MultiBank Group Review 2024

Trust

Multibank Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the several entities operating under the Multibank trade name:

• MEX Australia Pty Ltd is licensed and regulated by the Australian Securities and Investments Commission (ASIC) with AFSL number 416279. We rate ASIC as a Tier 1 regulator.
• MEX Digital Pty Ltd is licensed and regulated by ASIC as a Corporate Authorised Representative (AFS Representative Number 001285048) of Mex Australia Pty Ltd (AFSL 416279). The entity is registered as a Digital Currency Exchange with AUSTRAC, with registration number 100724469.
• MEX Asset Management GmbH is licensed and regulated by the German Federal Financial Supervisory Authority (BaFin) with license number HRB 73406. We rate BaFin as a Tier 1 regulator.
• MEX Atlantic Corporation is licensed and regulated by the Cayman Island Monetary Authority (CIMA) with license number 1811316. We rate CIMA as a Tier 3 regulator.
• MEX Global Financial Services LLC is licensed and regulated by the Securities and Commodities Authority of the UAE as a Category 1 Trading Broker for Over-the-Counter Derivatives Contracts and Foreign Exchange Spot Markets under ESCA license number 20200000045. We rate the entity as a Tier 2 regulator.
• MEX Europe Ltd is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) with license number 430/23. We rate CySEC as a Tier 1 regulator.
• MultiBank FX International Corporation is licensed and regulated by the Financial Services Commission of the British Virgin Islands (FSC) with license number SIBA/L/14/1068. We rate FSC as a Tier 3 regulator.
• MEX Asset Management GmbH-Austria branch is licensed and regulated by the Austrian Financial Markets Authority (FMA) with license number 491129z. We rate FMA as a Tier 1 regulator.
• MEX Global Markets Pte Ltd is licensed and regulated by the Monetary Authority of Singapore (MAS) with license number CMS101174. We rate MAS as a Tier 1 regulator.
• Ikon Financial Services Corporation Ltd is licensed and regulated by the Tianjin Financial Government (TFG) under the registration number 120000400121019. We rate TFG as a Tier 3 regulator.
• MEX Pacific (V) Ltd is licensed and regulated by the Vanuatu Financial Services Commission (VFSC) with license number 700443. We rate VFSC as a Tier 3 regulator.

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities because it allows them to serve clients worldwide. However, licenses obtained by regulators in different jurisdictions do not always entail the same degree of protection.

Some regulators mandate compliance with the strictest financial frameworks, whereas others are less rigid. That is why traders must familiarize themselves with the safety mechanisms ensured by the entity they want to open an account.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All Multibank entities ensure segregated client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. Negative balance protection is available for all multibank entities.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities if the company becomes insolvent. The broker’s German, Austrian, and Cypriot entities are protected under MiFID 2’s Investors Compensation Fund (ICF). Meanwhile, the MEX Atlantic Corporation entity is privately insured with civil liabilities insurance.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum leverage with Multibank is 1:500, which is available with the Vanuatu entity.

Stability and Transparency

In our Trust category assessments, we evaluate factors tied to stability and transparency, including the broker’s longevity, company size, and the transparency of information provided.

I appreciated Multibank’s fee transparency. The broker offers live quotes on its website, with free access to registered and non-registered traders.

This approach allows all website visitors to swiftly evaluate the competitiveness of the spread rates across all account types. I compared the data with the spread rates quoted on the platform and observed no discrepancies.

I also went over the broker’s legal documents. Information is made easily accessible on the website. The Client Agreement is pretty extensive and includes all essential information. No intentionally misleading language was used by the broker.

Is Multibank Safe to Trade With?

