Trading conditions

Purple Trading is an international professional broker offering a high-quality environment for trading on financial markets. We are a regulated STP broker, we only offer trading accounts with variable spreads and all our real account clients’ trades are sent directly to the interbank market.

Clients of the company can trade actively by themselves, or connect their account to a selected trading strategy. And if they are interested in the long term investment they can use our ETF products.

Purple Trading also offers the opportunity to become introducing broker or strategy provider.

The legal relationship between the client and Purple Trading begins with proper approval of the registration, followed by opening a trading account. When filling out the registration form, every client accepts the Terms and Conditions of Purple Trading and agrees with the documentation in the English language. Once the account is created, the client receives the Terms and Conditions which he has agreed with.

Purple Trading offers the clients the ability to trade actively by themselves, use ETF products for long term investment or to connect their account to a selected trading strategy.

Strategies are using signals from professional providers and it is not possible to interfere with the trading, as the trading signals are being copied to clients’ accounts. The clients may monitor their trading performance in PurpleZone and they may ask for disconnection from the strategy at any time, which is then guaranteed to be executed within the following 24 business hours.

This service is strictly regulated and we can offer it only to clients who are aware of all the risks which this type of investment carries. The clients must meet certain conditions. This is evaluated based on the answers from the registration form, or from investment questionnaire. 

In accordance with the License conditions, any individual (at least 18 years old) or legal entity who fills out a registration form, accepts the Terms and Conditions and provides the necessary documents for registration including a document proving the postal address in EEA may open an account.

MetaTrader 4, MetaTrader 5 and cTrader trading platforms are primarily intended to be used by active traders for opening, management, and closing of their trading positions. You can also use the platforms to find information about trading instruments, generate reports from the trading history and create automated trading systems (ie. AOS, ATS, EA).

STP account has no commission charged per trade, but there is a higher spread compared to the ECN account.
The spreads are lower for the ECN account - from 0.1 pip + fixed commission 10 USD / 1 round-turned-lot / trade. For lower trading volume, the commission is charged proportionately, e.g. 1 USD/0.1 lot/trade.

The first trading account that is automatically opened to a client is in ECN account type.
Commission and spread may be lower within our Trader Status loyalty program.

An automated trading system.

A mechanism which enables traders to trade larger amounts even with smaller volume of free capital which would otherwise be insufficient for the trade, e.g., when trading 1 lot of currency pair EURUSD with leverage of 1:100, the client has to have at least 1,000 EUR of free capital on his/her trading account. Should the leverage not be used in this scenario, the client would need to have 100,000 USD on his/her trading account to cover the entire traded volume.

 

A trading technique which consists of opening positions on the same instrument in opposite directions in order to lower or annulate required margin (“position netting” occurs) and to ensure present market exposition. For example, if a trading position of 1 lot BUY is open on EURUSD, then after opening a 1 lot SELL on EURUSD an annulation of required margin occurs and profit from these open positions will be fluctuating only in terms of  spread changes on EURUSD.

Broker’s ability to fill client’s order in the market at the desired value and in the desired volume.

The basic unit of traded volume. For currency pairs, it is 100,000 units of the base currency. Lot size varies between individual CFD-type instruments as it is based on the number of contracts set for each one.

 

A notification informing the client that the Equity on his/her trading account has decreased to a value of the required margin. Afterwards, the client is not allowed to open any additional trading positions which would increase his/her trade exposition. It is then necessary to close some of the open trading positions or add funds to the trading account in order to increase the free margin and free the funds.

 

A micro-lot is a trading unit derived from the standard trading unit, which in the Forex world is the lot. While 1 lot represents a transaction of 100,000 units of the currency mentioned first in a currency pair, the value of 1 micro lot is 1,000 units.

If you are interested in the relationship between lots, micro-lots, leverage, and margin, we recommend reading the article about micro-lots we wrote on the subject.

A micro lot is 0.01 lot.

A mini lot is a volume of 0.1 lot.

Trading strategy type which uses minimal market moves with higher frequency of trades made in order to make a profit.

 

A slippage in order filling. It expresses the difference between the asked price at trader’s side and the price at which the order is executed in the market (in market execution, it is the best available price in the market at that time). Slippage can have positive as well as negative value.

 

Price difference between ASK and BID prices.

A protective order which enables closing a losing position on a predefined level. After activation it is executed as a MARKET type order.

A protective order activated when client’s Equity on his/her trading account decreases to half of the required margin. Trading positions are then automatically closed starting from the one with the biggest loss until there is enough free funds to keep the account’s Equity over 50% of the required margin.

The STP broker has one or more liquidity providers that will settle the broker's clients' order.

A fee charged for holding a trading position overnight. It is expressed in points or percents and it is directly proportional to the volume of the trading position held. Please note the Swap for Forex pairs and precious metals is being charged 3x on Wednesday, which includes also the weekend swaps. (Swap is charged at Wednesday - Thursday midnight) For other symbols is being charged 3x on Friday. (Swap is charged at Friday - Saturday midnight)