Complete Pepperstone Review 2022 - Benefits and Drawbacks Revealed

Our Pepperstone study in April 2022 discovered that the broker is the best option for the MetaTrader 4 trading platform due to its rapid execution speeds. Third-party tools (Smart Trader Tools, Figaro Advanced Trader, social trading tools) and unlimited use (scalping, automation).

Cheap spreads with their Standard Account and Razor (STP) Our Pepperstone study in April 2022 discovered that the broker is the best option for the MetaTrader 4 trading platform due to its rapid execution speeds. Third-party tools (Smart Trader Tools, Figaro Advanced Trader, social trading tools) and unlimited use (scalping, automation).

Cheap spreads with their Standard Account and Razor (STP) account, low commission fees, and outstanding customer service are some of Pepperstone's other benefits. In addition, the broker offers a wide choice of trading products, including over 60 currency pairings.

We are so delighted with Pepperstone that we have bestowed many accolades on the broker, including best broker overall, best basic account broker (no fees), and best MetaTrader 4 broker.

Overview

Trading Accounts at Pepperstone

Pepperstone has two kinds of accounts. A standard account with no commissions and a razor account with tight spreads are available.

Standard Account

• Standard Accounts are ideal for people who are new to forex trading.

• There are no commissions, but the spreads are wider.

• Spreads start at 0.6 pips.

• In the United Kingdom, it is well-liked among merchants.

• Only MetaTrader 4 and 5 are supported.

Razor Account

• Advanced traders and scalpers choose the Razor Account.

• Spreads as low as 0.0 pips + volume-based commission

• The most popular account for traders based outside of the United Kingdom.

• Platforms include MetaTrader 4 or 5, cTrader, and TradingView.

If you're not sure whether the account is right for you, check out our Razor versus Standard guide, which compares the two account features. Most traders who seek the lowest costs should pick the Razor account, particularly those who trade in large quantities and are eligible for commission savings via the active trader program.

Fees For Pepperstone Spreads

• Standard account - Forex account with no commission (designed for beginner traders)

• Razor account - Account for raw spreads + commission (designed for advanced traders)

• Islamic account — Interest-free account with no swaps (designed for Islamic traders)

When it comes to trading styles, Pepperstone provides you with a lot of options. Scalping, hedging, and expert advisor-assisted trading are all authorized, and you may trade using mini, micro, and normal lots.

Account for Pepperstone Razor

Straight-through processing (STP) is used in this account so that you may get the spreads determined by the liquidity providers. Because the prices are in sync with the market, some traders refer to this as ECN pricing.

To maintain spreads as low as possible, a commission is paid instead of the broker extending the spreads. If you use MetaTrader 4 or 5, you will pay USD 7.00 (USD 3.50 sideways) for each normal lot traded.

If you trade on the cTrader or TradingView platforms, you will be charged $6.00 for each lot round-turn translated to your base currency.

Spreads on Pepperstone Razor Accounts

The premier ECN broker discovered that the Pepperstone razor account has one of the lowest spreads in our 2022 investigation. Straight-through processing (STP) of orders with no dealing desk is how the razor account does this. To achieve narrow spreads for traders, the account also offers direct access to 60+ exchanges, 400+ buy/sell businesses, and 150+ financial service providers.

As seen below, Pepperstone's Razor account offers narrow spreads on most major currency pairings such as EUR/USD and GBP/USD.

The average spreads provided here are collected straight from the broker's websites and are updated monthly to assist you to compare prices.

Account Standard

The Pepperstone basic account is ideal for new traders, with spreads beginning at 0.6 pips. You pay no commission costs on top of the spread with the regular account price. This account is only accessible via the MetaTrader 4 and MetaTrader 5 trading platforms.

Swap-Free Pepperstone (Islamic account)

For Islamic merchants who follow Sharia law and cannot pay or accept a riba, a swap-free account is provided (interest). This account is exclusively accessible to dealers in Muslim-majority countries such as the United Arab Emirates, Morocco, Malaysia, and Indonesia.

