Arum Capital Review

Arum Capital is a brand name of the Cyprus financial company ArumPro Capital Ltd. It is regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 323/17. ARUM Capital is fully compliant with the European Markets in Financial Instruments Directives (MiFID).

The company announces that 99.9% of all orders are executed within 5 milliseconds and no orders are rejected or requoted. The liquidity providers are Swissquote Bank and LMAX Exchange and due to the strategic partnerships with them, clients have access to deep liquidity, low spreads, and fast execution, the company says. Arum Capital also announces that all orders are transmitted via FIX-protocol that allows the use of multiple trading techniques including scalping and high frequency automated trading (HFT) and news trading. Financial Information eXchange (FIX) protocol is a messaging standard developed specifically for the real-time electronic exchange of securities transactions. The company provides only ECN-accounts and transfers all the client’s orders directly to the electronic communication network via FIX Protocol, it claims.

Trading assets include 69 currency pairs, 5 cryptocurrencies, 11 global indices, 3 energy products (Brent Oil, WTI Oil and Natural Gas), and 7 precious metals. The average spread for the EUR/USD pair is 0.2 pips and the average spread for bitcoin is USD35.

There are two trading accounts – ECN.Standard and ECN.Classic. The minimum deposit amount for both is USD500. The ECN.Standard offers close to zero spreads at the expense of the commission and the ECN.Classic provides commission free trades at the expense of some spread.

Customers can trade through the renowned MetaTrader 5 (MT5) platform. MT5 is one of the most popular trading terminals used by any kind of traders. You can test custom trading strategies, analyze charts, use technical indicators and graphical objects. Arum Capital servers provide direct connection to the executing servers in the data centers of Equinix LD4 and NY4 locations. Real-time news and economic events are also available directly in the terminal. MT5 is also accessible as a mobile version for iOS and Android devices.

The Client Agreement document shows that the Company offers you negative balance protection, and therefore you cannot lose more than you have on your account. However, you have a risk of losing all the funds on your trading account. We can also see about stop loss orders that because of market gapping, the best available price that may be achieved could be materially different to the price set on the stop loss order and as such, stop loss orders are not guaranteed to take effect at the price for which they are set. About the market orders it is written that you acknowledge and agree that, despite our best efforts, the price at which execution occurs may be materially different to the price specified in your order. This may result from sudden price movements in the underlying assets that are beyond our control and means that market orders are subject to slippage.

Although the Order Execution Policy document shows that execution venues are the entities to which the orders are placed or to which the company transmits orders for execution. The Execution Venue for clients’ orders will be duly authorised investment firms. This confirms that the company uses the Straight Through Processing (STP) model to execute client’s orders. However, in the Client Agreement document the company states: “We are the counterparty to every order you place with us and therefore we are the only execution venue.” This means that Arum Capital also acts as a market maker. This contradicts the previous statement and we do not know what type of broker the company is.

Overall, Arum Capital is a CySEC-regulated broker that must meet strictly regulatory requirements. Customers can trade through the most popular platform over the world – MT5 and all retail clients are covered by negative balance protection. Trading conditions are competitive, despite the lack of global shares and relatively high initial deposit. However, lower spreads are at the expense of the variable commission. In addition, according to the documents, there is doubt as to what type of broker the company actually is – a pure STP broker or a market maker.