Peppperstone Vs Hugosway Comparison

Our Pepperstone vs Hugosway review found both are ECN brokers with low spreads from 0.0 pips and commissions but Pepperstone is regulated while Hugosway is not. Along with better forex trading platforms, range of CFD trading markets and superior review, Pepperstone is our recommended forex broker.

View the review of Pepperstone or view the full comparison of Hugosway vs Pepperstone below.

By Justin Grossbard / Updated: Saturday, January 11th, 2020

Peppertone vs Hugosway

Broker Reviewed

PepperstoneHugosway
Our Rating
9.17
3.86
Pepperstone Review Visit Hugosway
Most Awarded Broker Hugosway Is Not regulated

Regulations and Licenses

FeaturePepperstoneHugosway
ASIC (Australia)
FCA (UK)
FSCA (South Africa) Pending

Brokerage

FeaturePepperstoneHugosway
No Commission Account Spreads From (EUR/USD): 1.0
Commission Account Spreads From (EUR/USD): 0.0 0.7 pips
Commission (per 100k traded side trip) AUD $3.50 $5 USD
Minimum Deposit $200 $100 USD
Volume Commission Rebates
Has Islamic Account
No Inactivity Fees
$15 per month
Funding Methods 16 4
No Deposit/Withdrawal Fees

Markets and Instruments

FeaturePepperstoneHugosway
Forex Currency Pairs CFDs 66+ 38
Cryptocurrency CFDs 4+ 31
Index CFDs 2+ 11
Share CFDs 5+
Commodities CFD 4+ 9
Stockbroking
Retail Maximum Leverage 500:1 500:1
Professional Maximum Leverage 500:1 500:1

Trading Platforms + Tools

FeaturePepperstoneHugosway
MetaTrader 4 (MT4)
MetaTrader 5 (MT5)
cTrader
Proprietary Platform
Automatic / Robot Trading
Social + Copy Trading
Standard Stop Loss
Guaranteed Stop Loss Order
Guaranteed Negative Balance Protection ESMA regulated territories only
Demo Account
Unique Feature 1 Smart Trader Tools Based in Providence Mahe, Seychelles.
Unique Feature 2 Fast Execution Speed Two Factor Authentication

Overall

PepperstoneHugosway
Our Rating 9.17 3.86
Pepperstone Review Visit Hugosway
Visit Site Visit Site

Regulation of Pepperstone vs Hugosway

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

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

  1. Australian Securities and Investment Commission (ASIC) – Australia
  2. Financial Conduct Authority (FCA)  – UK and Europe

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.

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 systems does not prevent the broker from being able to access your funds. This practice does raise concerns

  • Hugos Segregated funds

Regulation matters

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 and FCA.

Open a demo account >>Visit Pepperstone >>

 

What spreads and fees do Pepperstone vs Hugosway offer?

Spreads on 02/10/2018EUR/USDUSD/JPYAUD/USDGBP/USD
Pepperstone (Avg)0.160.250.270.49
Hugo's Way (Low)0.20.20.30.4

Both Pepperstone and Hugo’s Way offers a commission-based account which uses ECN pricing. When using this type of account, you will incur three major trading costs. These are

  1. Spreads
  2. Commission
  3. Rollover

Commission

When it comes to commission – Pepperstone offer better commission without question.

One way pricingMetaTrader 4MetaTrader 5
Pepperstone - AUD$3.50$3.50
Pepperstone - USD$3.50$3.78
Hugo's Way - USD$5Not offered

Hugo’s Ways charges USD$5 per standard lot. This expensive when one compares with Pepperstone, one is essentially paying $1.5 more for each side of the trade.

This difference can add up over time. This high commission is surprising given Hugo’s Way are not regulated. I asked them why this is the case for information purposes and this is what they said

Hugos Commission

Pepperstone charge in your account currency. So if you’re in Australia, you are better to trade with AUD than USD.

