Is Arum Trade a scam? Who regulates Arum Trade? Do many people complain about it? Before you make any deal with Arum Trade, check out this factual Arum Trade review.
If you’ve lost money to Arum Trade or any other forex broker, contact us for a free consultation. We have trusted and experienced experts who will help you get your money.
Here’s all you need to know about Arum Trade.
Arum Trade Review
Arum Trade is an off-shore forex broker offering an MT5 forex trading platform available on desktop and mobile devices like Apple and Android. The broker offers over 75 forex currency pairs including bitcoin, CFDs, gold, and energies.
It was set up in 2018 and has offices in Port Vila, Vanuatu. They registered it under the laws of the Republic of Vanuatu. However, there have been questions about brokers licensed under the laws of Vanuatu. Does it mean Arum Trade is a scam? Here is the complete story.
Notable Features of Arum Trade
Arum trade has a few notable features, including Percentage Allocation Money Management accounts (PAMM). These accounts allow traders to manage investors’ money in exchange for a share in profits.
Here’s how PAMM accounts at Arum Trade work:
An investor named Walter wants to reap profits from forex trading. He has the money but doesn’t have the time nor the knowledge to trade. A trader named Philip has a sufficient understanding of forex trading but has no money to trade.
Arum Trade connects these two people by registering Philip as the money manager for Walter.
Arum Trade also has multi-account manager functionality (MAM) for traders managing other people’s accounts.
Surprisingly, you cannot make deposits or withdrawals at Arum Tared using cryptos despite the broker trading in cryptocurrencies such as Bitcoin.
Arum Trade has made it extremely easy for traders to register an account and deposit money with them. Is this a plan to get more people on board so that they scam them? Read on to find out.
Is Arum Trade Legit?
There have been so many questions about the legality of Arum Trade. To clear the air, we did our due diligence about the lawfulness of Arum trade, and the results were shocking. We checked out the broker’s regulators, location, and customer reviews among other things.
Who Regulates Arum Trade?
Arum Trade is licensed and regulated by the Vanuatu Financial Services Commission (VFSC).
But why did the broker choose this license? Here is why:
- VFSC does not conduct due diligence on a broker before awarding a license to them.
- The regulator does not require proof of a firm background to issue a license
- VFSC does not require regular reporting. Once a broker gets a license from them, it’s all done.
- The regulator does not fine those involved in fraud cases.
In simple terms, a license from the Vanuatu Financial Services Commission is nothing compared to those from reputable regulators like FCA in the UK and ASIC in Australia.
What Are the Arum Trade Scam Warning Signals at Arum Trade?
If you’re an experienced forex trader, you can quickly tell the difference between a legit broker and a scammer. But those just starting fall victim to scam brokers because they don’t know what to look for in a forex broker.
Our extensive research shows that Arum trade is just another scam in the forex markets. Here is why.
1. Arum Trade Is a Dubious Offshore Broker
Many suspicious offshore brokers have one thing in common, they are anonymous. This means they can disappear at any time without notice. That’s what Arum Trade is capable of. So, before you trade your savings with it, think twice.
2. There’s Insufficient Information on Arum Trade’s Website
A legit broker isn’t afraid to display all its information on its site. However, this isn’t the case with Arum trade. The broker doesn’t provide enough information about itself, which leaves us thinking of only one thing, a scammer.
There’s no mention of withdrawal fees on its site or in the contract, yet the broker charges traders for withdrawing cash.
Also, there’s no mention of the company’s CEO, physical contact information, etc., which raises questions about the safety of Arum Trade.
3. Arum Trade Does Not Have Adequate Regulation
Regulation by Vanuatu’s VFSC is not as strong as regulation by reputable bodies like FCA and ASIC.
The forex trading industry groups regulators into tiers. The grouping considers the requirements demanded by the regulator when issuing licenses to brokers.
Brokers with licenses from top-tier regulators are a safer bet as they undergo strict scrutiny. Arum Trade is regulated by VFSC, an offshore, low-tier regulator.
Furthermore, Arum Trade cannot run in countries with strict regulations like the UK.
4. Complaints About Withdrawals
We noticed that Arum Trade accepts free deposits yet charges a 5% fee on all withdrawals, which is way too high. We think this is a move to discourage traders from withdrawing money and keep trading with Arum Trade. A legit broker shouldn’t overcharge for withdrawals.
5. Negative Reviews About Arum Trade
There are people who’ve lost money trading with Arum Trade. Here’s what one posted in Trustpilot:
And here’s another one on Forex Peace Army:
Arum Trade Review Verdict: Is Arum Trade another Scam?
Arum Trade is a scam. Traders should avoid it by all means. Our extensive review has revealed how this offshore-regulated broker has high withdrawal charges. It also gives some users trouble withdrawing their cash. And sadly, its regulation is not strict, thus it may easily get away with malpractice.
If you’ve lost money trading with Arum Trade, we are here to help. At Wealth Recovery Solicitors (WRS), we have a team of financial, banking, legal and regulatory experts. We use our expertise to help victims of scam brokers get their money back. Book a free consultation, and we’ll show you the way forward.