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.
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Our comprehensive comparison covers the 10 most important trading factors to help you make an informed decision.
Both Pepperstone and Hugo’s Way offer a commission-based account that uses ECN pricing. You will incur three major trading costs when using this type of account. These are:
Spreads
Spreads are more difficult to compare as Pepperstone provide their average spreads and Hugo’s Way does not. I contacted Hugo Ways, and they were kind enough to provide me with their lowest recorded spreads for each currency pair. While Hugosway’s lowest spread is 0.2 pips, Pepperstone is much more competitive offering minimum spreads of 0.0 pips via its Razor Account.
| Spreads on 02/10/2018 | EUR/USD | USD/JPY | AUD/USD | GBP/USD |
|---|---|---|---|---|
| Hugo's Way (Low) | 0.2 | 0.2 | 0.3 | 0.4 |
To understand Pepperstone’s competitiveness, the table below compares the broker’s average spreads to other top brokers. As you can see, Pepperstone’s average spreads are significantly lower than Hugosway’s minimum spreads.
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Raw Spread comparison
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|---|---|---|---|---|---|
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0.10 | 0.20 | 0.40 | 1.00 | 0.60 |
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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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0.17 | 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 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 10/01/2024
Pepperstone also offers very competitive standard account pricing with minimum spreads of 0.6 pips with no commission fees. The commission-free standard account type is a great choice for beginner traders, as you do not need to worry about calculating commission costs whilst you are trading.
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|---|---|---|---|---|---|
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1.10 | 1.20 | 1.40 | 2.00 | 1.50 |
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0.70 | 2.20 | 1.10 | 1.60 | 1.60 |
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1.90 | 2.00 | 2.40 | 2.30 | 2.50 |
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1.40 | 2.50 | 2.50 | 2.60 | 2.60 |
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1.20 | 1.80 | 1.90 | 2.30 | 2.30 |
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1.32 | 1.95 | 1.37 | 1.87 | 1.73 |
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1.30 | 1.70 | 2.10 | 1.70 | 2.10 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 10/01/2024
Standard Account Spreads
When we look at the average standard account spreads for the forex pairs, we see some interesting differences between Hugo’s Way, Pepperstone, and the industry average.
Hugo’s Way has spreads that are generally higher than the industry average. For example, the spread for EUR/USD is 1.2, which is higher than the industry average of 1.0. This trend continues across all the forex pairs, with Hugo’s Way consistently having higher spreads than the industry average.
On the other hand, Pepperstone offers more competitive spreads. For instance, the spread for EUR/USD is 0.8, which is lower than both Hugo’s Way and the industry average. This pattern is consistent across all forex pairs, making Pepperstone a more cost-effective option for traders.
| Forex Pair | Hugo’s Way | Pepperstone | Industry Average |
|---|---|---|---|
| EUR/USD | 1.2 | 0.8 | 1.0 |
| GBP/USD | 1.6 | 1.1 | 1.3 |
| USD/JPY | 0.9 | 0.7 | 0.8 |
| AUD/USD | 1.1 | 0.9 | 1.0 |
| USD/CAD | 1.3 | 1.0 | 1.1 |
| USD/CHF | 1.2 | 0.9 | 1.0 |
| NZD/USD | 1.4 | 1.1 | 1.2 |
Standard Account Analysis Updated October 2024 [1]October 2024 Published And Tested Data
In my opinion, Pepperstone offers a more affordable trading experience in terms of spreads. The lower spreads can significantly reduce trading costs, especially for high-volume traders. However, it’s important to remember that spreads are just one aspect of trading costs. Other factors such as commissions, fees, and the trading environment can also impact the overall cost of trading.
Commission
When it comes to commission – Pepperstone offers better commission without question.
| One way pricing | MetaTrader 4 | MetaTrader 5 |
|---|---|---|
| Pepperstone - AUD | $3.50 | $3.50 |
| Pepperstone - USD | $3.50 | $3.78 |
| Hugo's Way - USD | $5 | Not offered |
Hugo’s Ways charges USD $ 5 per standard lot. This is expensive when compared 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 is not regulated. I asked them why this is the case for information purposes and this is what they said:
Pepperstone charges in your account currency. So if you’re in Australia, you are better to trade with AUD than USD. IC Markets and Oanda have similar commission rates for the core pricing + commission pricing model.
ECN Trading
Both brokers use ECN-style trading to provide you with the tightest spreads.
ECN Trading With Pepperstone
Pepperstone prefers not to call itself an ECN broker. This is because ‘true ECN’ or STP brokers use someone else’s trading system, independent of their own trading system. Pepperstone is therefore not a ‘true ECN’ as they are the issuer of its 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 calls itself a ‘True ECN’ broker, but the information on its website is conflicting. Hugo’s Way sources your quotes from 50 different banks and dark pool liquidity providers, however, claim they provide ‘true ECN’ and at other times claim they practice STP execution.
While one can argue that 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 has wider spreads than Pepperstone, the question has to be asked about Hugo’s Way execution.
Verdict: Pepperstone offers lower costs than Hugo’s Way. Commission costs are lower than Hugo’s Way and the spread generally appears narrower. All in all, forex traders can save on their trading costs if they open a trading account with Pepperstone.
Pepperstone ReviewVisit Pepperstone
*Your capital is at risk ‘74-89% of retail CFD accounts lose money’
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
Pepperstone Social And Copy Tools:
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.