I consider Multibank one of the safest brokers to trade with. My research into the broker’s licenses, safety policies, and legal documents has shown that Multibank maintains a high degree of transparency. Its high level of trustworthiness and stability can be attributed to the following factors:

• Holds 5 licenses of Tier 1 regulators
• Has issued private indemnity insurance
• Has a robust client categorization policy
• Is quite transparent about its fees

Fees

Multibank Trading Fees

Multibank Spreads

I tested Multibank’s spreads on 21 March 2024 during the London and the New York open. The results are shown in the table below:

Broken by asset class and compared to the industry average, Multibank offers low spreads on currency pairs, share CFDs and indices, low-to-average spreads on commodities, and high spreads on cryptocurrencies.

Multibank Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full base currency contract (100,000 units).

My tests indicate that Multibank charges average-to-high overnight charges. This combination is not ideal for longer-term position trading, though it does not restrict day trading.

Multibank Non-Trading Fees

Multibank charges dormant accounts an inactivity fee of $60. The fee is applied after three months of inactivity and is charged each month until activity resumes or the account balance drops to zero.

Multibank does not charge deposits or withdrawals with a handling fee, though third-party banking fees may apply.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees of Mutlibank’s three account types and the industry average. It illustrates the spreads and commissions I have recorded for the EUR/USD pair and compares them against the typical costs for ECN and STP accounts in the industry at large.

The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) in EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

My tests indicate that Multibank’s Standard account is the most accessible one, but it also features trading fees that exceed the industry average. In comparison, the ECN account features the most competitive prices but also has a rather high minimum deposit requirement. The Pro account strikes the perfect balance between affordability and competitive prices.

Are Multibank’s Fees Competitive?

Multibank’s fees are generally competitive. While the spread rate on the Standard account exceeds the industry average, the Pro and ECN accounts offer trading conditions that are more favorable compared to the industry average.

However, due to its elevated swap charges, I determined that Multibank’s trading fees are more suitable for day trading, which does not require holding positions open overnight.

Platforms and Tools

In this review, I tested MetaTrader 5, which features multiple essential tools, such as one-click trading, an alarm setting option, and a market depth tool. These allow traders to examine various market developments from different angles and to exploit the underlying trading opportunities in multiple ways.

MT5 is arguably best suited for automated trading via its Expert Advisors (EAs) feature. The platform also has an intuitive strategy tester, allowing experienced algo traders to tweak the parameters of their strategies so that they can be used under different market conditions. Additionally, Multibank offers Virtual Private Server (VPS) hosting for enhanced execution speeds.

In the image above, you can see how to measure a broker’s average execution speed. The industry average is between 50 milliseconds and 150 milliseconds. For the purposes of scalping, the best results can be achieved when the average execution speed falls below 50 milliseconds.

The Desktop Version of Multibank’s MT5 Platform

General Ease of Use

MT5’s layout is pretty straightforward. Account info is displayed at the bottom of the screen; charts occupy the middle portion of the window; a watch list of selected instruments and tools screen is positioned on the left side of the window; and a panel with various settings and configurations can be found at the top of the window.

Charts

The chart screen is a platform’s key feature, crucial for technical analysis through price action overview. It offers numerous analytical tools and configuration options for comprehensive examination. The ease of scaling price action is, in my experience, its most critical aspect.

I have broken down the available MT5’s analytical tools and chart configurations below:

• 38 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next.
• 24 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. Despite the rather big collection of drawing tools, the ruggedness of MT5 makes it difficult to discern price action behavior.
• 21 timeframes. One of the standout features of MetaTrader 5 is its vast array of timeframes. MT5 allows multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term.
• 3 chart types. Price action can be represented as a line, bars, or candlesticks. This diversity makes it possible to examine potential trading opportunities from different angles.

As shown above, the problem with MetaTrader is that the charts can be crowded quite easily, even when we add no more than 2 indicators. This obscures price action behavior and makes it more difficult to conduct probing technical analysis.

Orders

I have broken down the available order types on the MetaTrader 5 platform below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

My Key Takeaways After Testing the MetaTrader 5 Platform

MT5 is a good option for fast and simple order execution. On the other hand, its dated and rugged design falls short compared to newer, sleeker platforms. As a trader who prioritizes flexible chart scaling, I find MT5’s charting capability too rigid and less effective.

