PU Prime Review 2024

Trust

PU Prime Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker, allowing us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the two entities operating under the PU Prime trade name:

• PU Prime Ltd is licensed and regulated by the Financial Services Commission (FSC) of Mauritius under license number GB23202672. We rate FSC as a Tier-3 regulator.
• PU Prime Limited is also licensed and regulated by the Financial Services Authority (FSA) of Seychelles under license number SD050. We rate the FSA as a Tier-3 regulator.
• PU Prime (PTY) Ltd is licensed and regulated by the Financial Sector Conduct Authority (FSCA) of South Africa under license number 52218. We rate the FSCA as a Tier-2 regulator.

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities to serve clients worldwide. However, licenses obtained from regulators in different jurisdictions do not always entail the same degree of protection.

Some regulators mandate compliance with the strictest financial frameworks, while others are less rigid. That is why traders must familiarize themselves with the safety mechanisms ensured by the entity they want to open an account.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All entities are said to ensure the segregation of client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. All entities are said to provide negative balance protection.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities if the company becomes insolvent. Under The Financial Commission, clients of PU Prime Ltd are protected by up to EUR 20,000.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum retail leverage with PU Prime is 1:1000.

Stability and Transparency

In our Trust category assessments, we evaluate factors tied to stability and transparency, including the broker’s longevity, company size, and information transparency.

PU Prime maintains very high fee transparency. The broker publishes live spread data on its website so that traders can quickly assess the competitiveness of its bid/ask spreads.

Is PU Prime Safe to Trade With?

Overall, I concluded that PU Prime is safe enough to trade with due to the following factors:

• Regulated by three authorities
• Member of The Financial Commission
• Publishes live spread data on its website

Fees

PU Prime Trading Fees

PU Prime Spreads

I tested PU Prime’s spreads on 04 September 2024 during the London and the New York open. The results are shown in the table below:

Broken down by asset class and compared to the industry average, PU Prime charges low spreads on share CFDs and cryptocurrencies, low-to-average spreads on commodities, and average spreads on indices. The recorded spreads for currency pairs vary from low to high compared to the benchmark.

PU Prime Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full base currency contract (100,000 units).

My tests indicate that the recorded swaps at PU Prime are low-to-average compared to the benchmark.

PU Prime Non-Trading Fees

PU Prime does not charge dormant accounts with an inactivity fee. The broker also does not charge a handling fee for deposits or withdrawals, though third-party banking fees may apply.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees with PU Prime’s three retail account types and the industry average. It illustrates the spreads and commissions I have recorded for the EUR/USD pair and compares them against the typical costs for ECN and STP accounts in the industry at large.

The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) in EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

My findings show that PU Prime’s trading fees generally beat the industry average. I also determined that the Prime account tailored for experienced traders features the best combination of favorable prices and low deposit requirements.

Are PU Prime’s Fees Competitive?

PU Prime’s fees are indeed competitive. Its Standard account, which features a combination of zero commissions and floating spreads, either beats or is in line with the industry average. The only exception is the spread on the EURUSD pair, which was quite high during my test. Furthermore, the broker does not have any non-trading fees.

Platforms and Tools

PU Prime’s MT5 for Desktop

The desktop version of the MetaTrader 5 platform features multiple essential tools, such as one-click trading, an alarm setting option, and a market depth tool. These allow traders to examine various market developments from different angles and to exploit the underlying trading opportunities in multiple ways.

MT5 is arguably best suited for automated trading via its Expert Advisors (EAs). The platform also has an intuitive strategy tester, allowing experienced algo traders to tweak the parameters of their strategies so that they can be used under different market conditions.

General Ease of Use

Charts

I consider the charts screen a platform’s most important feature. It facilitates technical analysis by providing an overview of price action behavior. Chart artists use many analytical tools and chart configuration possibilities to examine it from multiple angles. In my experience, the really important aspect of a chart is how easy it is to scale price action up and down.