The Islamic account is identical to the ordinary account, however, there are no swap costs. You pay an administrative charge instead of overnight fees. This administrative fee is charged on the 11th day (10th overnight) that you have an open job. Major pairs cost $50, which equates to $5 every day.

Platforms for Trading Forex Pepperstone

Pepperstone provides four different trading platforms:

MetaTrader 4 is the most widely used forex trading platform.

Metatrader 5 – The most widely used CFD trading platform cTrader – A sophisticated platform with automation and charting

TradingView - Chart trading with a vast social network.

MetaTrader 4 (MT4)

Pepperstone was named the top MT4 broker based on the following criteria:

• The most competitive spreads on key currency pairings such as the AUD/USD, EUR/JPY, and USD/CAD.

• Razor account commissions are competitive, with additional rebates available via the active trading program.

• The quickest execution times (explained below)

• 15 charting indicators and 16 smart trader tools are available to enhance MT4 functionality.

Most orders received inside Pepperstone's bridge were completed within 30ms through the ASIC-regulated Australian subsidiary Pepperstone Group Limited. Pepperstone Limited, an FCA-regulated company in the United Kingdom, claimed 60ms speeds. Independent studies using MT4 demo accounts confirmed these rapid speeds, with market order execution times of 85ms.

MetaTrader 5 (MT5)

MT4 is a forex-based trading platform, while MT5 is a multi-asset platform with more broad market access. Pepperstone offers approximately 700 CFD products in total, including hundreds of shares and 12 cryptocurrencies.

MT5 commissions are the same as MT4 commissions, except for customers who pick USD as their base currency and pay a lesser rate of $3.50 per lot. If you're not sure whether the MetaTrader platform is right for you, check out our special MT4 vs MT5 comparison.

Smart Trader Tools for MetaTrader

Traders that use MT4 or MT5 have access to smart trader tools, a collection of 16 trading tools, and 15 custom indicators. The following are the top ten most popular features:

• Correlation Matrix displaying instrument correlations

• Autochartist who focuses on statistically significant market moves

• The alarm Manager notifies traders of significant price movements or market happenings.

• Sentiment Trader displays the sentiment of historical and current market data.

• Connect provides news, analysis, and an economic calendar.

• Excel RTD that delivers real-time market data to Excel

• Trade Simulator for MT4 that mainly supports strategy testing

• Stealth Orders enable pending orders to be concealed from the market.

• Session Map indicating which currency markets are open.

• Mini Terminal enables you to conceal MetaTrader while still seeing a market.

ZuluTrade, Autochartist, Mirror Trader, and Myfxbook are some of the new additions to Smart Trader Tools. This abundance of features propelled Pepperstone to the top of the 'Platform Features' category in the most recent Investment Trends based on real FX traders.

Platform cTrader

cTrader is popular among experienced CFD traders.

• Direct access to inter-bank market depth for the implementation of algorithmic forex trading systems.

• An interface with pre-set and removable charts that may be customized.

• Back-testing capabilities are extensive.

The currency pair you are trading determines your commission expenses on cTrader, with fees equal to 0.0035 percent of the base currency. For example, if you trade 100,000 EUR/USD currency units, you will pay €3.50 per side.

The cTrader platform offers expanded interface customization possibilities as well as sophisticated order placement features. There is also Webtrader, which does not need downloading. Webtrader is often used as a backup to the aforementioned forex trading platforms, mainly by people who are utilizing a computer that they do not own. View the cTrader Guide for additional information.

Customer Service Levels

Pepperstone provides award-winning customer service, which is one of the reasons why they grew their market share in the retail CFD trading industry in Australia by 3%. This has been attributed in part to their client service. Pepperstone's customer service was so excellent that they were awarded the Investment Trends overall client satisfaction award.

