Go Markets vs Pepperstone. Which broker is the winner? We review and compare each broker for 2020 using what we consider to be the key features when selecting a broker to help you when choosing a broker.
| Spreads | EUR/USD | USD/JPY | AUD/USD | GBP/USD |
|---|---|---|---|---|
| Go Markets Standard Account | 1.2 | 1.2 | 1.3 | 1.5 |
| Pepperstone Edge Standard | 1.16 | 1.25 | 1.27 | 1.49 |
| Go Markets Go Plus | 0.2 | 0.2 | 0.3 | 0.5 |
| Pepperstone Edge Razor | 0.16 | 0.25 | 0.27 | 0.49 |
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 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 varies it commission charges depending on the trading platform you are using.
Same as above except for
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:
1 USD x 1.70 pip = 1.70 USD + $0 commission = $1.70 USD.
1 USD x 0.70 pip = 0.70 USD + $0.60 commission = $1.30 USD.
1 USD x 1.64 pip = 1.64 USD + $0 commission = $1.64 USD.
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.
Compare Razor account vs standard account options with Pepperstone.
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).
| Account Type | Go Markets Standard | Go Markets Plus+ | Pepperstone Standard | Pepperstone Razor |
|---|---|---|---|---|
| Spreads From | 1.0 Pips | 0.0 Pips | 1.0 Pips | 0.0 Pips |
| Commission | $0 | AUD $6.0 Round Trip | $0 | $7.0 Round Trip |
| Minimum Trade Size | 0.01 Lots | 0.01 Lots | 0.01 Lots | 0.01 Lots |
| Leverage | 500:1 Maximum | 500:1 Maximum | 500:1 Maximum | 500:1 Maximum |
| Expert Traders Allowed | Yes | Yes | Yes | Yes |
| Hedging Allowed | Yes | Yes | Yes | Yes |
| Scalping Allowed | Yes | Yes | Yes | Yes |
| Minimum Deposit | AUD $200 | AUD $500 | $200 | $200 |
| Level of Support | 24/5 | 24/5 | 24/5 | 24/5 |
| Dedicated Account Manager | Yes | Yes | No | No |
| Currency Pairs | 50 | 50 | 60 | 60 |
| Tradeable Instruments | 90+ | 90+ | 70+ | 70+ |
| Execution | STP | ECN + STP | STP | ECN + STP |
Features of all four accounts we review are very similar. The main differences are
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
With these considerations taken into account, we recommend Pepperstone Edge Razor Account
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.
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.
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
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
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.
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
| Features | MT4 | MT5 |
|---|---|---|
| Expert Advisors | Yes | Yes |
| Hedging | Simultaneous | FIFO + Netting |
| Inbuilt Indicators | 30 | 38 |
| Market Depth | No | Yes |
| Economic Calender | No | Yes |
| Exchange Trading | No | Yes |
| Derivatives | Forex, Commodities, Indices, Metals | Forex, CFDs, Shares, Bond, Options, Futures, Metals, Indices, Commodities. |
| Pending Orders | 4 - Buy Stop, Buy Limit, Sell Limit, Sell Stop | 6 - Buy Stop, Buy Limit, Sell Limit, Sell Stop, Buy Stop Limit, Sell Stop Limit |
| Language | MQL4 | MQL5 |
| Execution Speed | Fast | Faster |
| Timeframes | 9 | 21 |
| Order Execution Types | 3 | 4 |
| Partial Order Filling Policies | No | Yes |
| Technical Analysis Tools | 2000 Free Customer Indicators, 700 paid. | 44 Analytical Objects, Unlimited Charts |
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.
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.
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.
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.
View Pepperstone Review >>Visit Pepperstone >>
Both brokers fall under the Australian Securities and Investment Commission – ASIC Regulation.
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.
Both Go Markets and Pepperstone are leaders when it comes to 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.
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.
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
Demo Accounts
View Pepperstone Review >>Visit Pepperstone >>
Pepperstone only has a dedicated customer account manager if you are part of the Pepp
erstone 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
work”, “Basic Terminology”, “Fundamental Analysis” and “Technical Analysis” so you can read and learn about different aspects of forex.
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.
Both brokers offer a good collection of CFDs for trading. Go Markets offers 350+ instruments and Pepperstone offers 150+ instruments.
In addition to Forex, Pepperstone offers the following for trading CFDs.
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.
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.
View Go Markest Review >>Visit GO Markets >>
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.
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