Multibank’s MT5 Mobile App

The mobile app version of MT5 affords quick and easy access to the market on the go. It is very useful for opening, terminating, and adjusting open positions.

The market is continually evolving, marked by periodic surges and declines in volatility. For this reason, staying abreast of the latest market developments is crucial, a task made simpler through the mobile app version of MT5.

You can also use the app to place market, limit, and stop orders, as well as to adjust the exposure of your open trades.

My Key Takeaways After Testing MT5’s Mobile App

MT5’s mobile app suffers from the same underlying problem inherent to other mobile apps. Analyzing price action behavior on low-resolution devices is extremely difficult. That is why I recommend using the mobile app only to monitor the development of your open positions and make changes if needed.

Tradable Instruments

Compared to the industry average, Multibank offers an average amount of currency pairs and a high number of commodities, share CFDs, indices, and cryptocurrencies.

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the underlying asset’s price without physical delivery.

For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars.

One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With Multibank?

Forex	Commodities
EURUSD | GBPJPY | CADCHF | EURNOK | USDJPY | GBPCAD	Gold | Silver | Natural Gas | Corn | Coffee | Cotton | Crude Oil Futures

Share CFDs	Indices
Apple | Tesla | Microsoft | Citigroup | Netflix | Siemens | Barclays | Adidas	Germany 40 | Dow Jones 30 | Spain 35 | Australia 200 | Japan 225 | China 50

Cryptocurrencies

Bitcoin | Litecoin | Ethereum | Ripple | Dash | Cardano

My Key Takeaways After Exploring Multibank’s Instruments Offering

Multibank’s instrument offering is quite extensive and diverse. The huge amount of share CFDs caters to the needs of stock traders, who can gain access to some of the biggest and most popular markets and exchanges in the industry. This is especially important given Multibank’s competitive trading fees on share CFDs.

The broker also serves high-risk/yield traders via its huge cryptocurrency offering. Few brokers offer as many crypto CFDs, though it should also be stated that Multibank charges above-average spreads on instruments from the same asset class.

Another great advantage is the availability of futures contracts, which can be used to hedge market exposure by locking into medium-term and longer-term trades.

Customer Support

Customer Support Test

When we test a broker’s customer support, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I conducted my test on 21 March at around 09:20 a.m. CET via live chat. I asked a series of questions pertaining to Multibank’s services, and the agents were generally knowledgeable and polite enough.

My biggest issue was setting up a demo account due to the broker’s KYC policy. However, the agents were able to guide me through the process fairly quickly.

Deposit and Withdrawal

Multibank Deposit Methods

*korapay, Payment Asia, Boleto, pix, Spei, Praxis, GCash, dragonpay, Globepay

Multibank Withdrawal Methods

*korapay, Payment Asia, Boleto, pix, Spei, Praxis, GCash, dragonpay, Globepay

Please note that while the broker does not charge a handling fee for deposits or withdrawals, third-party banking fees may apply, subject to the chosen payment method.

Account Types and Terms

Multibank Account Opening Process

To create an account with Multibank, follow these simple steps:

• Step 1. Click ‘Start Trading’ at the top-right corner of the main page.
• Step 2. Enter your name, email address, and phone number.
• Step 3. Enter an OTP number, which will be sent to you, in the application form.
• Step 4. Verify your account by uploading proof of address and proof of ID.
• Step 5. Submit a photo taken with your digital device.

Multibank’s Account Types

Multibank’s Standard account is the most accessible one, with its minimum deposit requirement of $50. However, it also features a combination of spreads and commissions that exceeds the industry average. In contrast, the ECN account offers some of the lowest trading fees in the industry, but its barrier to entry is rather high (at $10,000).

I determined that the Pro account strikes a fine balance between affordability and competitive prices. It features a combination of commission-free trading and floating spreads starting from 0.8 pips, with a minimum deposit requirement of $1000.

Demo Account

Multibank offers demo accounts that introduce traders to the broker’s services and allow them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account for yourself alongside your live CFD account.