The following are some of the key factors that have contributed to Pepperstone's customer service receiving these awards:

Unique Customer Service

Pepperstone has a customer support staff with years of expertise in the FX trading industry. They can assist educate and answering any forex trading questions that beginner, intermediate, or professional traders may have since they are actual traders. A specialized account manager may also be provided to a trader in many circumstances to obtain a better knowledge of the trader's requirements.

24-Hour Customer Service

Pepperstone's five offices in Melbourne, Shanghai, Dallas, Bangkok, and London ensure that assistance is always accessible while the FX markets are open. This also gives local possibilities for forex traders who are not based in Australia.

Customer Service Channels

The ability to access high-level help through live chat was identified as a strong strength in the Pepperstone evaluation. Live chat and phone customer service are both accessible 24 hours a day (with different national numbers for each office location). E-mail assistance is also accessible. There is also on-site and online training, as well as a plethora of trading materials for professional to beginning traders. Because of this customer service, Pepperstone was awarded the most current Investment Trends “Overall Client Satisfaction” award, which compared survey results of genuine CFD traders.

Pepperstone Broker Reviews Correspond to Their Awards

Since its inception in 2010, Pepperstone has received mostly favorable feedback from forex broker review sites. Pepperstone is rated Excellent by Trustpilot, with a score of 4.3 from 780 ratings (4.5 stars) as of April 2022. This grade demonstrates that the broker is strong in terms of client satisfaction and the services they provide.

The most important forex broker reviews concerns were around 'exotic pairings' (pairing outside of the major currencies). There were also concerns about money being withdrawn from accounts. Positive Pepperstone broker reviews include how quick their VPS is (5ms), how fast deposits are, and how simple it is to open an account with a solid platform. Investment trends, which conducts an annual poll late each year, discovered that the Australian forex broker was at the top in various categories. Customer service, value for money, platform dependability, and execution speeds are examples of these.

Minimum Deposit at Pepperstone

Pepperstone's minimum deposit is $200. The broker actively does not enforce this minimum deposit requirement, although, in the United Kingdom, a trading balance of £500 is suggested.

More information on financing and accounts may be found here.

Dollars - USD, AUD, NZD, CAD, HKD, SGD, GBP, EUR, JPY, CHF are accessible as base currencies.

Traders should consider their base currency as well as the fact that commissions are calculated in the currency selected.

Account Funding and Withdrawal Information

Unlike other brokers, Pepperstone has no funding or withdrawal fees. Only a few intentional institutions are permitted to collect fees. Payment methods vary by area, but in general, they include:

• Visa - Verified By Visa provides instant credit card financing.

• MasterCard - Debit Card with MasterCard SecureCode.

• Paypal - There are no fees associated with Paypal financing.

• Fastapay is a no-fee instant deposit mechanism.

• China Union Pay - There are no fees or charges associated with financing at any time.

• Skrill (Moneybookers), Qiwi, and Neteller are all payment methods.

• POLi & BPay - Bank transfers from qualifying bank accounts may be done at any time using POLi & BPay.

• Wire Transfer (Domestic & International) — Wire transfers are accessible, but they may be time-consuming and incur costs.

Various Markets

The biggest retail foreign exchange brokers promote themselves as an “all-in-one trading solution.” This includes IG and CMC Markets, both of which provide a variety of markets, including stockbroking.

The amount of leverage you may use while trading CFDs is determined by the Pepperstone subsidiary you are registered with and the asset class you are trading. Offshore operations of brokers in Kenya (CMA) and the Bahamas (SCB) provide far more leverage than tier-1 regulated countries such as Australia (ASIC), the United Kingdom (FCA), and Europe (CySEC and BaFin). CFDs are sophisticated products that should only be used by experienced traders.

