Purple Trading Review 2020
Purple Trading are a multi-regulated online broker offering reliable, transparent and fair-trading conditions to all traders. They offer multi-asset trading with low spreads and good execution speeds across flexible trading platforms.
Purple Trading Review 2020, Pros & Cons
- Strict regulation
- Investors Compensation Fund (ICF)
- Segregated client funds
- Negative balance protection
- Commission free accounts
- Limited trading assets
- Limited educational materials
- Restricted leverage for non-professional clients
- No US clients
- No fixed spread accounts
In this detailed Purple Trading review, our online broker research team have covered some of the most important aspects for you to consider when choosing the best broker for your online trading needs.
Purple Trading is not ranked in our best forex brokers, best stock brokers, best cfd brokers, best crypto brokers or best online brokers categories. You can use our free broker comparison tool to compare online brokers including Purple Trading.
Purple Trading Review: Summary
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.
Purple Trading 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.
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. They have finely tuned trading servers which ensure a professional grade trading environment.
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.
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.
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.
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.
Purple Trading offer sophisticated PAMM and copy trading solutions to professional traders and private asset managers. They also have a range of professional trading tools, strict regulation in multiple jurisdictions 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 Review: Regulation
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.
Furthermore, Purple Trading is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom with registration number 722482. The FCA is a financial regulatory body that operates independently of the UK Government and regulates the financial services industry in the UK. Its role includes protecting consumers, keeping the industry stable, and promoting healthy competition between financial service providers.
Purple Trading is authorised to provide investment services across the European Union and is therefore registered in most EU countries, including cross border service / passporting authorisations in:
- Germany – BaFin (Registration no. 145745)
- France – ACPR (Registration no. 75378)
- Italy – CONSOB (Registration no. 4246)
- Spain CNMV (Registration no. 4023)
- Denmark – FSA
- Netherlands – AFM
- Poland – KNF
- Czech Republic – CNB
- Slovakia – NBS
In addition to strict regulations across multiple jurisdictions, 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 of Purple Trading. 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.
Purple Trading 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 Review: Countries
Purple Trading cannot currently accept clients from outside of the European Economic Area (EEA) and from Belgium, Switzerland and the USA. Some Purple Trading broker features and products mentioned within this Purple Trading review may not be available to traders from specific countries due to legal restrictions.
Purple Trading Review: Platforms
Purple Trading offer a 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.
MetaTrader 4 (MT4) Trading Platform
MT4 is a trading platform developed by Russian 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).
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.
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.
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.
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. Users can perform the same core actions as the desktop platform including chart analysis, opening positions, managing positions, closing positions, push notifications and more.
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.
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.
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.
Purple Zone is Purple Trading’s 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.
Purple Trading Review: Tools
Purple Trading offer clients a 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.
Purple Trading clients get free access to the award-winning market scanning Autochartist software.
- 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
Purple Trading 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.
Purple Trading have 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 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 be filtered by duration, risk level, trading style and more.
Investors must first pass a suitability test and past performance is by no means any guarantee of future performance.
Purple Trading Review: Education
Educational material is perhaps where Purple Trading is lacking. There is the Purple Academy, but it contains only a few news articles and how to guides that are not frequently updated. It seems that they focus more on delivering top class trading conditions and customer service rather than producing articles. However, there are some useful how to guides covering trading tools like Autochartist and different trading platforms.
Purple Trading Review: Instruments
Purple Trading offer a selection of trading instruments across multiple asset classes including Forex, Commodities, Cryptocurrency, Stocks, Shares, Indices, Metals, Energies & CFDs.
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.
Whilst they have most of the popular trading instruments, they are limited in terms of numbers available compared to some other online brokers.
Purple Trading Review: Accounts & Fees
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.
Demo accounts are available to test the different trading platforms and conditions before opening a real account. Islamic swap-free accounts that comply with Sharia law may be available upon request.
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.
As broker fees can vary and change, there may be additional fees that are not listed in this Purple Trading review. It is imperative to ensure that you check and understand all of the latest information before you open a Purple Trading broker account for online trading.
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.
Purple Trading Review: Customer Service
Purple Trading customer support is provided via online chat, telephone and email. There are UK and Cyprus contact numbers provided on the website. Online chat is not always available and can take a while to respond.
Purple Trading Review: Deposit & Withdrawal
Purple Trading have a 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. Please note that some methods may only be available to specific countries and not all are available for both deposit and withdrawal.
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.
Purple Trading do 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 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.
Purple Trading Review: Account Opening
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.
Purple Trading Review: Conclusion
Purple Trading is an innovative online broker using some of the best trading technologies available to help deliver tight spreads and competitive commissions across flexible trading platforms. They have a variety of trading tools and account types to cater for different styles of trader. Whilst the trading environment is very transparent, they could expand on the instruments available to trade.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.