Islamic Account

The broker also offers Islamic accounts for swap-free trading, as mandated under Shariah law. Traders who want to open an Islamic account need to contact Multibank’s customer support and request the service from there.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. Essentially, the broker lends the trader money so that the latter can open bigger positions. The leverage multiplies the profits a trader generates from winning positions and the losses incurred from failed trades.

Maximum Leverage by Asset Class

In the table below, I have listed the maximum retail leverage available with Multibank for instruments from different asset classes:

Multibank Bonuses

Multibank offers trading bonuses to new and existing clients interested in trading higher volumes. Clients can get a 20% or 30% trading bonus subject to terms and conditions. The bonus can be converted to cash once a month, and clients must complete the trading requirements within 90 calendar days. This offering is generally geared towards high-volume scalpers and day traders.

Multibank also offers a cashback program where traders reap bigger benefits the more they trade. The terms and conditions of the offers are available here.

Multibank Restricted Countries

Multibank does not accept clients from the following countries: North Korea, Iran, Russia, Myanmar, Japan, Ukraine, the UK, and the USA.

Research

Multibank provides several types of research content, offering traders a nuanced and penetrating insight into recent market developments. I have broken down the main types of research content below:

• Economic calendar. The economic calendar is an essential tool in a trader’s arsenal. It informs traders of upcoming market events and releases that have the potential to stir price action, thereby creating viable trading opportunities.
• Financial news. Traders with Multibank can also stay on top of all market developments with the broker’s intuitive news screener. Available from the ‘dashboard’ section of the website, it provides short breakdowns of recent financial developments and potential trading opportunities.
• Trading Central analyses and signals. The great advantage of Multibank is that it incorporates content from the seamless Trading Central – one of the two biggest and most trusted sources of market analyses and trading signals. The service offers frequent and highly informative analyses outlining potential trading opportunities. I like that each article includes a strong technical breakdown supported by a chart and an examination of the underlying market sentiment.

My Key Takeaways After Exploring Multibank’s Research Content

Multibank’s research content caters to the needs of day traders and swing traders. The scope of its market breakdowns and trading signals varies but usually covers opportunities lasting from several hours to several days. I found those highly practical for traders seeking to exploit shorter-term trading opportunities.

Education

I have broken down Multibank’s educational content by type below:

Videos

Most videos are dedicated to the study of technical analysis and are available from the client area. Hosted by market expert Martin Pring, the videos cover a wide range of topics pertaining to price action examination.

The videos introduce beginners to price trends and how to spot them, trade them, apply risk management, and discern market noise from real price movements. I like that after covering each topic, you can practice what you have learned by taking a quiz.

Courses

There are a total of 10 educational courses with free access to everybody, available from the website. These are comprised of 68 individual lessons. The lessons cover a wide range of topics pertaining to the basics of trading, essential trading terms and concepts, CFDs trading, and more.

ebooks

The ebooks also have a heavy emphasis on the study of technical analysis but also focus on the psychology of trading. This is essential for ensuring long-term success in the market.

Platform Videos

Finally, newbies can check out 11 videos outlining the proper use of the broker’s several platforms. Five of those are dedicated to MetaTrader, and the other six examine the use of the Multibank-Plus platform.

The Bottom Line

Multibank, a tightly regulated derivatives broker, stands out for its commitment to trader safety, boasting licenses from five Tier 1 financial regulators. Its impressive range of over 14,000 share CFDs, support for MetaTrader 4&5, and proprietary Multibank-Plus platform, along with Trading Central content, FIX API, and VPS hosting, highlight its comprehensive offerings.

Pricing varies across account types, with the Standard account’s fees higher than average, whereas the ECN account offers some of the industry’s lowest trading fees. Despite slower execution speeds, Multibank shines in service usability and offers dividends for long positions in indices.

I consider Multibank an appealing option for beginners and day traders seeking a wealth of educational resources and trading opportunities.

FAQ