Compare CMC Markets vs Pepperstone

CMC Markets vs Pepperstone Trading Spreads And Fees Comparison

CMC Markets and Pepperstone are top online brokers facilitating forex trading for retail investors around the world. With top-tier liquidity providers, both brokers can offer customers’ competitive spreads on a range of forex pairs. While Pepperstone offers over 61 currency pairs choose from, CMC Markets provides some of the greatest market access available to retail investors with over 330 fx pairs included in their product range.

When trading with CMC Markets, customers pay a fixed spread that is inclusive of commission, while Pepperstone clients can choose between a commission-free spread or ECN-like pricing structure. As commission fees are discussed below in the ‘Account Type’ comparison, we will compare forex costs by looking at the two brokers’ commission-free spreads shown in the table below as well as Pepperstone’s Razor ECN-type spreads.

Non Commission Raw Spread Comparison	EUR/USD AUD/USD EUR/GBP GBP/USD USD/JPY	EUR/USD AUD/USD EUR/GBP GBP/USD USD/JPY	EUR/USD AUD/USD EUR/GBP GBP/USD USD/JPY	EUR/USD AUD/USD EUR/GBP GBP/USD USD/JPY	EUR/USD AUD/USD EUR/GBP GBP/USD USD/JPY
	1.20	1.40	1.40	1.50	1.20
	1.10	1.20	1.40	1.40	1.20
	1.16	1.27	1.35	1.40	1.16
	1.20	1.30	1.50	1.30	1.20
	1.20	1.20	1.40	1.40	1.20
	1.70	1.90	2.00	2.40	1.60
	1.40	1.20	2.20	1.80	1.60
	1.58	1.96	1.74	2.39	1.45
	1.20	1.50	1.80	1.80	1.70

Data taken from broker website. Accurate as at 01/09/2020

When comparing the commission-free spreads offered by the two brokers, Pepperstone offers more competitive spreads than CMC Markets for the majority of currency pairs listed below. For instance, when trading the EUR/USD, Pepperstone clients gain access to average spreads of 1.13, while CMC’s average spreads for the forex pair are 1.20. Likewise, the Australian Dollar vs United States Dollar averages 1.14 pips with Pepperstone, and 1.40 pips with CMC. While Pepperstone offers the tighter spreads, there is parity between with the United States Dollar vs Japanese Yen, with average spreads of 1.20 pips for both brokers.

Pepperstone Commission Spreads Comparison	AUD/USD EUR/JPY USD/JPY USD/CAD EUR/USD	AUD/USD EUR/JPY USD/JPY USD/CAD EUR/USD	AUD/USD EUR/JPY USD/JPY USD/CAD EUR/USD	AUD/USD EUR/JPY USD/JPY USD/CAD EUR/USD	AUD/USD EUR/JPY USD/JPY USD/CAD EUR/USD
	0.27	0.34	0.16	0.35	0.16
	0.20	0.30	0.20	0.50	0.10
	0.20	0.30	0.10	0.30	0.10
	0.20	0.50	0.20	0.30	0.20
	0.42	0.30	0.20	0.83	0.44
	0.30	0.68	0.24	N/A	0.17
	0.40	0.70	0.30	0.70	0.20
	0.50	0.80	0.40	1.10	0.10
	0.70	0.60	0.50	0.80	0.40
	0.97	0.54	0.28	1.08	0.32

Data taken from broker website. Accurate as at 01/09/2020

While CMC Markets does not offer customers a ECN-style pricing structure, Pepperstone’s Razor accounts allow traders to access institutional grade spreads with ultra-fast execution and low commission fees. For AUD/USD, EUR/JPY, USD/JPY, and USD/CAD currency pairs, Pepperstone offers some of the tightest spreads available to retail investor accounts, with spreads ranging from 0.13-0.27 pips. For the commonly traded EUR/USD currency pair, Pepperstone’s average spread is 0.13 pips, only slightly wider than competing online brokers such as IC Markets and FP Markets.

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Holding Costs aka Swap Fees

Pepperstone clients’ holding open positions for longer than a day will be charged swap rates. The swap rate, aka rollover interest rate, varies with each currency pair and is heavily influenced by interest rate differentials in addition to current market conditions. As with Pepperstone, CMC Markets charges a holding fee for fx positions that is based on interest rate differentials of the forex pair being traded. To calculate holding rates, the following formula can be used:

• Holding Costs for Buy positions: Tomorrow to next day rate % + 1%
• Holding Costs for Sell positions: Tomorrow to next day rate % – 1%

Guaranteed Stop Loss Order Fees

What is a Guaranteed Stop Loss Order (GSLO)?

A Guaranteed Stop-Loss Order is a standard Stop-Loss order, with the difference being the broker guarantees the trade will be closed out at a specified price, regardless of the level of volatility in the market.

