Pepperstone are a leading Forex and CFD broker. Based in Australia and ASIC regulated, this review details spreads and minimum deposit requirements, as well as trading platform info, including the mobile app and MT4 versions. Based in Australia, Pepperstone Limited was established in 2010. Despite its relative newness, it has grown exponentially over the course of the past nine years, so that it is now one of the largest forex and CFD brokers in the world.
They are also highly regarded by experienced investors and industry professionals alike. Launched in the UK in 2016, Pepperstone has many European clients, and trades in accordance with the regulatory principles set down by the European Securities and Markets Authority and the Financial Conduct Authority. Their stated mission is to provide institutional grade trading to the online forex trader.
Pepperstone provides clients with the opportunity to open accounts and deposit funds in a number of base currencies, from US dollars through to pound sterling, euros, and the Swiss franc. These funds can be transferred across to the broker via a variety of different mediums, including Verified by Visa, MasterCard Secure Code, credit/debit card, Skrill, Neteller, and broker to broker.
In terms of withdrawals, requests are made via the Secure Client Area. Where these are received before 21:00 GMT, they are processed on the same day. The company itself does not charge any internal fees for either deposits or withdrawals, although should any external transfer fees occur, these are the responsibility of the client.
Pepperstone repeatedly claims to be a company committed to catering to the needs of its clients. Supporting their ability to trade according to their individual preferences, they offer a multitude of trading platforms to pick between, as well as iPhone and Android compatible versions of these. The latter provide users with access to both their trading account and the broker’s advanced forex trading technology even when they’re on the go.
The one drawback is that those who prefer to trade this way are limited to a single platform – in this instance, the always popular MetaTrader 4.
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.
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.
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.
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.
Research and Tools
Metatrader 4/5 and cTrader provide few research features but the Smart Tools add-on for MT4 partially remedies this deficit. Web-based research is plentiful but disorganized compared to our 2018 review because the dedicated thefxlounge.com research portal has been taken offline. Account holders must now navigate to the “Market Review” section of the website to access forex and commodity analysis by industry experts that include Kathy Lien and Boris Schlossberg. Pepperstone’s YouTube portal is regularly updated, but it is poorly integrated with the website.
Customers can subscribe to “Daily Market Reports,” described as “high-impact economic events and actionable trading opportunities for your preferred trading session.” Trades can be executed directly from the email, without opening other software. Pepperstone Head of Research Chris Weston also provides regular forex and market content, with YouTube links, through his Twitter handle @ChrisWeston_PS.
Website contains comprehensive educational resources through a dedicated section that includes “Learn To Trade Forex” tutorials, numerous archived and live webinars, and an impressive list of trading guides. Commodity trading is also covered in detail, along with discussions on slippage, hedging, and margin. In addition, Pepperstone uses this section to highlight support options that include platform comparisons, platform guides, and deposit/withdrawal procedures. The site also features standard educational features that include a market glossary and technical analysis tutorials.
Pepperstone offers a variety of trading accounts listed below, that are all based around their three core trading accounts: Razor, Standard and Swap-Free. Some of the features are listed below:
While Pepperstone offers three types of live trading accounts – all with their own individual benefits as shown above – there are some unique features that are included across all accounts, such as:
Getting started with a live account, or a demo trading account is fairly simple and can be done by clicking the ‘Create Account’ tab at the top of their website. This will then open up an account registration page involving four steps to create a live trading account or three steps for a demo trading account:
Pepperstone spreads are extremely tight, especially the razor spreads which is the lowest raw ECN spread Forex account out of the FX brokers we’ve reviewed. Razor account ECN spreads start from 0.0 pips with excellent average spreads (a better indicator of your expected FX trading costs) of just 0.16 pips for EURUSD and 0.27 pips average spread on the AUDUSD currency pair.
Pepperstone’s standard online forex trading account offer forex traders tight, straight through processing (STP) spreads and liquidity from 22 banks and forex market ECN’s, which can also help to reduce slippage. This is great for traders who are ready to move from demo to live trading account.
Our Pepperstone review confirmed they have lowered FX trading costs with an ECN broker model of obtaining superior top tier liquidity. Foreign Exchange quotes are sourced from as many as 22 Major Banks and Electronic Crossing Networks (ECNs). Cutting edge technology combined with superior liquidity, compared to many ECN brokers, translates into extremely tight ECN spread FX pricing on all Pepperstone forex trading accounts!
Is Pepperstone safe or a scam?
Pepperstone as established Australian broker complied its operation according to the respected regulation by the Australian Securities and Investments Commission (ASIC), as well as the holder of an Australian Financial Services Licence. In addition, Pepperstone holds relevant authorization at every region it operates.
Therefore, clients’ residents of the UK and EEA are processed by Pepperstone Limited that is a registered UK company and regulated by the Financial Conduct Authority.
|Pepperstone entity||Regulation and License|
|Pepperstone Group Limited||ASIC (Australia) registration no. ACN 147 055 703, AFSL 414530|
|Pepperstone Limited||FCA (UK) registration no. 684312|
How are you protected?
The above regulators strictly oblige the broker to follow the required performance, hence Pepperstone has no doubts about their reliability. Both, ASIC and FCA demand financial services firms follow strict capital requirements, fully segregate traders’ account from the company funds, comply to internal risk management, training, accounting, audits and many more. In addition, the company provides Negative Balance protection and automated Risk Management System to secure clients’ safe trade.
Firstly let’s check on the Pepperstone diverse of accounts that include different types designed to meet particular traders’ expectations and needs. While, all accounts offers same quality performance, support and comprehensive platform’s features, the beginning traders or non-professionals can sign for a Standard Account, a classical type on no commission basis and institutional-grade STP spreads from 1.0 pips available in MT4 platform.
A choice for professional traders who prefer to pay commission instead of spread consistent in Razor Account – commission from 3.5$ and spread from 0.0 pip, while leverage is flexible along with advanced algorithms for execution speed.
Moreover, active traders with high volume or institutional traders may access Active Trader Program specialized specifications with spreads from 0.0 pips, advanced reporting and dedicated manager, as well as VPS hosting service, custom solutions like API, FX GUI and leading third party providers. Moreover, traders following Sharia rules may sign for a SWAP Free Account with STP spreads with 0 commission.