Purple Trading Review
Purple Trading offers its clients a choice of two basic account types: STP, where all costs are included in the spread, and an ECN one that provides raw spreads, plus commissions, which is tailored especially for algorithmic traders and forex scalping strategies.
Like most brokers, also offers Managed Accounts – PAMM and MAM modules that enable professional traders to act simultaneously for more than one account and to earn some extra money (as money managers). On the other hand, investors who lack trading skill or don’t have the time to trade themselves, can benefit from the performance of a professional who acts on their behalf.
In addition, this broker also provides a VIP account (with deposit of at least $20 000) with ECN spreads and reduced commission fees ($4 per standard lot per side).
Keep in mind that Purple Trading does not accept clients from US & Belgium.
The Company. Security of Funds
Launched 4 years ago, Purple Trading currently offers more than 20 currency pairs and around 10 CFDs on stock indices and precious metals through the most common MetaTrader 4 platform. The broker is headquartered in Nicosia, Cyprus, and also maintains a representative office in Prague.
Purple Trading does not offer 100% bonuses on the first deposit and suchlike and does not engage in aggressive marketing campaigns. Instead, the brokerage provides real market execution and most importantly, a regulated ECN/STP trading environment.
Purple Trading is a brand of L.F. Investment Limited, a company that is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC). The firm also operates Lloyds & Fischer, a private investment group.
CySEC applies a set of rules and requirements to license holders, which provide a certain level of security, and also sees to their observance.
First of all, CySEC requires Cyprus-based forex brokers to hold a minimum of €730,000 in order to prove their financial stability.
Moreover, licensed brokers are required to keep client money in segregated accounts and to report to the commission on a regular basis. As of recently, CySEC instructed forex and binary brokers to avoid the practice of offering bonuses and to set maximum default leverage to 1:50 in line with ESMA’s instructions.
Most importantly, all CySEC-regulated companies are members of the Investor Compensation Fund, able to provide compensations to a maximum of 20,000 EUR per person in the event that the broker is in default. Such compensation schemes serve as additional guarantee to clients’ funds.
In addition, as CySEC is part of the European MiFID regulations, and the companies regulated by the Cypriot financial watchdog are free to operate in all EU Member States.
Furthermore, the broker is registered with the UK’s FCA, the German Federal Financial Supervisory Authority (BaFin), France’s ACPR, Italy’s CONSOB, Spain’s CNMV and with the Czech National Bank.
Minimum Initial Deposit
The minimum initial deposit for Purple Trading’ clients is $1,000, which is a high initial amount, however it provides access to a pure No-Dealing-Desk trading environment.
Average Spreads & Commissions
Purple Trading offers comparatively low floating spreads, which vary by account category – starting from 0.9 pips on EUR/USD for the commission-free accounts and from 0.1 pips on EUR/USD on the ECN account, which incurs a commission of $5 per lot (per side). So, basically the trading costs on the two accounts are similar, falling within the average range from 1.0 to 1.5 pips per standard lot.
In comparison, XM, a major EU brokerage headquartered in Cyprus, also offers spreads from 0.1 pips on EUR/USD with a commission of $5/lot on its Zero accounts. For further information, you may look up real-time spreads of 15 leading brokers here.
In addition, we would like to note that Purple Trading practice price improvement a.k.a. positive slippage.
This broker offers leverage up to 1:200, which is considered standard. Nontheless, most Cyprus-based brokers provide higher leverage levels: FXTM offers leverage levels as high as 1:1000 and XM – 1:888. More forex brokers, offering leverage 1:500 and higher can be viewed here.
We advise traders to be careful with trading on margin, for high leverage levels may lead to heavy losses in excess of their initial investments.
Like most forex brokers, Purple Trading supports the famous trading platform MetaTrader 4 (MT4), desktop and mobile versions available.
MT4 is a well equipped traders’ workplace that allows users to trade in the financial markets. It offers user-friendly interface, advanced charting package, a number of technical indicators, extensive back-testing environment and Expert Advisors (EA). In fact, the platform is written in MQL language, which allows you to develop your own EAs, custom indicators and scripts. If you are not handy with code, you can use ready-made.
Methods of Payment
There are several payment methods available to Purple Trading’ clients: via bank wire transfer, and with credit or debit cards. Popular e-wallets Skrill, and Neteller are not available with this broker. The broker, however, processes all withdrawals within few hours and bank wire transfers usually take 1 – 2 business days.
Account Currency Base: EUR & USD.
Purple Trading is a reliable and well-regulated forex and CFD broker that uses only STP and ECN trading technology on the popular MT4 platform.
Purple Trading Review Conclusion
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