Are Forex Brokers Required to Offer GSLO’s?

GSLO requirements and charges depend on the jurisdiction the broker is operating in. For instance, the FCA (Financial Conduct Authority, UK) requires all brokers to attach GSLO’s to trades as a form of investor protection. On the other hand, ASIC (Australian Securities and Investments Commission) offers investors protection through an automatic stop-loss and call margin system. Due to the differing GSLO requirements around the globe, some brokers such as Pepperstone AU do not offer GSLO’s for a premium, yet the brokers UK clients will have GSLO’s attached to all their trades inline with FSA legislation.

CMC Markets GSLO Charges

Unlike Pepperstone, CMC Markets allows traders to buy GSLO’s for a premium, with fees varying depending on the financial instrument being traded. For example, if an investor was trading €50,000 worth of the EUR/USD currency pair, they can pay AUD $5.28 to attach a GSLO to the trade. If the order is not closed out at the price specified in the GSLO, CMC markets will refund the premium in full.

CMC Markets vs Pepperstone: Which Broker Offers the Tightest Spreads and Lowest Trading Fees?

While trading fees vary with financial instruments and locations, it is evident that Pepperstone’s spreads are much more competitive than CMC Markets. When traders’ sign up to a Razor account type, Pepperstone clients will gain access to spreads on forex pairs that average 0.13 pips for the EUR/USD forex pair. When CMC and Pepperstone’s commission-free standard account types are compared, Pepperstone is once again the winner with tighter spreads.

View Pepperstone Review >>Visit Pepperstone >>

CMC Markets vs Pepperstone: Account Types

When trading with CMC Markets, traders are limited to one account type. The brokers CFD Account includes commission fees in the spread and offers minimum spreads of 0.7 pips on the EUR/USD currency pair, with spreads on other fx pairs as low as 0.3 pips.

On the other hand, Peppersone offers clients’ two account structures that have different commission charges. For those wanting to trade in an ECN-like environment with spreads as low as 0.0 pips, a Razor account is available to provide retail investors’ with an institutional trading environment. Alternatively, customers’ can sign up to Pepperstone’s Standard account type, where like CMC Markets, spreads are inclusive of commission fees yet have wider bid/ask spreads from 1.0 pips.

Standard Account Types: An Option for New Traders’

Both CMC Markets and Pepperstone’s Standard Account types are excellent for those new to forex trading. As commission fees are included in the spread, traders’ avoid having to perform calculations to determine commission costs for each trade executed.

Pepperstone’s ECN-Style Razor Account

For algorithmic traders and scalpers with experience trading CFDs, Pepperstone’s Razor Account allows for a trading environment similar to that offered by an ECN broker. Active traders benefit from the institutional-grade spreads, low fees and ultra-fast execution. While trading forex with spreads as low as 0.0 pips, Razor Account holders pay a round turn commission fee of AUD $7 per $100,000 traded. Below compares the Pepperstone Razor vs Standard account.

Which Broker Offers the Best Account Type for Trading CFDs?

Pepperstone is a clear winner when the brokers Razor Account type is compared to CMC Markets Standard Account. With ECN-like pricing, low commission fees and fast execution, Pepperstone’s Razor account offers some of the tightest spreads available to retail investors’.

View Pepperstone Review >>Visit Pepperstone >>

CMC Markets vs Pepperstone: Trading Platforms

Which trading platform an investor wants to use is very influential when choosing an online broker. While Pepperstone customers can choose from the three most popular platforms worldwide being MetaTrader 4 (MT4), MetaTrader 5 (MT5) or cTrader, CMC Markets clients can use either MT4 or the brokers proprietary software, Next Generation.

Differences in Market Access between Trading Platforms

When trading CFDs with Pepperstone, the best-suited trading platform depends on the asset classes a user is wanting to trade as well as the account type they are signed up to. Standard account holders are limited to MT4, while those trading with a Razor Account can choose between MT4, MT5 and cTrader. In regards to market access, MT4 and cTrader are suited to those wanting to focus on forex markets, while MT5 allows for Share CFD trading.

Pepperstone Trading Platform Options

Like Pepperstone, market access is a significant factor for CMC Markets customers when deciding between MT4 and Next Generation. CMC’s proprietary platform, Next Generation, offers access to the online broker’s full product range of over 10,000 financial instruments spanning 7 asset classes, while MT4 users are restricted to trading Forex and Commodities.

Trading Tools Offered by Pepperstone and CMC Markets

Advanced technical analysis tools are available on both MetaQuotes and cTrader platforms.