Pepperstone MT4 commission

Spreads

Spreads are a bit more difficult to compare as Pepperstone provide their average spreads and Hugo’s Way do not. I contacted Hugo Ways and they were kind enough to provide me with their lowest recorded spreads for each currency pair.

Spreads on 02/10/2018EUR/USDUSD/JPYAUD/USDGBP/USD
Pepperstone (Avg)0.160.250.270.49
Hugo's Way (Low)0.20.20.30.4

It interesting to observe that Pepperstones’ average spreads match or better Hugo’s Ways best spreads.

ECN Trading

Both brokers use ECN style trading to provide you with the tightest spreads.

ECN Trading with Pepperstone

Pepperstone prefers not to call themselves an ECN broker.  This is because ‘true ECN’ or STP brokers use someone else’s trading system, independent of their own trading system.  Pepperstone, therefore, are not ‘true’ ECN as they are the issuer of their own products.  Instead, Pepperstone provides you with ECN level pricing by souring quotes from external liquidity providers via ECN networks and passing these prices directly to you without any intervention from their side.

ECN Trading with Hugo’s Way

Hugo’s Way, unlike Pepperstone, actively call themselves a ‘True ECN’ broker but the information on their website is conflicting.

Hugo’s Way source your quotes from 50 different bank and dark pool liquidity providers, however, claim they provide ‘true ECN’ and at other times claim they practice STP execution. While one can argue ECN and STP are two sides of the same coin, Hugo’s Way incorrectly claims STP execution means processing via an aggregator. This is ECN, not STP execution.

Given Hugo’s way have wider spreads than Pepperstone, the question has to be asked about Hugo’s Way execution.

Spreads and fees conclusion

Pepperstone offers lower costs than Hugo’s Way. Commission costs are lower than Hugo’s Way and spread generally appear to be narrower too.

Open a demo account >>Visit Pepperstone >>

 

Does Pepperstone offer better forex accounts vs Hugosway?

Pepperstone Accounts

Pepperstone offers 2 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 1 pip ($10). 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.

Hugo’s Way account

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

Below is a comparison of each broker’s accounts

 Peppeperstone StandardPepperstone RazorHugo's Way
Spreads (EUR/USD)from 1.0from 0.0from 0.2
CommissionNone$3.50 AUD/USD$5.00 USD
Minimum Lots0.010.010.01
Maximum Lots100100100
Leverage500:1500:1500:1
Minimum account opening balance$200 AUD / USD (not enforced)$200 AUD / USD (not enforced)$10 USD
Scalping allowedYesYesYes
Expert AdvisersYesYesYes
Hedging AllowedYesYesYes

Accounts conclusion

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.

What trading platform and tools do Pepperstone vs Hugosway offer?

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, Mac OS and Web Trader for mobiles, Pepperstone offer all these and more.

With Pepperstone you can choose from MetaTrader 4, MetaTrader 5, 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 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

Trading platform and tools conclusion:

MetaTrader 4 is a great trading platform as its 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.

What leverage does Hugosway vs Pepperstone offer?

Both brokers offer a maximum of 500:1 leverage for forex. This is generally accepted as the maximum leverage a reputable broker should offer.

Which broker provides better risk management tools – Pepperstone vs Hugosway

Both brokers offer the standard risk management tools found on MetaTrader 4. These include

  • Stop-loss orders
  • Take profit
  • Position Sizing
  • Alerts (for major price events)
  • Trailing stops

Where the brokers differ is with their default margin call and stop-outs.

Margin Call

Pepperstone and Hugo’s Way will begin notifying you to exit your trade or top up your account when you account balance falls below different levels. Each brokers margin call begins at the following:

  • Pepperstone –  90%
  • Hugo’s Way – 100%

Stop-Outs

Pepperstone and Hugo’s Way will automatically exit you from your positions when your account falls below different levels.

  • Pepperstone – 20%
  • Hugo’s Way – 30%

Other risk management tools

Pepperstone have MetaTrader Smart tools. This is an add-on with additional trading features not found in the native MetaTrader platform. Hugosway does not offer this.

