MultiLP Review: Multilp.com Straight Scam

What comes to mind when you hear about forex trading? Is it the lucrativeness or risk involved with the venture? Truth is, none of those sentiments is misplaced. Forex can be rewarding and, at the same time, risky. The risk is partially explained by the presence of illicit brokers that cheat investors out of their money. MultiLP asserts to be a premier brokerage company that promotes traders’ equitable access to markets. The broker promises access to trading instruments, including stock, futures, forex, CFDs, and indices. Since the broker claims to be in an Islamic state, it purports to offer sharia-compliant accounts for Muslim investors. 

Although it’s early to judge, we are always cynical of brokers who place much hype on their capabilities with nothing to show for it. For this reason, we took it upon ourselves to probe into the broker’s website and establish whether it is a legit forex broker. Fast forward, this is a scam broker out to steal your money.

This review exposes some of the disturbing stings we found on the broker’s website. If you are considering investing with MultiLP, kindly consider the issues raised before engaging. The review will also guide you on standards to look for in brokers.

 The broker states that MultiLP LTD owns it. MultiLP indicates that it was incepted in 2020. We may not refute that since the whois database shows the broker’s domain was registered on 28 November 2019. Make no mistake; operational history is not synonymous with credibility.

The broker cites the advantages of its platform, including ultra-fast executions, special promotions, deep liquidity, and a dedicated account manager. The broker allegedly considers Muslim investors by tailoring its accounts to sharia law. However, until we can verify this, we will treat any claims, including MultiLP being a trusted local broker, with contempt.

Contact Details

The exact location of this broker is inconclusive. This is because while the broker claims to be in Kuwait, the same website reveals the company behind MultiLP is based in Marshall Islands. The chances of the broker being in the latter jurisdiction are higher than that of the former.

MultiLP has given email and telephone contacts for elaborate customer support. We usually advocate for brokers with both contact addresses, meaning you can access them anytime. Even so, we strongly advise against contacting this broker. With the desperation that scammers have, MultiLP will pester you with constant calls to manipulate you into depositing.

Investment Plan

Multi LP has three investment plans tailored to meet investors’ trading strategy, risk appetite and funding capabilities. The first plan is the standard account with a minimum deposit requirement of $100. The account is open to Islamic investors, and members can access account managers.

Next, the professional account has a funding threshold of $10000.The account is also open to Islamic traders. Lastly, the elite traders must deposit at least $ 20000 to trade. The perks in this account include $5 per lot. Nevertheless, this plan is not open to Islamic traders.  

On top of these, MultiLP offers a demo account for trial purposes. Meanwhile, MultiLP’s minimum deposit is fair because it is substantially below the acceptable $200 to $250 threshold. However, since there are genuine brokers with more affordable basic accounts, we suggest exploring such options.  

Deposit & Withdrawal Rules

The broker gives no details regarding the accepted payment methods. Be that as it may, we would like to point out that investors should be cautious when depositing with a broker. The fact that transactions are conducted online makes it a delicate affair, which makes transparency paramount. Thus, you should prioritize brokers with straightforward payment options.

While we do not dismiss crypto or e-wallets as they are still legal, we recommend only opting for them if you trust a broker. Reputable brokers mainly avail of flexible deposit options ranging from digital to conventional payment methods. Wire transfers are convenient as they have a provision for chargebacks. Moreover, the methods allow you to identify the funds’ recipients, making room for legal recourse.

MultiLP Regulation Status

According to MultiLP, it is authorized by the Chamber of Commerce and Industry. The broker also states it is subject to regulation by the Kuwait Ministry of Commerce and Industry. Turns out that the entity (KMCI) is not mandated to issue licenses. On the contrary, the Central Bank of Kuwait (CBK) is the agency in charge of issuing permits to forex brokers in Kuwait, which contradicts the broker’s claims.

MultiLP LTD, the organization behind the platform, was established in the Marshall Islands. Being an offshore nation, the Marshall Islands naturally draws many brokers looking to participate in unethical behavior or who are outright scams. This is because, without proper oversight, forex brokers are free to engage in fraudulent and illegal practices without fear of repercussions. This is an obvious red flag.

MultiLP Trading Platform

MT5 and MT4 are the recommended trading platforms. The two have pre-installed indicators, graphical objects, and open charts. Traders also have access to several time frame options. The software’s features also allow you to predict the price movements of financial products utilizing fundamental analytical approaches. As a result, you can assess short-term price changes and longer-term trends in the market. 

In particular, the MT5 has a provision for algorithmic trading. This feature covers all conventional trading, including real-time quotations and a full range of trading orders, including pending orders. Although MT5 support stocks and bonds trading and has more timeframes, indicators and graphical objects than MT4, it is just different and not necessarily better. 

MultiLP offers access to MT4, a renowned trading platform. While the platform may be less advanced, it is easier to use and provides a competitive experience. Nonetheless, you should not base your decision on this. This is because dubious brokers alter some features to deceive you.

MultiLP Trading Conditions

MultiLP has attached a privacy policy and client agreement. These documents have addressed essential areas, though not entirely. Although spreads, leverage and swap rate are well articulated, the broker is vague about applicable fees, such as withdrawal and dormant fees.

The broker offers a 1:500 leverage. The duality of leverage makes it enticing and risky simultaneously. Whereas it boosts your returns prospects, it also jeopardizes your returns in case of a loss. Most financial ombudsman impose restrictions on leverage to minimize risk exposure. The FCA, ASIC, and CySEC forbid brokers from exceeding 1:30, whereas the CFTC and IIROC cap leverage at 1:50. The aim is to cushion investors from suffering huge losses during upheavals in the forex markets.

MultiLP allows a spread of 1.5 pips. Although the spreads rhyme with the industry-standard levels, the broker is not off the hook yet. This is because having good spreads does not imply the broker will not rip you off your money.

Arabic brokers who cater to Muslim clients sometimes offer accounts with no daily swap accrued on the trading positions. This is because Islam forbids the payment of interest. To this end, the broker provides swap-free accounts (standard & professional) to Muslims.

Our Take

A broker is only as good as its regulation. As such, if a broker has unverifiable regulations or operates in a jurisdiction known to harbor lawless traders,  that is a disclaimer against investing with it. This is the case with MultiLP.

Only consider a credible forex broker to experience the lucrative side of legit forex trading. Such brokers comply with industry regulations, meaning your interests are taken care of. These brokers also guarantee the safety of your investment.

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