CMC Markets and Pepperstone are very different forex brokers. CMC offers a large range of CFDs, including 300+ currency pairs, 12 cryptocurrencies and 9000+ Shares. Pepperstone has fewer CFDs but offers 2 account types, and tighter ECN style spreads, choice of trading platforms and social trading tools.
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Our full comparison covers the 10 most important trading factors. Here are five noticeable differences between CMC Markets and Pepperstone:
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 to 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 an 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.
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No Commission Raw Spread Comparison
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1.12 | 1.64 | 1.30 | 1.55 | 1.32 |
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0.62 | 0.77 | 1.27 | 1.30 | 0.85 |
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1.10 | 1.20 | 1.40 | 2.00 | 1.50 |
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1.10 | 1.20 | 1.30 | 1.40 | 1.40 |
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1.20 | 1.30 | 1.20 | 1.20 | 1.30 |
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1.20 | 1.30 | 1.50 | 1.70 | 1.20 |
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1.32 | 1.95 | 1.37 | 1.87 | 1.73 |
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1.20 | 1.80 | 1.90 | 2.30 | 2.30 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
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 tighter spreads, there is parity between the United States Dollar vs Japanese Yen, with average spreads of 1.20 pips for both brokers.
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Pepperstone Commission Spreads Comparison
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0.10 | 0.20 | 0.40 | 1.00 | 0.60 |
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0.02 | 0.17 | 0.27 | 0.30 | 0.25 |
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0.10 | 0.20 | 0.30 | 0.50 | 0.30 |
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0.20 | 0.20 | 0.40 | N/A | 0.30 |
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0.44 | 0.42 | 0.40 | 0.30 | 0.83 |
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0.17 | 0.30 | 0.54 | 0.68 | N/A |
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0.20 | 0.40 | 0.50 | 0.70 | 0.70 |
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0.10 | 0.50 | 0.60 | 0.80 | 1.10 |
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n/a | 0.50 | 0.60 | 0.40 | 0.30 |
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0.44 | 1.23 | 1.13 | 1.23 | 1.41 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
While CMC Markets does not offer customers an 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.
Standard Account Spreads
When it comes to forex trading, the devil is often in the details. And one of those details that can make a significant difference to your bottom line is the spread. Let’s take a closer look at the average standard account spreads for two of the major players in the market: CMC Markets and Pepperstone.
CMC Markets offers a spread of 1.12 for EUR/USD, which is exactly the same as Pepperstone. However, when we look at other pairs like GBP/USD and AUD/USD, Pepperstone seems to have a slight edge with spreads of 1.69 and 1.22, respectively, compared to CMC’s 1.3 and 1.64. But it’s not all one-sided. CMC Markets fights back with a lower spread on EUR/GBP at 0.857, compared to Pepperstone’s 1.4.
| Forex Pair | CMC Markets | Pepperstone | Industry Average |
|---|---|---|---|
| EUR/USD | 1.12 | 1.12 | 1.18 |
| USD/JPY | 1.38 | 1.47 | 1.37 |
| GBP/USD | 1.3 | 1.69 | 1.51 |
| AUD/USD | 1.64 | 1.22 | 1.41 |
| USD/CAD | 1.32 | 1.5 | 1.70 |
| EUR/GBP | 0.857 | 1.4 | 1.56 |
| EUR/JPY | 1.55 | 2.1 | 1.85 |
| AUD/JPY | 1.8 | 1.7 | 2.09 |
Standard Account Analysis Updated April 2024 [1]April 2024 Published And Tested Data
So, who’s cheaper? It’s a bit of a mixed bag, and it really depends on which currency pairs you’re trading. But if we take the industry average as a benchmark, both brokers are competitive. The industry average spread for EUR/USD is 1.18, slightly higher than both CMC and Pepperstone. For GBP/USD, the industry average is 1.51, which is lower than Pepperstone but higher than CMC. And for AUD/USD, the industry average is 1.41, which is higher than Pepperstone but lower than CMC.
In conclusion, both CMC Markets and Pepperstone offer competitive spreads that are generally below the industry average. However, Pepperstone might be the cheaper option for some currency pairs, especially if you’re trading AUD/USD. As always, it’s important to consider all the costs involved in trading, not just the spread, and choose a broker that best fits your trading style and needs.