Here one can find useful risk management tools including:

  • Mini terminal – This allows trading automation by using predefined take profit and stop-loss placements. Automation reduces ambiguity you might face and help prevent trading errors.
  • Correlation Matrix – Tools to map out correlations between trading instruments means you can better manage your exposure in the market.
  • Alarm manager – This tool keeps you informed about your trading levels, available margin, profitability and other important trading metrics you should pay close attention to.

Risk Management Conclusion

Hugosway has slightly more conservative margin call and stop-outs defaults than Pepperstone. The defaults differences are only 10% so not significant. Pepperstone, however, offers advanced smart trading tools which have tools that will make your trading experience better. Some of these tools can be used for risk management.

Open a demo account >>Visit Pepperstone >>

Which forex broker offers superior training/education and research?

The complete absence of education and research tools available with Hugosway is notable. Hugosway does not offer any training videos, learning centre, 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 with Pepperstone.

Pepperstone education and training

Pepperstone offers training and education tools for traders of all levels covering all aspects of the trading process. Features include:

  • Webpages devoted to explaining trading concepts
    • Learn to trade forex
      • How does forex trading work
      • Risk management
      • Technical indicators
    • Learn to trade CFDs –
      • What is CFD
  • Webinars – expert-led seminars on the web with a focus on helping you develop your forex knowledge and be a better trader
  • MetaTrader 4 course – 11-part course led by forex expert Boris Schlossberg
  • Trading guides – series of guides graded as beginner, intermediate, expert covering a range of trading topics
  • Forex trading course – These are youtube style videos led by industry experts teaching you all aspects of forex trading
  • Economic calendar – A tool to filter live trading information by timezone, country and currency to obtain trading information to suit your requirements

Pepperstone research

With Pepperstone research, you will receive the following

  • Coverage of important economic events such as market news and financial events
  • Commentary from industry experts such as trading opportunities

Conclusion – Education, training and research

Pepperstone has a wealth of education and research tools which makes them competitive with those on offer with some of the best brokers on the market. These tools can be very helpful as a part of your trading and foreign exchange trading journey to success.

 

Who offers the best range of contracts for difference(CFDs)?

Both brokers offer a different range of derivatives for trade. The table below sums up the differences

CFDPepperstoneHugo's Way
Currency Pairs61+55
Cryptocurrencies517
Metals76
Indices1411
Stocks CFD6464
Futures01
Soft commodities50
Energies33
Currency Index CFD10

Both brokers offer a relatively similar range of derivatives for trade.  Pepperstone offers soft commodities and a few extra currency pairs while Hugosway offers a greater range of cryptocurrencies.

Cryptocurrency compared

CrytocurrencyPepperstoneHugosway
CommissionNoneUSD$5 per lot
Hedging permittedYesYes
Minimum Lots0.010.01
Maximum Lots100100
Default Margin Call90%100%
Default Stop-Out20%70%
Cryptocurrencies AvailableBitcoin
Bitcoin Cash
Litecoin
Ethereum
Dash
Bitcoin
Bitcoin Cash
Dash
EDO
EOS
Ethereum
Metaverse ETP
IOATA
Litecoin
Neo
OmiseGo
TRON
Monero
XRP
ZCash
Santiment Network Token

Cryptocurrency with Hugosway

Hugosway offers 16 Cryptocurrency types and 31 crosses. This is a lot more than Pepperstone who offer 5 types of Cryptocurrencies.

While an experienced trader could appreciate the wider choice of cryptocurrencies that Hugosway offer, it is important to understand that most of these Cryptocurrencies are not well established which means they can be highly volatile.  If you do choose to trade with leverage of 100:1 then you need to make sure you understand the risks.

On the plus side, Hugosway does limit the size of lots you can order with which can make trading expensive given you will pay USD$5 per lot.