As shown above, the problem with MetaTrader is that the charts can be crowded quite easily, even when you add no more than 2 indicators. This obscures price action behavior and makes it more difficult to conduct probing technical analysis.

I have broken down the available analytical tools and chart configurations below:

• 38 technical indicators: The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next.
• 24 drawing tools: Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. Despite the rather large collection of drawing tools, MT5’s ruggedness makes it difficult to discern price action behavior.
• 21 timeframes: One of the standout features of MetaTrader 5 is its vast array of timeframes. MT5 allows multi-timeframe analysis of price action behavior. The more timeframes, the more intricate examinations that can be carried out across the short-term and long-term.
• 3 chart types: Price action can be represented as a line, bars, or candlesticks. This diversity allows traders to examine potential trading opportunities from different angles.

Orders

MetaTrader 5 features three types of order execution: market, pending, and one-click trading. One-click trading allows immediate entries at the spot price.

I have broken down the available order types on the MetaTrader 5 platform below:

• Market orders: Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets filled.
• Limit orders: Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders: They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

My Key Takeaways After Testing the MetaTrader 5 Platform

In my opinion, MT5 is a good option for fast and simple order execution. On the other hand, its dated and rugged design falls short compared to newer, sleeker platforms. As a trader who prioritizes flexible chart scaling, I find MT5’s charting capability too rigid and less effective.

PU Prime’s Execution Model

PU Prime operates as a Straight-Through-Processing (STP) broker without a dealing desk. Client orders are routed to the broker’s liquidity providers, where they are filled.

I measured PU Prime’s average execution speed over several days and discovered that it fluctuates around 120 milliseconds. This is slower than the industry average of around 60-70 milliseconds.

PU Prime’s MT5 Mobile App

The mobile app version of MT5 affords quick and easy access to the market on the go. It is very useful for opening, terminating, and adjusting open positions.

The market is continually evolving, marked by periodic surges and declines in volatility. For this reason, staying on top of the latest market developments is crucial, a task made simpler through the mobile app version of MT5.

You can also use the app to place market, limit, and stop orders, as well as to adjust the exposure of your open trades.

My Key Takeaways After Testing MT5 Mobile App

The advantage of the MetaTrader app is its practicality. It can be an indispensable tool for making trade adjustments, particularly during moments of heightened volatility. However, the app also feels cumbersome, and I found it unsuitable for price action examination.

PU Prime Copy Trading App

Copy trading is permitted via PU Prime’s proprietary app, which allows signal followers to subscribe to the winning strategies of signal providers and filter them by average returns, risk-to-reward ratio, and more. Signal followers can also subscribe for real-time updates from the traders they follow.

Tradable Instruments

Compared to the industry average, PU Prime offers an average number of currency pairs and a high number of commodities, share CFDs, indices, and cryptocurrencies.

What Are CFDs?

Contracts for difference (CFDs) are derivatives that speculate on the underlying asset’s price without physical ownership.

For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars.

One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With PU Prime?

My Key Takeaways After Exploring PU Prime’s Instruments Offering

Overall, I assess PU Prime’s instrument offering as fairly well-balanced. The broker provides a wide range of higher-yield, higher-risk assets, such as share CFDs and cryptocurrencies, alongside lower-risk securities like ETFs and bonds. Additionally, traders have the option to trade certain commodities and indices as futures, getting greater flexibility in managing long-term volatility.

Customer Support

Customer Support Channels

Customer Support Test

When we test a broker’s customer support, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I conducted my test via live chat on 5 September at around 12:43 p.m. CET. Before connecting to an agent, I had to navigate a chatbot. My initial inquiry was into PU Prime’s margin call and stop-out policy. The agent connected almost immediately and responded equally fast.

Although it took some time for the agent to respond to some of my questions, his answers were thorough. Overall, my experience was positive.

