Arum Capital Review
Richard Montana | November 17, 2022
Arum Capital is a CySEC regulated broker with around 100 trading instruments available for trading. You can trade forex, cryptos, commodities and indices, via the popular MetaTrader 5 (MT5) platforms on all of your devices. The broker does not impose any restrictions on trading styles, so you are free to scalp, hedge, trade the news and run automated systems. I found them to have reasonable trading conditions including spreads from 0.0 pips, rapid execution speeds and low fees. However, I think they are lacking when it comes to non-FX instruments. I also couldn’t find any educational materials for beginners but there is the option of a free demo account if you want to give them a try. Otherwise, the broker has a minimum deposit of $500 which is quite high when you consider some brokers such as Trade Nation let you get started with just $1. Nevertheless, they could be worth considering if you are looking to primarily trade forex on MT5.
Pros & Cons
- 100+ financial instruments
- Professional MT5 platform with lots of powerful tools
- Commission free accounts are available
- Ultra-fast execution of transactions under FIX-protocol
- Best price execution in the Market Depth
- High level Top of the Book Liquidity
- Price aggregation with ultralow spreads from 0.0 pips
- Welcome all trading styles including robots, scalping and HFT
- Free demo accounts to practice trading
- Qualified client support
- Cannot accept clients from certain countries
- Do not support the MetaTrader 4 platform
- Lack of educational content for beginners
- No daily market analysis or insights
- No managed account solutions
- Limited non-FX instruments
- Min $500 deposit is not the lowest
Arum Capital is an EU-regulated broker that gives you access to the markets via a user-friendly trading platform so that you can trade or invest in a decent selection of financial instruments. I like how the broker has first-class liquidity from top liquidity providers (LPs), using some of the largest LPs including the British provider LMAX Exchange and the Swiss bank Swissquote. This means that you can get low spreads from zero pips and good trade execution speeds via FIX protocol and execution at top of the book prices. They state that 99.9% of orders are executed within 5 milliseconds with no requotes and minimal slippage. All of the prices from the LPs are aggregated together within the brokers liquidity pool. When you place a trade, they will match you with the best available prices. I prefer this to the market maker model where a broker can take the opposite side of your position and set their own prices. It helps to remove potential conflict of interest. The conditions of the broker’s license and liquidity providers oblige them to link every transaction to an independent service provider.
When it comes to choosing a broker the first thing I look at is the regulation. I would always prefer to trade with a regulated brokerage firm as this gives me confidence that they will operate in an open and honest manner. Arum Capital is a brand name owned and operated by ArumPro Capital Ltd, a Cyprus Investment Firm that is regulated by the Cyprus Securities and Exchange Commission (CySEC). This means they must comply with certain rules and restrictions that are in place protect investors.
As the broker holds a European CySEC license, you may be entitled to compensation from the Investment Compensation Fund (ICF), in the event that the broker is unable to fulfil its financial obligations. Though I recommend going through the terms and conditions since they’re pretty specific on who is eligible for these compensations. Your funds should be held in segregated accounts away from the broker’s funds so that they cannot be used for any other purposes such as the business running costs are hedging. The STP license of the European regulator makes it an obligation for any regulated company to transmit all client transactions to liquidity providers.
Keep in mind that the broker does not offer services to some countries such as the USA, Canada, Japan, Brazil, North Korea, Belgium, France, and the non-cooperative countries under FATF. If your country is not accepted by this broker, I recommend checking out our broker comparison tool for alternatives.
Arum Capital provides clients with the intuitive MetaTrader 5 (MT5) trading platform for use on desktop, web, and as trading apps for iOS/Android mobile devices. The latest version of the very popular MetaTrader platform has more trading indicators and chart objects available for conducting in-depth market analysis. I like that it supports one-click trading, automated trading, and multiple order types. You can also choose between various chart timeframes and types to get a good overview of your chosen instruments. One of my favourite features is the built-in economic calendar which makes it easy to keep track of the latest news releases without needing to open your web browser. You don’t need to gaze at charts all day long as the platform can send you price alert notifications based on your own specification. I must admit that I would prefer if they offered the MT4 platform since I still prefer it over MT5. If you are also familiar with MT4, you can checkout Axiory, they have both of the MetaTrader platforms available free of charge.
