Logipip is a forex broker, which also offers CFD trading. The company’s website has some self-contradictory statements, regarding the trading conditions. This immediately leaves a negative impression.
The Company. Security of Funds
LogiPip Ltd. Saint Vincent and the Grenadines N/A
Logipip is registered in Saint Vincent and the Grenadines. Off-shore companies carry a lot of risks, which we have covered extensively in this post. On top of that Logipip does not claim to be overseen by any regulatory agency.
Financial regulation is the most important aspect of a broker’s credibility. This is due to the fact, an unregulated company may simply be a scam. You have no guarantee you will be able to withdraw your funds, after investing with such an entity.
Different jurisdictions have different agencies with varying degrees of stringency. Take the UK’s Financial Conduct Authority (FCA) as an example. It mandates brokers to keep clients funds in the so called “segregated accounts”. This is a mechanism which prevents free access to the trading capital, invested by clients. In essence this prevents the most basic fraud – not returning any money to clients. Another key ruling is the implementation of a compensation scheme. It functions pretty similarly to an insurance company. Brokers are forced to deposit a portion of their profits to a common pool, which later serves as a guarantee, in case one of them goes bankrupt. Trading with an FCA-regulated broker will cover your account up to £50,000.
Minimum Initial Deposit
There is a bit of misleading information on the minimum deposit requirement at Logipip. While the smallest account type starts at $250, the website also claims the minimum deposit is $100. We are not certain which one of the two is true.
That being said, less experienced traders may want to start out with even less than $100, just to see if forex trading is something for them. Luckily for them, other brokers have lower requirements, like the FCA-regulated industry leaders at IG, who don’t have an entry barrier.
Average spreads & Commissions
The costs of trading at Logipip are not that clear. On one hand, the website claims spreads start from 1 pip, while our testing with the demo platform indicated spreads above 2 pips on the major currency pairs. At the same time, some currency crosses have the spread even below 1 pip. At this point we can’t confirm what conditions you will get with a real account at Logipip. On the other hand, you can always compare the conditions provided by some of the industry leaders at out special spread comparison page.
Logipip provides a maximum leverage of 1:200. This is a perfectly suitable ratio for most trading systems, although you may think it is low if you follow the current offers, provided by other brokers. For instance XM offers 1:888 in leverage, which sounds catchy by the way.
Keep in mind a higher ratio only allows you to take a bigger risk (as a portion of your account balance). Aggressive trading usually doesn’t lead to anything good in the long run.
The trading platform provided by Logipip is MetaTrader 4 (MT4). This is the current industry staple, which is supported by a lot of forex brokers. There are multiple reasons for that, with its functionality being at the top of the list. The charting is so good, some traders who are used to it keep a demo version running, even if their current broker offers a different platform. On top of that, MT4 supports a lot of custom add-ons, such as newly developed technical indicators as well as automated trading systems (better known as Expert Advisors).
MetaTrader 4 also has a mobile app, available for both Android and iOS. It offers most of the capabilities of the desktop version, with crisp charting and multiple technical indicators being available.
Methods of Payment
The payment options at Logipip are Credit/Debit Card, Skrill, Neteller and eHKconnect. The focus is clearly on the newer methods, as the more traditional wire transfers are not supported.
Logipip is an unregulated, off-shore broker. While this is usually enough for us to not recommend dealing with the company, there are a few more issues. The most noticeable one is the conflicting information on the trading conditions on the company’s website.
Logipip Review Conclusion
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