Home page ->Broker finder ->Pepperstone
Title

Pepperstone Broker Review

Review By: Alan LittleReview Updated: 2021-01-18

Address: UK: 70 Gracechurch St London, UNITED KINGDOM EC3V 0HR | Australia: Level 16, Tower One, 727 Collins Street, Melbourne, VIC Australia 3008

forexetfstockscfdcryptocommodities

Spread

From 1 Point

Max. Leverage

1:500 Pro

Deposit Protection

£85,000

Min. Deposit

$200 AUD

Spread

From 0.3 Points

Max. Leverage

1:20 Pro

Deposit Protection

£85,000

Min. Deposit

$200 AUD

Spread

From 1 Point

Max. Leverage

1:200 Pro

Deposit Protection

£85,000

Min. Deposit

$200 AUD

Spread

From 1 Point

Max. Leverage

1:10

Deposit Protection

£85,000

Min. Deposit

$200 AUD

Spread

From 3 Points

Max. Leverage

1:2

Deposit Protection

£85,000

Min. Deposit

$200 AUD

Spread

From 0.5 Point

Max. Leverage

1:500 Pro

Deposit Protection

£85,000

Min. Deposit

$200 AUD

Our Overall Rating

Rating4.5

Risk warning: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.6% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Trading derivatives is risky; it isn’t suitable for everyone, and you could lose substantially more than your initial investment. You don’t own or have rights in the underlying assets. Past performance is no indication of future performance, and tax laws are subject to change. The information on this website is general in nature and doesn’t consider your or your client’s personal objectives, financial circumstances, or needs. Please read our legal documents and ensure you fully understand the risks before making any trading decisions. We encourage you to seek independent advice.

Our Pepperstone Broker Review tests all aspects of Pepperstone offering, from platform to customer service. We will give you the info you need to decide if Pepperstone is a suitable broker for your purposes.

Pepperstone is an Australian broker with an agile approach and global reach. Founded in 2010 by a group of traders, its stated aim is to make the trading experience just what a trader would want it to be. They focus on offering trading that is cost-effective, fast and convenient.

Clients now also benefit from the firm’s London office, established in 2015. They are offered the choice of three top of the range platforms through which to trade. The cTrader platform has a user-friendly functionality that appeals to both new and experienced traders. In line with the broker’s reputation in the forex markets, they also offer the ‘go to’ forex execution platforms, Meta Trader’s MT4 and MT5. They are the most popular retail trading platforms globally and are something of an industry standard. Both score top marks with trading community members looking to hook up their own systematic models to the market.

Pepperstone offers traders a range of account types, CFD and Spread Bet trading and a social trading platform. That means clients can cherry-pick different aspects of the Pepperstone offering. The agile functionality is supported by a top-grade operational and regulatory framework designed to give clients a degree of confidence that their funds are secure. While the financial markets, in general, have been subject to fraud and illegal behaviour, Pepperstone has tried hard to address this issue and has gained a reputation for fairness and reliability.

Pepperstone has the feel of being built by traders, for traders. As a result, it continues to build a significant, if somewhat niche, following in the trading community. Appreciation for the service offered extends to industry awards. In 2021, Pepperstone won the InvestinGoal Awards – Best Global Broker trophy and International Business Magazine – Best Forex Broker Middle East.
The firm is a balance of agility and strength. On the one hand, there is a strong emphasis on meeting customer needs and providing innovative software tools that help its clients trade the markets. On the other, the firm is regulated by the FCA in the UK and ASIC in Australia.

Commissions & Fees

Rating

Many Pepperstone clients will be attracted by the low brokerage fees on offer. As is often the case, brokers with something to shout about in this area typically present their pricing schedules entirely transparently. The focus on forex makes Pepperstone rates even easier to analyse and cross-reference.

Tables showing low spreads on different instruments

The only complexity comes from the broker offering various accounts, each with its terms and conditions. But with only a limited number of non-forex markets on offer, it’s still relatively easy to get a feel for the pricing. Taking forex as an example, there are four account types.

Spreads on the MetaTrader 4 platform are variable, with quotes from 22 Major Banks and Electronic Crossing Networks. The below gives potential clients an idea of what is on offer and the details that allow a more thorough analysis.

