Pepperstone vs Hugo's Way: Which One Is Best?

2. Better Trading Platform: Pepperstone

Pepperstone has Hugo’s Way covered hands down when it comes to trading platforms. While Hugo’s Way only offers MetaTrader 4 for Windows, iOS, Android, MacOS and Web Trader for mobiles, Pepperstone offers all these and more.

With Pepperstone you can choose from MetaTrader 4, MetaTrader 5, and cTrader along with all their operating system and mobile versions.

Pepperstone not only offers a decent choice of trading platforms but also a wide range of social trading, copy trading, and advanced trading tools. Something is absent from Hugo’s Way portfolio.

Pepperstone Advanced Trading Tools

• Smart Trader Tools for MetaTrader – advanced trading tools on MetaTrader for greater trading insights and productivity.
• cTrader Automate – Algorithmic tools to automate your trading with cTrader
• Autochartist – Advanced technical analysis tools such as charts and Fibonacci patterns for more advanced trading information.
• API trading

Pepperstone Social And Copy Tools:

• Myfxbook
• ZuluTrade
• Mirror Trader
• MetaTrader signals
• Duplitrade

Verdict: MetaTrader 4 is a great trading platform as it’s suitable for all investors and depending on your trading needs, can be all you need for successful trading. Traders will usually benefit from extra tools that Pepperstone offers that provide deeper technical analysis so you can make more informed trading decisions and social and copy trading tools so users can learn from other successful traders.

3. Superior Accounts And Features: Pepperstone

Pepperstone Accounts

Pepperstone offers two main account types. These are:

• Standard
• Razor Accounts

The main difference between each account is Standard account had no commission, instead, the spread is widened by at least 0.6 pips. Spreads on the Razor account are organic. This means they are aggregated from a dark pool of liquidity providers and banks without price interference from Pepperstone. To keep the spreads as low as possible, Pepperstone charges a commission:

• MT4 & MT5: As low as $3.50 per side, $7 round-turn (varies between platform and account base currency).
• cTrader: You pay 0.0035% of the base currency of the pair being traded. I.e. if you are trading 100,000 currency units of the EUR/USD, you will pay €3.50 per side or €7 round-turn.

Hugo’s Way Account

Hugo’s only offers one account. This is the ECN account.

Below is a comparison of each broker’s accounts

Disclaimer: You can’t open a trading account at Pepperstone or Hugo’s Way if you live in the United States.

Verdict: You will notice that both brokers’ accounts offer similar features. Pepperstone offers lower commissions, more currency pairs, more choice of social tools and therefore better value for all traders.

4. Best Trading Experience And Ease: Pepperstone

When it comes to trading experience and ease, Pepperstone takes the cake.

• Superior execution speed
• User-friendly interface
• More customisation options
• Advanced charting tools

Hugo’s Way isn’t far behind, offering a straightforward platform that’s easy to navigate. However, it lacks the advanced features that seasoned traders might look for.

5. Stronger Trust and Regulation: Pepperstone

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One of the biggest differences between Pepperstone and Hugo’s Way is that Pepperstone is regulated, and Hugo’s Way is not.

Pepperstone offers you the safety of the following respected Tier 1 regulatory authorities:

• Australian Securities and Investments Commission (ASIC) – Australia
• Financial Conduct Authority (FCA)  – UK
• Cyprus Securities and Exchange Commission (CySEC) and Federal Financial Supervisory Authority (BaFIN) – Europe
• Dubai Finance Services Authority (DFSA) – Dubai / United Arab Emirates
• Capital Markets Authority (CMA) –  Kenya
• Securities Commission of The Bahamas (SCB) – Bahamas

Hugo’s Way advises they are in the process of applying for a licence which can take a long time to be set up and implement. This lack of regulation should be a primary concern of yours.

Why It Is Important To Choose A Regulated Broker

Regulation matters because it concerns the safety of your funds, your investments, and the obligations of your broker to use your funds with integrity.

Regulation requirements include:

1. Segregated bank accounts: This means your funds are kept in an independent bank account that the broker cannot touch.
2. Minimum liquidity/capital requirements: The broker must keep minimum liquidity in reserve to ensure they have funds to pay clients should they incur heavy losses
3. Product Disclosure Statement (PDS): A PDS means there is transparency with the broker’s policies and therefore accountability.
4. Complaints/Appeals process: The broker must have a complaints and appeals process so clients can resolve any disputes
5. Guaranteed Negative Balance Protection: FCA requires brokers to offer Guaranteed Negative Balance Protection. Pepperstone UK has FCA regulation.

