Plus500 vs Pepperstone
If you are reading this article, you are likely having trouble deciding whether Plus500 or Pepperstone is the better trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.
In this Plus500 or Pepperstone broker comparison, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- Plus500 vs Pepperstone - Verdict
|Feature||Plus500 (visit site)||Pepperstone (visit site)|
|CySEC, FCA, ASIC, FMA, FSB, MAS||FCA, ASIC, DFSA|
Type of Broker:
U.S. Clients Allowed:
Commissions / Spreads:
|Variable Spreads||Standard Account is Spread Only|
86% of retail CFD accounts lose money
Features and Platforms
Traders at Plus500 remain confined to the proprietary webtrader, which offers alerts for price movements and sentiment changes, but lacks core trading features. The absence of support for automated trading solutions is notable, and social trading is equally unavailable. Adding to shortfalls at this broker is the lack of research and an inadequate attempt to offer educational material for new traders. Pepperstone became one of the most trusted multi-asset brokers and grants clients the MT4, MT5, and cTrader trading platforms. VPS hosting supports automated traders, Autochartist assists manual traders, and the Smart Trader Tools upgrade adds 28 plugins for the MT4/MT5 platforms, converting them into cutting edge solutions. Competitive research and education divisions complete an excellent core trading environment at Pepperstone.
|Type of Platform:||Proprietary platform, Web-based||MetaTrader 4, MetaTrader 5, cTrader|
Guaranteed Stop Loss:
Guaranteed Limit Orders:
Interest on Margin:
Plus500 delivers an excellent selection of assets. With 71 currency pairs, pure Forex traders have sufficient choices to deploy their strategies. The 22 commodity CFDs and 26 indices complement the Forex selection and remain the two sectors most Forex traders prefer for diversification and hedging purposes. The majority of assets remain in equities, where Plus500 maintains 1,737, supported by 585 options contracts and 95 ETFs. Pepperstone delivers a significantly smaller asset selection. While 61 currency pairs and 23 commodity CFDs are available, Pepperstone maintains only fourteen index CFDs and 64 equity CFDs. It does provide more cryptocurrencies than Plus500, with nine versus four, but neither is sufficient. The choice of trading opportunities and cross-asset diversification remains superior at Plus500.
Typical Spreads and Fees
Pepperstone offers Forex traders a commission-free account, where the minimum markup commences from 1.0 pips. Low-frequency traders will find a more competitive pricing structure at Plus500 due to dynamic, market-dependent, commission-free Forex spreads. The Razor account at Pepperstone shows a commission of $7.00 per round lot for access to raw market spreads. The three-tier Active Trader Program a Pepperstone allows clients to lower the final trading costs. Both brokers levy swap rates on overnight positions. Plus500 features an up to 0.70% currency conversion fee and a $10 monthly inactivity fee versus 1.00% and $0 at Pepperstone.
Security and Trust
Plus500 is a publicly listed company in the UK and a constituent of the FTSE 250 index. With the FCA as its primary regulator, it also maintains oversight from six additional ones.the broker also incurred a regulatory fine from the FCA for misreporting transactions. Pepperstone is an Australian-based broker with the ASIC as its regulator, but international clients will trade with the Bahamas entity under the oversight of the SCB. Two additional subsidiaries exist under the authorization of the FCA and DSFA. Client deposits remain segregated at both brokers, and negative balance protection exists anywhere mandated by regulators. Plus500 and Pepperstone both ensure their clients trade from a secure trading environment, while Pepperstone scores higher when it comes to trust. All client funds deposited with Plus500’s Cyprus subsidiary are held in segregated client bank accounts in accordance with the Cyprus Security and Exchange Commission’s (CySEC) client funds rules. Plus500AU Pty Ltd holds client money in a segregated trust account, in accordance with the Australian legal requirements.
Plus500 vs Pepperstone – Verdict
Plus500 focuses solely on the core trading environment and fails to provide value-added services. Instead, it spends money on marketing and a preference for sponsorships of team sports. While the trading platform is below-average, the asset selection is competitive, and the commission-free cost structure acceptable. Regrettably, it does not support automated trading solutions or third-party developers, making it a choice for traders seeking an execution-only broker for manual trading. Pepperstone remains an excellent broker where clients have access to the MT4, the MT5, and the cTrader trading platforms. The Smart Trader Tools suite provides 28 upgrades to the MT4/MT5, Autochartist adds value to manual traders, and VPS hosting enhances automated traders. Three social trading platforms support the sector with excellent choices, and the research and educational sections further distance Pepperstone from Plus500. The asset selection remains the only weakness at Pepperstone. Active traders in the Razor account enjoy superior pricing compared to Plus500, which is further improved via the Active Trader Program. While 76.4% of retail traders operate at a loss at Plus500, the figure is 79.3% at Pepperstone.
Does Plus500 or Pepperstone offer lower pricing?
Traders with low volume or infrequent activity will receive a superior cost structure in the commission-free Plus500 trading account, which is superior to Pepperstone. Active traders and those with high volume will benefit from the Razor account at Pepperstone, where raw spreads and a competitive commission structure allow for a more cost-effective environment. The Active Trader Program, consisting of three tiers, further improves the pricing environment at Pepperstone.
Is Plus500 or Pepperstone safer for Forex and CFDs trading?
From a security point-of-view, both brokers deliver an exceptionally secure trading environment, but Pepperstone remains more trustworthy amid two known missteps by Plus500. Segregation of client deposits from corporate funds exists at both Plus500 and Pepperstone, which maintain licenses from multiple regulators.
Which is better, Plus500 or Pepperstone?
While Plus500 presents access to significantly more assets than Pepperstone, the latter delivers a more competitive and valuable overall trading environment. Plus500 does not provide any value-added services, and its proprietary webtrader lacks many competitive features. Pepperstone counters with an excellent trading environment, valuable trading tools, and competitive research and educational division.
What about MetaTrader and copy trading?
Plus500 supports neither, placing it at a distinct disadvantage to many competitors. Pepperstone not only maintains the MT4 and MT5 trading platforms but also provides 28 add-ons bundled in its Smart Trader Tools package. It transforms the below-average core MT4/MT5 trading platforms into competitive solutions. Copy trading is available via Myfxbook, MetaTrader Signals, and DupliTrade.