Pepperstone Review

Review

Pepperstone is an Australian Forex broker founded in 2010 which has enjoyed a remarkable growth rate since its founding. In less than a decade, it grew its client base to over 57,000, with an average daily transaction size of $12.55 billion.

 

Tight spreads and fast execution speeds make this broker an excellent choice for scalpers and automated trading solutions. Over 150 assets are available from three trading platforms, regulated by industry heavyweights- ASIC in Australia and the FCA in the UK. With numerous global awards, this broker possesses the proper fundamentals to further increase its market share. Pepperstone will achieve this through the noted scale of a fintech company and the agility of a startup.

Pepperstone Homepage

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Regulation and Security

Pepperstone Group LTD is the Australian entity, authorized and regulated by the Australian Securities and Investments Commission (ASIC), under ABN number 12 147 055 703; the license was granted on October 27th 2010. 

Pepperstone ASIC License

ASIC regulation allows this broker to remain ahead of its global competition as it avoided mistakes of its counterparts, maximum leverage remains capped at 1:500. As an ASIC regulated entity, this broker is additionally protected by the Act of Grace mechanism under section 65 of the Public Governance, Performance and Accountability Act 2013. The Scheme for Compensation for Detriment caused by Defective Administration (CDDA Scheme) further protects traders from damages, which are highly unlikely given the deep foundations of Pepperstone.

Pepperstone LTD caters to UK and EEA traders. This entity is authorized and regulated by the Financial Conduct Authority (FCA) under registration number 684312; it was granted on May 8, 2015. 

Pepperstone FCA Regulation

The FCA remains the prime regulator in the global financial system, and traders may be protected by the Financial Services Compensation Scheme (FSCS) up to £85,000.

Clients’ funds remain fully segregated with Tier 1 banks at both entities. Pepperstone is fully compliant with regulatory requirements and adhere to strict anti-money laundering (AML) requirements, fulfill know-your-client (KYC) procedures, and intensive audits.

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Fees

Pepperstone derives most of its fees from tight spreads and low commissions. This presents an exceptional, low-cost environment for traders to develop their portfolios. Trading fees are competitive. The average spread for the EUR/USD currency pair in its Razor accounts is only 0.13 pips plus a commission of €7. Commissions in the Razor account on Forex trades always equal seven units of the base currency per round lot (exit and entry). The average spread in the Standard accounts for the same currency pair is listed as 1.13 pips and this account is commission-free. Pepperstone deploys an ECN execution model, avoiding a potential conflict of interest; this broker is authorized to be a market maker, as is any ASIC regulated broker, but opted not to apply this model.

Swap rates on overnight positions are applicable except to Islamic accounts, and Pepperstone remains fully transparent about all trading costs involved. Confirming its commitment to transparency, this broker informs traders how to access precise swap rates for each instrument; most brokers may mention they exist but choose to omit this information. Equity and index CFDs are additionally exposed to corporate actions like dividends, splits, and mergers; long contracts are credited, and short contracts are debited.

Pepperstone ECN Broker

Pepperstone remains committed to full transparency and confirms this by informing traders where to find precise swap rates for each asset.

Pepperstone Overnight Swap Rates

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What Can I Trade

Pepperstone offers trading in over 150 instruments across forex, equity as well as index CFDs, commodities, and cryptocurrencies. The primary focus remains forex trading with 61 currency pairs; pure forex traders should encounter no problems to fully diversify portfolios and obtain plenty of trading opportunities. Fifteen soft and hard commodity CFDs allow traders to branch out into this sector, but a broader selection is desired; this holds especially true in metals CFDs where the choice remains limited to gold, silver, platinum, and palladium. Fifteen index CFDs allow for an entry-level introduction into this asset class with an additional 64 equity CFDs offered; this is enough for retail traders, but more advanced traders may find the selection inadequate. The availability of cryptocurrency pairs remains limited to five major cryptocurrencies which should be enough for all but the most devoted crypto enthusiasts.

Forex traders have 61 currency pairs available for trading at Pepperstone.

Pepperstone Forex

Fifteen commodity CFDs allow traders to diversify portfolios.

Pepperstone Commodities

An additional fifteen index CFDs allow retail traders to branch into another asset class.

Pepperstone Index CFDs

Sixty-four equity CFDs offer the most commercial names allow traders an opportunity to further seek trading opportunities.

Pepperstone Share CFDs

Five cryptocurrencies introduce forex traders to this new asset class, but a broader selection is desired.

