Purple Trading Review
Richard Montana | May 26, 2022
Purple Trading is a regulated broker that offers reliable, transparent and fair-trading conditions to all traders, regardless of your investment size or experience level. The broker provides very competitive trading conditions including tight spreads, low fees and fast trade execution speeds. You can choose between advanced yet easy to use trading platforms whilst there are multiple account types and convenient funding options. It only takes a few minutes to get started with a minimum deposit of $100. You can also trade on a demo account to get a feel for the broker before making a financial commitment. I think they can be a good choice of broker for anyone who is looking for a professional trading setup with the latest technologies so that you can trade the markets with minimal hassle.
Pros / Cons
- Powerful trading platforms
- Range of markets to trade
- Tight spreads, low fees & rapid execution speeds
- Various account types & funding methods
- Commission free accounts
- Managed accounts & copy trading solutions
- Quality FIX API trading solutions
- Trading tools & educational resources
- Loyalty program to reward high volume traders
- Dedicated customer support team
- Free demo trading accounts
- Strict regulation
- Restricted leverage for non-professional clients
- EU clients only
- Inactivity fee
- No Islamic accounts
Purple Trading is an innovative online broker offering industry leading trading technologies for transparent trading on instruments across multiple asset classes via flexible trading platforms. The broker was launched in 2016 by experienced financial industry experts who had the vision to bring innovation to the trading industry. Since then they have expanded their operations and continue to improve their trading services. The colour purple is used to symbolize the human face of advanced technology. They put great emphasis on client safety and trading conditions rather than focusing on elaborate marketing campaigns.
In addition to top class trading conditions, the broker has sophisticated PAMM and copy trading solutions for professional traders and private asset managers. They also have a range of exceptional trading tools for conducting complex market analysis if need be. They are under strict regulation and secure client funds in segregated bank accounts. The Purple Zone client area is very modern whereas the customer support team are prompt and friendly in their responses.
Purple Trading incorporate top trade execution practices with a world-wide infrastructure, to deliver fast and reliable trading conditions for traders without any dealing desk intervention. I always prefer to use a non-dealing desk (NDD) broker as this means that there should be no conflict of interest. I don’t really want the broker to be setting their own prices and taking the opposite side of my traders. Thankfully, they do not do that and have finely tuned trading servers which ensure a professional grade trading environment to care for retail and institutional traders alike.
Purple Trading’s MT4 servers are hosted in the Equinix London (LD4) data centre and Amsterdam. They are cross connected with their liquidity pool so trades can be executed in milliseconds via the MetaTrader platform or custom FIX API solutions for high frequency traders (HFT) and experienced programmers. This really is a professional setup for traders who are looking for the very best trading conditions that you will find anywhere. I would compare them to IC Markets in this respect.
Furthermore, the execution core utilises the co-located low latency connectivity with liquidity providers (LPs) and top tier banks. They constantly aim to deliver the best possible connection for clients, with a vast liquidity pool, lowest possible connection time and minimal slippage. They have liquidity pools located in London and New York to ensure deep market depth for filling high volume trades and minimising the slippage generated by averaging executed prices. Plenty of liquidity means superior pricing and rapid execution speeds.
In order to ensure great levels of stability, they implement the 3-level back-up system for price streams. There are automatic control mechanisms in place in case there is a scenario where the trading servers fail. The additional automatic re-booting system and back-up server for each main server can help to give peace of mind to traders. You can relax knowing that all of the complicated technology is handled in the background whilst you focus on your trading using intuitive platforms.
Purple Trading use a Direct Interbank Market Access (DMA) trading model, offering interbank variable spreads with good execution speeds for all levels of traders. Client transactions are sent on the true interbank market for real market execution. Positive slippage is possible whilst they welcome hedgers, scalpers and high frequency traders (HFT). For execution transparency, they publicly show real time statistics on their website of slippage distribution, spreads and execution time. This is an impressive standout feature that I have not seen from any other brokers. Whilst most of you might not even notice the difference, if you are trading large volumes these can be important statistics. Pepperstone are also worth a look if you are a high volume trader.