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:
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. For instance, the FCA (Financial Conduct Authority, UK) requires all brokers to attach GSLOs 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 GSLOs for a premium, yet the brokers UK clients will have GSLOs attached to all their trades in line with FSA legislation.
CMC Markets GSLO Charges
Unlike Pepperstone, CMC Markets allows traders to buy GSLOs 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.
Verdict
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.
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*Your capital is at risk ‘74-89% of retail CFD accounts lose money’
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, MetaTrader 4 (MT4), MetaTrader 5 (MT5), or cTrader, CMC Markets clients can use either MT4 or the broker’s 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 wants 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. Regarding 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.
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 which 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 platform 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.
Verdict
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 ReviewVisit Pepperstone
*Your capital is at risk ‘74-89% of retail CFD accounts lose money’
When trading with CMC Markets, traders are limited to one account type. The broker’s 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, Pepperstone 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 for 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.
Verdict
Pepperstone is the clear winner when the broker’s 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 ReviewVisit Pepperstone
*Your capital is at risk ‘74-89% of retail CFD accounts lose money’
When it comes to the overall trading experience and ease of use, both CMC Markets and Pepperstone have their unique strengths. Having spent a considerable amount of time on both platforms, we’ve noticed a few standout features that set each broker apart:
However, it’s essential to remember that the best trading experience often boils down to personal preference. What works for one trader might not necessarily work for another. It’s all about finding a platform that aligns with your trading style and goals.
Verdict: While both brokers offer a top-notch trading experience, Pepperstone edges out slightly due to its superior MT4 offering and automation features.
CMC Markets Trust Score
Pepperstone Trust Score
When it comes to trust and regulation, both CMC Markets and Pepperstone are overseen by top-tier financial authorities, ensuring that they adhere to the highest standards of operation and customer protection. CMC Markets is regulated by several authorities, including the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) in Australia, and the Markets Authority Singapore (MAS) in Singapore, among others.
On the other hand, Pepperstone Group is regulated by authorities such as the ASIC in Australia, the FCA in the UK, and the Cyprus Securities and Exchange Commission (CySEC) in the EU, to name a few.
Both brokers are committed to ensuring that client funds are held in segregated accounts, which means that the brokers cannot use these funds as operational capital. This is a significant measure to protect client balances, especially in the unlikely event that the broker faces financial difficulties.
Furthermore, most top-tier financial authorities require brokers to adhere to strict operational standards, including regular audits, transparent financial reporting, and ensuring that they have adequate capital reserves.
In addition to regulatory oversight, the reputation of a broker in the industry and among traders is crucial. Both CMC Markets and Pepperstone have established themselves as trustworthy and reliable brokers with years of experience and a track record of providing top-notch services to their clients.
| CMC Markets | Pepperstone | |
|---|---|---|
| Tier 1 Regulation | ASIC (Australia) FCA (UK) BaFin (Germany) FMA (New Zealand) CIRO (CANADA) MAS (Singapore) |
ASIC (Australia) FCA (UK) BaFin (Germany) CYSEC (Cyprus) |
| Tier 2 Regulation | DFSA (Dubai) | DFSA (Dubai) |
| Tier 3 Regulation | SCB (Bahamas) CMA (Kenya) |
Verdict: While both brokers are highly regulated and trusted in the industry, CMC Markets has a slight edge due to its broader regulatory oversight across multiple jurisdictions.
Pepperstone and CMC both offer CFDs other than Forex pairs. With Pepperstone, clients can trade over 150+ financial instruments, while CMC Markets offers a staggering 9,500 products to choose from.
Pepperstone CFDs
CMC Markets CFDs
Verdict
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.
Note: Traders with CMC Markets UK plc and Pepperstone UK will not be able to trade Cryptocurrency due to FCA regulations, which forbid brokers from offering this derivative for trade.
View CMC Markets ReviewVisit CMC Markets
*Your capital is at risk ‘69% of retail CFD accounts lose money’
Education is a cornerstone of successful trading, and both Pepperstone and CMC Markets understand its importance. From our observations and testing:
Both brokers are committed to providing traders with the resources they need to succeed. Whether you’re a novice looking to get started or an experienced trader seeking to refine your skills, both brokers offer a wealth of educational materials to cater to your needs.
