How do we know which model the broker uses?
There are several ways of identifying the model used by the broker. STP brokers tend to publish a list of liquidity providers and execution statistics
on their website, such as average spreads, execution time and slippage distribution - which you can also find on our website
. MM brokers are usually not as transparent about their activities.
You can also check what license the entity holds
: if the broker does not have a "dealing on own account" license, it means it is not a Market Maker. In the case of Purple Trading, the CySEC regulator's website states that we are only licensed to "accept and transmit orders", "execute" and "manage portfolios".
The final check is the MiFID II regulation, according to which investment firms in the European Union must disclose information on the execution of client orders - under the RTS28 report
. A simple check shows that last year, Purple Trading used four different liquidity providers.