Pepperstone Commission Guide

This page breaks down the commission charged on each account at Pepperstone Markets Limited, the Standard and the Razor, across every platform and account currency. I think the choice between them comes down to how actively you trade, and the numbers below should make that decision easier.

This page is a desk-based comparison built from each broker's published pricing and terms and our recorded data; we have not tested these accounts except in our recorded tests.

Pepperstone Razor Account Commissions

Razor pairs raw spreads from 0.0 pips on major pairs such as EUR/USD with a commission on forex and spot gold, so the commission, plus any overnight charges, can be the entire cost of a trade. What you pay depends on three things: the platform, the lot size, and the currency of the account. I recommend reading the features list below before deciding, because those details matter as much as the headline rate.

Key Features Of the Razor Account

• Forex spreads from 0.0 pips + commission for each lot traded
• Spreads are more ECN-like (that a standard account) since quotes are more true market rates (i.e. those provided by liquidity providers)
• Choice of MetaTrader 4 or 5, cTrader and TradingView trading platforms
• Pepperstone Leverage up to 200:1 for retail clients and 500:1 for professional clients at Pepperstone Markets Limited (SCB)
• Best for advanced traders, day traders, scalpers, high-volume and high-frequency traders.

By using STP execution with no dealing desk, spreads can be kept low, which allows for the Pepperstone ECN-like pricing.

Snapshot of Razor Account Commissions

A USD account on MetaTrader pays US$3.50 per side, which is US$7 round turn for each standard lot you trade, with other account currencies and smaller lot sizes charged on their own schedule. cTrader runs at US$6 round turn per lot and TradingView at US$7, converted at the spot rate when the account is not in USD. I would anchor cost comparisons to the MetaTrader rate.

Commission on the Razor account applies to each margin FX and Spot Gold (XAU/USD) trade. US share and ETF CFDs carry a commission of US$0.02 per share on both account types, while index CFDs and commodities other than Spot Gold carry no commission. For more on trading gold CFDs, see the Best Brokers for Gold CFD Trading guide.

Razor Commissions With MetaTrader

Given how commissions differ between trading platforms, account currency and lot size, in this section we take a deep dive into how commission costs are applied. Commissions MetaTrader 4 and MT5 Deep-Dive, Account Currency Matters

To keep spreads low and help the broker avoid wider spreads, a commission is paid.

On MetaTrader 4 and MetaTrader 5 the commission follows the account currency: US$3.50 a side in USD, AUD 3.50, EUR 2.60, and GBP 2.25 for those accounts. On MT4 the full amount is charged when the trade opens. I suggest settling on one of the ten currencies, USD, AUD, EUR, GBP, CHF, JPY, NZD, SGD, CAD, and HKD, before funding the account.

When opening an account I recommend nominating a base currency that matches the bank account the funds will come from, since a mismatch means conversion fees each time funds move between the bank and the trading account. Any of the ten currencies can be chosen, but the cheapest path avoids converting money twice.

Razor Commission using cTrader and TradingView

cTrader charges US$6 round turn per lot and TradingView US$7, and Pepperstone converts the commission into your account currency at the spot rate when the account is not in USD. Trades under one lot are adjusted in proportion, which I think is the right treatment for smaller positions.

Commission and Trading Lots Size

Pepperstone allows trading with 3 types of lot sizes. On this page, we quote using standard lots which is the equivalent of 100,000 units of the base currency. Smaller lots are available as well: a mini lot is 10,000 units of the base currency and a micro lot is 1,000 units, equal to 0.1 and 0.01 of a standard lot.

Smaller lots let a trader size positions to their capital and appetite for risk, since a mini lot carries a tenth of the standard charge and a micro lot less again. I like that flexibility for anyone starting out or preferring to put less of their own funds behind each position.

Since micro and mini lot sizes are smaller, it is only right that the broker charges a smaller commission. Pepperstone applies a straight pro-rata conversion for mini lots. If the commission is $3.50 for a standard lot, you can expect to pay 35c for a mini lot (0.1).

On MT4 and MT5, commission for a micro-lot trade is rounded up or down rather than divided exactly. I would factor that rounding in when costing very small positions.

Razor Account Round Up

With commissions of $7.00 round-turn per lot, commissions with Pepperstone follow industry standards. Nearly all ECN-style brokers have exactly the same commissions, there are some brokers that charge more but there are some brokers that charge less. For more info, visit our GO Markets Review and Fusion Markets Review. We have previously written about the Lowest Commission Brokers.

While the Razor Account does have commission costs, the spread is very low which more than makes up for the added commissions. In fact, Pepperstone is one of the Lowest Spread Forex Brokers for this style of account.

