Purple Trading 2021 Review

The name of the company was not chosen by chance, because purple is the color of innovation. The company focuses on client safety, easy trading, instead of luring clients with various bonuses or promotions. The company was founded very recently – in 2016, the group with quite a lot of experience in financial trading.

The company has a large number of servers in different parts of the world in order to provide maximum speed of execution. Traders work with the market without interference from the dealer, this is very convenient because it completely eliminates the conflict of interest and interference in the results of transactions.

The main servers are located in the Netherlands in a reliable data center. It takes only a few milliseconds to connect to the Metatrader platform, for example.

The system is customized so that clients are connected to liquidity providers with minimal delay. The Company’s objective is to provide access to a large number of liquidity providers in order to provide clients with the lowest prices for the opening of a deal. The liquidity comes from the United Kingdom and the United States.

The company provides a sufficient stable level. Even if any server gets overloaded or crashes the system will redirect the client to another server.

Broker uses direct access to interbank thus spreads though variable but low enough. All operations on transactions opening are redirected to the interbank market for fast execution. At the moment the company is not against clients who use hedging or scalping.

The company does not hide anything so all information regarding spreads, order execution speed and slippage is available to clients.

The company is especially attentive to clients who manage several accounts, professional traders. At times they provide quite complex solutions for these categories of clients. Trader feels oneself completely protected due to the strict differentiation of company’s assets from client’s assets.

Regulators

The company is registered in Cyprus LF Investment Limited, which is licensed and regulated by the famous organization CySEC.

In the UK, the company also has a regulatory organization FCA where it is registered under number 722482. This regulator is particularly sensitive to the protection of the rights of individual investors, while at the same time, the regulator monitors the competition to make it as honest and transparent as possible.

The company is serious about taking over the European market, which is why it is registered in many EU countries: Czech Republic, Poland, Denmark, Spain, the Netherlands, Italy, France, Germany, Slovakia.

Since the company operates in the territory of Europe, the rules are quite strict, the company should disclose data on the degree of risk and be as transparent as possible, in other words comply with the rules of MiFID.

As any regulated brokerage company periodically undergoes audit by different regulators which aims first of all to check the safety of clients’ funds as well as checking the trading accounts for their compliance with the rules of exchange trading.

Purple Trading enters the investors’ compensation fund, thus all clients’ deposits up to 20 000 Euro are compensated in case of any unforeseen situations.

The company offers traders a choice of three accounts: STP account, ECN account, and a separate account for clients who are going to trade only cryptocurrencies. The minimum deposit level is low – only 100 euros.

Leverage

European regulators forbid the use of high level of leverage as this increases the risk of losses for clients so leverage level rarely exceeds 1:30 for the brokers of European zone. Only in rare cases clients-professionals are given an opportunity to trade with 1:400 leverage.

There is a small nuance, if you position yourself as a professional trader, then some options are not available to you, such as protection of your deposit in case of bankruptcy of the company and protection against negative balance. Read more in the ESMA rules.

Learn more about accounts:

STP account

This account suits customers who prefer long-term transactions, including customers who consider it better to pay a spread rather than pay commissions. Spreads start at one point for this rate. The execution point of transactions takes place in the interbank markets.

ECN account

This type of account suits traders who work within one day, including customers who frequently use scalping. Spreads are minimal here but there are commissions starting from $5 for a standard lot.

Crypto – account

This is a mono account for traders who are engaged only in cryptocurrency, spreads will be as low as possible and the commission is fixed – 0.15%.

Trader’s status

Depending on the trading turnover a client will be assigned a certain status, for example: making a deposit up to 1000 euros a client receives the Start status, while standard status – from 1000 to 20 000 euros, at the same time there are time requirements for activity, it is necessary to be a client of the company for more than 6 months. To get the Prime status the client needs to invest 20 000-60 000 euros and to be an active client for at least 1 year.  VIP clients have to invest more than 60 000 euros and have been the client of the company for more than two years.

Advantages of trading with Purple Trading:

European level of regulation (usually the strictest in the financial markets)

Client funds are protected

Client funds are kept separate from the company funds

As a rule the accounts are not subject to additional fees

Disadvantages:

Not enough training material

For non-professional clients the leverage level is low so earnings of the client at the start up is significantly limited

The accounts do not have a fixed spread, it is difficult to calculate the spread in advance.

The company does not register clients from North America