Beware! MultiLP is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
MultiLP claims to be ” a premium brokerage firm based in Kuwait” that tries “to help professional traders in the region gain fair access to markets” and that “has gone on to establish itself as a trusted local option”. However, the broker did not even seem to know which the authority responsible for regulating forex brokers in Kuwait is. MultiLP is an offshore company that seems to offer both good trading conditions and a solid trading platform – but we do not think that this is reason enough to start trading with them.
Better check out the offers of some established brokerages – this is the only way to be sure you would be able to trade safely.
MultiLP REGULATION AND SAFETY OF FUNDS
MultiLP states that it is a “regulated Investment Firm, regulated by Kuwait Ministry of Commerce and Industry and licensed by the Chamber of Commerce and Industry”. The problem here is that the authority responsible for licensing forex brokers in Kuwait is actually the Central Bank of Kuwait (CBK). This broker makes a big deal out of having a license – but we could not actually confirm that they are actually regulated. Moreover, the company behind MultiLP is actually based in the Marshall Islands, and not in Kuwait – a county that does not even have a financial regulator. Anyone can register a company there without even visiting the country – that can be done over the Internet. Trusting such a broker – an offshore company that makes false claims about being licensed – would definitely not be a great decision.
Opt for the services of a broker regulated in the UK, the EU, or Australia instead – these are probably the strictest jurisdictions out there. The regulators in such jurisdictions – like the Australian ASIC, the UK’s FCA, or Cyprus’ CySEC – have countless requirements for brokers and demand that they do everything by the book. Client money is kept in segregated accounts which not only result in faster withdrawals but also proves that the broker could not use your investment for their own financial operations. A minimum operational capital of A$1 million – in Australia, and €730 000 – in the UK, and the EU – must be maintained by every licensed broker. This proves the company’s financial stability. Negative balance protection is provided to all retail clients – this means you cannot lose more money than you have in your account.
MultiLP TRADING SOFTWARE
MultiLP offers access to a truly great trading platform – the well-known MetaTrader 4:
MT4 is one of the most popular platforms in the industry even though it was first introduced as far back as 2005. It is easy to see why the software is still beloved by so many traders – MT4 is very user-friendly and even beginners will probably find it quite accessible. It also provides excellent charting and analysis tools, as well as features like Expert Advisors, VPSs, customizable signals, a market for add-ons, and much more. You would even be able to create custom scripts with the MQL4 language.
The problem is that many scammers try to use the platform’s stellar reputation to their advantage and attract more victims. This is most probably also the case with MultiLP. There are plenty of regulated brokers with great conditions who offer MT4 so there is no point in opening accounts with scammers.
MultiLP TRADING CONDITIONS
MultiLP offers three different account types. Supposedly, you could start trading with as little as $100 which makes the broker’s offer rather affordable. However, there are much more reliable brokers who offer accounts that are just as, if not more, affordable.
MultiLP offers leverage of up to 1:500. And while it is not illegal for an offshore broker to offer such high rates, you should remember to always be careful with your leverage settings. 1:500 is an extremely high rate – one that could lead to serious losses, especially if you are a beginner trader. Always make sure you can handle the leverage you are trading with.
The spread the broker offered on its Standard account was 1.6 pips on EURUSD – which is actually fairly standard. There are supposedly no additional commissions on this account type. If you would like to get access to better spreads (starting from 0.o pips), you could open an Elite account – but you would have to be willing to invest at least $20 000. There are also additional commissions of $5 per lot on that account – which means that the Elite account would still be a much better option.
Good conditions alone are not reason enough to start trading with a certain broker – a much better option would be to check out legitimate brokers who offer terms that suit your needs. Spreads can be fabricated and anyone can claim whatever – which is why turning to a broker that has proven to be reliable is even more vital if you want to trade profitably and safely.
MultiLP DEPOSIT AND WITHDRAWAL METHODS AND FEES
MultiLP did not allow us to access a client area or make a deposit – which is why we were also unable to establish which deposit methods this broker accepts. However, we urge you not to deposit with such unreliable brokers unless you want to end up losing everything you have invested – they will surely find a way to scam you. If you already have deposited, see what can be done in order for you to get a chargeback. Both Visa and MasterCard, for example, allow such chargebacks within 540 days of the transaction.
HOW DOES THE SCAM WORK?
You might think that not many people fall for such scams but you would be dead wrong – some scams are quite elaborate and have managed to fool a lot of people. That is why it is important to know what to expect and look for in order to spot a scam broker from a mile away.
The scam starts with an ad on the Internet promising you an easy gateway to forex trading or investing – the only thing you would have to do is open an account with the broker. You know that there are people who trade for a job and that even regular Joes manage to earn a nice side income through trading and wonder why not the same, there do is no harm in trying. So you give in and provide the scammers with your contact details.
This is the moment when you will start getting constant calls and emails asking you to deposit – even if you have only opened a demo account. At some point, since everything seems legitimate, you do deposit and in the beginning, things might be looking great. The profits you were promised come soon but you should remember that it is easy for scammers to manipulate platforms to make it look like you are turning a profit. But you will be asked to keep on investing – and you would have no problem doing that because you will be smooth-talked into it by people who scam others for a living.
But when you try to withdraw, you will start running into different obstacles – obscure clauses in the Terms and Conditions preventing you from withdrawing, additional fees and taxes, and weird procedures. At some point, you would not be able to deny the fact you have been scammed – but it will be too late. The scammers will disappear and stop answering your calls and emails and leave you wondering what to do.
WHAT TO DO WHEN SCAMMED?
So what can be done in case you have already deposited?
Be prepared that there is a rather high chance that you would never see your money again. There is, however, still hope to retrieve it especially if you have deposited with a credit or debit card – both Visa and MasterCard allow chargebacks within 540 days of the transaction. Moreover, there are some things you absolutely have to do in order to avoid further losses of money.
Change all passwords and banking details you have provided the scammers with and remove all sorts of remote access software if you have installed such. Some scammers would promise to help you trade, or resolve different problems if you only install such software – their actual agenda is to get access to your computer and all your passwords and information.
Don’t trust any so-called “recovery agents” who offer to retrieve your money for a fee – this is just another type of scam targeting desperate scam victims, often conducted by the same people that are behind your “broker”.
Make sure to notify authorities and try to share your story online, or with your acquaintances – the more people know about such scams and how they function, the lower the success rate they will have.