Overview of Purple Trading
Is Purple Trading legit or a scam？
Purple Trading, operating under the regulatory oversight of the Seychelles Financial Services Authority (FSA), holds a Retail Forex License (License No. SD041). This license permits the company to offer retail forex trading services. While Purple Tradingis based in Seychelles, it primarily serves offshore clients, as indicated by its “Offshore Regulatory” status. Traders interested in this broker should carefully evaluate its regulatory compliance, services, and reputation to determine its suitability for their trading needs, considering the implications of offshore regulatory status.
Pros and Cons
Pros:
Regulated by SFSA: Purple Trading is regulated by the Seychelles Financial Services Authority, which adds a layer of oversight and security for traders.
Competitive Spreads: Purple Trading offers competitive spreads, which can benefit traders looking for cost-effective trading.
Direct Market Access: Traders have the advantage of direct market access, ensuring transparency and efficient trade execution.
Positive Slippage: More than 80% of trades are executed at the same or better prices, indicating favorable trade execution.
High Leverage: Purple Trading provides high leverage options, allowing traders to potentially increase their trading capacity.
Cons:
Limited Educational Resources: Purple Trading's educational resources are limited, which may not provide extensive guidance for traders seeking educational materials.
Withdrawal Fees for Some Payment Methods: The platform charges withdrawal fees for certain payment methods, which can impact the cost of withdrawing funds.
Mixed Reviews Regarding Customer Support: Purple Trading has received mixed reviews regarding its customer support, suggesting that the quality of support may vary.
Market Instruments
Purple Trading offers a range of trading instruments with competitive conditions:
EURUSD: With raw spreads starting from 0.0 pips and a minimum position size of 0.01 lot, traders can benefit from tight spreads and a maximum leverage of 1:500. Positive slippage is also available for this currency pair.
GBPUSD: Traders can enjoy the same advantages as EURUSD with raw spreads from 0.0 pips, a minimum position size of 0.01 lot, positive slippage, and a maximum leverage of 1:500.
USDCHF: Purple Trading provides tight spreads starting from 0.0 pips for USDCHF, along with a minimum position size of 0.01 lot, positive slippage, and a maximum leverage of 1:500.
GBPJPY: This currency pair offers competitive conditions, including raw spreads from 0.0 pips, a minimum position size of 0.01 lot, positive slippage, and a maximum leverage of 1:500.
XAUUSD (Gold): Traders looking to invest in gold can benefit from raw spreads starting at 0.0 pips, a minimum position size of 0.01 lot, positive slippage, and a maximum leverage of 1:100.
DAX (Index DE30): Purple Trading offers DAX trading with spreads as low as 0.7 pips, a minimum position size of 0.01 lot, positive slippage, and a maximum leverage of 1:100.
SP (Index S&P500): The S&P500 index trading comes with competitive spreads starting at 0.5 pips, a minimum position size of 0.01 lot, positive slippage, and a maximum leverage of 1:100.
CL (Oil WTI): Trading WTI crude oil includes spreads of 0.03 pips, a minimum position size of 0.01 lot, positive slippage, and a maximum leverage of 1:20.
These instruments offer traders a diverse range of options with competitive trading conditions.
Account Types
Purple Trading offers two distinct trading account types to cater to a diverse range of traders.
The first account type, known as the “Standard” account, is designed to accommodate a broad trading audience, including newcomers to the world of forex trading. This account requires a minimum deposit of $500 and features spreads starting from 1.0 pips. Traders can select from various base currencies, including EUR, USD, GBP, CZK, and PLN. Notably, the Standard account does not incur any commissions, making it appealing for those who prefer fee-free trading. Leverage of up to 1:500 is available, allowing traders to amplify their positions. The minimum lot size is 0.01, and margin call and stop-out levels are set at 50% and 20%, respectively.
On the other hand, Purple Trading also offers the “RAW” account, tailored for experienced and demanding traders seeking RAW institutional pricing. This account type mirrors the Standard account's minimum deposit requirement of $500. However, it distinguishes itself with ultra-tight spreads starting from 0.0 pips. Similar to the Standard account, traders can select from EUR, USD, GBP, CZK, and PLN as their base currency. Notably, the RAW account does incur a commission of $5 per side. Leverage of up to 1:500 is available, providing traders with significant trading power.
How to Open an Account？
Opening an account with Purple Tradinginvolves several straightforward steps. Here's a concise guide in six steps to help you get started:
Visit the Official Website:
Begin by visiting the official website of Purple Tradingat http://www.purple-trading.sc/. This is where you'll initiate the account opening process.
Choose an Account Type:
Once on the website, carefully review the available account types, such as “Standard” and “RAW.” Select the account type that best aligns with your trading preferences and needs.
Click on “Open Account”:
Locate the “Open Account” or similar button on the website. Click on it to start the account registration process.
Complete the Registration Form:
You will be prompted to fill out a registration form. Provide accurate personal information, including your name, contact details, and financial information. Ensure that all details are correct.
Verify Your Identity:
As part of the account verification process, you may need to submit certain identification documents, such as a valid passport or driver's license, and proof of address, like a utility bill or bank statement. Follow the instructions provided to complete this step.
Fund Your Account:
After your account is successfully registered and verified, you can fund it with the required minimum deposit, which is typically $500 for both Standard and RAW accounts. Choose from the available deposit methods, such as bank wire transfer, credit/debit card, or e-wallets, to add funds to your account.
Leverage
Purple Tradingoffers a maximum leverage of up to 1:500 for both of its account types, namely the “Standard” and “RAW” accounts. This leverage ratio provides traders with the ability to control larger positions in the market with a relatively smaller amount of capital.