Cryptocurrency with Pepperstone

Pepperstone only offers the major cryptocurrencies. These established cryptocurrencies are likely to be more stable and therefore lower risk than other cryptos. Pepperstone restricts leverage to 5:1 which is a responsible level give then uncertainty with trading Cryptocurrencies.

Pepperstone does not charge commissions for trading cryptocurrencies, so you will pay through wider spreads.

CFD conclusion

Which broker you choose when it comes to CFDs will come down to personal preferences. Both offer a similar variety of CFDs however Hugosway places a greater emphasis on cryptocurrency trading which some brokers may appreciate. If you do choose Hugosway for cryptocurrency, do note that lot size is restricted and you will pay commission for each trade you do.

 

Who has better deposit and withdrawal options

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

Funding MethodPepperstone - Deposit/WithdrawalHugosway - Deposit/WithdrawalPepperstone - Min/Max Deposit/WithdrawalHugosway - Min/Max Deposit/WithdrawalComments
Credit Card (Visa/MasterCard)FreeFreeNoneMin Deposit - USD$50
Max Deposit - USD$600
Hugosway - Profits must be withdrawn via Bitcoin or Bank Transfer
Debit Card (Visa/Debit)FreeFreeNoneMin Deposit - USD$50
Max Deposit - USD$600
Hugosway - Profits must be withdrawn via Bitcoin or Bank Transfer
BitcoinNot AvailableFreeFreeMin Deposit - USD$50
vLoadNot AvailableFreeNot AvailableNot AvailableHugosway -Vouchers accepted in EUR/USD
PayPalFreeNot AvailableFreeNot Available
BankWireFreeUSD$25 up to 5kAUD/USD$20Min Deposit - USD$100Pepperstone - International Transfer AUD/USD$20
PoliFreeNot AvailableFreeNot Available
BPayFreeNot AvailableFreeNot Available
NetellerFreeNot AvailableFreeNot Available

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. Hugos provide instructions on how to do this.

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

Funding conclusion

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.

Who has better customer service?

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, 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 form and calls back. There is no phone number, perhaps because the support team are located in Seychelles.

If you use the live chat, you will be greeted with Hugo’s Bot which will try to find the answer for you before escalating you to help desk. The live chat team are 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 are 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.

Customer Service Conclusion

Both brokers offer good customer service. A useful FAQ section is provided from both brokers which should answer most of your question. If not, the live chat for each broker is friendly and helpful. When it comes to customer service, Pepperstone main point of difference Pepperstone has the edge because they are award-winning and have a more professional setup. This is reflected by the fact they provide phone contact. All respectable brokers provide phone contact for customer support. Hugo’s Way not providing is unusual.

Pepperstone Demo Account LogoThe Overall Winner Is Pepperstone

Pepperstone is the winner based on the forex brokers:

  • Regulation (FCA + ASIC)
  • Lower Spreads
  • Choice of MT4, MT5, cTrader forex trading platform

Open a demo account >>Visit Pepperstone >>

Who are Pepperstone?

I have long been familiar with Pepperstone. Pepperstone was founded in Melbourne, Australia in 2010 by a team of experienced traders seeking a solution to their frustrating experience of slow trade execution, overpriced trading and unsatisfactory customer support. With a sound commitment to solving these issues through best in class technology,  tight spreads and commitment to helping their clients be successful trader Pepperstone have risen to become one of the known and respected brokers not just in Australia but the world.

Pepperstone has 73,00 clients worldwide who combine to trade average US$12.55bn of trades every single day.

Who is Hugo’s Way Fx?

Until recently I had not heard of Hugo’s Way. I discovered Hugo’s Way thanks to their extensive social media presence though facebook, forex forums and even Twitter. While I know the title sounds like the name of a movie or novel, Hugo’s really is a CFD broker. The broker is based in Seychelles and commenced operating mid-2016. I spoke to their customer service wanting to know more about them and they claim they have grown ‘exponentially’ over the last 2 years. Other than these details and what they offer as a broker (which I will cover in my review), not that much is known about them.