Verdict: Based on our team’s testing, CMC Markets offers the best educational resources among the two.
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 Market’s customer support is excellent, Pepperstone is highly regarded for its award-winning services.
View Pepperstone ReviewVisit Pepperstone
*Your capital is at risk ‘74-89% of retail CFD accounts lose money’
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
Base Currencies
Inactivity Fees
Verdict
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 charge no fees for the majority of deposit and withdrawal methods.
View Pepperstone ReviewVisit Pepperstone
*Your capital is at risk ‘74-89% of retail CFD accounts lose money’
When it comes to starting your trading journey, the initial deposit can be a significant factor. Both Pepperstone and CMC Markets have made it incredibly accessible for traders by offering a $0 minimum deposit. This is a game-changer for many, especially those who are just dipping their toes into the world of trading and don’t want to commit a large sum upfront.
The table below provides a clear comparison of the minimum deposit amounts for both brokers:
| Broker | Minimum Deposit |
|---|---|
| Pepperstone | $0 |
| CMC Markets | $0 |
Having a low minimum deposit is beneficial as it allows traders to test the waters without a significant financial commitment. It’s also a testament to the broker’s commitment to making trading accessible to everyone, regardless of their financial situation.
Verdict: Both Pepperstone and CMC Markets offer a $0 minimum deposit, making them equally attractive for traders looking for a low-entry barrier.
Pepperstone is the winner because of its comprehensive offering, superior trading experience, and excellent customer service. The table below summarises the key information leading to this verdict:
| Criteria | Pepperstone | CMC Markets |
|---|---|---|
| Lowest Spreads And Fees | ✅ | ❌ |
| Better Trading Platform | ✅ | ❌ |
| Superior Accounts And Features | ✅ | ❌ |
| Best Trading Experience And Ease | ✅ | ❌ |
| Stronger Trust And Regulation | ❌ | ✅ |
| Top Product Range And CFD Markets | ✅ | ✅ |
| Superior Educational Resources | ❌ | ✅ |
| Superior Customer Service | ✅ | ✅ |
| Better Funding Options | ✅ | ✅ |
| Lower Minimum Deposit | ✅ | ✅ |
For those just starting out, CMC Markets offers a more beginner-friendly environment with its extensive educational resources.
For seasoned traders, Pepperstone stands out with its advanced trading platforms and superior execution speeds.
Pepperstone generally offers lower costs compared to CMC Markets. While both brokers have competitive spreads, Pepperstone’s ECN-style pricing often results in tighter spreads. For instance, the average EUR/USD spread with Pepperstone is around 0.13 pips. For a more detailed comparison of broker spreads, you can check out this comprehensive guide on low commissions.
Both Pepperstone and CMC Markets offer MetaTrader 4, but Pepperstone is often preferred due to its advanced tools and faster execution speeds. Their MT4 platform is equipped with features tailored for professional traders. If you’re keen on exploring more about MT4 brokers, this list of the best MT4 brokers might be of interest.
Pepperstone offers social trading features, allowing traders to follow and copy the trades of professionals. This feature is beneficial for those who might not have the time or expertise to analyze the markets themselves. If you’re interested in exploring more about social trading, you can dive into this comprehensive guide on the best copy trading platforms.
CMC Markets offers spread betting, a popular form of derivative trading in the UK. Spread betting allows traders to speculate on the price movement of financial instruments without owning the underlying asset. For those keen on exploring spread betting brokers, here’s a list of the best spread betting brokers in the UK.
In my opinion, Pepperstone stands out for Australian forex traders. Not only is it ASIC regulated, but it’s also an Australian-founded broker, ensuring a deep understanding of the local market dynamics. Both brokers offer a range of trading instruments, but Pepperstone’s local roots give it an edge. For a more detailed comparison, you can check out this guide on the best Australian forex brokers.
For UK traders, I personally believe CMC Markets has the edge. Being FCA regulated and having a strong presence in the UK, they offer a level of trust and reliability. While both brokers provide excellent platforms and trading conditions, CMC Markets’ deep roots in the UK market make it a preferred choice. For more insights, you might want to explore this list of the best forex brokers in the UK.
No commission account spread proprietary testing data and published website spread information, centralised on our standard account spread page..
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