For example, with a leverage of 1:500, a trader can control a position size that is 500 times their initial deposit. While high leverage can amplify potential profits, it also comes with increased risk. Traders should be aware that trading with high leverage can lead to substantial losses if the market moves against their positions.
It's essential for traders to use leverage wisely and consider their risk tolerance when determining the leverage level they wish to utilize. Additionally, Purple Tradingmay have specific margin requirements and policies related to leverage that traders should review and adhere to when trading on their platform.
Spreads & Commissions
Purple Tradingoffers varying spreads and commissions depending on the type of trading account chosen by the trader:
Standard Account:
Spreads: Spreads for the Standard account start from 1.0 pips. This means that the difference between the buying and selling prices of currency pairs or other financial instruments typically starts at 1.0 pips.
Commissions: The Standard account does not incur any commissions on trades. Traders using this account can execute trades without paying a separate commission fee.
RAW Account:
Spreads: The RAW account offers ultra-tight spreads starting from 0.0 pips. These spreads are highly competitive and can be particularly attractive to traders who seek minimal trading costs.
Commissions: Unlike the Standard account, the RAW account does have a commission fee. Traders using the RAW account are charged a commission of $5 per side for each 0.01 lot traded. This commission is applied to both the opening and closing of positions.
Trading Platform
Purple Tradingoffers the widely recognized MetaTrader 4 (MT4) trading platform, which is considered one of the industry's most popular and established platforms. Traders can access MT4 on various devices, including Mac and Windows computers, web browsers, iOS, and Android mobile devices, providing flexibility and convenience for trading from different locations and devices.
The MetaTrader 4 platform is known for its user-friendly interface and a comprehensive suite of trading tools and features. It offers a wide range of technical indicators, charting options, and analytical tools that assist traders in conducting in-depth market analysis. MT4 also supports automated trading through Expert Advisors (EAs), allowing traders to automate their trading strategies.
In addition to MetaTrader 4, Purple Trading provides the MetaTrader 5 (MT5) platform, although specific details about MT5 are not provided in the information given. MT5 is the successor to MT4 and offers an enhanced set of features, including more timeframes, additional technical indicators, and improved execution speeds. It is suitable for traders who require more advanced tools and trading capabilities.
Deposit & Withdrawal
Purple Tradingprovides a range of payment methods for deposits and withdrawals, each with its associated fees and processing times:
Conditions for Deposits:
SEPA Payment in EUR:
Fee: Free
Processing Time on AXSE Brokerage's End: 1 business day
Average Bank/Provider Processing Time: 1-2 business days
Credit/Debit Card Deposit:
Fee: Free
Processing Time on AXSE Brokerage's End: Instant (Prepaid and virtual cards are not accepted. Manual card approval for the first deposit within 1 working day.)
Average Bank/Provider Processing Time: 1 processing day
Sticpay:
Fee: Free
Processing Time on AXSE Brokerage's End: Instant
Average Bank/Provider Processing Time: Instant (Not available for corporate clients.)
Conditions for Withdrawals:
SEPA Payment in EUR:
Fee: Free
Processing Time on AXSE Brokerage's End: 1 business day
Average Bank/Provider Processing Time: 1-2 business days
Credit/Debit Card Withdrawal:
Fee: Free
Processing Time on AXSE Brokerage's End: 1 business day
Average Bank/Provider Processing Time: 3-10 business days
Sticpay:
Fee: Free
Processing Time on AXSE Brokerage's End: 1 business day
Average Bank/Provider Processing Time: Instant
Customer Support
Purple Trading Seychelles provides customer support services through various means of contact. Here are the details:
Client Support:
Working Hours:
Business Contact:
Educational Resources
Purple Trading lacks educational resources, which can make it difficult for new users to learn how to use the platform and trade cryptocurrencies.
Some of the educational resources that are missing from Purple Trading include: a comprehensive user guide, video tutorials, live webinars, blogs and etc.
The lack of educational resources on Purple Trading can make it difficult for new users to learn how to use the platform and trade cryptocurrencies. This can lead to mistakes and losses, which can discourage new users from trading.
Conclusion
In conclusion, Purple Trading offers traders competitive spreads, direct market access, and high leverage options, making it an appealing choice for those seeking cost-effective and flexible trading opportunities. The platform's positive slippage and regulatory oversight by SFSA enhance its credibility.
However, there are drawbacks, including limited educational resources, withdrawal fees for certain payment methods, and mixed customer support reviews. Traders should carefully consider their priorities and preferences when deciding whether Purple Trading aligns with their trading needs and objectives.
FAQs
Q: Is Purple Trading regulated？
A: Yes, Purple Trading is regulated by the Seychelles Financial Services Authority (SFSA), providing a level of oversight and security for traders.
Q: What are the minimum deposit requirements at Purple Trading？
A: The minimum deposit required at Purple Trading is $500 for both Standard and RAW accounts.
Q: Does Purple Trading offer negative balance protection？
A: Yes, Purple Trading provides negative balance protection to ensure that traders don't lose more than their initial deposits.
Q: What payment methods are available for deposits and withdrawals？
A: Purple Trading accepts various payment methods, including SEPA payments, credit/debit cards, and Sticpay, with different processing times and fees.
Q: Can I trade with high leverage at Purple Trading？
A: Yes, Purple Trading offers leverage options of up to 1:500, allowing traders to potentially amplify their trading potential.
Q: Are there educational resources available for traders on Purple Trading？
A: While Purple Trading offers competitive trading conditions, its educational resources are limited, so traders may need to seek additional educational materials elsewhere.
2024-03-25 00:34