Pepperstone Cryptocurrencies

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Account Types

Traders have two account options at Pepperstone, the Standard account, and the Razor account. Fundamental features in both account types are the same, the distinct difference remains the fee structure. Standard accounts include more prominent spreads and are commission-free; Razor accounts contain a significantly narrower spread, but a commission of seven currency units of the account currency per lot traded applies. There is no minimum deposit, but Pepperstone recommends $500; the maximum leverage available is 500 to 1 under the Australian branch and 30 to 1 at the U.K. branch. The Razor account, with the provided leverage, presents an outstanding trading environment that is difficult to match across the brokerage industry.

Basic account features in the Standard and Razor account types are alike.

Pepperstone Account Facilities

The composition of fees differs, where the Razor account provides an excellent and cost-effective trading environment.

Pepperstone Account Types

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Trading Platforms

Pepperstone offers the popular MT4 trading platform, its successor platform MT5, and the ECN trading platform cTrader. All three support automated trading solutions with the MT4 trading platform excelling in this category. Hundreds of millions of dollars have been invested by fintech companies and financial firms to create trading solutions based on the MT4 infrastructure; it offers a back-testing functionality and many useful add-ons. The MT5 platform has been less successful as it lacks a backward-compatibility with the prevalent MT4; it features an improved user-interface, but traders still haven’t embraced the MT5 platform as a favorite platform option.

cTrader emerged as the primary trading platform in the ECN sector, and we were delighted during our Pepperstone review to see that the company has invested in this top-notch platform. It provides a superior choice over the MT4/MT5 trading platforms if compared to the fundamental models; an upgraded MT4 trading platform can create a more sophisticated trading solution. Pepperstone additionally offers its Smart Trader Tools for MT4/MT5 and cTrader Automate; this enhances the trading platform, and the commitment to invest in the basic versions displays that this broker truly cares about what type of product is offered to traders. 

An upgraded MT4 trading platform, as provided by Pepperstone, represents an outstanding gateway to financial markets.

Pepperstone MetaTrader 4

cTrader, the leader in ECN trading platforms, is also offered by this broker.

Pepperstone cTrader

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Unique Features

The exceptional trading environment provided by Pepperstone is complemented by three relatively unique features; the Smart Trader Tools, the cTrader Automate, and the extensive selection of social trading partnerships. All three offer an excellent upgrade to essential services and show how committed Pepperstone is to present the best trading conditions to its traders.

Smart Trader Tools

The Smart Trader Tools upgrade package consists of 28 plugins available for the MT4/MT5 trading platforms. This adapts the basic version of MT4 into an excellent trading platform, the upgrades create more solid trade execution, enhance risk management, and allow retail traders to manage their portfolios with professional tools. Most brokers provide the classic version without upgrades, claiming cutting-edge technology; at Pepperstone, traders experience a broker that delivers on this promise.

Pepperstone Smart Trader Tools

cTrader Automate

This feature is part of the cTrader platform and allows traders to develop customized indicators or automated trading solutions. cTrader Automate is an excellent tool for traders and companies who don’t maintain an existing solution, developed on the MT4 infrastructure. It is additionally tailored for back-testing and optimizing strategies.

Pepperstone cTrader Automate

Social Trading

Pepperstone is committed to automated trading solutions and social trading. The former is displayed by offering the Smart Trader Tools upgrade and cTrader Automate; the latter is evident in the partnership with five popular social trading platform providers. Traders have a choice of Myfxbook, ZuluTrade, Mirror Trader, MetaTrader Signals, and DupliTrade. Some services may require minimum deposits for access, and traders should ensure they identify the option most suitable to them. Pepperstone has produced the proper environment for all types of traders who lack the time to diversify their trading approach via social trading; thousands of verified trading strategies and automated trading solutions are available.

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Research and Education

Pepperstone provides research as a combination of in-house analytics and in partnership with third-party firms. It offers a refreshing combination of quality trade ideas for manual traders to examine. Education is also provided by this broker and is presented in the form of written content, videos, and webinars. While the explicit focus at Pepperstone remains upon automated and social trading, the research and education sections offer a comprehensive package on par with a prime brokerage.

Research

The in-house research team is led by Chris Weston, assisted by research strategist Sean MacLean. The duo provides market news and trading opportunities on most trading days, the presentation of each research article is good, detailed, and professional. Traders seeking fresh ideas or merely a well-presented opinion during a trading break may discover this at Pepperstone.

Other research is provided in cooperation with BK Forex and FX Evolution, undisputed leaders in market research. BK Forex provides a weekly market outlook each Monday, and FX Evolution hosts webinars. Remaining loyal to automated trading solutions, this broker provides Autochartist via MT4 plugin, which examines markets automatically for chart patterns and trading opportunities; daily reports are e-mailed to traders. The four pillars of research deployed by Pepperstone result in a reliable service provided.

