It is a legal entity which conveys access to the capital market to its clients, therefore buys and sells stocks or other financial instruments on behalf of the clients and offers other related services. Brokerage house receives orders from clients and executes them on their behalf, which differentiates it from a dealer, which conducts trades on its own account.
In the Czech Republic, the CNB grants permission for this type of activity. Companies may only become a brokerage house via an investment firm or an investment tied agent. Purple Trading / L.F. Investment Limited has a tied agent registered in the Czech Republic.
Market maker broker is an individual market participant, that quotes buy and sell prices on its own. Market maker broker is on the opposite side of each trade. The goal of market maker broker is to make a profit on their clients based on a spread and the price of the instrument, that he creates.
STP broker is not an individual market participant. All orders are routed to the brokers' liquidity providers, therefore, he is not on the opposite side of the trade and he is not creating prices by himself.
Purple Trading is an STP broker. As we believe that this is the right way to ensure a transparent and fair environment for all of our clients.
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. Due to the decision of the Belgian regulator, it is not possible to accept Belgian clients. The restriction applies to residents of Russia, Great Britain, Switzerland, France, Great britain and Gibraltar as well.
A broker is an intermediary between the forex market and a client. The broker's clients are retail or professional traders.
It is a strategy where a trader enters a trade on one day and exits the trade on the same day.
ECN is the name for a broker that sends client orders directly to an interbank liquidity facility. In this case, the broker is the intermediary for the client.
Forex is a global market on which currency pairs are traded. The name Forex is derived from Foreign Exchange. The Forex market is the largest and therefore one of the most liquid markets in the world.
It is the designation for a broker that makes the market for íts clients. Such broker is often the counterparty to its clients. Purple Trading is not a market maker broker.
Non Dealing Desk broker is an ECN or STP broker. They transmit their clients' orders directly to liquidity providers or to the interbank market. Purple trading is an STP broker.
The STP broker has one or more liquidity providers that will settle the broker's clients' order.
Trading is an activity aimed at the appreciation of funds through short-term trading. Instruments are held for a short period of time, in some cases a few minutes. Depending on the length of time an instrument is held, trading is divided into position trading (positions are held for several months), swing trading (trades are held for several days to weeks), intraday trading (trades are opened and closed within a day) and scalping (trades are held for several minutes).