Pepperstone Leverage

Forex Trading Leverage

The most popular markets traded with Pepperstone is forex related. There are over 60 currency pairs to choose from and $0 deposit options available. The two Pepperstone accounts are shown below and both offer up to 30:1 retail leverage and 500:1 professional leverage on currency trading. This can be set to a lower level when joining to suit a traders risk profile and forex trading experience.

The average spread on the most popular currency pairs is 0.09 pips on EUR/USD respectively 0.17 pips on AUD/USD. This brokerage trading firm uses a global network of liquidity providers and “external pricing sources” to give its clients the lowest spreads in the FX industry.

Index Trading Leverage

When trading indices, the leverage limit depends on the type of stock market index:

• Major indices: 20:1 for retail traders, 200:1 for professional traders
• Minor indices: 10:1 for retail traders, 100:1 for professional traders

Index CFDs

Fourteen Index CFDs can be traded as shown below. With 20:1 leverage, retail traders can choose indices and choose a long or short position. Only spreads exist for index CFDs with no commissions present.

Currency Index CFDs

A currency index compares changes of one currency basket against another one. The USDX is the most popular currency index CFD traded with up to 5:1 leverage available to retail traders and 100:1 for professional traders. This basked is weighted against other popular currencies from the Yen to the Euro.

CFD Share Trading Leverage

Share CFDs are available to Pepperstone customers who choose MetaTrader 5. Using MT5, selected shares can be traded as a CFD with 5:1 leverage (retail) or 20:1 (professional). These CFDs can be traded across extended US equities hours. This can help minimise the need to hold positions overnight. Over 60 shares are available from IBM, Alphabet to Facebook.

Please take note that share CFD trading is only available with a MetaTrader 5 (MT5) trading account. The MetaTrader 4 platform and cTrader trading platform don’t support share CFDs.

Commodity CFD Trading Leverage

There are three types of commodity CFDs with an applicable leverage level.

1) Gold

The most popular precious metal being Gold can be traded with Pepperstone through CFDs with leverage of:

• Retail traders: 20:1
• Professional traders: 500:1

Leverage can be used with short/long positions against the most popular currencies including the USD, Euro and the Australian dollar.

2) Oil

Energy in the form of oil can be traded with 100:1 leverage as a CFD if you are a professional trader, and 10:1 as a retail trader.

3) Other Commodities

Other commodities such as softs (physical assets from sugar, orange juice to coffee) and other precious metals offer leverage of 10:1 for retail traders and 50:1 for professionals.

Risk Warning: CFDs are complex instruments due to the inherent risk associated with leveraged trading and volatility.

Cryptocurrencies CFD Trading Leverage

Crypto is the most volatile asset Pepperstone offers. The higher risks involved in these movements is why Pepperstone leverage is 2:1 when you are classified as a retail investor account (the lowest of any asset class). Even with this lower leverage, your capital is at risk and cryptocurrency CFD trading is recommended for advanced traders. The cryptocurrencies available are Bitcoin, Bitcoin Cash, Dash, Litecoin and Ethereum.

If you are a professional trader, you are offered higher leverage when crypto trading, up to 20:1.

Summary Of Pepperstone Leverage

The Australian Securities and Investments Commission (ASIC) which regulates the financial sector in Australia has set a maximum leverage cap of 30:1 for forex trading. Readers must be aware that from 29 Dec 2021, new guidelines were enforced in regards to the maximum leverage limits.

The maximum leverage has been reduced to 30:1, which falls in line with other top-tier regulators. Similar regulatory changes took place in the United Kingdom in 2018, when the Financial Conduct Authority (FCA) capped the maximum leverage to 30:1. The new ASIC changes will ensure that all retail investor accounts will be safeguarded with Negative Balance Protection (NBP). By comparison, in the DFSA (Dubai) jurisdiction, the maximum leverage is capped at 50:1.

You can read more about the reduced maximum leverage limits here 2021 ASIC Forex Trading (CFD) ASIC Changes.

Pepperstone in 2022 is considered the best forex broker for advanced traders compared to brokers like FXCM and OANDA. To open an account on the Pepperstone website or to open a demo account, click on the button below. If you would like to see the full Pepperstone review then click the button below.

Deposit and Withdrawal Methods

Pepperstone Limited allow its clients to deposit and withdraw funds via 8 different payment methods including credit card, bank transfer, PayPal, Neteller, Skrill, etc. The minimum deposit at Pepperstone is AUD $200 for both account types – Standard account and Razor account. There is a diverse selection of 10 different account base currencies (AUD, USD, JPY, GBP, EUR, CAD, CHF, NZD, SGD, and HKD) meeting the needs of a worldwide geographical client base.

The key features of this CFD broker are the low spreads starting from 0.0 pips, exceptional trade execution of 30ms, award-winning customer support, a powerful range of trading platforms that include full trading functionality even on the mobile app (Android and iOS), third-party tools Autochartist, social trading features and premium educational resources (webinars, trading guides, blogs, etc).

Before determining which level of leverage is appropriate for your trading purposes it’s integral that you seek independent advice and understand what your objectives and financial circumstances are. Trading decisions should not be based on generalised reviews.

Regulation

Pepperstone is a very user-friendly ASIC regulated broker that is based out of Melbourne Australia. Despite that being their main office, Pepperstone is one of the most worldwide regulated brokers with offices on 5 continents. This means they are very well connected to regulation agencies across the globe, some of these include:

• SIC (Australia Securities and Investments Commission) – Australia
• CySEC (Cyprus Securities and Exchange Commission) – Cyprus
• DFSA (Dubai Financial Services Authority) – Dubai
• SCB (Securities Commission of the Bahamas) – Bahamas
• BaFIN (Federal Financial Supervisory Authority) – Germany
• CMA (Capital Markets Authority) – Kenya

Are You In Europe And The UK?

Leverage offered by Pepperstone is limited in regions like the UK. Their subsidiary Pepperstone limited meets FCA requirements for retail brokers which can be viewed on the UK Pepperstone leverage page.

Disclaimer: Pepperstone is a broker that allows trading CFDs, which is a high-risk activity. This is only amplified when a high volume of leverage is added into the equation, so we urge you to make smart choices and check your broker’s maximum leverage before trading.

If you are going to utilise Pepperstone’s copy trading tools and features then make sure to do your own market analysis on the select trading strategies to ensure you are confident.