To help you choose between the Pepperstone Razor account and the Pepperstone Standard account, let’s look at the commission on the Pepperstone Standard account, a good account for beginner traders.

Pepperstone Standard Account Commissions

The Standard account charges no commission on forex and instead applies a 1 pip markup, with spreads from 1.0 pips and a published 1.1 pip average on EUR/USD. I think it suits beginners best, since the whole cost sits in the spread and you get one number to judge.

Standard Account Features

• Forex spreads from 1.0 pips
• No commission costs (commission included in the spread)
• Pepperstone platform, MetaTrader 4, MetaTrader 5, and cTrader
• Expert Advisors on MetaTrader 4 for automation
• Best for beginner traders, discretionary traders, long term traders

Snapshot of Pepperstone Standard Account

Spreads with the Standard account are wider than the Razor account, since the broker’s commissions, or trading costs, are included with the spread. Despite this, spreads are still low being just 1.0 pips per lot. Like with the Razor account, one can choose between standard, micro and mini lots.

At Pepperstone Markets Limited the Standard account runs on the Pepperstone platform, MT4, MT5, and cTrader, with the commission built into the spread rather than charged separately. If you want simple all-in pricing, I would point to this account.

Pepperstone Standard Account Commissions Deep-Dive

As already established, the Pepperstone standard account has no commission costs. In reality, this isn’t exactly true, it just means the broker has incorporated the commissions into the spread.

When comparing minimum spreads with Pepperstone Razor Account and Standard Account, it appears they widen the spread by a flat 1.0 pips for major and minor pairs.

Raw Account Spreads

Standard Account Spreads

The Standard spreads above sit roughly 1 pip wider than the raw figures, the price of a markup instead of commission. I consider the Standard account well suited to the Pepperstone platform, MT4, MT5, and cTrader, and MT4 runs Expert Advisors and indicators, placing it among the Automatic Trading Platforms.

Swap-Free (Islamic) Account

Pepperstone Markets Limited publishes no swap-free account page of its own, so I would ask the broker directly about Islamic account terms before you open one here. The group’s Kenyan company, Pepperstone Markets Kenya Limited (CMA licence 128), does publish such terms: US$100 per lot on currency and metal positions once five rollovers have passed, for a country list naming Malaysia and Egypt. Those terms belong to that entity, not the one on this page, which is why the question is worth asking first.

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Choosing Between Razor Vs Standard Accounts

A dedicated comparison on this site sets the two accounts side by side. Working on the 1 pip markup applied to Standard, I would call Razor the cheaper option, and the difference weighs heaviest for traders who deal in volume.

Remember that the cost with a standard account is with the spread only, while a Razor account has spreads + commission. So, if we apply the minimum spread for each account type, then this is the result:

Standard Account

• 1.0 pips which converts to $6.00 for each lot to open a trading position

Razor Account

• 0.0 pips + $3.50, which converts to $3.50 for each lot to open a trading position.

While the Razor account is cheaper when compared to the standard account, the difference is of most significance to high-volume or high-frequency traders, as the totals will add up over time.

Before you go looking for a broker with a no-commission account and lower spreads, keep in mind that 1.0 pips are very low for a standard account. You won’t find many brokers with tighter spreads, regardless if they are Market Maker Brokers or a no-dealing desk broker.

It’s important to note that the cost with a standard account is with the spread only, while a Razor account has spreads + commission.

You can also improve your knowledge of Pepperstone’s minimum deposits required across both main accounts, the Pepperstone Standard and Pepperstone Razor accounts, as well as Pepperstone deposit information by reading our detailed explanation of Pepperstone minimum deposit requirements.

How do Pepperstone commissions compare to other brokers

The table below compares the commission charged by 16 different brokers for like-for-like trading accounts. As can be seen, The vast majority of brokers charge the standard USD$7.00 per standard lot. So it would be fair to conclude that commissions with Pepperstone on their Razor account are fair and what one would expect from a broker you can trust.

There are a few brokers that do have slightly lower commissions, examples of these are GO Markets and Fusion Markets. If you are a high-volume trader and your goal is to save on commission costs, then these brokers may be worth considering. Just be sure the spreads match or better those of Pepperstone and the broker hasn’t sacrificed other features.

Some brokers have tiered commission. This means the more you trade the lower the commission costs will be. Low-volume traders may end up paying more while high-volume traders will likely save in the long run.

Verdict On Pepperstone Commission Rates

The Razor commission of US$7 round turn per lot matches what I see as the industry norm for raw accounts, though some brokers charge less. What decides your real cost is the commission plus the spread, and on that combined measure I consider Razor the cheaper pick for active traders, while Standard suits those who want one number. The full Pepperstone Review covers everything else from platforms to execution speeds.

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