Pepperstone provides over 700 CFDs in total, including the following:

• Forex Trading

There are 62 currency pairings available, including the most popular currency, the US dollar. The Euro, Japanese Yen, Great Britain Pound (GBP), and Australian Dollar are among the other currencies. Every day, around $1.5 trillion is exchanged globally*. Forex trading leverage is 500:1 offshore and 30:1 everywhere.

• Indices

CFD trading, also known as derivatives trading, enables traders to speculate on the movements of financial markets. CFDs on indices such as the Australian 200 Index, the EU Stocks 50 Index, and the US Tech 100 Index are available through Pepperstone.

Trading in Commodities, Energy, and Precious Metals

Pepperstone provides CFDs on precious metals including gold, silver, platinum, and palladium, as well as oil and gas markets. Coffee, sugar, chocolate, cotton, and even orange juice are examples of soft commodity markets.

• Trading in Cryptocurrency

There are 12 cryptocurrency choices for trading with 5:1 leverage offshore and 2:1 leverage in Australia and Europe. Under FCA legislation, cryptocurrency CFDs are not accessible to UK traders.

In addition to prominent cryptocurrencies such as Bitcoin and Litecoin, Pepperstone provides three crypto baskets:

• Crypto10

• Crypto20

• Crypto30

Bitcoin combined with Bitcoin Cash

Pepperstone provides Bitcoin trading, which is expected to be the most popular cryptocurrency in 2022. Over $186 billion in market capitalization exists in 2020. It's no surprise that bitcoin trading is still the most popular alternative for traders.

Ethereum

Ethereum, another popular cryptocurrency choice, is regarded as one of the most promising bitcoin technologies. Smart contracts enable Ethereum to have various uses, allowing it to serve a wide range of sectors.

Visit the Ethereum Project's official website.

Dash

Dash, commonly known as 'Digital Cash,' is a cryptocurrency that focuses on speed while also allowing for anonymity. When compared to Bitcoin, digital currency is employed as an efficient payment mechanism all over the world and has seen high volatility and liquidity.

Visit the Dash website to learn more about Digital Cash.

Litecoin

Litecoin is a latecomer that focuses on employing a basic algorithm to speed up transaction speeds. Since 2011, the simplified algorithm has contributed to Litecoin's growth and made it a viable alternative to the other cryptocurrency alternatives.

More information may be found on the P2P website.

CFDs on US Stocks (MT5 Only)

Pepperstone users who use the MetaTrader 5 forex trading platform may trade CFDs on US stocks. Over 60 US stocks are available for trading as CFDs with minimal costs starting at USD$0.02 per share. Each share allows traders to go long or short.

Features of Pepperstone Risk Management

There are dangers associated with trading CFDs since they are a sophisticated product with a significant possibility of losing money quickly. Understanding these risks is vital, as is understanding the tools that might assist in risk management. After creating an account, the secure client area also allows for the adjustment of leverage.

Pepperstone offers a limited set of capabilities, including CFD risk management measures.

Types of Currency Trading Orders

Pepperstone accepts three kinds of currency trading orders. This comprises limit orders and stop-loss orders, which leave a trader when a certain price is achieved. This may be determined by price or by the maximum amount a trader wishes to win or lose in a deal. The last currency trading order is a trailing stop that moves in tandem with the market as the price changes. The trailing halt is only activated when a certain level is achieved.

Pepperstone does not provide stop-loss orders that are guaranteed. This is similar to a stop-loss order, except the maximum loss is guaranteed at the specified level. A stop-loss order, on the other hand, might result in losses that surpass the set threshold in turbulent markets, resulting in slippage. While guaranteed stop-loss orders involve higher costs, they may be a useful risk management tool for people with a limited risk appetite or who are new to forex trading.

Pepperstone does not additionally provide negative balance protection. While they have measures to prevent a CFD trader's negative balance from departing before their losses surpass their deposit, this is not guaranteed. When the risk is a worry, it may be worthwhile to choose a CFD broker that offers negative balance protection, such as easyMarkets.

