Introduction to Purple Trading Review
Purple Trading is a forex and CFD broker. The brand Purple Trading was first launched in 2016. But there is much more experience behind the team. Purple Trading is a brand formed by two companies which joined forces to bring the best of their experience and expertise to build an awesome forex broker. L.F. Investment is a Cypriot Investment Firm regulated by the Cypriot regulator CySEC. L.F. Investment partnered with a software development company and technology provider called Purple Technology, based in the Czech Republic. L.F. Investment is the responsible party for managing the provision of online trading and investment services whereas Purple Trading is responsible for supporting the technology needs. In this review, we will learn more about this relationship and what Purple Trading has to offer investors and traders.
The Pros and Cons of Purple Trading
Purple Trading offers a number of interesting features which sets them apart from other brokers. This section highlights from our perspective at least, a few advantages and disadvantages of Purple Trading.
The Advantages of Purple Trading
Purple Trading certainly offers a number of niche products which many other forex brokers don’t. So if those products are of particular interest to you, that certainly makes Purple Trading worth considering.
- The ability to invest in ETF portfolios. This is not CFD trading. It’s real, unleveraged ETF investing via Purple Trading.
- Italian stocks are available on MetaTrader 4. These are actual stocks, not CFD instruments.
- Forex strategies to follow instead of trading for yourself.
- A cool website, bursting with information about their variety of different products.
The Disadvantages of Purple Trading
It wouldn’t be fair to consider the fact that Purple Trading is limited to offering up to 1:30 leverage to retail clients as a disadvantage since it’s not their fault. However, it is a disadvantage for all European forex brokers.
- The client zone is not very userfriendly, it’s unclear how to perform certain tasks and things are generally not explained well. A lot of room for improvement.
- The client zone loads slowly. It’s not uncommon to take longer than 5 seconds to sign in.
- Deposits seem to be manually checked since our deposits made over the night were only added to our account in the morning. Around 9 am Cyprus time.
About Purple Trading
Purple Trading’s CySEC license allows them to passport services to most counties in the European Union. The company has registered with local national regulators such as the Financial Conduct Authority (FCA) in the UK, the Czech National Bank (CNB) in the Czech Republic, the National Bank of Slovenia (NBS), German Federal Financial Supervisory Authority (BaFin) and more. What’s more, is that their license also allows them to offer Portfolio Management and Execution of Orders on behalf of the Client. This has opened the door for them to offer ETFs, which are popular for passive investing and a variety of FX trading strategies which can be copied.
|Year Started Offering cTrader||2019|
|Number of Employees||30+|
|Banking Partners||Sparkasse Bank, UniCredit Bank, PPF|
Purple Trading News:
Purple Trading Trading Conditions
Purple Trading has only recently launched cTrader. The rest of the time, the company has been offering just MetaTrader 4, which is far from unusual, since the vast majority of forex brokers also offer MT4. Like all other EU brokers, leverage is severely lower than it would be from an offshore broker. However, Purple Trading comes with the security of being regulated by a European country.
|Platforms||cTrader, MetaTrader 4|
|Maximum Leverage||1:400 Professional|
|Total Number of Trading Pairs||80 CFDs|
|Trading Commissions||10 USD per Lot for ECN Accounts|
|Minimum Deposit||20 EUR|
|Avg. Spread on EURUSD||0.5|
|Stop Out Level||50%|
Purple Trading Account Types
Purple Trading offers three account types. You will have a choice of an STP Account, which has a wider spread but no commissions, an ECN Account which charges commissions but has very low spreads or a Pro Account which is only for traders who qualify as a professional trader under ESMAs client classification guidelines. The advantage of the Pro Account is getting leverage up to 1:30 on major FX pairs. Whichever of the three account types you choose, there are four statuses which are based loyalty, in particular, your deposit amount and how long you have been actively trading with the company. There is a list of advantages which you should check out. Most notably, the advantages are lower commissions or spreads or both as well as a dedicated account manager.
Purple Trading Statistics
The Purple Trading website features their past trading statistics. The dashboard lets you select the trading pair and the month you want to see statistics for. The stats show execution time, slippage distribution, execution time vs. slippage and spread in time. It’s a very cool feature and certainly worth checking out.
Accessibility to Purple Trading Services
Due to regulations, accessibility to Purple Trading is limited only to EU residents countries. This is not a firm rule of CySEC, but in general, it’s good practice for brokers to stick to where they are allowed. As you can see from the deposit currencies supported, the primary focus of the company is within the European market.
|Countries Excluded||USA, Belgium, Switzerland, Non-EU|
|Deposit Options||Visa, Mastercard, Skrill, Neteller, Wire Transfer|
|Deposit Currencies||CZK, EUR, USD, GBP, PLN|
|Withdrawal Fees||Yes, depending on method|
|Social Trading (cTrader Copy)||Yes|
Passive Investing Opportunities
One of the things which stood out about Purple Trading was their passive investing products. Passive investing is essentially investing, but without actively being involved in the trading. Essentially you allocate money and someone else manages it. Purple Trading has two products that fall under this category. The first is FX Strategies, the second is ETFs.
Unique Selling Points of Purple Trading
When you trade with Purple Trading you can get access to a variety of tools and services that can enhance your trading experience and success. Some of the advantages are only available to qualified traders. Here are some of the advantages that stick out to us.
Trading Mentor Application
The Mentor Application monitors your activity in real-time. It checks how disciplined you are. If you breach the rules, preset by you, you’ll get a notification. The application helps you to control the risk effectively and keep your emotions under control. The mentor will naturally improve your self-confidence and, in particular, to establish the right trading behaviour.
Purple Trading gives you extra indicators to help you out. This is called the Purple Toolbox. Currently, it’s just for MT4. Considering they have just launched cTrader, we could expect these converted and added in the near future. All-in-all they give three custom indicators to help with your trading analysis.
Free Deposits and Withdrawals
For Prime and VIP clients, they cover fees for all deposits credited to trading accounts, as well as withdrawals via bank wire transfer, credit card or via Skrill and Neteller e-wallets. However, the fees for using e-wallets are pretty low and so are bank wire transfers from within Europe for SEPA transactions.