Fondex vs Pepperstone

Today’s comparison puts Cypriot Forex broker Fondex against one of the most prominent Australian Forex brokers, Pepperstone. The former has been operational since 2011, while the latter was founded in 2010. Both brokers support automated trading solutions and provide their traders with an excellent trading environment. Due to CySEC regulation, Fondex, which features over 1,000 assets, is limited in certain areas. Pepperstone provides fewer assets, but a more competitive trading environment, thanks to the trader-friendly ASIC regulatory environment. This is further enhanced through the scale of a fintech company and the agility of a startup.

This comparison will focus on the following four aspects plus an ultimate verdict:

Feature Fondex (visit site) Pepperstone (visit site)
Headquarter: Cyprus Australia
Regulation:
CySEC ASIC, FCA
Type of Broker:
Market Maker ECN
U.S. Clients Allowed:
Minimum Deposit:
$250 $0, $500 recommended
Maximum Leverage:
1:30 1:500
Commissions / Spreads:
Spreads, commissions Spreads, commissions
Account 1:
Fondex cTrader Standard
Account 2:
Razor
Demo Account:
Islamic Account:
Segregated Account:
Managed Accounts:
Institutional Accounts:
Website Languages:
  • English
  • Spanish
  • 8+
  • English
  • chinese
Support Hours:
24/5 24/5
E-mail Support:
SMS Support:
Chat:
Broker Offers:

Features and Platforms

Fondex

Traders have access to over 1,000 assets across six sectors from the cTrader platform. Cross-asset diversification can easily be achieved, and spreads are very competitive. Fondex allows commission-free trading except for Forex and commodity trading. The cTrader platform provides a professional trading experience, fully supports automated trading solutions, while additionally enabling social trading via a copy feature. Manual traders have a full technical analysis suite at their disposal. Trading signals are provided inside the platform through a partnership with Trading Central.

Regrettably, Fondex fails to provide an educational section to new traders. This is the most significant oversight by company’s management. According to the minimum deposit size, the retail sector is the primary client base. Auxiliary trading services should be implemented, either in-house or through a partnership. The lack of an in-house research team places this broker out-of-competition with prime brokers. Despite the absence of two critical divisions, the overall core trading environment remains exceptional.

Fondex Homepage

Pepperstone

With a choice of the MT4, MT5, and cTrader trading platforms, Peppersone traders have access to the most popular trading platforms available. Over 150 assets across five categories are available together with tight spreads and competitive leverage makes Pepperstone a prime destination for committed traders. Since its inception, this broker has strived to become a market leader for automated trading solutions. Professional trading and risk management tools are granted to all traders via the Smart Trader Tools upgrade, consisting of 28 plugins for the MT4/MT5 trading platforms. Social trading is enabled through partnerships with Myfxbook, ZuluTrade, Mirror Trader, MetaTrader Signals, and DupliTrade.

An in-house research duo generates research for manual traders. Third-party research from K Forex, FX Evolution, and Autochartist further supports manual trading. New traders are greeted with an attractive entry into financial markets with a sound educational course. The premium client service and Active Trader Program, both based on trading volume, complement one of the most attractive trading environments in today’s ultra-competitive brokerage industry.

Pepperstone allows plenty of choices so that Forex traders may approach markets based on their preferences.

Pepperstone Homepage

Feature Fondex Pepperstone
Type of Platform : cTrader MT4, MT5, cTrader
Platform Languages:
  • English
  • English
OS Compatibility:
  • Windows
  • Mobile
  • Web
  • Windows
  • Mobile
  • Web
Trading Signals:
Charting Package:
Market Analysis:
Chart Trading:
Automated Trading:
Scalping:
Hedging:
Mobile Alerts:
Trailing Stops:
Guaranteed Stop Loss:
One-click Execution:
Interest on Margin:
Web-based Trading:
Mobile Trading:

Available Markets

With over 1,000 assets available at Fondex, this broker certainly allows for greater cross-asset diversification as compared to Pepperstone, where just over 150 assets are listed. Over 80 currency pairs and 900 equity CFDs are provided by Fondex. This compares to 61 and 64 at Pepperstone, respectively. On the plus side, Pepperstone has better coverage of the commodity market and is on par in the index CFD sector. It lacks an ETF offering, which is where Fondex opens an additional market to its traders. The cryptocurrency selection is outstanding at Fondex, but it is fairly limited at Pepperstone, giving Fondex an edge in this category.