  • Edge Standard – $0 commissions and interbank spreads from 1 pip
  • Edge Razor – AUD $3.5 per 100k traded. With Raw Interbank Direct Pricing and spreads starting at 0.0 pips
  • Edge Swap-Free – $0 commissions, STP processing and spreads from 1 pip (Islamic account)
  • Edge Active Trader – Bespoke terms available for high volume and institutional traders

Edge Active Traders can apply to upgrade to institutional-grade terms and conditions in terms of pricing and market flow.

Table of currency pair spreads

While Pepperstone might not offer clients a whole range of ancillary services, what is provided is of high quality. Our Pepperstone broker review found that traders looking for institution-grade access into the forex markets should have Pepperstone on their list of brokers to try.

What do you think of our Pepperstone review so far?  Please leave your feedback at the bottom of the review with any of your own Pepperstone experiences that may help other traders make an informed choice.

Platforms & Tools

Rating

Pepperstone clients have the option of using the ever-popular MetaTrader platforms (MT4 and MT5), which can be downloaded as a desktop platform or accessed through a WebTrader version which just requires an internet browser. The web-trader version of the platform mirrors the downloadable desktop version. It has the same functionality and even a few add-ons, such as access to Pepperstone’s proprietary forex trading technology.

Demo example of MetaTrader platform

The enduring appeal of MetaTrader platforms is that they provide traders with just what they want. Development of the Meta platforms is done incrementally, the decision being “if it ain’t broke, don’t fix it”. The MT platforms are robust, user-friendly, and packed to the brim with powerful software tools that offer a market-leading range of charts and indicators.

For many, the most important feature of the Meta Trader platforms is the reputation they have for supporting systematic trading. The MQL language it uses allows the traders to program their own indicators. Those looking for a more hands-off approach can take advantage of the MT automated trading program Expert Advisors (known in the market as EAs).

The cTrader platform comes as a desktop product that has to be downloaded or a WebTrader, browser-based platform. It has similar functionality to the MT platforms. During this review, our testers concluded the cTrader platform had a very professional feel and an attractive aesthetic. The execution interface includes a range of more advanced order type settings, including one-click, double click or indeed, the option of disabling quick trading to mitigate fat-finger mistakes. These are a nice to have feature and reflect that the needs of traders were considered during the design process.

The benefit of direct access into the markets is that flow is increased, and prices optimised. The downside is that it is not possible to provide guaranteed stop losses. This means there are theoretically instances where the market price could gap over a trader’s regular stop loss and cause considerable losses. This is a risk worth noting.

Another area where Pepperstone scores well is the technological framework they have developed. The site’s reference to “Equinix (NY4)”, “optical fibre cross-connects”, and “VPS co-location” may to the uninitiated come across as geek-speak. Those familiar with the terms or willing to learn about them will take comfort that the tech infrastructure is institutional grade. That results in trade execution latency as low as 50ms (0.05 of a second). The same attention is paid to deal flow with pricing feeds from 22 banks and liquidity providers and also access to dark pools.

The Pepperstone service is based on the use of institutional-grade technologies. The different aspects of the tech framework all work together to give traders tighter spreads, fewer delays, fewer rejects, and fewer requotes. Our Pepperstone review tests delivered very stable results.

Customer Service

Rating

Pepperstone has a reputation for providing top-tier customer support and has won a multitude of industry awards in this category. Client support is offered 24/5 in a multilingual format and can be accessed via telephone, live chat or email. The support starts at registration when new clients are allocated an account manager. That feature is of particular benefit to the less experienced and refreshingly doesn’t include a hard sell.

During our testing, the help desk staff quickly responded and were very well informed. Complex issues were dealt with very professionally in all the testing scenarios.

What do you think of our Pepperstone review so far?  Please leave your feedback at the bottom of the review with any of your own Pepperstone experiences that may help other traders make an informed choice.

Research

Rating

Pepperstone scores highly in terms of the research and learning materials it offers to clients. As might be expected, it scores highest in the forex category. The wide range of information comes in various formats. Novice traders are hand-held through the user-friendly ‘Learn to trade Forex’ section. The Webinars section introduces more advanced concepts that will appeal to all traders, particularly those looking to incorporate new ideas into their trading strategies. A handy archive of past webinars is available, which means support is available on most topics. The Trading Guides section holds a range of written reports covering topics such as risk management and trading strategies.

