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:

• Features and Platforms
• Available Markets
• Typical Spreads and Fees
• Security and Trust
• Fondex vs Pepperstone - 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:	See what Fondex offers	See what Pepperstone 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.

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.

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.

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.