Go Markets vs Pepperstone Comparison

Spreads and Fees

Spreads Observation

Looking at the spreads, we can see that standard accounts of both Go Markets and Pepperstone have wider spreads than the Electronic Communication Network (ECN) type of accounts (ie. Go Markets Plus and Pepperstone Razor). The spreads are wider because 1 pip is added to the spread. 1 pip is the equivalent of $10.

Both Go Markets and Pepperstone offer ECN style trading accounts. Pepperstones ECN style account is called Razor account which Go Markets call their GO Markets Plus. While neither are ‘true’ ECN brokers they offer ECN pricing as they directly connect you with liquidity providers via ECN networks who quote you with competitive spread prices. There is no dealing desk or price requotes in their ECN process instead the brokers charge a commission.

Go Markets Commission

Go Markets charge an industry-low AUD $6.00 round trip ($3.00 one way) commission with each standard lot traded for its GO Plus account. This AUD$3.00 will be converted to your account currency when trading.

Go Markets quote in AUD as they are an Australian forex broker.

Pepperstone Commission

Pepperstone varies it commission charges depending on the trading platform you are using.

MetaTrader 4 side trip commission for each standard lot,

• AUD $3.5
• USD $3.76
• EUR €2.61
• GBP £2.29
• NZD $4.75
• CAD $3.50
• SGD $4.55

MetaTrader 5 side trip commission for each standard lot

Same as above except for

• USD $3.50

cTrader

• charge of 7 units for each standard lot. This charge is in the base currency when trading a currency pair. ie AUDJPY = AUD$7.00 per lot

Calculating your cost

If the account currency is USD, then it is quite simple to calculate the dollar cost of the currency trade. Using USDCAD as an example and trading with mini-lots (ie 0.1) then you will have the following basic cost:

Go Markets Standard

1 USD x 1.70 pip = 1.70 USD + $0 commission = $1.70 USD.

Go Markets Go Plus

1 USD x 0.70 pip = 0.70 USD + $0.60 commission = $1.30 USD.

Pepperstone Edge Standard

1 USD x 1.64 pip = 1.64 USD + $0 commission = $1.64 USD.

Pepperstone Edge Razor

1 USD x 0.64 pip = 0.64 USD + $0.70 commission = $1.34 USD.

Note 1: To convert to Standard Lots then multiply your result by 10. To convert to micro-lot then divide your lot by 10.

Note 2: If then account currency is not USD. Then you need to convert the currency to USD this means calculations will be different however Go Plus followed by Pepperstone Edge will still have the lowest expenses.

Note 3: Go Markets average spreads are only to the first decimal. Average spreads are likely to have been rounded.

Other costs

Swap / Rollover / Overnight / Holding fees – When you maintain your position for a currency pair overnight then you will incur a swap fee.  Swap rates or charges will vary by currency pair which are released each week by the financial institution the broker works with.

To calculate the rate you multiple the swap long or swap short by the number of lots your trading with. i.e. if swap long is 6.0 points and you hold 1 lot (10,0000 units) overnight then you will receive 0.60 pips for the lot. In dollar terms, your account will receive $6 per rollover (0.60 x 10).

Comparison of account types

Features of all four accounts we review are very similar. The main differences are

1. Standard Accounts for each broker do not charge commission
   while ‘ECN’ Style accounts do charge commission. Pepperstone charge higher commission than Go Markets
2. GO Markets Plus account requires a minimum account opening balance of AUD $500  to open (or equivalent in your local currency).
3. Pepperstone accounts require a minimum deposit $200 to open an account however they do not enforce this.
4. Go Markets include a complimentary ‘Dedicated Account Manager’.  A personal account manager can help you with setting up your account and resolving trading issues without the need to go through customer support.
5. Pepperstone offers more currency pairs than Go Markets including major pairs, minor pairs, crosses and exotic pairs.
6. Pepperstone also offers a Swap fee account or Islamic account. This account is for Muslims who need to comply with sharia law. This account can be requested from the customer support team.