Purple Trading is owned and operated by L.F. Investment Limited, a licensed Cyprus Investment Firm regulated by the Cyprus Securities and Exchange Commission (CySEC) with license number 271/15. This means that they are legally obligated to follow the rules and conditions of its CySEC license. This gives me the confidence that they are a broker who I can trust with my funds. I would always prefer to trade with a regulated brokerage as there will be some protection in place in the event something was to go wrong. I don’t want to sit around worrying about how safe a broker is when I would rather be focused on my trading strategies. City Index are another broker who are well regulated in multiple jurisdictions.
In addition to this strict regulation, they must follow European MiFID regulations. The markets in financial instruments directive (MiFID) is a regulation that increases the transparency across the European Union’s financial markets and standardizes the regulatory disclosures required for particular markets.
Security and protection of client deposits is one of the top priorities for the broker and rightly so. Client funds are held in segregated client accounts with major European banking institutions to ensure fast access to your funds at all time. This also means that client funds cannot be used for any other purposes such as business running costs.
The broker has to undergo external audits and strict internal procedures to make sure your funds always remain safe. Eligible retail clients’ deposits are insured against company bankruptcy up to the amount of €20,000 as a part of the Investors Compensation Fund (ICF).
Purple Trading cannot currently accept clients from outside of the European Economic Area (EEA) and from Belgium, Switzerland, France and the USA. If your country is not accepted, please feel free to peruse our broker reviews for an alternative option.
Purple Trading give you a good choice of 2 trading platforms and a FIX API solution. There is the popular MetaTrader 4 (MT4) and cTrader platforms to choose from. Both platforms are user friendly, intuitive and suitable for novice and advanced traders alike. I think the simplicity of MT4 will make it a good choice for beginners whereas the cTrader is considered by many to be a trading platform for professionals. Either way, I have used both platforms and found them to be excellent. They have everything you need for analysing the markets, placing and managing trades. You can also expand on the platforms by developing your own tools or downloading more that have already been developed. The possibilities are literally endless. The platform can be made as simple or complex as you need them to be, depending on your trading style. Other brokers who have both MetaTrader and cTrader include Axiory. Just be wary that if you opt for cTrader, it is not as widely available as MetaTrader is.
MetaTrader 4 (MT4) Trading Platform
MT4 is a trading platform developed by software company MetaQuotes and used by millions of traders worldwide for trading the financial markets. It contains a vast range of trading tools and resources to assist with market analysis and for convenient and efficient order execution and management. It is considered an all in one terminal with a quick learning curve for all levels of traders. The Purple Trading MT4 utilises an MT4 bridge connected to top tier interbank liquidity providers (LPs). I have used the MT4 platform for many years and never felt the need to switch to anything else. It is easy to use and has a nice modern layout. I can load charts and add indicators for analysing the markets in great details. Placing a trade is a breeze as is money management. There is a reason this is considered the best trading platform amongst forex traders particularly.
MT4 Automated Trading Systems
MT4 supports automated trading systems known as expert advisors (EAs). You can automate your own trading strategy or use third party EAs. There is a strategy tester for back testing EAs over historical data. It should be noted that performance in back testing is by no means any guarantee of future performance as the MT4 strategy tester is very limited. This is my favourite feature of the MT4 platform. I use multiple instances of the platform to run expert advisors 24/7 on my virtual private server (VPS). This is a great way to compare brokers in terms of performance.
MT4 has a built-in development environment that allows you to develop your own expert advisors, custom indicators and scripts, in the MQL programming language. I have programmed more tools than I care to remember over the years and still use some of them until this very day. If you don’t have the knowledge to develop your own, then the MQL freelance section is a place where you could always hire someone to bring your ideas to life.
MQL Indicators & Scripts
MT4 users can download additional scripts, EAs and indicators from the MQL community and from directly within the terminal. There are thousands to choose from, free and paid. There is also a signal copying feature where you can copy other traders’ signals onto your MT4 account.
- Fully customisable
- Market watch window displays real time quotes of multiple instruments
- True interbank market liquidity
- Spreads starting from just 0.1 pips
- Superior trade execution speeds
- Multiple order types supported
- Multiple timeframes (1 minute to 1 month)
- One click trading & trading from chart
- Technical indicators & graphical objects for chart analysis
- Alert notifications via the platform, email & SMS
- Automated trading with expert advisors (EAs)
- Freely available on desktop (Windows / Mac), web and mobile (Android / iOS).