Pepperstone ticks the box in terms of the day-to-day trading tools on offer. An Economic Calendar, a Market Review research note, Smart Trader Tools and Autochartist are available. The last of those three items, Autochartist, is a valuable addition. It is a powerful piece of software that saves trader’s time. The package works by recognising patterns in price data such as Fibonacci retracements, support and resistance levels and volatility indicators. Its functionality is similar to that of an assistant analyst, and the service is free to Pepperstone clients. Autochartist can’t guarantee a trader’s decisions will be correct, but it does offer the chance for them to become more efficient and knowledgeable.

Those looking for fundamental style research or discussions of macro themes will be disappointed.

Ease of Use

Rating

Pepperstone’s sweet spot is the forex markets. There are more than 61 currency pairs so that traders can access Major, Minor and Exotics.

Not only are spreads in the forex markets tight, but they are backed up by high-quality flow thanks to interbank execution. The currency pairs EURUSD, USDJPY, AUDUSD, GBPUSD, have spreads that start as low as 0.0 pips. They widen on other currency pairs, and the Pepperstone pricing is always ‘there-or-there-abouts’. All this adds up to an execution service that belies its provenance as being designed by traders for traders. Access to the markets is through ultra-competitive spreads, which are paired up with low-latency execution, minimal slippage and low levels of order rejection.

Pepperstone does offer exposure to non-forex instruments. However, that part of its offering would be described as limited compared to a multi-asset broker. The small number of markets offered in indices, equities, commodities and cryptocurrencies suggests the service is intended to allow forex traders to gain exposure to other asset types rather than trade them specifically. This may be changing, and an increasing number of other markets are being made available.

  • There are more than 60 American listed CFDs to trade. Those available have large market capitalisations and include firms such as Alibaba and Alphabet – all are tradeable at margin rates as low as 10%.
  • Indices – there are 14 major stock indices available to trade, and these offer exposure to markets ranging from China, Italy, Australia and US Tech.
  • Commodities on offer benefit from including the energy markets: XTIUSD, XBRUSD, XNGUSD and can be traded. In addition, there are five soft commodities (cotton, sugar, coffee, cocoa and orange juice) and seven metal commodity markets, including gold, silver and platinum.

Standard accounts come with leverage rates set in line with the industry standard maximum leverage of 1:30. Stock CFDs have a lower ratio of up to 1:10, and cryptos come with maximum leverage of 1:5. Those eligible for a Professional account and looking to scale up their risk can apply to have their maximum leverage taken up to 1:300. They would, of course, do well to remember the risk notices that explain how increased leverage not only increases the size of profits but also of losses.

List of commissions for standard and professional accounts

The free Demo account takes moments to set up, meaning traders can get an almost instant feel for the site. Registering for a full live account takes a little longer, which is in line with standard market practice and is due to regulatory conditions such as ‘Know Your Client’ protocols that the broker must comply with. While no one likes delays, in this instance, they demonstrate Pepperstone is aware of the need to protect consumers and of its regulatory obligations. Deposits can be made using a credit card, bank transfer, broker to broker, skrill, Bpay, Fasapay, Neteller, Poli, Kiwi Wallet and Union Pay. The minimum opening balance is AUD$200, and base currency options include AUD, USD, JPY, NZD, CAD, SGD, EUR, GBP, CHF, and HKD.

Recent upgrades to the product offering now mean the broker offers CFD and spread betting markets in forex, shares, indices, commodities, crypto, currency indices and ETFs

Mobile Trading

Rating

The Pepperstone App supports both Demo and Live account trading; it is free to download and available for iPhone and Android. The Meta Trader platform is also available on both iPhone and Android platforms and is also free to download.

 

 

This broker review considered the relative strengths of the Pepperstone app and the MetaTrader (MT4 and MT5) apps. The main conclusion is that both do the job they are set out to do and choosing between the proprietary and Meta Trader services would largely come down to personal preference.

