Note: Arum Capital's official site - https://arumcapital.eu/ is currently not functional. Therefore, we could only gather relevant information from the Internet to present a rough picture of this broker.
What is Arum Capital？
Arum Capital, formally known as ArumPro Capital Ltd, is a forex trading company with an operational history of between 5 to 10 years. It is registered in Cyprus and is regulated by the Cyprus Securities and Exchange Commission (CySEC) under CIF license number 323/17. This reputable regulatory status indicates certain levels of safety and credibility for potential investors dealing with Arum Capital.
Arum Capital provides customer support via a phone number (+357 25123291) and an email address (info@arumcapital.eu). However, the official website is currently unavailable, hence limiting access to comprehensive and updated details about the firm's operations and policies, which might pose challenges for prospective and existing customers seeking critical information about their investments.
The company offers a diverse portfolio of assets, ranging from forex to Bitcoin, providing investors with a wide spectrum of investment opportunities. Arum Capital is based at 2 Gregory Afxentiou Street, 2nd floor, Office 201, Limassol 4003, Cyprus.
Pros & Cons
Pros:
Various Market Instruments: Arum Capital provides clients with access to various market instruments including forex and cryptocurrencies like Bitcoin. This allows investors to diversify their portfolios and potentially mitigate risk.
Supports MT5: The company supports MetaTrader 5, a multi-asset platform that offers superior tools for comprehensive price analysis, use of algorithmic trading applications, and copy trading.
Cons:
Unavailable Official Website: The major drawback of Arum Capital is the unavailability of its official website. This restricts access to comprehensive and regularly updated information about the company, its operations, and policies.
High Fees to Open An Account: The fees required to open an account with Arum Capital are reportedly high compared to industry standards. This could potentially deter some users from investing.
Is Arum Capital Safe or Scam？
Arum Capital, officially known as ArumPro Capital Ltd, operates under a regulated status and is overseen by the Cyprus Securities and Exchange Commission, a reputable financial regulatory authority. The company holds an STP or Straight Through Processing type of license, under the license number 323/17.
This type of license indicates that Arum Capital operates a trading model where orders are automatically transferred to a liquidity provider, ensuring swift and direct transaction processing. It also suggests that the company does not run a dealing desk and thus does not take the opposite side of its clients' trades, providing a more transparent and neutral trading environment.
Arum Capital acquired its regulatory license on the 25th of April, 2017. This regulatory oversight is essential and enhances the credibility and safety of the company for potential investors. Clients can reach the licensed institution, ArumPro Capital Ltd, directly via the email address info@arumcapital.eu.
It is also to be noted that Arum Capital's license type is 'No Sharing'. This implies that the license held by ArumPro Capital Ltd is not shared with any other company.
Market Instruments
Forex: Arum Capital offers 69 currency pairs for trading. This broad selection allows traders to take advantage of the movements in a variety of major, minor, and exotic currency pairs.
Precious Metals: The platform provides 7 Contracts for Difference (CFDs) on precious metals. This includes trading opportunities on metals like gold, silver, and others.
Energies: Arum Capital provides 3 CFDs on energy commodities. This usually includes popular commodities like oil and natural gas.
Major Indices: There are 11 CFDs on major global indices available for trading. These consist of large-scale indices such as the Dow Jones, NASDAQ, and more.
Cryptocurrencies: Arum Capital also offers 5 CFDs on cryptocurrencies. This gives investors an opportunity to participate in the rapidly growing cryptocurrency market, although it is a highly volatile and risk-prone sector.
Account Types
Arum Capital offers two types of ECN (Electronic Communication Network) accounts for investors - the ECN Standard Account and the ECN Classic Account. The minimum deposit required to open these accounts is 500 USD. This is relatively higher compared to many other brokers where the standard account typically necessitates a minimum deposit ranging from 100 to 200 USD. However, this might indicate that Arum Capital is more oriented towards traders with a larger capital base.