• cTrader: 54 timeframes, 70 inbuilt indicators and 50 chart templates.
• MetaTrader 4: 9 timeframes, 35 pre-installed indicators (85 with Pepperstone) and multiple charts
• MetaTrader 5: 21 timeframes, 38 inbuilt indicators and an economic calendar

Trading Robots

Pepperstone clients’ using cTrader, MT4 and MT5 all have access to automated trading tools via Expert Advisors (MetaQuotes) and cBots (cTrader). To supplement the inbuilt Autochartist and Expert Advisor (EA) features, MetaTrader 4 and MT5 users can download Pepperstone’s Smart Trader Tools that include 28 additional EAs and indicators.

Similarly to Pepperstone’s MT4 offering, CMC Markets allows MT4 users’ to conduct advanced trading strategies using the extensive technical analysis tools provided in addition to Expert Advisors.

The CMC Markets Next Generation platform is one of the more advanced proprietary platforms offered by online brokers. The web-based platform can be viewed in standard or advanced mode, with over 12 chart types, 35 drawing tools, 70 chart patterns and 115 technical indicators. As well as sophisticated technical analysis tools, Next Generation provides financial news, a client sentiment feature and a pattern recognition scanner. When compared to MetaQuotes and cTrader platforms, automated trading tools are limited. For those wanting to develop algorithmic trading strategies, Next Generation is not a good trading platform option.

Trading Apps

CMC Markets offers their Next Generation trading platform as mobile trading apps compatible with Android, iPhone and iPad. Many of the web trading platforms features are available on the Android and iOS apps, with charting features, client sentiment indicators, and live news available across all devices.

For both CMC Markets and Pepperstone, the MetaTrader 4 trading app is compatible with Android and iOS devices. Likewise for Pepperstone’s MetaTrader 5 and cTrader users’, trading apps are available for Android, iPhone and iPad devices.

So, Which Trading Platform is the Best for CMC Markets and Pepperstone Customers?

Pepperstone is the winner due to the broker offering the three best trading platforms currently available to retail forex traders’. With advanced trading tools, Expert Advisors and cBots, plus a range of additional add-ons, Pepperstone offers superior trading platforms when compared to CMC Markets.

View Pepperstone Review >>Visit Pepperstone >>

CMC Markets vs Pepperstone: Other CFDs (Contracts For Difference)

Pepperstone and CMC both offer CFDs other than Forex pairs. With Pepperstone, clients’ can trade over 150+ financial instruments covering, while CMC Markets offers a staggering 9,500 products to choose from.

Pepperstone CFDs

• Commodity CFDs: products range from energy commodities to precious metals to products such as coffee and cotton.
• Index CFDs: commission-free trading on 14 different major stock exchanges with No Dealing Desk execution.
• Share CFDs (MT5 only): low commissions on popular US shares such as Tesla and Apple.
• Currency Index CFDs: USDX currency basket that measures 6 major currencies against the United States Dollar.
• Cryptocurrency CFDs: No commission fees and tight spreads on Litecoin, Dash, Ethereum, Bitcoin and Bitcoin Cash.

CMC Markets CFDs

• Indices: 90+ different cash and forward Index CFD products to choose from.
• Commodities: 100+ cash and forward Commodity CFDs
• Share CFDs (Next Generation only): 9000+ Share CFDs from 23 different countries including Australia.
• Treasuries: Over 51+ government debt products such as Gilts, T-bills and T-bonds.
• Cryptocurrency: 10+ Crypto CFDs.

Which Broker Offers Better Market Access?

For traders’ wanting to focus on forex markets, Pepperstone offers excellent access to a range of currency pairs. For those wanting to trade other CFDs, CMC Markets offers market access to thousands of different financial instruments.

View CMC Markets Review >>Visit CMC Markets>>

CMC Markets vs Pepperstone: Risk Management Tools

As trading forex is a high-risk activity, the range of risk management tools available to traders’ is crucial. Additionally, it is recommended to research which financial authorities regulate the broker, as investor protection provided to retail investor account holders varies between jurisdictions.

Order Types

When trading with Pepperstone, clients’ are limited to basic order types that include Market, Limit and Stop orders. Additionally, order time limits can be used (Good till Cancelled or Good till Time). Unlike Pepperstone’s basic order types, CMC Markets offer a more extensive selection of sophisticated orders required by many advanced traders’.

As discussed earlier, CMC Markets clients’ can buy Guaranteed stop-loss orders (GSLOs) to ensure orders are executed at desired prices. As well as GSLOs, traders’ can utilise the following order types:

• Market Orders
• Stop-Loss Orders
• Trailing Stop-Loss Orders
• Take-Profit Orders
• Limit and Stop Entry Orders
• Partially Close Trades

Additionally, CMC Market customers can set and change Account Close-Out limits in the platforms account settings, which 4 different methods:

• Complete Close-Out
• Last Trade In, First Out
• Largest Position Loss First
• Largest Position Margin First

Demo Accounts

An excellent risk management tool for both novice and experienced, high volume traders’ is the demo accounts offered by both Pepperstone and CMC Markets. Demo accounts provide users’ with virtual funds to practise technical analysis, explore platform features, and test standard and algorithmic trading strategies in a risk-free environment.