Deposit and Withdrawal

PU Prime Deposit Methods

PU Prime Withdrawal Methods

Account Types and Terms

PU Prime Account Opening Process

To open an account with PU Prime, follow these easy steps:

1. Click ‘Sign Up’ at the top-right corner.
2. State your name and country of residence.
3. Provide an email address and choose a password.
4. Enter the rest of your personal details.
5. Choose a platform, base currency, and account type.
6. Confirm your email address.
7. Upload proof of ID and proof of address to verify your account.

PU Prime Trading Account Types

I found that the Prime account offers the best trading conditions in terms of pricing and minimum deposit requirements. Additionally, the broker sets its margin call at 50% and stop-out level at 20%. This is ideal for less experienced traders, helping protect them from the risk of a complete account wipeout.

Demo Accounts

PU Prime offers demo accounts that introduce traders to the broker’s services and allow them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account for yourself prior to or alongside your live CFD account.

Islamic Account

The broker offers Islamic accounts for swap-free trading, as mandated under Shariah law. Traders seeking an Islamic account must contact PU Prime’s customer support and request the service from there.

What is CFD Leverage?

Leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of leverage. Essentially, the broker lends the trader money so that they can open bigger positions. Leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

Maximum Leverage By Asset Class

In the table below, I have listed the maximum retail leverage available with PU Prime for instruments from different asset classes:

PU Prime Restricted Countries

PU Prime does not accept traders from the United States, Singapore, Australia, China, Pakistan, or jurisdictions listed on the FATF and EU/UN sanctions lists.

Research

Research Tools

I have listed the main types of research content with PU Prime below:

• Market Insights: Weekly breakdowns of the most important trading events. Each article comprises elements of technical, fundamental, and economic analyses. Traders can use the broker’s market insights in conjunction with the economic calendar to plan in advance what kinds of trades to open.
• Daily Financial News: PU Prime also publishes daily market insights in video format. The content is available on the broker’s website, as well as on its YouTube channel.
• Autochartist: PU Primme incorporates Autochartist’s full content package, including a variety of market sentiment gauges and actionable trading signals. Each signal contains an illustrative chart, expected timeframe, pattern recognition, and key price levels like stop-loss and take-profit.
• Economic Calendar: The economic calendar is a crucially important tool because it informs traders of upcoming economic releases, speeches, and other events that typically result in heightened market volatility and, therefore, viable trading opportunities.
• Currency Heatmap: The heatmap powered by TradingView demonstrates the changing buying and selling pressures in the forex market.

My Key Takeaways After Exploring PU Prime’s Research Content

PU Prime’s research is extensive and diverse, offering insights into market direction and the factors driving it. The broker also provides actionable trading analyses tailored to the needs of both day traders and swing traders.

Education

I have broken down the educational materials with PU Prime below:

• Academy: The broker’s academy is comprised of three courses (Beginner, Intermediate, and Advanced) that include about 60 articles covering the ABCs of trading.
• Quiz: Traders can test their knowledge of the basics of technical analysis, the differences between indices and share CFDs, and assess their readiness to start trading in the real market.
• Webinars: The broker holds regular webinars every week or two. This lengthy type of content is ideal for those interested in a hands-off approach to learning.
• Ebooks: The broker has published five ebooks, with a new one coming soon. The topics covered include how to read Japanese candlesticks, how to be a disciplined trader, how to manage risk, and more.

The Bottom Line

PU Prime is a forex and CFD broker headquartered in Mauritius. Since its establishment in 2015, the company has grown into a well-recognized brand, offering clients access to over 850 tradable instruments.

The broker provides MetaTrader 4 and MetaTrader 5 platforms, competitive trading fees that outperform the industry average, and extensive research and educational content. The broker has also developed two mobile apps for retail trading and social and copy trading.

However, PU Prime has a relatively slow average execution speed of around 120 milliseconds and does not offer VPS hosting to mitigate this.

Despite this, I believe PU Prime is an excellent choice for casual traders, day traders, and those interested in copy and social trading.

FAQ