Pepperstone is an award-winning company and one of the fastest-growing Australian Forex brokers. They offer the two most popular forex trading platforms and a demo account with either.
View our Pepperstone demo account review below where we analyse key strengths and weaknesses. This review was updated on the 7 January 2020.
Pepperstone Demo Account Review
A forex demo account is recommended for those:
New to currency trading
Looking to test automated trading (including expert advisors)
Wanting to test new trading strategies
A Pepperstone demo account allows these individuals to use either of the forex trading platforms (MetaTrader or cTrader) in a risk-free environment. This means that all trades are virtual and with no fees associated with Pepperstone demo account there are no costs and no minimum deposit. A demo account can back-test tools or can simulate the current trading environment.
Pepperstone Offer $50,000 in Virtual Funds
With a Pepperstone demo account, Pepperstone provides the option of a fully virtual test drive of their platform. Instead of working with your funds, this option allows you to investigate the platform fully risk-free using $50,000 of simulated funds. The initial demo account is limited to 30 days. A request can be made to Pepperstone to go past these 30 days. The simulated funds are tracked just as real ones might be so that you can explore the entirety of the platform in a truly risk-free setting.
Two account types can be selected when opening a demo account. The first is the standard account which has no commissions but large spreads. The second is for more advanced traders which is the razor account. Razor accounts are available on both the MetaTrader and cTrader forex platform. It’s recommended to open a demo account based on what you feel your live account will be. This is because the spreads and commissions of the demo trading accounts are based on your selection which impacts profit/loss results. It’s best to get a realistic feel for trading costs before live trading.
Experienced forex traders know that one of the biggest risks in any forex trade is the lag time between when a trade is made and when it settles. Pepperstone is the fastest forex trading platform on the market. As a result, the platform minimises transaction risk. Pepperstone prides themselves on this fact and claims to be twelve times faster than the closest competitor. The Pepperstone demo account certainly showed a minimum of lag time, though it is certainly possible that the simulated lag times are optimistic. Regardless, the company promises the fastest trading speeds among forex trading platforms. Pepperstone claims that this is due in part to fibre network access to large banks and other such liquidity providers. The company calls this facet of their platform EDGE, and it is easy to see why. The blazing speeds are certain to provide a major advantage over other platforms.
The only issue that differs between the demo account and live account is slippage. Slippage occurs in high volatile scenarios when the time taken to execute a trade leads to a worse price than quoted. A demo account may not reflect the true slippage when this occurs and should be factored into live trading. Safeguards such as stop-loss trading don’t guarantee against slippage.
500:1 Leverage Option
Leverage is a key component for individual forex traders to see significant gains on their money. As such, a demo that lacks leverage options feels incomplete. Some companies do not provide the option for leverage in their demo products or limit the leverage to some amount other than their usual, full-service limit. Pepperstone goes the other direction here, providing access to their full range of leverage options even in their demo product. Pepperstone platform allows a maximum leverage ratio of 500:1, and their demo platform provides the same range of leverage. As a result, more than many platforms, the Pepperstone demo trading account almost exactly mirrors its full, paid account.
This allows you to get a much fuller picture of whether the account is right for you in a risk-free setting with no fees. Combined with the $50,000 in virtual funds, it is possible to experiment with multi-million dollar leveraged deals. This combination of features makes the demo platform great for learning more about how leverage works and what its benefits are in forex trading, particularly.
Multiple Platform Options Available and No Dealing Desk
Even in the demo version, Pepperstone allows access to a range of platform interfaces, including the very popular MT4 and cTrader programs. You won’t need to set up new software to access the Pepperstone platform, meaning you can get started on your trial all the faster. Speed and ease of setup seem to be the focus points for the company resulting in the best experiences for foreign exchange traders in 2020. Similar trading accounts include AxiTrader and IC Markets. Market markets such as easyMarkets and Plus500 on the hand rely on risk management tools so don’t rely as heavily on execution speed.
Additionally, Pepperstone is set up to cut out brokers that can sometimes run counter to the demands of traders. While this feature is less apparent in virtual trials, it is a feature worthy of mentioning for those interested in the platform. Those who choose to stick with Pepperstone can look forward to the lack of brokerage interference.
Foreign exchange trading is most often done from a home or work computer. On occasions, it can also be good to make a trade while away from the office from a smartphone or similar device. The Pepperstone demo account has apps that provide the capability to make such trades while abroad for several different devices. This includes Android, Apple and Microsoft devices, so you never have to pass on a good trade because of your location. In our Pepperstone review, we go into more depth regarding the compatibility of its platforms across devices.
Thing To Keep In Mind When Moving To A Live Account
The most important decision when opening a live account is making sure the forex broker regulated by the Australian body, ASIC. An ASIC regulated fx broker like FXCM and OANDA segregates clients funds in a separate bank account which for Pepperstone Group Limited is NAB. This provides a safety net if there are liquidity issues with the forex broker. Aligning regulation matters with the Pepperstone standard of ensuring the client comes first. ASIC regulation also requires other standards including the training standards of Pepperstone employees. You can also view other broker demo accounts or just Australian broker accounts.
Risk-Free, Full-Service Trial; What’s Not to Like?
This Pepperstone demo account review was updated in 2020. The key finding is the level of service available during the trial and the features from leverage, full platform compatibility and the fastest transaction executions. The virtual funds help those who are not familiar with the program to learn the ropes. For forex investors to practice their technique or for new investors to learn the basics of forex investing before jumping in. Factor in the generous duration of the trial, a full thirty days, and it is easy to see why many forex investors are trying either Pepperstone platform. Check out the advantages of Pepperstone when compared to GO Markets and IG Markets to learn more.