Minimum Deposit: $50
Maximum Leverage: 1:1000
My Score: 4.0
AuctionsCM was founded in 2017 and is one of the forex brokers that provide online trading services. According to the information contained in the official website, the broker was established in 2012. However, when I examined the domain, I see that auctioncm.com was registered in 2017. If they did not use any other domain in the beginning, I would say that the establishing year of the broker was 2017 or 2018.
This is common in newly established brokers. Most brokers try to show themselves as established in earlier times. Because investors think older brokers will be more reliable.
Auctions CM’s official website has a very amateur design. Besides, it’s hard to find the information you’re looking for. All of these are negative features for this broker.
Now, let’s come to the topics that most investors are curious about: Is Auctions CM scam or reliable?
In order to answer this question, we will refer to many issues in this Auctions CM review. What account types and trading conditions are offered by the broker? Information on features such as spread, minimum deposit and maximum leverage and comparison with other companies … All of these can be seen in detail in this review.
Regulation and Investor Protection
The regulation issue for AuctionsCM is a little shady. Because there is different information on the web site. Previously there was information that the broker was in Hong Kong. At the moment we see information about the broker in Abu Dhabi, UAE.
Despite this address information, there is no information on regulation. When I inquired, I saw that they did not get any licenses from the local financial authorities of these countries. So I can clearly state that AuctionsCM is an unlicensed and unregulated broker.
We do not have such an expectation because it is very difficult for newly established brokers to obtain licenses from reputable regulators. Licenses from less-reputable regulators may also be reasonable for investors. However, providing an unlicensed forex service is not acceptable. So I would advise you to consider this before you open an account with AuctionsCM.
Account Types in AuctionsCM
There are 4 different account types offered by AuctionsCM. You can browse these account types and features from the table below.
|Account type||Minimum deposit||Minimum trade size||Maximum leverage||Average spreads|
|Mini||$50||0.01 lot||1:400||From 2.5 pips|
|Standard||$500||0.01 lot||1:500||From 2 pips|
|Pro||$5000||0.01 lot||1:1000||From 1.5 pips|
|Premium||$20.000||0.01 lot||1:1000||From 0.9 pips|
As you can see above, the main differences between account types are the minimum deposit amount and spread. Normally, in reputable regulators, account types are created according to investor types. For example; nano account types for newbies or those who want to test the strategy. The risk is extremely low in this account type because it is possible to trading with nano lot. For investors who do not want to earn or pay interest, the type of Islamic account, also called swap-free account, can be offered by the broker. Or ECN account type for professional investors…
If we browse the account types offered by AuctionCM, we can see that account types are shaped according to the minimum deposit amount rather than the investor types.
The mini account type is not from the nano account type offered by other brokers. The Mini account type is very similar to the standard account. The biggest difference is that the minimum deposit is as low as $ 50. So I can say that the minimum deposit required by this broker is $ 50. Forex brokerage industry average is around $ 100.
The maximum leverage for this account type is 1: 400, but if you want to use 1: 1000 leverage, you can choose Pro account type with a minimum deposit of $ 5,000.
The average spreads offered in the Mini account type is around 2.5 pips which is well above the brokerage industry average.
The deposit and withdrawing methods offered by AuctionsCM are not limited, but not very much. As with all other brokers, you can use credit card and wire transfer. The fastest method of course is to use the credit card. Neteller and Skrill from popular e-wallet systems are available as a payment method. In addition, the new payment system of the age, Bitcoin, is also available.