Pepperstone Regulation

Pepperstone has many companies that each possess a distinct financial license and are subject to different financial rules.

The Australian Securities and Investments Commission is in charge of overseeing the Australian Securities and Investments (ASIC)

Pepperstone Group Limited (doing business as Pepperstone) is governed by ASIC and operates under the Australian Financial Services Licence 414530. The highest leverage available to retail traders is:

• 30:1 for major currency pairings,

• 20:1 for smaller currency pairs, and 20:1 for major index and gold CFDs.

• For minor indices and other commodities, the ratio is 10:1.

• 5:1 for CFD sharing

• CFDs on cryptocurrencies are paid out at a ratio of 2:1.

The Financial Conduct Authority (FCA) (FCA)

Pepperstone Limited (business as Pepperstone) is regulated in the United Kingdom by the Financial Conduct Authority (FCA) under license number 684312. Because the UK is now considered part of Europe, EMSA trading regulations apply, limiting leverage for retail traders to the same limitations as ASIC above; however, cryptocurrency CFDs are not accessible in the UK at all because the FCA has prevented retail traders from accessing crypto markets.

CySEC and BaFIN

The broker has two branches in mainland Europe, with Pepperstone GmbH being the BaFin-regulated local German business. The German regulation's license number is 151148. Pepperstone EU Limited is a Cyprus-registered entity. The entity was founded in 2019 and acquired its CySEC license in 2020. The license number issued by the Cyprus Securities and Exchange Commission is 388/20.

Both agencies apply ESMA recommendations of 30:1 leverage limitations for major currency pairings, as does the FCA, however, cryptos are accessible.

Dubai Financial Services Authority (DFSA)

Pepperstone Financial Services Limited is a Dubai-based company with DIFC Registration Number 3460. This is true for the area of the United Arab Emirates. For major forex pairs, Pepperstone's UAE operations adhere to ASIC and FCA leverage limits of 30:1.

Authority for Financial Markets (CMA)

The Capital Markets Authority (CMA) of Kenya created and governed Pepperstone Markets Kenya Limited 2020. It is the top forex broker in Kenya, with CMA Licence No.128 and business number PVT-PJU7Q8K. When trading forex in Kenya, leverage of up to 400:1 is possible.

The Bahamas Securities Commission (SCB)

The offshore subsidiary of the broker, situated in the Bahamas, provides the greatest leverage of 200:1.

Pepperstone Information for UK Forex Traders

If you are a trader in the United Kingdom, the trading conditions with Pepperstone will be similar to those for traders outside the United Kingdom, but there are certain variations to be aware of.

While the account types (Standard account, Razor account, Swap-free account), spreads, trade execution and trading platforms (MetaTrader 4, 5, and cTrader) are all the same as Pepperstone, the following distinction should be noticed.

Regulation – Traders in the United Kingdom will be governed by the Financial Conduct Authority (FCA).

Software Options – Pelican Social Trader

Trading Products - Spread Betting

FCA rules must be under the Markets in Financial Instruments Directive (MiFID) II recommendations established by the European Securities and Markets Authority (ESMA), which implies that certain regulatory standards not found elsewhere must be fulfilled. ESMA includes rules for regular traders as well as guidelines for professional traders.

Regulation And Business Information For Pepperstone in the United Kingdom

• Pepperstone Limited (company number 08965105) and the Financial Conduct Authority (registration number 684312) are both regulated by the Financial Conduct Authority.

Pepperstone's registered office address is 70 Gracechurch Street, London EC3V 0HR, United Kingdom, and they can be reached at +44 (800) 0465473.

FCA Regulation for Retailers and Professional Traders

The ESMA recommendations are intended to safeguard retail traders who may lack the skills to properly trade with leveraged products as well as the means to handle potentially severe losses. As a result, ESMA and the FCA limit the amount of leverage that retail traders can use. Professional traders can apply to trade with higher leverage if they meet the FCA's requirements.

