OANDA Japan Cuts MT4 Leverage to 10x, Forces MT5 Transfer for Low-Margin Accounts

§ 01 Executive Snapshot

What: OANDA Japan is cutting leverage on its Tokyo MT4 platform to 10x and will force the transfer of low-margin accounts to MT5.
Who: OANDA Securities, FTMO, Japan's Financial Services Agency (FSA).
Why it matters: This move reflects OANDA's response to market volatility and aims to enhance risk controls while pushing clients towards a more modern trading platform.

Effective June 12, 2026, OANDA will increase margin requirements for its Tokyo MT4 platform, reducing leverage to 10x, well below the 25:1 cap set by Japanese regulations.
Accounts with less than 200% margin maintenance on June 12 will be automatically transferred to MT5, with existing positions and cash balances moved.
The overall margin calculation methodology will change on June 6, transitioning to a daily closing price valuation for both MT4 and MT5 platforms.

The changes mark a significant shift as OANDA Japan attempts to phase out MT4, aligning its operations more closely with the practices of its New York servers, which already utilize a current-price model.
This move is part of a broader trend in the retail brokerage industry where many firms are migrating away from MT4 towards more advanced platforms like MT5, reflecting the aging nature of MT4 technology.

In the short term, the reduction in leverage may lead to decreased trading volumes on the Tokyo MT4 platform as traders adjust to tighter margin requirements.
Long-term implications may include increased adoption of MT5 among OANDA's clients, potentially leading to enhanced trading features and improved risk management capabilities.

Regulatory scrutiny from Japan's FSA may pose risks if OANDA's changes are perceived as inadequate in protecting customer assets.
The forced migration of accounts may lead to customer dissatisfaction, particularly if traders are unable to retain their existing setups and custom indicators during the transition.

Key dates to watch include June 6 and June 12, 2026, when changes to margin calculations and leverage limits will take effect, respectively.
Future developments will be indicated by customer feedback on the migration process and the overall trading volumes on MT5 post-transition.