Pepperstone Broker Review | Mobile App Comparison | We Compare Brokers

The Meta Trader app is a user-friendly means of benefiting from the Meta Trader top in class execution services. It offers more than just trading. Among other things, it’s possible to connect to brokers’ services, analyse markets, use their powerful charts and technical indicators, and view the history of your trading operations.

What do you think of our Pepperstone review so far?  Please leave your feedback at the bottom of the review with any of your own Pepperstone experiences that may help other traders make an informed choice.

Robo Trading

The cTrader platform runs an automated trading service called cTrader Automate. It involves Strategy Providers broadcasting their trading strategies in return for a fee from Investors. The amount of information disclosed by Strategy Providers is in line with the peer group. That means investors have a fair amount of information to draw upon when choosing whether or not to follow someone. The fee structure is a blend of management, performance, and volume fees. Those considering the service need to check the terms and conditions and ensure that setting up and terminating relationships meets their requirements. Our research suggested Pepperstone scored favourably in terms of the notification period.

MetaTrader’s accommodation of robo trading is long-established. Traders that develop their own algorithmic models hook them up to the Meta platform and, in an automated manner, analyse market data, digest signals and instruct automatic execution. The Expert Advisors (EA) part of the Meta site hosts programs developed by other traders that clients can use, usually for a fee.

In terms of market connectivity, Pepperstone is hard to beat. Its VPS hosting, API framework and dedicated Algorithmic Trading services combine to form a market-leading platform that is hard to beat.

Pepperstone Broker Reveiw | Robo Trading Chart | We Compare Brokers

It is also possible to hook up Pepperstone accounts to other third party Copy platforms such as Zulu Trade. The connection requires a Limited Power Of Attorney form to be completed but is usually set up within 24 hours.

The risks associated with any kind of Copy trading apply to Pepperstone clients as much as they do those of other Copy brokers. Those engaging in it should ensure they know the potential pitfalls associated with this form of trading.

Crypto Currency

Markets are provided in five of the more well-known cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Dash and Litecoin. Leverage is capped at 1:5. At the time of our Pepperstone review, only these currencies were accepted, but we would expect the broker to add others over the coming months.

Regulatory details

Pepperstone Prohibited Countries

Afghanistan | American Samoa | Argentina | Canada | Central African Republic | Congo | Democratic Republic | Côte d’Ivoire | Eritrea | Guinea-Bissau | Iran | Iraq | Japan | Kazakhstan | Lebanon | Libya | Myanmar | New Zealand | North Korea | Somalia | South Korea | South Sudan | Sudan | Syrian Arab Republic | United States | Yemen | Zimbabwe

CFDs and margin FX are leveraged products. They are inherently risky, and client accounts can be wiped out through poor trading decisions and factors outside a trader’s control. Negative Balance Protection is the principle that a client can’t incur losses in excess of their original stake; NBP is applied to clients of Pepperstone EEA entities. Standard due diligence would require anyone setting up a broker account to analyse the small print in-depth. However, at a very high level, whether or not the NBP comes into effect depends on whether the client or the broker initiates the loss.

The Pepperstone site states: “Losses may exceed your deposit amount. The Pepperstone MT4 and cTrader platforms have a built-in automatic stop-out system, however this does not guarantee the balance will not go into negative; trade execution depends on market liquidity and pricing.”  On the other hand, the site also states: “From time to time the Pepperstone Platform’s automated stop-out procedures may not prevent your Account from incurring a negative equity balance due certain market conditions outside of our control. In these circumstances:
(a) you will not be liable for any negative equity balance on your Account; and
(b) we will adjust your Account equity balance to zero within 1 Business Day.
If you find a negative equity balance on your Account that has not been corrected, please contact us at 
support@pepperstone.com. Entering into any commercial contract includes a degree of counterparty risk.”

In Pepperstone’s case, they have set out to mitigate these risks by complying with the regulatory requirements of top-level regulators. Pepperstone is authorised and regulated by the Financial Conduct Authority (FCA) and the Australian Securities and Investment Commission (ASIC) in Australia. All client funds are segregated in trust accounts. The custodian banks involved are Barclays (UK) and National Australia Bank (Australia). The exact terms and conditions will depend on the domicile of the account holder, but these are all clearly laid out in an easy to digest format.