The main features of the MT5 platform include:
- 6 types of pending orders
- 21 timeframes
- 38 technical indicators
- 44 graphic objects
- Modern technologies for receiving quotes from PRIME XM
- Execution on leading venues including LMAX Exchange
- Direct connection of the executing servers in the data centers of Equinix LD4 and NY4
- MQL5 signals unique service
- Information on important economic news and trading strategies, directly in the terminal
- News from the mql5 community in the terminal
- More tools for trading
- Execution via FIX-protocol within a few milliseconds
The MT5 platform has plenty of built-in tools that should be enough for most traders. You can also develop your own for the platform using the MQL programming language or hire a freelancer from the MQL community to do it for you. You will also find a plethora of free and paid tools from the marketplace that you can easily access from directly within the platform. Other than that, the broker does make available some handy standalone tools in the economic calendar and trading calculators. Nothing too ground-breaking but you may find them useful in any case.
The trader’s calculator can be useful if you aren’t great with maths and want some help with your calculations. I like that it can help you to calculate important trading parameters such as a point value, spread cost, swap, margin, commission amount, and estimate possible profit. To make the necessary calculations on the Forex calculator, you have to enter the initial data and click the “Calculate” button. This can save you time which could be important if you need to act quick on some news.
The economic calendar is one of the most important tools in when it comes to trading online. I am always checking the latest market news to help with my decisions. It is formed by specialists on the basis of past and current performance and demonstrates future projections. It contains the following parameters: the time of the news, the country index, period, previous value, forecast, the actual value, and the degree of importance. Important news releases include the discount rate, gross domestic product, unemployment data, sales data for a new building, inflation, etc. I find reading the economic calendar to be very easy to interpret.
I found the educational materials to be distinctly lacking on the broker’s website. There is a trader’s blog with a few trading articles including some outdated technical analysis. I would have preferred to see some recent trading guides, tutorial videos, webinars and market analysis to assist traders. If you are new to trading then you may want to check out Admirals instead as they have a great selection of educational resources to bring you up to speed.
Arum Capital has a limited selection of around 100 financial instruments for trading online including 69 currency pairs, 11 CFD contracts on indices, 7 CFD contracts on metals, 3 CFD contracts on energies, and 5 CFD contracts on cryptocurrencies. I find their non-FX offering to be quite restrictive when compared to other online brokerages like TMGM who have thousands of different trading instruments across various asset classes.
- FX currency pairs, including major, minor and exotic pairs
- Precious metals (SPOT price)
- CFD contracts on world stock exchange indices
- CFDs on cryptocurrencies
Due to being under ESMA’s supervision, Arum Capital has restricted trading leverage to a maximum of 1:30 for the most liquid forex pairs, 1:20 for minor forex pairs and major stock indices, 1:10 for most commodities, and smaller stock indices, and 1:2 for cryptocurrencies. If you’re looking for a broker with higher leverage, you could take a look at FXGiants as an alternative.
Arum Capital has a choice of 2 main types of ECN trading accounts. I like how you can choose between tight spreads from 0.0 pips with a small commission fee on top, or spreads from 0.7 pips with no commission fee. This makes them suitable for different trading strategies. I use scalping systems that rely on tight spreads so I would be looking at the ECN standard account. The minimum deposit is not the lowest you will find but acceptable. Some of the advantages of the ECN account types are that they provide high liquidity and instant execution of trades. One of the necessary conditions for opening a real account is, besides filling in the questionnaire, to upload identification documents (i.e. Passport/ID) and a proof of address (bank statement/utility bill).
