Pepperstone is an Australian Forex broker founded in 2010 and with a remarkable growth rate since its foundation. In less than a decade, it has grown its customer 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 option for scalpers and automated trading solutions. More than 150 assets are available on three trading platforms, regulated by the industry’s heavyweights – ASIC in Australia and FCA in the United Kingdom. With numerous global awards, this broker has the right fundamentals to further increase its market share. Pepperstone will achieve this through the remarkable scale of a fintech company and the agility of a startup.
Pepperstone Group LTD is the Australian entity, authorized and regulated by the Australian Securities and Investments Commission (ASIC), under number ABN 12 147 055 703; the license was granted on October 27, 2010. ASIC regulation allows this broker to stay ahead of its global competition, as it avoids mistakes by its counterparties and maximum leverage remains limited to 1: 500. As an entity regulated by ASIC, this broker is also protected by the Grace Act mechanism, in accordance with section 65 of the Public Governance, Performance and Accountability Act 2013. The Detruction Compensation Scheme caused by Defective Administration (CDDA Scheme) further protects damage dealers, which are highly unlikely, given Pepperstone’s deep foundations.
Pepperstone LTD serves traders in the UK and the EEA. This entity is authorized and regulated by the Financial Conduct Authority (FCA) under registration number 684312; was granted on 8 May 2015. The FCA remains the primary regulator of the global financial system and traders can be protected by the Financial Services Compensation Scheme (FSCS) up to £ 85,000. Client funds remain fully segregated with tier 1 banks in the two entities. Pepperstone is fully compliant with regulatory requirements and meets strict anti-money laundering (AML) requirements, complies with customer awareness procedures (KYC) and intensive audits.
Pepperstone gets most of its tight spreads and low commission rates. This presents an exceptional and low-cost environment for traders to develop their portfolios. Trading rates are competitive. The average spread for the EUR / USD currency pair in your Razor accounts is just 0.13 pips plus a € 7 commission. The commissions in the Razor account on Forex transactions are always equal to seven units of the base currency per round lot. (exit and entry). The average spread on Standard accounts for the same currency pair is listed as 1.13 pips and that account is commission-free. Pepperstone implements an ECN execution model, avoiding a potential conflict of interest; this broker is authorized to be a market maker, like any broker regulated by ASIC, but has chosen not to apply this model.
Swap rates on overnight positions are applicable, except for Islamic accounts, and Pepperstone remains fully transparent about all trading costs involved. Confirming its commitment to transparency, this broker informs traders on how to access accurate swap rates for each instrument; most brokers may mention that they exist, but choose to omit this information. CFDs on stocks and indices are additionally exposed to corporate stocks such as dividends, spin-offs and mergers; long contracts are credited and short contracts are debited.
Pepperstone remains committed to full transparency and confirms this by telling traders where to find accurate swap rates for each asset.
Deposits and Withdrawals
Pepperstone supports bank transfers, credit and debit cards, Skrill, Neteller, Union Pay, BPay, POLi and PayPal. These options should be satisfactory for most and more details can be obtained from within the customer’s area. Deposits must be instantaneous, except for bank transfers, which can take up to five business days. Withdrawal fees apply only to bank transfers, but third party fees may apply. Merchants should consult their preferred payment processor for hidden fees on the processor side. For security reasons and to meet strict AML requirements, the name of the trading account must match the name on the account of the payment options used.
New accounts are conveniently processed through an online application, which is the standard operating procedure across the brokerage industry. The described four-step process takes new traders through the entire process of opening and verifying an account for financing. A copy of the professional’s ID and a proof of residency document is required to meet LBC and KYC requirements, as mandated by Pepperstone regulators. Traders must feel extremely confident when sending the necessary documents and personal information to this well-regulated and trusted broker. The four-step process will not only complete the account opening process, but will also verify the new trader and assist with the financing process.
As part of its comprehensive offerings, Pepperstone offers traders several additional features, in addition to its high-tech platform and low prices. This includes not only a plethora of educational materials, ranging from webinars to trading guides, but also a frequently updated market review section, comprehensive economic calendar and specialized technical analysis software known as Autochartist, which helps users to make more informed business decisions.
For interested parties, Pepperstone offers a variety of account types to choose from. This variety ensures that the individual’s business needs can be adequately met, and we must admit that there is something for everyone at this popular broker.
From the company’s standard commission-free account to the option of active traders with 0 spread, interbank prices, cutting-edge technology and deep liquidity are included as standard, which means that there really is no bad option.
The main benefits of the account are as follows:
• Standard account: $ 0 commission and institutional level STP spreads.
• Razor Account: Spreads of 0.0 pips.
• Swap-free account: interest-free, $ 0 commission and STP spreads.
• Account of active traders: Spreads of 0.0 pips and a configuration specially formulated for institutional and high volume traders.