MetaTrader 4 (MT4) Web Terminal
The MT4 web platform runs directly in most modern web browsers without needing to download or install any additional software. It has the same core functionality as the desktop platform and can be accessed from anywhere in the world with an internet connection. I don’t use this platform as much as the desktop version, simply because it does not support expert advisors. I do appreciate how it can be useful for accessing your account from different devices and they it is always up to date.
MetaTrader 4 (MT4) Mobile App
The MT4 mobile application is freely available for mobile devices on both Android and iOS (iPhone / iPad / Android / Tablet). It can be downloaded from the relevant app stores and enables users to conveniently access their trading account whilst in the go. You can perform the same core actions as the desktop platform including chart analysis, opening positions, managing positions, closing positions, push notifications and more. However, as with the web platform, it is not able to run expert advisors. I do find myself constantly checking my trading apps to see how my trades are performing and what is happening around the markets. You can take them with you in your pocket wherever you go and trade in comfort.
cTrader Desktop Platform
In addition to the classic MT4 platform, Purple Trading offer clients the cTrader platform which is developed by London-based Spotware Systems Ltd. cTrader is widely appreciated for implementing an intuitive GUI with more advanced trading features and a very convenient back-end setup. It is seen as the ultimate trading solution suitable for the majority of trader’s needs. cTrader is available on Windows, web and mobile devices. This is the platform that I would compare most to MetaTrader when it comes to market access for retail traders.
The Purple Trading cTrader accounts have trading conditions that are very similar to MT4 accounts in terms of spreads and fees. They offer fast and direct STP/ECN market access. cTrader benefits from displaying depth of market (DOM) information which can increase price transparency.
cTrader Automate Editor
The cTrader Automate Editor enables users to create their own algorithmic trading strategies and custom indicators. It is compatible with C# and .NET frameworks, including a code editor interface and back testing capabilities.
- STP/ECN direct access to the market
- Depth of market (DOM) transparent pricing
- VWAP (Volume Weighted Average Price)
- 60+ technical indicators for market analysis
- 26 chart timeframes
- Custom indicators supported
- Automated trading programs developed by cTrader Automate (formerly cAlgo)
Purple Trading offer cTrader for web which is a completely web-based application built on HTML5 design with an easy-to-use and versatile graphical interface. It runs directly in most common web browsers without the need to download or install any additional software. It can also run from mobile devices whilst still maintaining the core features of the cTrader desktop platform. This is useful for those who need to trade whilst on the go.
Purple Trading offer the flexible cTrader for mobile devices on both Android and iOS (iPhone / iPad / Android / Tablet). Also developed by Spotware, cTrader mobile is a highly responsive trading app that maintains all of the most important features and options as the desktop platform. You can download the cTrader mobile platform from the relevant app stores. It provides direct market access form anywhere at any time, provided there is an internet connection. I really like the sleek and modern interface of this app. It is so easy to navigate and do all your trading activities without any unnecessary complications.
The FIX API is an electronic communications protocol that was developed for the real-time exchange of trade-related information. It is commonly used by professional traders and allows you to avoid the use of intermediation software. It provides direct access to the market with your own programs. Using the FIX API, advanced developers and quant traders can use their own proprietary algorithms and black boxes to easily connect to the Purple Trading server and use the FIX (Financial Information Exchange) price data feeds. This provides a direct connection to institutional liquidity providers with lower latency and improved fill rates. I would compare the brokers FIX API offering to what you can get with Darwinex.
Purple Zone is the brokers client back-end area that provides access to everything from opening additional accounts, account overview, deposits, withdrawals and an integrated multi-trader. It is available in multiple languages, mobile compatible and supports fast automatic deposits.
The broker has a good selection of trading tools to assist with market analysis and to help inspire potential trading opportunities.
Purple Trading Indicators
Purple Trading offer some unique MT4 indicators that are freely available to clients and developed by a team of in-house specialists. These indicators incorporate a vast amount of data and aim to predict potential market movements. They can be used standalone or as part of an overall trading strategy that has additional technical, fundamental, price action and sentiment analysis.
Purple Bands Indicator
The purple bands indicator aims to detect potential trade opportunities based on overbought and oversold markets.
Purple Strike Indicator
The purple strike indicator is based on historical data and uses a mathematical algorithm that aims to detect the start of high probability trends.
Purple Extreme Indicator
The purple extreme indicator looks to identify extremely overbought or oversold markets.
