Purple Trading Review

Company Background & Regulation

Purple Trading was founded in 2016, establishing its headquarters in Limassol, Cyprus. The company has quickly gained recognition in the forex and CFD trading industry due to its commitment to providing a secure and transparent trading environment. Purple Trading is distinguished by its focus on offering electronic communication network (ECN) trading, which allows clients to access real-time market data and execute trades at optimal prices.

The ownership of Purple Trading is under L.F. Investment Limited, a well-established entity in the financial sector. The company has built a solid reputation through its dedication to delivering high-quality brokerage services, leveraging cutting-edge technology, and maintaining transparency in its operations. This foundation has helped Purple Trading grow its client base and expand its market presence across Europe and beyond.

Regulation is a cornerstone of Purple Trading's operations. The broker is regulated by two of the most reputable financial authorities in the world: the Cyprus Securities and Exchange Commission (CySEC) and the Financial Conduct Authority (FCA) in the United Kingdom. Under CySEC, Purple Trading operates with licence number 271/15, ensuring compliance with the European Union's Markets in Financial Instruments Directive (MiFID II). The FCA regulation, known for its stringent oversight, provides an additional layer of security and trust for clients trading under the UK jurisdiction.

Client fund protection is a priority for Purple Trading, and the company has taken several measures to ensure the safety of its clients' assets. All client funds are held in segregated accounts with top-tier banks, ensuring that they remain separate from the company’s own operational funds. Additionally, Purple Trading is a member of the Investor Compensation Fund (ICF) in Cyprus, which provides eligible clients with compensation of up to €20,000 in the unlikely event of the company’s insolvency. This multi-faceted approach to regulation and client fund protection underscores Purple Trading’s commitment to a secure trading environment.

Trading Fees & Spreads

Purple Trading offers competitive trading fees and spreads, making it an attractive choice for traders seeking cost-effective trading solutions. The broker provides a variety of account types, each with different fee structures tailored to meet the needs of diverse trading styles. The spreads for forex trading are particularly competitive, starting as low as 0.2 pips for major currency pairs like EUR/USD. This low spread offering is primarily available through the broker's ECN account, which is designed to provide traders with direct market access and minimal intervention.

The commission structure at Purple Trading is straightforward and varies depending on the account type and trading platform used. For instance, ECN account holders trading forex through the MetaTrader 4 platform are charged a commission of $6 per lot round turn. This pricing model is competitive when compared to industry standards, especially given the tight spreads offered. The commission fee for trading CFDs on stocks is also competitive, with a rate of 0.10% per notional value per transaction.

Overnight swap rates at Purple Trading are in line with standard industry practices. These rates apply to positions held open overnight and are influenced by the interest rate differentials between the two currencies involved in the forex pair. Traders can access detailed information on swap rates directly from the trading platforms, ensuring transparency and allowing traders to make informed decisions regarding their overnight positions. As these rates fluctuate regularly, it is advisable for traders to monitor them closely if they plan on holding positions over the long term.

When it comes to non-trading fees, Purple Trading maintains a competitive edge with its fee structure. There are no deposit fees, and withdrawal fees are minimal, varying by the method chosen. For instance, bank wire withdrawals incur a fee of €20, while e-wallet withdrawals are typically free of charge. The broker does not charge inactivity fees, which can be a significant advantage for traders who may not frequently engage in trading activities. In comparison to its competitors, Purple Trading's fee structure is notably transparent and cost-effective, making it a compelling option for both novice and experienced traders alike.

Trading Platforms & Tools

Web Platform

Purple Trading offers a robust web-based trading experience primarily through the cTrader platform. This platform is designed for traders who prefer not to download any software, providing seamless access directly through internet browsers. The web platform is equipped with a user-friendly interface that ensures easy navigation and efficient trading operations. Traders can take advantage of advanced charting capabilities, which include multiple chart types, over 70 technical indicators, and customisable time frames. One of the key features of the web platform is its ability to execute orders swiftly, a crucial requirement for high-frequency traders. Additionally, the platform supports multiple order types, including market, limit, stop, and trailing stop orders. Alerts and notifications can be easily set up to keep traders informed of market movements and account activities.

Desktop Platform

The desktop versions of MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are available for Purple Trading clients, catering to both beginners and advanced traders who seek comprehensive analysis tools and automated trading capabilities. MT4 remains a popular choice for forex traders, offering a stable environment with a plethora of features such as Expert Advisors (EAs) for algorithmic trading, customisable charts, and a wide array of technical analysis tools. MT5, on the other hand, extends these capabilities with additional asset classes, an economic calendar, and improved charting tools. Both platforms enable traders to execute various order types and set up complex trading strategies. The desktop platforms support third-party integrations, allowing traders to customise their trading environment further.

Mobile Platform

For traders on the go, Purple Trading provides mobile applications for both MT4 and MT5, compatible with iOS and Android devices. These mobile platforms offer a compact version of their desktop counterparts, allowing traders to monitor markets, execute trades, and manage their accounts from anywhere. The mobile apps are designed with intuitive navigation, ensuring that even complex trading functions are accessible. Users benefit from real-time quotes, interactive charts, and a range of order types. While the mobile apps are limited compared to desktop versions, they still offer essential functionalities such as chart analysis, indicators, and trading history. Push notifications can be enabled for important market and account updates.