• Pepperstone Demo Account: 30-day time limit and a maximum of $50,000 in practise money
• CMC Markets Demo Account: No time limit or maximum amount of virtual funds

Financial Authorities and Investor Protection

Financial regulation concerning retail investor accounts vary by country. CMC Markets and Pepperstone are seen as trustworthy companies, with both brokers being overseen by top-tier financial authorities.

Pepperstone AU is regulated by ASIC (Australian Securities and Investments Commission), while the UK subsidiary is overseen by the FCA (Financial Conduct Authority, formally FSA). CMC Markets is regulated by various financial authorities including ASIC, FCA, IIROC (Investment Industry Regulatory Organisation of Canada), FMA (Financial Markets Authority New Zealand), and MAS (Monetary Authority of Singapore).

Regardless of the subsidiary a CMC Markets or Pepperstone customer signs up with, they can trade knowing that their account balances are not being used as operational capital by the broker. Most top-tier financial authorities require brokers’ to hold client funds in segregated accounts, ensuring balances are protected if the broker were to come into trouble.

Additionally, subsidiaries of both brokers’ based in the United Kingdom are required to offer fund protection under the Financial Services Compensation Scheme (FSCS), as well as Close-Out Margin Protection and Negative Balance Protection.

CMC Markets vs Pepperstone, Which Broker Offers Better Risk Management Tools?

As both brokers are regulated by top-tier financial authorities and offer a range of order types, CMC Markets and Pepperstone tie when it comes to risk management tools.

View CMC Markets Review >>Visit CMC Markets>>

CMC Markets vs Pepperstone: Social Trading Tools

Although eToro is the most popular social trading broker worldwide, Pepperstone is a strong contender due to its selection of third-party social trading tools. Conversely, CMC Markets is a market maker and does not offer any third party or Next Generation social trading tools. Therefore, for those wanting to utilise automated trading features like social trading, Pepperstone is much better suited than CMC Markets.

Pepperstone’s Social-Copy Tools

• Myfxbook: Account mirroring service for copy trading
• ZuluTrade: Create low-fee portfolios wth copy trading
• Mirror Trader: 3000+ algorithms
• MetaTrader Signals: MT4’s proprietary social trading platform
• DupliTrade: Signals for MT4

As CMC Markets Does Not Offer Any Social Trading Tools, Pepperstone is the Winner

When comparing CMC Markets and Pepperstone’s social trading features, Pepperstone wins by a mile as social trading tools are not offered by CMC Markets.

View Pepperstone Review >>Visit Pepperstone >>

CMC Markets vs Pepperstone: Deposits and Withdrawals – Funding Methods

CMC Markets and Pepperstone offer a range of funding methods and base currencies. Although the majority of funding methods offered by both brokers are fee-free, Pepperstone charges AUD $20 for withdrawals made via bank wire, while CMC Markets charges a 1% fee on deposits made with a credit card, and a 0.6% fee for debit card deposits.

Minimum Deposits

When funding an account for the first time, Pepperstone clients’ are required by the broker to make a minimum deposit of $200. This deposit is not enforced as part of the account creation process so it might be you don’t end up making any deposit.

CMC Markets, on the other hand, requires no minimum initial deposit from customers. Like with all brokers, when trading with leverage, accounts will need to meet minimum margin requirements to start trading.

Deposit and Withdrawal Methods

• CMC Markets: Bank Transfer, Credit Card, Payoneer, PayPal and Wire Transfer
• Pepperstone: Bank Transfer, Visa, Mastercard, Union Pay, POLi, BPay, PayPal, Neteller and Skrill

Base Currencies

• CMC Markets: AUD, GBP, CAD, EUR, NZD, NOK, SGD, USD, SEK and PLN
• Pepperstone: USD, AUD, NZD, CAD, EUR, GBP, CHF, HKD, SGD and JPY

Inactivity Fees

• CMC Markets: AUD $12 if a trader is inactive for 12 months
• Pepperstone: No inactivity fee

CMC Markets and Pepperstone Tie When Comparing Funding Methods and Fees

Both brokers allow clients’ to set up accounts in a range of base currencies, offer a range of e-wallet, credit card and bank transfer options, as well as charging no fees for the majority of deposit and withdrawal methods.

View Pepperstone Review >>Visit Pepperstone >>

CMC Markets vs Pepperstone: Customer Support

CMC Markets and Pepperstone both offer 24/5 customer support via phone, live chat and email. Alternatively, both brokers provide extensive FAQ sections on their websites.

Although CMC Markets customer support is excellent, Pepperstone is highly regarded for its award-winning services.

View Pepperstone Review >>Visit Pepperstone >>