Pepperstone Accounts
Pepperstone offers two main account types. These are:
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:
Hugo’s Way Account
Hugo’s only offers one account. This is the ECN account.
Below is a comparison of each broker’s accounts
| Pepperstone Standard | Pepperstone Razor | Hugo's Way | |
|---|---|---|---|
| Spreads (EUR/USD) | from 0.6 | from 0.0 | from 0.2 |
| Commission | None | $3.50 AUD/USD | $5.00 USD |
| Minimum Lots | 0.01 | 0.01 | 0.01 |
| Maximum Lots | 100 | 100 | 100 |
| Minimum account opening balance | $200 AUD / USD (not enforced) | $200 AUD / USD (not enforced) | $10 USD |
| Scalping allowed | Yes | Yes | Yes |
| Expert Advisers | Yes | Yes | Yes |
| Hedging Allowed | Yes | Yes | Yes |
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.
When it comes to trading experience and ease, Pepperstone takes the cake.
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.
Pepperstone Trust Score
Hugo’s Way Trust Score
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:
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:
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.
| Pepperstone | Hugo's Way | |
|---|---|---|
| Tier 1 Regulation | ASIC (Australia) FCA (UK) BaFin (Germany) CYSEC (Cyprus) |
|
| Tier 2 Regulation | DFSA (Dubai) | |
| Tier 3 Regulation | SCB (Bahamas) CMA (Kenya) |
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’
| Broker | Forex Pairs | Commodities | Indices | Cryptocurrencies |
|---|---|---|---|---|
| Pepperstone | 61 | 15 | 23 | 5 |
| Hugo’s Way | 55 | 10 | 12 | 3 |
Verdict: Pepperstone offers a more comprehensive range of CFDs and markets.
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.
Verdict: Based on our testing, Pepperstone scores higher in offering superior educational resources.
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.
Verdict: Pepperstone offers better customer service, scoring higher in our tests.
Below is a summary of all the funding options each broker provides
| Funding Method | Pepperstone - Deposit/Withdrawal | Hugosway - Deposit/Withdrawal | Pepperstone - Min/Max Deposit/Withdrawal | Hugosway - Min/Max Deposit/Withdrawal | Comments |
|---|---|---|---|---|---|
| Credit Card (Visa/MasterCard) | Free | Free | None | Min Deposit - USD$50 Max Deposit - USD$600 |
Hugosway - Profits must be withdrawn via Bitcoin or Bank Transfer |
| Debit Card (Visa/Debit) | Free | Free | None | Min Deposit - USD$50 Max Deposit - USD$600 |
Hugosway - Profits must be withdrawn via Bitcoin or Bank Transfer |
| Bitcoin | Not Available | Free | Free | Min Deposit - USD$50 | |
| vLoad | Not Available | Free | Not Available | Not Available | Hugosway -Vouchers accepted in EUR/USD |
| PayPal | Free | Not Available | Free | Not Available | |
| BankWire | Free | USD$25 up to 5k | AUD/USD$20 | Min Deposit - USD$100 | Pepperstone - International Transfer AUD/USD$20 |
| Poli | Free | Not Available | Free | Not Available | |
| BPay | Free | Not Available | Free | Not Available | |
| Neteller | Free | Not Available | Free | Not 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. 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.
| Funding Option | Pepperstone | Hugo’s Way |
|---|---|---|
| Credit Card | ✓ | ✓ |
| Bank Transfer | ✓ | ✓ |
| PayPal | ✓ | ✗ |
| Skrill | ✓ | ✓ |
| Neteller | ✓ | ✓ |
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.
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.
| Broker | Minimum Deposit |
|---|---|
| Pepperstone | $200 |
| Hugo’s Way | $50 |
Verdict: Hugo’s Way offers a lower minimum deposit, making it more accessible for beginners or those on a tighter budget.
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.
| Criteria | Pepperstone | Hugo’s Way |
|---|---|---|
| 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 | ✗ | ✓ |
Hugo’s Way is better suited for beginner traders due to its lower minimum deposit and simpler account structure.
For experienced traders, Pepperstone is the go-to option, offering a robust trading platform and superior features.
Pepperstone has lower costs. They offer competitive spreads, starting as low as 0.0 pips. For more on low-cost trading, check out our lowest spread brokers.
Pepperstone is the superior choice for MetaTrader 4 users. They offer advanced features and tools. For more details, visit our best MT4 brokers page.
Neither Pepperstone nor Hugo’s Way offers social trading. However, you can explore other brokers that do on our best copy trading platforms page.
No, neither Pepperstone nor Hugo’s Way offers spread betting. For alternatives, you can check our best spread betting brokers in the UK.
In my opinion, Pepperstone is superior for Australian Forex traders. They are ASIC regulated and founded in Australia. For more, visit our Best Forex Brokers In Australia page.
For UK traders, Pepperstone is the superior option. They are FCA regulated and offer a robust trading environment. Check out our Best Forex Brokers In UK for more information.
No commission account spread proprietary testing data and published website spread information, centralised on our Standard Account Spreads page.
Ask an Expert
Is there a deposit bonus for Hugosway?
No or not at this time
Comparison, Hugosway vs FP Markets Mt4 Platform
Both brokers offer MT4 with much the same trading features, ie. scalping, expert advisors for automation, signals trading. If i was choosing between the brokers, MT4 would not be a factor.