Our Recommendation – Go Markets vs Pepperstone

If you are new to trading then it may beneficial to start with a Standard Account. Although we have shown standard accounts do cost more than an ECN ‘style’ accounts, investors do not need to worry about calculating commissions into their expenses and instead just focus on improving their trading skills. When it comes to the standard account, we recommend Go Markets over Pepperstone because you have a dedicated account manager who can help you get started. To view more on Pepperstone fees view our full article.

If you are an intermediate trader then we recommend either the GO Markets Plus account or Pepperstone Edge Razor account. ECN pricing accounts offer lower spreads and are cheaper than Standard accounts despite the cost of commissions. We feel both Go Markets and Pepperstone ECN accounts are excellent solutions for investors wanting narrow spreads with low fees. If you plan to be a regular trader then the lower commission GO Markets charge may represent a significant saving over time however there are three main things to consider

1. Spreads for specific currency pairs may be cheaper with Pepperstone than Go Markets which could negate any saving through commission.
2. Pepperstone offer more forex pairs so you will want to check GO Markets offer the currency pairs you intend to trade with
3. Go markets require a higher minimum balance than Pepperstone. This means you could be taking on higher debt than you wish to when leverage is taken into account

With these considerations taken into account, we recommend Pepperstone Edge Razor Account

Other Considerations for costs/savings

If you are a high volume trader then you can gain further savings by joining the Go Markets volume trading rebate program or Pepperstones Active trader program.

Go Markets volume trading rebate

If you trade volumes are meet GO Markets requirements then you will receive a cash rebate once a month.

Both Standard and Go Markets Plus account holders can claim the rebate.

Pepperstone active trader program

If you are a Pepperstone Edge Razor account holder and you trade sufficiently high volumes of forex then consider joining the Pepperstone active trader program. Investors will receive their rebates the next day and can use them for trade immediately.

 Investors on the active trader program will also receive the following benefits

1. Priority Client Support (this is the same as GO Markets ‘Dedicated account manager’.)
2. Advanced Insights and Reports such as access to Pepperstones market analysts and daily Autochartist signals.

Leverage

Forex is a leveraged product. Leverage allows you to trade high amounts or volumes of capital with little money. The higher the leverage you take on, the higher the more debt you will incur if currency movement is not favourable. Leverage will vary depending on which trading entity you trade with.

Pepperstone leverage

Pepperstone has 2 trading entities.  These are Pepperstone Australia and Pepperstone UK.

If you are trading from the UK or Europe, you are likely to be trading with Pepperstone UK. To be compliant with the Financial Conduct Authority or FCA requirements you will have a leverage of 30:1 if you are a retail trader and 500:1 if you qualify as a professional client.

If you are a client coming from anywhere else in the world, then you will be trading with Pepperstone Australia. This means you will have a leverage of 500:1

Go

Trading Platforms

Both Go Markets and Pepperstone offer MetaTrader 4 and MetaTrader 5. Commonly called MT4 and MT5, this forex trading platform software is made by MetaQuotes software. Despite the name, MT4 and Mt5 target different markets so MT5 should not be considered an upgrade of MT4. We will look at the features and difference of each platform.

Each broker offers MT4 and MT5 on Windows, Mac PCs and IOS and Android tablets and mobile. MT4 is the most popular platform worldwide and more brokers offer this platform than any other. The popularity of MT4 means traders can move brokers without needing to familiarise themselves with a new trading platform.

MT5 has many features not available in MT4. It is built to allow investors to trade with derivatives that have a central exchange.

MT4 and MT5 Trading Platform – Go Markets and Pepperstone

Available on Windows and Mac, IOS and Android tablets and mobiles MT4 is the most used platform worldwide. More brokers offer this platform than any other platform which means a trader can move brokers without needing to familiarise themselves with a new trading platform.