There is a simple reason for Pepperstone’s exceptional popularity and rapid growth over the past decade: that, as a broker, she has a lot to recommend. First, the company does its best to understand what traders want and, as a result, its services are low-cost, fast and convenient, with customers offering a variety of platforms to ensure that their individual needs are largely met. In addition, the commercial conditions that the company created are excellent, with liquidity and spreads normally available only to an elite class of institutional clients.
This means that even ordinary traders have access to potentially lucrative opportunities that are simply not available elsewhere. If that were not enough, the technology offered is of the highest caliber, ensuring that it is fast, reliable and efficient. This is continuously developed and expanded by the company, to provide a privileged customer experience. The result is that the company has won numerous awards for customer satisfaction, making it the ideal choice for those who really want an ideal brokerage experience.
Commissions and Fees
Pepperstone is an agency execution broker that offers a good variety of options in its pricing plans, with its commission-based Razor Account being the best choice. In 2020, Pepperstone finished Best in Class in the Commissions and Fees category, as well as in professional negotiation.
Account types: Pepperstone offers two pricing models, depending on the type of account you open, from the commission-based Razor Account to the standard Account, which incorporates commissions into the prevailing spreads. Fees may also vary slightly, depending on the platform you choose to trade.
Razor Account: The Razor Account can be used with the MetaTrader (MT4) or cTrader platforms and follows a price structure based on commissions, in addition to the prevailing spreads. The average spreads of 0.16 pips on EUR / USD in the Razor Account (as of October 2019) are comparable to industry peers when considering the 0.753 pips commission to calculate the total cost of 0.91 pips in MT4 (or 0.86 pips in cTrader).
Standard account: the standard account is commission-free, but has higher spreads and is not as competitive as the Razor Account, as the average spreads on EUR / USD are 1.13 pips (third quarter of 2019), according to Pepperstone.
Active traders: Pepperstone’s active traders program offers discounts on applicable commission rates – depending on the amount you deposit and expected trading volumes – helping to increase your ranking in the category of active traders. A minimum of 200 batches are required to qualify for the lowest level, with a discount of $ 1.00 per standard batch and applies to Razor accounts only.
Order forwarding: Pepperstone uses its EDGE infrastructure to help connect the MetaTrader platform with liquidity providers to which it directs its execution order, incorporating Pepperstone Price Improvement (PPI) technology to help improve execution rates. This EDGE technology is a highly proactive approach for an agency broker.
Platforms and Tools
Although Pepperstone does not have a proprietary platform, it does offer almost all third party platforms that a trader might want to use. Overall, we were impressed.
Platforms: Pepperstone offers the complete MetaTrader and cTrader packages, including MT4 (desktop and web), MT4 Multi-terminal, MT5, cTrader (desktop and web) and cAlgo. Traders can use the account type, Razor or Standard, on any platform.
Copy trading: for social copy trading, Pepperstone offers Tradency’s MirrorTrader and RoboX platform, the ZuluTrade platform and myFxbook for MT4, in addition to the native MT4 and cTrader signal markets. The addition of Chasing Returns and DupliTrade ($ 5,000 minimum) for the social copy trade further expanded the company’s offering. Pepperstone finished Best in Class in the Social Copy Trading category, for the third consecutive year in 2020.
cTrader vs MT4: Although cTrader and MT4 support algorithmic trading, cTrader has an advantage with its web-based platform, which offers a wider range of trading tools compared to MT4 Web. Meanwhile, the version for MetaTrader desktop it contains the algorithmic trading module – compared to cTrader, which requires that the platform independent of cAlgo be executed in parallel, a small but notable difference.
Try the brand new cTrader App, now packed with features to help you succeed using your winning Forex and CFD trading strategies. In addition to being remarkably responsive and intuitive, you have more than 60 of the best indicators and objects, standard and unique chart types, and a variety of options for manipulating your charts to suit your preferences.
Pepperstone mobile app
With cTrader, you can monitor and trade in a variety of markets, including Spot Forex, indices, stocks and a variety of commodities, including oil and precious metals, while accessing a pure direct processing environment, without trading. You can download this application to your device in App Store or Play Market to get quick access to tools.
• New full-screen graph mode to accommodate a variety of notable analytical features
• A complete list of more than 60 technical analysis indicators
• Sophisticated drawing tools and technical analysis objects
• Complete customization of colors, width, levels and line type of the indicator and object
• 6 different types of graphics: candlestick, lined, bar, HLC, dot and Heikin Ashi graphics
• 14 Deadlines and 5 Zoom Levels
• Responsive aiming mode
• QuickTrade buttons on all charts. Configure preferred QuickTrade settings
• Trade using lots or units
• Position management mode, where your positions are plotted on the chart, advanced modification options are available, including reverse and double, and all content is filtered for each specific position
• Complete account list – switch between accounts with a single touch
• View and modify open positions and pending orders
• View your account history and transactions
• Switch between light and dark themes and customize color preferences
• Detailed information window for each symbol
• Responsive and easy to use design
• Live streaming of news is now available on mobile devices
• Send your comments directly to Spotware via your mobile device
• Easy to add and remove symbols from your watch list
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