Hugo’s Way Is Not A Regulated Broker

Hugo’s Way is not a regulated broker. They are an offshore broker, which means no regulatory authority is monitoring their conduct with your funds. This means they can disappear with your money as there are no regulators to act as a safety net and provide forex traders with some level of protection.

Segregated Accounts With Hugo’s Way

On their website, Hugo’s Way explains how they manage your funds.

Keeping your funds in their own name on your behalf and managing this with a segregated accounting system does not prevent the broker from being able to access your funds. This practice does raise concerns.

Verdict: We started this review by highlighting the importance of regulation. You want to keep your funds and investment safe and secure, so choosing a regulated broker is one measure that can provide peace of mind. Pepperstone provides excellent security as they are regulated by ASIC, CySEC and FCA.

Pepperstone ReviewVisit Pepperstone

*Your capital is at risk ‘74-89% of retail CFD accounts lose money’

6. Top Product Range And CFD Markets: Pepperstone

Verdict: Pepperstone offers a more comprehensive range of CFDs and markets.

7. Superior Educational Resources: Pepperstone

The complete absence of education and research tools available with Hugosway is notable. Hugosway does not offer any training videos, learning centres, ebooks, PDFs, podcasts and webinars. While you can find many of these tools free with other brokers or on the internet, it is a little disappointing that Hugosway does not offer any education and research, especially when one compares it with Pepperstone.

Pepperstone offers a wealth of educational resources that cater to both beginners and experienced traders.

• Webinars
• E-books
• Video tutorials
• Trading guides
• Market analysis
• Glossary

Verdict: Based on our testing, Pepperstone scores higher in offering superior educational resources.

8. Superior Customer Service: Pepperstone

Pepperstone Customer Service

Investment Trends and UK Forex Awards have awarded Pepperstone for their customer service several times over the years. Available 24/5, Pepperstone offers live chat, email, and telephone for those wanting human customer service. Pepperstone also offers an expansive FAQ section and glossary, which should provide you with answers to many of your questions.

Hugosway Customer Service

Hugosway is available 24/7 through live chat and online email forms and calls back. There is no phone number, perhaps because the support team is located in Seychelles.

If you use the live chat, you will be greeted by Hugo’s Bot, which will try to find the answer for you before escalating you to the help desk. The live chat team is friendly and helpful. Conversations will usually start with “top of the morning” and “Hope you are having a great day” which is a nice touch. The customer service team is helpful and very willing to provide extra information, to make sure you understand all the trading concepts that may be of interest.

Hugosway also has a FAQ section on their website with over 60 questions to common trading and account questions.

Pepperstone’s customer service is top-notch, offering 24/5 support via live chat, email, and phone.

• Live chat
• Email support
• Phone support
• FAQ section
• Multilingual support

Verdict: Pepperstone offers better customer service, scoring higher in our tests.

9. Better Funding Options: Pepperstone

Below is a summary of all the funding options each broker provides

Funding With Pepperstone

Funding with Pepperstone is straightforward. You choose your preferred funding method to deposit funds into your account. Withdrawals must be to an account in your name. Funding in nearly all cases is free.

Funding With Hugosway

Bitcoin is the primary method for payments with Hugosway. Funding with Bitcoin means you can trade anonymously however you will need to learn how to buy bitcoin from partner sites. Hugosway provides instructions on how to do this.

To use other trading options, you will need to verify your details with Hugosway. These options will incur charges, making them expensive options.

Verdict: Pepperstone gives you a range of conventional funding options with no fees, which makes funding painless and straightforward. The only reason you might wish to consider Hugosway when it comes to funding is cause you prefer to use Bitcoin or you wish to trade anonymously.

10. Lower Minimum Deposit: Hugosway

When it comes to the initial investment, Hugo’s Way and Pepperstone are worlds apart. Hugo’s Way sets the bar low with a minimum deposit of just $50. This is a fantastic entry point for beginners or those who want to test the waters without committing a large sum.

Pepperstone, on the other hand, requires a minimum deposit of $200. While this isn’t exorbitant, it’s four times higher than Hugo’s Way. This could be a deciding factor for traders who are budget-conscious or new to the forex scene.

Verdict: Hugo’s Way offers a lower minimum deposit, making it more accessible for beginners or those on a tighter budget.

Is Pepperstone or Hugo’s Way The Best Broker?

Pepperstone is the winner because it excels in most of the key trading factors we’ve examined. Below is a table that summarises the key information leading to this verdict.

Hugo’s Way: Best For Beginner Traders

Hugo’s Way is better suited for beginner traders due to its lower minimum deposit and simpler account structure.

Pepperstone: Best For Experienced Traders

For experienced traders, Pepperstone is the go-to option, offering a robust trading platform and superior features.