Key Differences between MT4 and MT5 that matter

1. MT4 is built only for forex. MT5 is built for forex, CFDs, stocks, bonds, options and futures. This is because MT5 allows trading through an exchange but MT4 does not.
2. No hedging rule: American does not allow hedging or FIFO trading. MT5 is built to meet USA regulations. MT4 orders are kept separate while MT5 orders are aggregated together. This can make algorithmic trading with expert advisors more difficult.
3. MQL5 is not backward compatible with MQL4.  MT4 uses MQL4 for OOP programming which is good for EAs and GUI customisation. MQL5 is not backward compatible.

MT4 vs MT5 differences

Trading Platform Conclusion – Go Markets vs Pepperstone

Unless you need to be compliant with the USA ‘no hedging’ rule or you wish to trade derivatives other than forex then MT4 we recommend MT4. Mt4 is a simpler trading platform to use, provides all the tools you will need for forex trading and allows hedging.

Add On Features for MT4

Both Go Markets and Pepperstone have an MT4 add on package to give user extra tools to enhance their user experience. The add-on includes some of these features that are built into MT5 (see our table comparison) such as economic calendar.

Go Markets call their add on ‘MT4 Genesis’ while Pepperstone calls their add on ‘Smart Trader Tools’.  Both products are essentially the same.  Add-on features include a correlation matrix, market manager and sentiment trader.  Sentiment trader is a popular tool used in social trading that allows you to see trades made by other forex investors.

Risk Management

Both Go Markets and Pepperstone offer the standard types of risk management tools that all online brokers offer. These include stops (i.e. stop loss), limit orders, orders (i.e pending orders), margin calls (i.e. measures to ensure your account balance does not go into negative) however neither broker offer guaranteed risk management. This means there is no protection for you in the event of slippage or bad trading decisions.

Instead, both Go Markets and Pepperstone place a focus on technology that allows for fast execution during trading.  Faster execution helps manage slippage by reducing the lag time to complete order execution.

While Go Markets mention they have fast execution, there do not say how they achieve this fast execution. Pepperstone on the other hand, are very open about their trading infrastructure.

Pepperstone Edge Technology

The Pepperstone edge technology brings 10 optical fibre cross-connects directly from the liquidity providers servers to Pepperstone MetaTrader master servers. Use of Fibre technology means data will transmit with blazing speeds in a reliable and stable fashion. Pepperstone’s master servers are just 11km from the New York liquidity centre. The short distance means data does not have to travel far to complete your orders. These two strategies greatly reduce the risks of slippage when trading.

Industry Regulation – Trust

Both brokers fall under the Australian Securities and Investment Commission – ASIC Regulation.

• Go Markets operate with Australian Financial Services Licence 254963
• Pepperstone operate with Australian Financial Services Licence 414530

The regulation with ASIC means the broker need to keep your money in a segregated account with a top-tier bank and handles your investments in securely.

Pepperstone is also regulated in the UK by the Financial Conduct Authority commonly called FCA for short.

FCA regulation will only apply to traders in the UK or Europe. FCA regulations require that leverage be restricted to 30:1 for retail traders. and that the broker provides negative balance protection. If you are a high volume trader, Pepperstone may allow you to trade professional trader. As a professional trader, you can trade with leverage of 500:1 but you won’t receive negative balance protection.

Customer Service and Customer Support

Both Go Markets and Pepperstone are leaders when it comes to customer service.

Go Markets Customer Service

We already spoke about all customers have a ‘dedicated account manager’ however Go Markets have other features that make them one of the best.

Contacting Customer Support – Go Markets

Customer support with Go Markets is available 24/5 Monday to Friday. You can contact Go Markets through live chat via their website or via phone. Go Markets not only have customer support in Australia that traders can call via a toll-free number but also the UK and China. An international number into Australia is available for traders from any other country who require assistance.  Email contact is also available when you have questions outside customer support hours.

