AvaTrade vs Pepperstone
If you are reading this article, you’re likely having trouble deciding whether AvaTrade or Pepperstone is the better Forex trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.
In this AvaTrade vs Pepperstone review, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
|Feature||AvaTrade (visit site)||Pepperstone (visit site)|
|MiFID, Central Bank of Ireland, FSA, ASIC, BVI, FFAJ, FSCA, ADMG - FRSA||FCA, ASIC, DFSA|
Type of Broker:
U.S. Clients Allowed:
Commissions / Spreads:
|Spreads||Standard Account is Spread Only|
|Spread Betting||Edge Active|
Features and Platforms
Since 2006, AvaTrade established itself as a reliable multi-asset CFD broker and expanded its market-share and asset selection. Today it offers traders over 1,250 assets from the MT4, MT5, AvaTrade WebTrader, AvaOptions, AvaTradeGo trading platforms. While it lacks a research unit, it provides market commentary on its blog, and it does maintain a valuable educational section catering to new retail traders. Australian-based Pepperstone created an excellent trading environment, offering MT4, MT5, and cTrader. The Smart Trader Tools Upgrade represents an outstanding selection of 28 tools for MT4/MT5, ensuring traders operate their portfolios from a competitive trading environment. Operational since 2010, Pepperstone is known for its state-of-the-art technology infrastructure, making it a superior choice for many trading strategies.
|Type of Platform:||MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based||MetaTrader 4, MetaTrader 5, cTrader|
Guaranteed Stop Loss:
Guaranteed Limit Orders:
Interest on Margin:
Asset selection is where AvaTrade outshines Pepperstone. More than 1,250 assets, including 55 currency pairs and 24 commodities, and a comprehensive choice of global equities, supplemented by cryptocurrencies, index CFDs, ETFs, and options, provide cross-asset diversification Pepperstone cannot match. Pepperstone offers more currency pairs than AvaTrade, placing it ahead for traders seeking to trade primarily Forex. The equity, index, commodity, and cryptocurrency selection is notably smaller. Pepperstone does offer after-hours CFD, allowing traders to capture price movements after the release of earnings, placing it in a unique position not shared with many competitors. Over 180 assets at Pepperstone remain on the low-end of the spectrum, which is regrettable given the competitive trading environment.
Typical Spreads and Fees
The EUR/USD commences with a commission-free mark-up of 0.9 pips at AvaTrade versus 1.0 pips at Pepperstone, making the former better suited for clients who trade infrequently or in small amounts. AvaTrade does not charge commissions on any assets, relying solely on above-average spreads. Pepperstone additionally offers its Razor account, where the EUR/USD is available between 0.0 pips and 0.3 pips for a commission of $7 or a currency equivalent per $100,000 traded. Premium clients at Pepperstone can reduce their total costs further. Swap rates on overnight leveraged positions apply at both broker, and so do third party withdrawal costs. While AvaTrade charges an unacceptably high inactivity fee of $50 per month, Pepperstone does not charge any. Active and automated traders will have a significantly improved cost structure at Pepperstone.
Security and Trust
One of the best attributes at AvaTrade remains its global regulatory framework consisting of seven jurisdictions covering five continents. It has made compliance with all of them a cornerstone of its business plan and created a highly trustworthy broker. Pepperstone maintains oversight of four global regulators and has also built its business based on compliance and trust. It became one of the most transparent brokers, offering reliable and honest services to clients. Segregation of client deposits is available at AvaTrade and Pepperstone alike, but negative balance protection depends on the jurisdiction of the operating entity. Based on security and trust, both brokers remain excellent choices.
AvaTrade vs Pepperstone – Verdict
AvaTrade and Pepperstone provide different types of traders with an attractive product and services portfolio. The former maintains a visible edge in asset selection, making it an obvious choice for equity traders, with almost 1,000 products in the sector. The latter has fewer notably fewer assets but offers after-market trading, adding a distinct competitive edge. Pure Forex traders have more choices at Pepperstone, where the technology infrastructure and upgraded trading platforms provide a superior trading experience to clients. The pricing environment for low-frequency traders is better at AvaTrade, but high-frequency traders will benefit from tight spreads, competitive commissions, and the Active Trader program at Pepperstone. New retail traders receive quality educational content at both brokers, but Pepperstone adds value via market research, which AvaTrade fails to generate. While AvaTrade grants clients more assets and trading opportunities, Pepperstone maintains a more competitive trading environment backed by technology, boiling the choice down to what traders require.
Which broker is better for beginner traders?
Pepperstone provides traders with an excellent combination of research and education, besting what AvaTrade maintains on its website. The former employs four full-time analysts and also sources technical analysis from FX Evolution. AvaTrade decided to spin out its outstanding educational unit, SharpTrader, where new clients have more than 40 lessons and 200 videos to deepen their knowledge. Pepperstone offers more value when it comes to research, while AvaTrade pulls ahead with education.
How many Forex pairs and CFDs are available to trade?
Forex Traders at Pepperstone have more choices with 61 Forex pair versus just 55 at AvaTrade. The overall asset selection remains superior at the latter with over 1,250 CFDs, while the former maintains less than 160. With more competitive trading conditions as Pepperstone, it is a better choice for focused trading strategies, while AvaTrade supports more in-depth cross-asset diversification.