This account has narrow spreads from just 0.0 pips with a variable commission fee. There is a $500 minimum deposit to get started.
This account has spreads from 0.7 pips which aren’t the lowest but there is no commission fee. The minimum deposit is also $500.
If you trade 200 lots per month or more, you can get the VIP treatment. I like that the VIP benefits include a personal manager, training and workshops, improved solutions for money transfers, free VPS, and more. However, I would like to see all clients treated equally and get access to the same benefits regardless of their investment size.
Demo accounts with $10,000 in virtual funds are available for you to practice your trading strategies see if Arum Capital has suitable trading conditions for your strategies.
Arum Capital has a customer service team that you can reach via telephone, email, and online chat. You can also request a call back on the broker’s website. Unfortunately, they don’t offer 24/7 customer support unlike some other brokers such as EXANTE.
Arum Capital has a good variety of convenient methods for depositing and withdrawing funds from your trading account. This includes bank wire, credit/debit card, and online payment systems. Crypto funding is not supported but you can check out Hankotrade if this is something that you are looking for. I appreciate the availability of digital wallet payment as I find this to be the quickest and easiest way for me to get access to my funds.
Please note that some methods may only be available to specific countries and not all are available for both deposit and withdrawal. Some payment systems may have transaction limits, restrictions, and requirements that are indicated on their respective websites. You may need to verify your account to remove limits on particular methods in some countries.
Thankfully, the broker does not charge any fees for incoming payments but I highly recommend that you check the banking charges your bank receives for such transactions. The funds are credited to the trading account the same day they hit the company account. Withdrawal requests are being processed within 24 hours after the client request. I find that the average time it takes to make a transfer is 3-5 business days and it depends on the sender bank and its correspondent banks. Be aware that there may be additional charges from third-party providers.
You will always be notified via email when a new deposit/withdrawal attempt has been successful or failed. I like that they don’t process credit card deposits without a copy (front and back) of the credit card being used. This helps to prevent any fraudulent activity. They do not accept any payments from 3rd parties and you must withdraw via the same method as you deposited. Payments that are not in line with the above conditions will be returned to the sender at their expense.
Compare Broker Features
|This Broker||AvaTrade||IG||IC Markets|
|Regulated||ADGM FRSA, ASIC, BVIFSC, CBI, FFAJ, FSCA, IIROC, JFSA||ASIC, BaFin, CFTC, DFSA, FCA, FINMA, FMA, FSA, FSCA, JFSA, MAFF, MAS, METI, NFA||ASIC, CySEC, FSA, SCB|
|Commission||From $0||From $0||From $0|
|Instruments||Forex, Commodities, Crypto, Stocks, Indices, Options, Bonds, ETFs||Forex, Commodities, Crypto, Stocks, Indices, Options, Bonds, ETFs||Forex, Commodities, Crypto, Stocks, Indices, Bonds|
|Platforms||MetaTrader 4, MetaTrader 5, AvaTradeGO, AvaOptions, AvaSocial, DupliTrade, ZuluTrade||MetaTrader 4, IG Platform, IG Progressive Web App, ProRealTime (PRT), L2 Dealer, FIX API||MetaTrader 4, MetaTrader 5, cTrader|
|Funding||Bank Transfer, Credit/Debit Card, E-Wallets||Bank Transfer, Credit/Debit Card, E-Wallets||Bank Transfer, Credit/Debit Card, E-Wallets|
Overall, I think that Arum Capital is a decent CFD broker but there is some room for improvement. I like that they are regulated and have a good selection of forex currency pairs for trading with competitive conditions through the powerful MT5 platform. However, I found the educational resources to be lacking and the market analysis on the website outdated. Though I must admit that there is a reasonable choice of account types and funding options, along with a few additional tools. I would’ve liked to see them provide more non-FX instruments and lower the minimum deposit to make them more accessible to a wider audience. If you are just looking for direct access to the markets so you can trade forex with minimal fuss, they may be worth a closer look.