Another great feature of trading with this broker is that you get free access to the award-winning market scanning Autochartist software. I find this to be an excellent tool for automatically scanning many instruments and chart timeframes for customised trading signals. It can save you from hours of watching charts and even pick up on signals that you may have otherwise overlooked. There are some other brokers who provide this free of charge, including Tickmill.
- Automatically scan markets for potential trading opportunities
- Identify chart pattern formations or Fibonacci patterns
- Volatility analysis for potential stop and profit levels
- Video tutorials & trading guides to help understand chart analysis
- Built in risk assessment with risk calculator feature
- Filter analysis according to probability, pattern, completed/pending and timeframe
Strategy Providers & Investors
Purple Trading offer simple and user-friendly solutions for strategy providers and percent allocation management module (PAMM) managers. They can provide you with the tools required to help you deliver your strategy to investors and keep it secure. The broker has a license for portfolio management and are thus able to offer strategy providing in a regulated environment. Money managers can earn from performance/management fees with a wide portfolio of potential clients who can also choose to invest in strategy providers.
There is a client zone that is designed so that investors can clearly understand the performance of their investments. Investors can quickly compare different strategy providers and choose to copy the trades of traders from across the world in a fully regulated environment throughout EU. Strategies can easily be filtered by duration, risk level, trading style and more.
I like how investors must first pass a suitability test. Just be wary that past performance is by no means any guarantee of future performance. I personally prefer to maintain control over my own trading but I can understand the appeal for those who may not have the time nor knowledge to trade by themselves. If you are looking specifically for managed account, you might find ACY Securities to be a good option.
I think it is great that the broker care about informed trading which is why they have created the Purple Academy. Here you will find a selection of market news, how to guides, tutorials, articles, eBooks, videos, and webinars.
Purple Trading have a section on their website dedicated to the latest market news. The articles cover different markets and can help to inspire trade ideas.
Purple Trading Club
The Purple Trading Club is a great place for discussing interesting trading opportunities with other traders. You can spend the whole day with other traders and talk about ups and downs of trading. This is a nice touch and not something that many brokers offer. If you would like to connect with likeminded traders, eToro is an excellent social trading platform.
- An exclusive opportunity to experience side by side live trading with other traders and professionals
- Casual discussion about potential trading opportunities, market movements, and trading strategies
- Pleasant atmosphere in the collective of other traders
- A great way of link building with people from the Forex trading world
The broker has a good selection of trading instruments across multiple asset classes including Forex, Commodities, Cryptocurrency, Stocks, Shares, Indices, Metals, Energies & CFDs. You will find everything from major currency pairs, popular cryptos and stocks of the largest companies. I feel that they should have more than enough to meet the interests of all traders. If you want a greater selection, IG have a huge number of around 17,000 financial instruments that you can trade.
Forex currency pairs include minor, exotic and major crosses such as the EURUSD, GBPUSD, USDJPY, EURJPY & more. Indices include the NSDQ, DAX, DOW & more. Precious metals offered include gold & silver. Bitcoin, Litecoin, Ripple & Ethereum cryptocurrencies are also available to trade.
Purple Trading have 3 basic account types to choose from. There is the STP trading account and the ECN trading account along with an account specifically for cryptocurrency trading. By default, the account applied after registration is the STP account. The minimum deposit required to start trading is €100 or an equivalent in another currency. If this is beyond your reach at the moment, Trade Nation have a $1 deposit requirement.
STP / Direct Market Access Account
The STP account is most likely to be preferable to those who tend to hold trades for longer periods of time. It may also be suitable for traders that prefer to pay only the spread with no other commission fees. The spread shows how much you will pay, with execution affected according to market volatility and by the position volume. The marked up spreads start from 1 pips and trades are sent to the interbank market for execution.
The ECN account is geared towards intraday and automated traders along with those who frequently use scalping strategies. This account also has direct execution at interbank market with live interbank spreads directly from a deep pool of liquidity providers. There are no spread mark-ups on this account type, thus the spreads will tend to be tighter although there is a competitive commission charged starting from $5 per lot depending on trader status.
The Crypto account type is a special type of account that is dedicated to those who only trade cryptocurrencies. This account can easily be setup from within the clients Purple Zone. It has low spreads that come direct from liquidity providers and a commission charge of 0.15%.