Furthermore, Arum Capital provides a demo account which is a standard feature among most forex and CFD brokers. A demo account can be particularly useful for beginners or those who want to test out the platform and practice trading strategies without actual financial risk.
Arum Capital also allows scalping, a trading strategy that involves making numerous trades within a day to profit from small price movements. Additionally, automated trading is permissible, which means you can execute trade orders with an algorithm based on a defined set of trading rules.
Leverage
The maximum leverage provided by Arum Capital is set at a level of 1:30. This is in line with the regulations laid down by the European Union, which aim to protect retail investors by limiting the amount of leverage they can use. Leverage enables traders to open larger positions than their initial deposit would normally allow, but it also carries a risk of magnified losses.
Spread & Commission
Arum Capital offers competitive ECN spreads which are generally tight, providing potential cost advantages to active traders. For the commonly traded forex pairs, the spreads average around 0.3 pips for EUR/USD and 0.7 pips for GBP/USD.
For investors who are interested in trading indices, the spread for FTSE 100 is, on average, 1.6 pips. For commodity trading, such as crude oil, the average spread is around 3.0 pips.
In terms of commission charges, Arum Capital does levy fees on all assets. For currency pairs, the commission rates range from 27 to 31.5 per one million USD of the traded volume. For Contracts for Difference (CFDs), the average commission rates equate to roughly 6.26 units of the contract profit currency per one trading lot.
Trading Platform
Arum Capital utilizes the MetaTrader 5 (MT5) trading platform, giving clients access to advanced trading functionalities and swift execution via the FIX protocol. This popular trading terminal allows traders to execute six types of pending orders, analyze price movements across 21-time intervals, and make use of over 80 indicators and graphical objects.
Deposit & Withdrawal
As for deposits and withdrawals, Arum Capital facilitates a variety of options including bank transfer, credit/debit cards, Qiwi, Neteller, and Skrill. However, transactions are conducted in USD only. For most methods, the processes are completed within one business day, and the minimum deposit or withdrawal set is 10 USD. It should be noted that bank transfers take about 5 days to process and require a minimum deposit of 500 USD and a minimum withdrawal of 100 USD.
Trading Hour
Regarding trading hours, Arum Capital provides different schedules based on the type of market instruments. Currency pairs and cryptocurrencies can be traded from 22:05 Sunday to 22:00 Friday (UTC). Trading hours for metals and most indices are from 23:00 Sunday to 22:00 Friday (UTC). A full detailed list of trading sessions can be found on the website, which is particularly beneficial for clients to plan and execute their trading strategies effectively.
Conclusion
Arum Capital, officially known as ArumPro Capital Ltd, is a Cyprus-based forex trading company regulated by the Cyprus Securities and Exchange Commission. Having been in operation for the past 5 to 10 years, the firm boasts a large selection of market instruments and supports MetaTrader 5, a feature-rich trading platform. Despite advantages like a wide range of tradable assets and regulatory safety, the company does demand high account opening fees and the unavailability of its official website might pose significant limitations to prospective clients. Therefore, prospective clients should carefully weigh these factors when considering investing in Arum Capital.
Frequently Asked Questions (FAQs)
Q: What is the minimum deposit required for opening an account at Arum Capital？
A: The minimum deposit for opening an ECN Standard account or an ECN Classic account at Arum Capital is 500 USD.
Q: Does Arum Capital offer a demo account？
A: Yes, Arum Capital provides a demo account for clients to practice trading without involving real money.
Q: Does Arum Capital charge a commission on trades？
A: Yes, Arum Capital charges a commission on all trades, with rates varying based on the traded asset.
Risk Warning
Online trading involves significant risk, and you may lose all of your invested capital. It is not suitable for all traders or investors. Please ensure that you understand the risks involved and note that the information provided in this review may be subject to change due to the constant updating of the company's services and policies.
In addition, the date on which this review was generated may also be an important factor to consider, as information may have changed since then. Therefore, readers are advised to always verify updated information directly with the company before making any decision or taking any action. Responsibility for the use of the information provided in this review rests solely with the reader.
2023-03-29 10:34