	Max. Retail Leverage	Max. Professional Leverage
Forex - Majors	1:30	1:500
Forex - Minors	1:20	1:500
Gold	1:20	1:500
Commodities - Other than Gold	1:10	1:200
Major Indices	1:20	1:200
Non Major Indices	1:10	1:200
Shares CFD	1:5	1:20
CryptoCurrency	NA	1:5

Because of ESMA FCA rules, Pepperstone provides additional risk management protection to retail traders, which professional traders do not have. There are two kinds of safeguards:

• Negative Balance Protection — This ensures that Pepperstone customer balances never go below zero (into negative)

• 50 percent Margin Stop out — If your account margins fall below 50%, the broker is required to begin closing your trade.

Please keep in mind that Pepperstone traders in CySEC (Europe) and ASIC (Australia) countries have access to both risk management regimes.

The FCA expects Pepperstone to provide a Financial Services Compensation Scheme in addition to risk management measures (FSCS). Pepperstone will pay up to £85,000. The FSCS will compensate Pepperstone customers if their broker is unable to settle a claim against it under this program.

Qualification for Professional Traders

If two of the following three requirements are met:

• Over the last 12 months, I've made at least ten large transactions in each quarter.

• Manage a portfolio worth at least €500,000.

• Work in or have previously worked in a professional position in the financial industry for at least one year.

Because you have qualified as a professional trader, you understand the dangers involved with high leverage, hence Pepperstone will not provide negative balance protection to professional traders under ESMA criteria.

Professional traders will also profit from the following.

• A connection builder

• As part of the Active Trader Program, you may earn rebates.

• Execution of larger deal sizes

• Credit options

Pelican Social Trading Software

Due to FCA regulations, Pepperstone cannot offer MyFxBook to its clients in the United Kingdom; instead, the broker offers Pelican. Pelican, like MyfxBook, is a social trading app that allows you to source crowd knowledge when trading, after which traders can trade directly within the platform.

Spread Betting is a trading product.

Spread betting is a popular alternative to CFD trading that is exclusively offered to Pepperstone UK customers. Because both CFDs and spread betting are leveraged products, they may appear to be similar; however, the main distinction is due to two key factors.

Spread betting does not involve the purchase or sale of contracts (as in CFDs)

When you spread bet, you are betting on the price of an asset at a certain point in time. You may wager on the price direction as well as the amount the price will change.

Because you do not own the underlying instrument while spread betting, you may save money on taxes because there is no capital gains tax on your earnings. As a result, more Pepperstone consumers in the UK choose the firm as a Spread betting broker rather than a CFD broker.

Conclusion

Overall, Pepperstone is the greatest FX broker. Their highest score of 9.17/10 is based on their smallest spreads, quickest execution times, and tier 1 regulation with the FCA, ASIC, and DFSA. They provide the MetaTrader 4, MetaTrader 5, or cTrader forex trading platforms, which are designed for experienced forex traders.

FAQS

Is Pepperstone an active market maker？

No, Pepperstone is a no-dealing-desk broker that provides straight-through processing (STP) execution as well as an ECN account (Razor Account).

Is Scalping Allowed at Pepperstone？

The Razor trading account at Pepperstone allows for scalping and hedging. Scalping is permitted on the MetaTrader 4, MetaTrader 5, and cTrader forex trading platforms.

View our MetaTrader 4 vs MetaTrader 5 comparison to determine which of the two most popular forex platforms is better suited to your scalping needs.

Is Pepperstone an exchange-traded-network (ECN) broker？

For the EUR/USD currency pair, the Pepperstone Razor account provides ECN Broker spreads starting at 0.0 pips. Through the use of Electronic Communications Networks, Pepperstone links forex traders directly with over 20 liquidity providers (ECN). Straight-through processing is available with 22 liquidity providers via the account. There is no such thing as a dealing desk.

To discover more about no market-maker providers and Pepperstone, see our ECN broker page.