Final Thoughts

The good news for traders is that Pepperstone has branched out of the forex markets but provides the same high level of service to the new asset groups.

Trade execution is low-cost, fast, and reliable. Some of the bid-offer spreads are as tight as zero. Trade liquidity levels benefit from the direct access relationships the broker has set up in the market and the technical infrastructure it employs. The trading interface has the feel of an institutional-grade broker.

The trade-off relating to this direct market access is some safety measures are unavailable for technical reasons. The absence of Negative Balance Protection and Guaranteed Stop Losses could be a concern for some. The mechanics of the markets mean that a broker that operates so far into the heart of the market can only offer limited protection to clients. Such terms and conditions are standard policies for brokers that provide this type of direct access into the markets. Traders choose according to their preferences, and the choice must be an informed one.

To its credit, Pepperstone has demonstrated awareness of the issue around negative balance protection and has designed some kind of framework to try to manage it. However, there is still a risk to measure and manage.

The research and learning resources are a case of quality over quantity. One positive is that they are tailored to educate and inform more advanced traders and not just get beginners up and running. The regulatory framework and customer services are also up there with the best in the sector.

Pepperstone will continue to attract clients because it aims to be ‘best in class’ in terms of trade execution. The technical architecture they use is, to some extent, ground-breaking in terms of what is available to retail clients. For some, it will be a long-term, best-fit broker.

See our broker vs broker comparison: Pepperstone compared to XM


Before you go…. have you spotted any data in our Pepperstone review which you think is inaccurate? If so please tell us 

FAQ

Our PepperStone review has been written by expert traders. We cover all areas from the charges and commissions through to customer service given.

How can I open an account with Pepperstone? 

Opening an online account with Pepperstone is conducted online. New clients must share personal information and verify their identity (to comply with KYC) regulations. The process takes just minutes to complete.

Is Pepperstone a regulated broker?

Yes. Pepperstone is regulated by some Tier-1 authorities, including the FCA, BaFin, CySec, ASIC, DFSA, SCB and CMA.

What bonus terms does Pepperstone offer?

This will depend on where you live. Pepperstone operates globally, and as a result, promotions are applied on a country-by-country basis. They are also often changing, so heading to the site is the best way to keep updated with the current situation.

Related Guides

WCB Logo
Rating4.7
Read XM ReviewCompare XM
$5 USD Min DepositSpread Variable
  • MT5
  • MT4
  • WebTrader
  • Mobile apps
  • Bank transfer
  • Credit Cards
WCB Logo
Rating4.5
Read Pepperstone ReviewCompare Pepperstone
$200 AUD Min DepositSpread From 0.0 Pips
  • MT5
  • MT4
  • WebTrader
  • Mobile apps
  • Bank transfer
  • Credit Cards
WCB Logo
Rating4.7
Read OctaFX ReviewCompare OctaFX
$5 USD Min DepositSpread From 0.2 pips
  • MT5
  • MT4
  • WebTrader
  • Mobile apps
  • cTrader
  • Bank transfer
  • Credit Cards
WCB Logo
Rating4.2
Read eToro Review ReviewCompare eToro Review
$200 Min DepositSpread From 1 pip
  • WebTrader
  • Mobile apps
  • Proprietary
  • Bank transfer
  • Credit Cards
  • PayPal
Visit BrokerCryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.Open Demo AccountBroker Callback
GO TO THE compare brokers

Ratings

Rating
  • Commissions & FeesRating
  • Platforms & ToolsRating
  • Customer ServiceRating
  • ResearchRating
  • Ease of UseRating
  • Mobile TradingRating

What is your experience with this broker?

With over 4,000 brokers active globally, it’s good to share your experience with others. Spread the word on good or bad brokers. Disclaimer: Comments on this site are not the opinion of WeCompareBrokers and we are not responsible for the views and opinions posted by site users. If you are unhappy with any comments, please email complaints @ wecomparebrokers.com

Important: You (the person writing the comment) are responsible for any comments you post and use this site in agreement with our Terms.

Please select the second broker

Get Further Details About To Your Inbox