Feature Fondex Pepperstone
ETFs:
CFDs:
Commodities:
Metals:
Stocks:
Oil:
Gold:
Binary Options:
Indices:
Cryptocurrencies:

Typical Spreads and Fees

Spreads and Commission

Fondex allows commission-free trading on all assets except for Forex and commodity trading, per its trading account specifications. The commission is listed as $2.50 per 1.0 standard lot (100,000 units) per side or $5 for a buy-sell transaction. In another section, an equity CFD and ETF commission of $1 per 100 shares is noted, making index CFDs the sole commission-free asset class. The lack of clarity needs to be addressed by this market maker. The commission-free account at Pepperstone carries a spread of 1.13 pips for the EUR/USD, which is reduced to 0.13 pips in the Razor Account for a commission of seven units of the base currency. The Fondex spread for the same currency pair is listed at 0.28 pips. Pepperstone implements an ECN execution model and created one of the most competitive trading environments in the Forex market.

Swap rates on overnight leveraged positions apply at both brokers. The precise amount may be obtained directly from inside the trading platforms. Islamic accounts are available on request at Fondex and Pepperstone alike. Equity and index CFDs, as well as ETFs, are exposed to corporate actions like dividends, stock splits, and mergers, which are passed onto traders. Fondex waives all deposit and withdrawal fees, including on bank wires above $1,000. Withdrawal fees pertain to bank wires at Pepperstone, and third-party charges are levied at both brokers. The Active Trader Program at Pepperstone further reduces overall trading costs, creating a more favorable trading environment.

Fondex deploys a competitive pricing structure across its portfolio.

Fondex pricing

Pepperstone has razor-thin spread and allows traders access to an extraordinary fee-structure.

Pepperstone pricing

Security and Trust

TopFX LTD, the owner of Fondex, is a Cyprus Investment Firm (CIF), licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 138/11. It operates under the Financial Instruments Directive 2014/65/EU or MiFID II, the EU’s 4th Anti-Money Laundering Directive, and the Cyprus Investment Services and Activities and Regulated Markets Law of 2017. Per EU Directive 2014/49/EU, traders are protected by the Investor Compensation Fund (CIF) with maximum coverage of €20,000. Client funds remain fully segregated, while Fondex publishes all relevant documents on its website for transparency. Fondex deploys a competitive pricing structure across its portfolio.

Pepperstone is primarily regulated by the Australian Securities and Investments Commission (ASIC). It is protected by the Act of Grace mechanism under section 65 of the Public Governance, Performance and Accountability Act 2013. Traders may rely on Scheme for Compensation for Detriment caused by Defective Administration (CDDA Scheme) in the event of unforeseen financial issues by this broker. The UK subsidiary is authorized and regulated by the Financial Conduct Authority (FCA), where the Financial Services Compensation Scheme (FSCS) shields traders from losses up to £85,000.

Fondex has employed CySEC regulation which is reputable, but often considered of a lower caliber than the ASIC or FCA regulations held by Pepperstone.

Fondex regulation

Pepperstone operates under ASIC jurisdiction, enjoys a spotless record, and provides an example for other brokers to follow.

Pepperstone pricing

Fondex vs Pepperstone – Verdict

Fondex is a great overall broker but lacks an educational section for new traders. The asset selection is outstanding, and the fee structure is competitive. CySEC limitations are preventing it to fully compete with Pepperstone, where traders have far fewer assets to choose from. This is countered by one of the best trading environments available with a broker that shines across the board. Education, research, education, and trading tools are provided in a high-quality trading environment. Advanced traders may prefer Fondex due to the massive asset selection, but most retail traders will find a superior service at Pepperstone. In this Fondex vs Pepperstone comparison, both brokers offer some advantages, but Pepperstone’s stronger regulation, spotless record, and excellent trading conditions provide a more competitive advantage.

Read full Fondex Review