Pepperstone Research

Pepperstone Research 2

Autochartist rounds up a great research division at Pepperstone.

Pepperstone Autochartist

Education

Pepperstone provides a broad selection of written content and video lessons for new traders. The Forex section is broken down into seven categories. It should be noted that the CFD section focuses solely on gold. The presentation of the written content is clean and well-thought-through. Videos are available in the MetaTrader 4 and Forex trading courses, where traders are introduced to the basics. The Forex trading course features several guest lecturers and further diversifies opinions. Trading guides complement the solid educational section provided by this broker, and new traders are recommended to take their time with the prepared content to maximize their learning opportunities. The only item missing is a trader’s test, which would complete a well-executed segment.

New traders have ample educational content to study provided by Pepperstone.

Pepperstone Education

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Customer Support

Customer support is available 24/5, but it seems unlikely that traders will require it very often. Pepperstone is a well-managed, transparent brokerage. In case support is needed, traders may easily reach the brokerage via e-mail, live chat, phone, or by using the webform. Written support requests are handled within 24 hours. An FAQ section is available and should answer most basic questions.

Pepperstone Customer Support

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Bonuses and Promotions

Pepperstone offers a premium client service that awards additional benefits to traders such as VPS hosting, advanced trading tools, invitations to premium events, and a premium rebate program. Unlike many other brokers who attempt to pressure traders into bigger deposits for premium services, at Pepperstone the admittance is determined based on trading volume. The conditions are fair and transparent, and at roughly 15 lots, depending on assets traded, highly acceptable for a premium service.

The Active Trader Program is available for high-volume traders in Razor accounts. They are paid daily and directly into trading accounts; this further reduces trading costs in an already extremely competitive pricing environment. It is pleasing to have a broker who understands how to properly implement trading incentives, not by deposit size but by trading volume.

The premium client service requires a traded volume of at least 15 lots per month for qualification.

Pepperstone Premium Client Benefits

Traders can further decrease their trading costs using the Active Trader Program.

Pepperstone Active Trader Program

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Opening an Account

New accounts are conveniently processed via an online application, which is the standard operating procedure across the brokerage industry. The outlined four-step process takes new traders through the entire process of opening and verifying an account, to funding it. A copy of the trader’s ID and one proof of residency document is required to satisfy AML and KYC requirements as stipulated by Pepperstone’s regulators. Traders should feel extremely confident when submitting required documents and personal information to this well-regulated and trustworthy broker.

The four-step process will not only conclude the account opening process but verify the new trader and assist in the funding process.

Pepperstone Account Registration

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Deposits and Withdrawals

Pepperstone supports bank wires, credit and debit cards, Skrill, Neteller, Union Pay, BPay, POLi, and PayPal. These options should be satisfactory to most, and more details can be obtained from inside the client area. Deposits should be instant, except for bank wires, which can take up to five business days. Withdrawal fees are solely applicable to bank wires, but third-party charges may apply. Traders should consult their preferred payment processor to check for any hidden fees on the processor side. For security purposes and to adhere to strict AML requirements, the name of the trading account needs to match the name on the account of the payment options used.

Pepperstone Funding and Withdrawals

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General Information

Company Information

  • Broker's Name : Pepperstone
  • Headquarter : Australia
  • Regulation : FCA, ASIC

Account Information

  • Type of Broker : ECN/STP
  • U.S. Clients Allowed :
  • Minimum Deposit : $1
  • Maximum Leverage : 1:500
  • Commissions / Spreads : Standard Account is Spread Only
  • Account 1 : Standard
  • Account 2 : Razor
  • Account 3 : Edge Active
  • Demo Account :
  • Islamic Account :
  • Segregated Account :
  • Managed Accounts :
  • Institutional Accounts :
  • Deposit Options :
  • Withdrawal Options :

Instruments Traded

  • ETFs :
  • CFDs :
  • Commodities :
  • Metals :
  • Stocks :
  • Oil :
  • Gold :
  • Binary Options :
  • Indices :

Trading Platforms

  • Type of Platform : MetaTrader 4, MetaTrader 5, cTrader
    • Platform Languages :
      • English
      • Chinese
      • Russian
    • OS Compatibility :
      • Windows
      • Mobile
      • Web
      • iPhone
      • iPad
  • Trading Signals :
  • Charting Package :
  • Market Analysis :
  • Chart Trading :
  • Automated Trading :
  • Scalping :
  • Hedging :
  • Mobile Alerts :
  • E-mail Alerts :
  • Trailing Stops :
  • Guaranteed Stop Loss :
  • Guaranteed Limit Orders :
  • Guaranteed Execution :
  • One-click Execution :
  • OCO Orders :
  • Interest on Margin :
  • Web-based Trading :
  • Mobile Trading :

Customer Support

    • Website Languages :
      • English
      • Chinese
  • Support Hours : 24/5
  • E-mail Support :
  • SMS Support :
  • Chat :

Pros and Cons

  • Very competitive trading fees
  • Choice of ECN style
  • No promotions or bonuses

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FAQ

Is Pepperstone an ECN broker?