API/Algo Trading & Third-Party Integrations

Purple Trading supports algorithmic trading through the use of APIs on both MT4 and MT5 platforms. Traders can implement their automated trading strategies using the MetaTrader language, MQL, to develop Expert Advisors. The broker's infrastructure is optimised to support high-speed execution and low latency, making it suitable for algorithmic traders. Additionally, cTrader's cAlgo platform allows for the development of trading robots and custom indicators using C#. Third-party integrations are also well-supported, with a large community of developers offering custom solutions and plugins to enhance trading functionality. These integrations enable traders to tailor their trading environment, providing flexibility and efficiency in executing their strategies.

Account Types & Minimum Deposit

Account Tiers & Features

Purple Trading offers several account types designed to cater to different trading styles and experience levels. The primary account types include the STP (Straight-Through Processing) Account and the ECN (Electronic Communication Network) Account. The STP Account is tailored for traders who prefer a straightforward trading experience with market execution and variable spreads starting from 1.0 pips. The ECN Account is ideal for more advanced traders, offering tighter spreads from 0.2 pips and a commission-based structure, which is beneficial for high-volume trading. Both account types provide access to the full range of trading platforms and tools offered by Purple Trading.

Demo & Islamic Accounts

To accommodate new traders or those wishing to test strategies risk-free, Purple Trading provides a demo account option. This account simulates real market conditions, allowing users to practice trading with virtual funds. It is an excellent way for traders to familiarise themselves with the platforms and develop their trading strategies without financial risk. Additionally, Purple Trading offers an Islamic Account, compliant with Sharia law. This account type ensures that no interest is charged on overnight positions, making it suitable for Muslim traders who adhere to Islamic financial principles.

Minimum Deposit & Supported Deposit Methods

The minimum deposit required to open an account with Purple Trading is $25, making it accessible for traders with varying capital levels. This low entry point is particularly advantageous for beginners or those testing the broker's services. Purple Trading supports a range of deposit methods to facilitate easy funding of accounts. Accepted methods include bank transfers, credit/debit cards, and popular e-wallet services like Skrill and Neteller. The broker ensures that all transactions are processed securely, with a focus on protecting clients' funds and personal information.

Markets & Instruments

Purple Trading offers a diverse range of markets for traders, allowing access to several key asset classes. The broker provides trading opportunities in forex, contracts for difference (CFDs), indices, commodities, stocks, and cryptocurrencies. This diverse selection ensures that traders can build a varied portfolio, catering to different trading strategies and risk appetites.

Within the forex category, Purple Trading offers more than 60 currency pairs, including major, minor, and exotic pairs. The availability of such a broad range of currency pairs is a significant advantage for forex traders looking to exploit opportunities across different global markets. In addition to forex, Purple Trading also offers a selection of indices and commodities. There are several global indices available, alongside popular commodities like gold, silver, and crude oil. The availability of these instruments allows traders to engage in diversified trading strategies and hedge against market volatility.

Notably, Purple Trading provides CFDs on stocks and cryptocurrencies, though the selection is somewhat limited compared to more established brokers. Despite this, the inclusion of these asset classes allows traders to speculate on stock price movements without owning the underlying assets and to engage with the dynamic and fast-moving cryptocurrency markets. While the broker may not offer as many instruments as some of its larger competitors, the variety of asset classes available is sufficient for most retail traders, particularly those who favour forex and CFDs.

Safety & Security

Purple Trading takes client fund safety and security seriously, implementing several measures to protect its clients. The broker adheres to a strict fund segregation policy, which ensures that client funds are kept separate from the company’s operational funds. This practice provides an added layer of protection for client assets, as it reduces the risk of funds being used for purposes other than trading. Additionally, Purple Trading offers negative balance protection, ensuring that clients cannot lose more than their initial investment, which is particularly important given the high leverage of up to 1:500 available to traders.

On the regulatory front, Purple Trading is regulated by both the Cyprus Securities and Exchange Commission (CySEC) and the Financial Conduct Authority (FCA) in the United Kingdom. These regulatory bodies are known for their stringent oversight, enhancing the broker's credibility and reliability. Moreover, Purple Trading employs robust cybersecurity measures to safeguard sensitive client information. These include advanced encryption technologies and secure servers, which protect against data breaches and ensure the privacy and security of client data.

Who Is Purple Trading Best For?

Purple Trading is particularly well-suited for traders who are looking for a broker that combines regulatory oversight with a flexible trading environment. The broker’s offering is ideal for forex traders, given its extensive selection of currency pairs and competitive trading conditions, including spreads starting from 0.2 pips and high leverage options. The availability of popular trading platforms such as MT4, MT5, and cTrader makes it an attractive choice for traders who prefer a familiar and feature-rich trading interface.

The broker is also suitable for traders who require a low entry barrier, as the minimum deposit is just $25. This makes it accessible for new traders or those who are cautious about committing large sums of money. Furthermore, the ECN execution model offered by Purple Trading is advantageous for traders looking for direct market access and faster execution speeds, which can be critical in volatile market conditions.

However, Purple Trading may not be the best choice for traders seeking extensive educational resources or a broad range of financial instruments. While the broker covers the essentials, its educational offerings are not as comprehensive as those of larger, more established brokers. Traders who prioritise a wide selection of instruments might find the options somewhat limited, although the broker does cover the major asset classes.

• Ideal for forex traders seeking a wide range of currency pairs and competitive spreads.
• Suited for traders looking for high leverage options with negative balance protection.
• Beneficial for those who prefer using MT4, MT5, or cTrader platforms.
• Good for traders requiring a low minimum deposit to start trading.
• Not ideal for traders seeking extensive educational resources or a large number of instruments.
• Less suitable for clients prioritising a long history of market presence, given its relatively recent establishment in 2016.