uses MQL5 | Check the broker specification instead of relying on a general assumption. |
| Programs are not automatically cross-compatible | Calculate the effect using the intended position size and account currency. |
| MT5 has a broader multi-asset design | Compare normal conditions with a fast or illiquid market scenario. |
| Broker server configuration determines available markets | Write the rule in the trade plan so it can be followed consistently. |
| Execution quality comes from the broker setup, not the platform name alone | Verify the latest wording before funding or placing an order. |
Numbers should be compared on the same basis. A one-way commission is not comparable with a round-turn commission, a minimum spread is not the same as an average spread, and maximum leverage is not the same as the amount a careful trader must use. Record the unit, time period and account type next to every number.
A demo account is useful for checking buttons and calculations, but it cannot guarantee the same live execution. When moving to real funds, use a small position and test the complete process, including order modification, closure, statement retrieval and withdrawal. Keep screenshots or statements when an execution result needs investigation.
South African context
South African readers should verify which company will legally hold the account. A global broker brand may place clients with different subsidiaries. Search the exact company name and licence number on the official regulator register, then compare those details with the client agreement. An FSCA reference on a website should not be accepted without an independent check.
Also check whether the account is funded and reported in rand or another currency. Conversion can affect deposits, withdrawals, charges and the value of profit or loss. SAST stays at UTC+2, while overseas financial centres can change their clocks seasonally. Economic-calendar and market-session times should therefore be converted carefully.
Tax depends on facts such as the nature, intention and frequency of activity. A general guide cannot determine an individual tax outcome. Keep complete broker statements and consult SARS guidance or a qualified tax professional where needed. Regulation, tax treatment and product availability can change, so date every verification.
Common mistakes to avoid
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Calling MT5 a direct MT4 upgrade. Slow down, confirm the relevant number or clause, and record the evidence before acting.
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Assuming an EA will transfer unchanged. Slow down, confirm the relevant number or clause, and record the evidence before acting.
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Choosing before checking the broker’s instrument list. Slow down, confirm the relevant number or clause, and record the evidence before acting.
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Believing the platform itself sets spreads. Slow down, confirm the relevant number or clause, and record the evidence before acting.
A second common problem is false precision. A calculator can produce an exact-looking answer from assumptions that are already outdated. Live spreads, conversion rates, margin and swap can change. Treat the result as an estimate until the order ticket and current broker document confirm it.
Practical checklist
- List required instruments.
- Confirm account and server compatibility.
- Check indicator or EA language.
- Test workflow on demo.
- Compare the broker terms on both platforms.
Complete these checks before using real money. If a broker document is unclear, ask support a specific written question and save the reply. If the answer conflicts with the legal terms, rely on the contract and regulator information, or do not proceed until the discrepancy is resolved.
Questions answered
No. It helps explain mechanics or risk, but it cannot predict market direction or guarantee execution. A correct calculation can still be followed by a losing trade.
Verify it in the current legal document, contract specification or live platform. Check whether it is a minimum, average, maximum or example and which entity and account it covers.
Repeat the worked example with a demo account, read the product terms, and define a cash risk limit. Learning the order process is more important than rushing to place a live trade.
Official source and related reading
Primary reference: MetaQuotes official MT4 and MT5 comparison. The source supports the regulatory or market framework. Broker-specific conditions still need a separate current check.
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