Yes, Pepperstone is a broker offering its clients the use of an ECN (electronic communications networks) trading execution model.

What is the minimum deposit for Pepperstone?

Pepperstone requires no formal minimum deposit so there is no minimum deposit. However, Pepperstone recommends that clients deposit at least AU$500 or the equivalent in another currency.

Does Pepperstone allow scalping?

Yes, Pepperstone unlike some brokerages allows its clients to scalp, meaning enter and exit trades very quickly, stipulating no minimum time over which a trade must be kept open.

How does Pepperstone change leverage?

Pepperstone allows account holders to change the maximum leverage on their account up to the maximum permitted amount through a fast and easy process. Just go to Settings, click on the small icon which looks like a cog, then select “Change leverage on account”. You will then be able to apply the required amount.

Is Pepperstone a good broker?

Pepperstone is a highly regulated Forex / CFD brokerage, being regulated both in the U.K. by the FCA and in Australia by ASIC. Most industry analysts would consider this a top-tier level of regulation.

How do I verify my Pepperstone account?

One you have completed your application to open your new account with Pepperstone, you must verify your account by either verifying your identity online or uploading ID if required. Pepperstone’s web form will guide you automatically.

Where is Pepperstone based?

Pepperstone is headquartered in Melbourne, Australia and has a branch in London, United Kingdom.

How does Pepperstone make money?

Pepperstone derives its income primarily from charging spreads, commissions, and overnight swap fees.

How can I deposit into a Pepperstone account?

Pepperstone supports bank wires, credit and debit cards, Skrill, Neteller, Union Pay, BPay, POLi, and PayPal.

What is the minimum lot size at Pepperstone?

Clients may trade in micro-lots (0.01 lot).

When does a stop-out take place at Pepperstone?

A stop-out for clients of Pepperstone Group LTD takes place at a 20% equity-margin ratio, while clients of Pepperstone LTD will face an automatic stop-out at a 50% equity-margin ratio.

Is Pepperstone regulated?

Pepperstone Group LTD is the Australian entity, authorized and regulated by the Australian Securities and Investments Commission (ASIC), under ABN number 12 147 055 703; the license was granted on October 27th, 2010. Pepperstone LTD caters to UK and EEA traders. This entity is authorized and regulated by the Financial Conduct Authority (FCA) under registration number 684312; it was granted on May 8th, 2015.

What is the maximum leverage offered by Pepperstone?

The maximum leverage for clients of Pepperstone Group LTD (the Australian branch) equals 500 to 1, but clients of Pepperstone LTD (the U.K. branch) are limited to 30 to 1.

How do I open an account with Pepperstone?

Pepperstone has an online application form, which is the standard operating procedure.

What trading platforms does Pepperstone offer?

Pepperstone offers the MT4/MT5 trading platforms, as well as the cTrader platforms.

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Summary

Pepperstone deserves a positive review. It is unquestionably a top-tier brokerage, which should be seriously considered by any trader who cares about choosing a regulated, reliable ECN broker with tight spreads and a wide range of assets. It remains challenging to locate a more cost-effective and competitive trading environment. Fees are very competitive and Pepperstone’s reputation is up at the high end of the industry.

Automated and social trading solutions build the core at Pepperstone. Technology fulfills a critical role at Pepperstone, which is displayed by the almost 30 plugins offered. Social trading is supported through partnerships with five popular platforms active in this growing segment of the global financial system.

Pepperstone is a well-regulated, transparent, and honest broker; traders are placed first and are served with an outstanding array of tools. Aside from being focused on automated trading solutions, research is provided in-house and via third-party partnerships, while an educational section introduces new traders to financial markets. This broker caters to all types of traders and must be part of any well-diversified approach to trading.

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User Reviews

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4 User Reviews
Jack Barns

I am happy that there is an Australian based broker , the app is so simple and easy to use. Thanks for the review!

Eva Harlan

Pepperstone has a secure client area, which is user friendly and intuitive

Ema Hackney

Pepperstone bonuses are mostly of no use, but even thought I recommend working with them

Jay Axton

I find Pepperstone spreads to be reliable and precise – try them!

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