Customer Service Features

FAQ – Go Markets have a section which will answer common forex and trading questions.

Education – Go Markets has several free education tools to help with your forex education. These include

• Free Forex Education Course – This course has two sections each with 3 modules that cover the essentials of forex. Section 1 covers an introduction to forex while section 2 covers more advanced topics. The course consists of online video and tutorial, a live group classroom webinar and opportunities for you to ask questions for which answers will be provided.

Demo Accounts

• GO Markets offer a free 30-day trial demo account for both the MT4 and MT5 platform. The demo account has $50,000 in virtual funds so you can test your trading strategies and uses real-time market data.

Pepperstone Customer Support

Pepperstone only has a dedicated customer account manager if you are part of the Pepperstone active trader program however general customer support is available 24/5.  Investors can contact Pepperstone via live chat, phone or email. Toll-free calls are available in Australia and the UK while a local number is available in Thailand.

Pepperstone has won numerous award for the customer service including best ‘Forex Trading Support’ from UK Forex in 2018 and ‘Çustomer Service from Investment Trends in 2017

Customer Service Features

• Learn to Trade – Pepperstone has a range of webpages that cover topics such as “How does forex work”, “Basic Terminology”, “Fundamental Analysis” and  “Technical Analysis” so you can read and learn about different aspects of forex.
• Webinars – Every week or 2, an expert on forex will host a webinar. The expert presents a topic and is available to answer any questions you may have.
• Trading Guides – Pepperstone has an exhaustive list of guides that take you through all aspects of trading. You can sign up for automatic delivery to your inbox when a new guide is available.
• Support – Manuals taking users through steps or actions to perform trading tasks such as depositing or withdrawing funds for each type of funding method is available.
• FAQ – Traders can search in the FAQ for any question they may have.
• Glossary – a list of keywords and their definitions is available.

Demo Account

Pepperstone offers a demo account. The demo account is much the same as on offer by GO Markets. Free 30 day trial with $50,000 of virtual funds.

Contracts for Difference (CFDs)

Both brokers offer a good collection of CFDs for trading. Go Markets offers 350+ instruments and Pepperstone offers 150+ instruments.

Pepperstone CFDs

In addition to Forex, Pepperstone offers the following for trading CFDs.

• 14 major Index CFDs
• 60 top quality Shares CFD from NYSE at 0.02c a share
• Precious metals inc. Gold and silver traded against USD or Euro with no commission
• Platinum and palladium traded against USD and no commission
• Energies with a minimum trade size 10c per pip
• 5 Cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum, Dash and Litecoin traded against USD.
• Currency Index CFD – 6 major currencies including Euro, JPY, GBP against USD.

Go Markets CFDs

• 200+ Shares CFD from ASX, 80+ NYSE shares and NASdaq from 0.08% per share per side (ASX) and US$0.02 per share per side
•  13 indices and 2 Futures CFD
• Gold and silver metals
• Spot gold and silver
• Spot WTI and Brent crude oils
• 5 Cryptocurrencies including Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Ripple

Sign-On Bonus and Reward Programs

Both brokers have a refer a friend program.

Go Markets will reward you with AUD $100 if you bring a brand new client to Go Markets and they execute 5 standard trading lots on the MT4 platform.

Pepperstone will reward you with AUD $100 if you bring a brand new client to Pepperstone and the new client funds their account with at least AUD $1000 and trade 5 or more lots.

Deposits and Withdrawals

Go Markets allow deposits and withdrawals with the following methods – Debit cards and Credit cards (Visa and MasterCard), Neteller, FasaPay, BPay, POLi and Bank Transfer. Go Market to not charge for using these services. All the major currencies are accepted for deposits including NZD, CHF, HKD, GBP, EUR, JPY, HKD and AUD and CAD.

Pepperstone allows deposits and withdrawals with the same funding providers but also allow PayPal, Skrill, China Union Pay. Like Go Markets, Pepperstone does not charge for using the service.