Warning: MT4/MT5 Platforms in China Faces Potential Restrictions, New Users Loses Server Access

Recently, numerous Chinese investors reported widespread connection failures on the MT4/MT5 trading platform in mainland China, with all foreign exchange brokers operating in mainland China having been affected.

After downloading MT4/MT5, new users were unable to find any brokers on their phones or connect to the server. Existing users who had previously installed the platforms encountered the same issue when attempting to link to a new broker.

The widely used MT4/MT5 trading platform is experiencing server connection issues. Is this due to technical difficulties, or is it a result of the ongoing crackdown by authorities on ‘overseas leveraged forex trading’?

At this moment, the situation appears to be driven by regulatory restrictions rather than technical issues. The issue was first found on May 22, with users in mainland China and Hong Kong SAR encountering the results shown in the screenshots when searching for ‘Exness.’

China Mainland users cannot search for brokers’ servers in MT4/MT5 VS Hong Kong users can use it normally

Chinese authorities are strengthening regulations as leveraged trading scams emerge more frequently

"Investors engaging in forex margin trading (i.e., leveraged foreign exchange trading) in mainland China face losses exceeding 90% due to the inherent risks of leverage, coupled with a lack of regulation, platform scams, and operational shutdowns.

The Chinese authorities have repeatedly issued warnings restricting its residents from participating in unauthorized foreign exchange margin trading abroad.

Since 2021, state-owned banks such as Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), and Bank of China (BOC) have explicitly stated on their official websites that foreign exchange margin trading is an illegal financial activity and is not protected under Chinese law.

Financial regulation has been steadily tightening globally, not just in China.

Since 2018, the European Securities and Markets Authority (ESMA) has imposed CFD leverage restrictions (e.g., 1:30 for forex and 1:2 for cryptocurrencies) on EU retail clients.

The Financial Conduct Authority (FCA) has required all Forex platforms to be licensed, strictly controls advertising and marketing compliatheirnce, prohibits the promotion of ‘high returns’, and regularly removes fraudulent and unscrupulous platforms.

In 2021, the Australian Securities and Investments Commission (ASIC) lowered its leverage to 1:30 for foreign exchange, 1:5 for stock CFDs, and 1:2 for cryptocurrencies.

In 2018, the Financial Services Agency (FSA) in Japan continued its tightening measures, with a maximum leverage of 25:1 imposed.

In addition, the National Futures Association (NFA) imposes a maximum leverage limit of 50:1 for major currency pairs and prohibits trading platforms from granting retail investors access to options.

In 2022, the App Store removed MT4 and MT5, causing a market shock. The apps were reinstated on iOS in March 2023.

BrokersView reminds you

Currently, the MT4/MT5 trading platforms have faced server connectivity issues for several days, significantly impacting brokerage firms that urgently need to acquire new users. 

We urge investors to remain cautious of unregulated and unreliable platforms that may exploit this situation to disappear with funds.