For MT4 accounts, you will be allocated a trader status depending on the size of your deposit and trading activity:
- Starter – Net deposit from €100 to €1,000
- Standard – Net deposit from €1,000 to €20,000 (> 6 months active trader)
- Prime – Net deposit from €20,000 to €60,000 (> 12 months active trader)
- VIP – Net deposit above €60,000 (> 24 months active trader)
The more funds the client deposits, the lower the commission and spreads offered are.
Demo accounts are available to test the different trading platforms and conditions before opening a real account. They are free of charge and allow you to practice your trading strategies risk free with virtual funds. I always like to see what a broker has to offer on a demo account just to make sure that they have conditions which are suitable for my trading strategies.
The default leverage is variable from 1:2 up to 1:30 depending on the instrument being traded. Those who qualify as professional clients can apply for the professional account which gives increased leverage of up to 1:400 for certain instruments and a reduction on current margin rates, allowing you to trade with more leverage, as opposed to the limitations imposed by ESMA on retail clients.
To qualify as a professional client requires meeting 2 out of the 3 following guidelines, 1) Have a portfolio of greater than $500k (not including property or cash) 2) Have a verified history of placing significant sized positions (down to broker discretion) 3) Have worked in the capacity of a professional position related to derivatives / speculation / trading. Match any two of these requirements to qualify as a professional client.
It is important to note that negative balance protection, Investor Compensation Fund and recourse to the Financial Ombudsman Service may be removed should you qualify for a professional account as you are then classified as professional trader under ESMA regulation.
The Purple Trading loyalty program gives clients rewards depending on their amount of trading activity. The more you trade, the more benefits you can get, including exclusive discounts and rewards. I think it is great to see a broker that will reward you for your loyalty. This is not something I see often although BlackBull Markets do have a good rebate programme for active traders. Some brokers will even give you a discount if you reach out to them directly but will not always advertise it.
The brokers customer support is provided via online chat, telephone and email. I have always found the customer support to be very prompt and polite in response to the various questions that I have put forward to them over a sustained period of time.
You get to choose from a decent variety of convenient methods for depositing and withdrawing funds from your trading account. This includes bank wire, credit/debit card and online payment systems such as Neteller and Skrill. I prefer the digital wallets more often than not, simply because I find them to be the quickest wat to get access to my trading funds. If there is some important market news that I want to try and take advantage of, I wouldn’t want to be waiting days for a bank transfer to clear.
Some fees may be charged when using certain payment methods. Withdrawal requests are processed within one business day. The withdrawal time can vary depending on the payment provider and method. Bank transfers may take a few business days to clear whilst some methods can be instant.
Some payment systems may have transaction limits, restrictions, and requirements which are indicated on their respective websites. You may need to verify your account to remove limits on particular methods in some countries. Please note that some methods may only be available to specific countries and not all are available for both deposit and withdrawal.
The broker does not accept third-party payments or deposits made from banks regulated outside the EU. All funds deposited into your trading account must be under the same name as your Purple Trading account. All client deposits are held in segregated top tier EU banks. Accounts can be opened in a good choice of currencies including EUR, USD, CZK, GBP. The different currency options are beneficial as currency conversion fees do not apply when using an account in your own currency.
Opening a Purple Trading account is a relatively simple process that is completed online. You first need to review the agreements and enter some basic personal information. You will then need to choose your account details and fill out an investor questionnaire. This is a standard part of the process with online brokers to ensure the products and services are suitable for you, thus for your own protection.
Once complete, you will need to verify your trading account using a form of identification such as a passport or drivers license and proof of address such as a utility bill no more than 3 months old.
Within a few days the accounts team should verify your account which you will then be able to fund using any of the convenient deposit methods. After the funds have cleared, you may commence trading. You can always trade using a demo account before the account is verified.
Overall, Purple Trading is an innovative online broker using some of the best trading technologies available to give you market access with tight spreads, competitive commissions and rapid trade execution speeds. They provide you with a choice of advanced yet user-friendly trading platforms that are compatible with desktop, web and mobile devices. I really like how they offer a variety of trading tools along with account types to cater for different styles of trader. There are multiple deposit and withdrawal methods for quick and easy account funding. Furthermore, the dedicated customer support team are on hand around the clock to assist you with your needs. Whether you are a retail trader who is looking for simple access to trade online, or an institutional investor trading large volumes, I think they could be a good option for anyone to consider.