The key difference between Pepperstone’s Standard vs Razor accounts is fees. The Razor account has the lowest fees with raw spreads from 0.0 pips and low commissions. The standard account has no commissions but spreads are 1 pip higher.
EUR/USD Avg. Spread
MetaTrader 4 MetaTrader 5
MetaTrader SignalsMyfxbook (N/A in UK/Europe)DupliTradePelican (UK/Europe)
MetaTrader SignalsPelican (UK/Europe)
Beginner Traders Discretionary Traders Low Volume Traders
Day Traders ECN Style Trading Cost Saving
Multi-Asset Trading Stock CFD Trading Day Traders
Both Pepperstone account types are primarily the same and both include:
The Razor account has lower fees overall. The standard account has a 1.0 pip markup on spreads which offset any benefit of not getting charged commissions. This is why the Razor account is the flagship account of Pepperstone which most traders choose. Other unique features of the razor account include:
You can calculate Razor account fees using our exclusive forex calculator and compare the costs to other brokers. Our spread comparison found that Pepperstone has some of the lowest spreads on most currency pairs (eg EUR/USD) and competitive commissions which is why traders choose this account.
The Pepperstone Razor account offers tighter spreads than the Standard account. This is because Pepperstone do not add 1 pip to the spreads. Instead, a commission fee is charged. The Pepperstone Razor account offers tighter spreads because they use the Electronic Communication Network (ECN) style execution to provide you with your buy and sell price. ECN technology allows for the tightest spreads because Pepperstone does not interfere or manipulate the spread in any shape or form. Pepperstone spreads are set externally set by liquidity providers, and Pepperstone do not add any pips to the spreads.
Our spread comparison compared Pepperstone to other ECN broker accounts. It found the major competitors were IC Markets and FP markets who offer similar spreads on popular currency pairs from the EUR/USD to AUD/USD. Commissions to these other brokers were almost identical across the three forex trading platforms from MT4, MT5 to cTrader making the Pepperstone overall fees one of the lowest worldwide.
Data taken from broker website. Accurate as at 02/04/2021
When trading with Razor account, you will pay commission for each side of the trade. If you are using MT4 or MT5, you pay $3.50 for each standard lot per side. As a cTrader user, you will pay 0.0035% of the base currency of the fx pair, per side, i.e. €3.50 per side if you are trading 100,000 units of the EUR/USD. Below images show your commission cost for each type of currency when trading MT4.
Overall, the lower fees, faster execution and greater choice of forex trading platforms and tools are why Pepperstone Razor account is the choice of most traders worldwide.
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The overall rating is based on review by our experts
The Pepperstone Razor account is designed for beginner traders. In our Pepperstone account review, we found the Pepperstone standard account offers a wider spread when compared to the Razor Account. In the table below, you will notice the Pepperstone spread difference between the two accounts is 1 pip. This is added by the broker to the raw market price to compensate for Pepperstone’s brokerage services.
Pepperstone uses straight-through processing (STP) to determine your spreads for the Standard account. What this means is they send your position to a liquidity fx broker and add 1 pip to the spreads set by the market. This might sound slightly like a market maker but it is quite different.
A traditional market maker fx broker sets their own buy and sell price and deals with their own liquidity. An STP online forex broker, on the other hand, does not set the buy or sell price or hold any liquidity. Rather, they forward a trader’s position to financial merchants who will buy or sell the online forex. There is no dealing desk or requotes.
Adding 1 pip to the spread and not applying commission charges fees is similar to a service provider that provides a flat fee for their service. Pricing and trading costs are upfront and transparent. You know what your costs will be with little calculations required on your part. No commission accounts are therefore more convenient to manage and great for beginner traders.
Funding and withdrawal methods
Pepperstone offer access to a personalised and secure client area, where you can access your funding and withdrawal needs safely and securely.
Pepperstone currently accepts:
Trading Tools – Autochartist
In addition to its trading platforms, the Pepperstone Razor account also offers various trading tools. Autochartist is one of the trading tools offered by the Pepperstone Razor account. Autochartist helps traders eliminate market noise by focusing on currency pairs and technical indicators that signify key market events. The trading feature has a unique market scanner that identifies statistically significant market movements that highlight important price levels that act as a catalyst for market movements and volatility.
Probability filters are another feature of Autochartist. These built-in filters are backtested for 6 months, allowing users to select past-performance probability values and patterns. Autochartist also acts as a risk management tool. With trading conditions constantly changing, Autochartist’s risk calculator allows users to set orders that remain within their risk tolerance. As well as risk management tools, Autochartist also provides technical indicators, with users receiving automatic notifications for certain chart patterns such as triangles, wedges, tops and bottoms. The tool offers functionality by providing volatility analysis, which helps users set appropriate profit and stop-loss levels.
In addition to Autochartist, Pepperstone Razor also offers trading guides and webinars to help users further understand financial markets and improve their performance.
Traders that choose the cTrader trading platform have a different commission structure to Pepperstone. The commission rate is 0.0035% of the base currency that is traded. For example, if you trade 100,000 units of the EUR/USD, the commission charges will be EUR (the first currency) and total €3.50. This will be charged on each side so the total of a round turn will be €7.00. This is then converted back to the trading account base currency such as AUD.
When you trade forex online, you trade lots which represent the trading volume. There are three types of lots – a micro lot is 1000 units, a mini lot is 10,000 units and a standard lot is 100,000 units. The table below shows the value of a selection of lots with Pepperstone. You will notice AUD/USD is 10 USD for 1 standard lot.
For our examples, we have taken the average spread for AUS USD from the Pepperstone website. AUS is the base currency and USD is the quote currency.
Standard Trading with 0.01 lot (ie. 0.10 USD) with 1.27 pip value and no commission is 0.10 x 1.27 = 0.127 Razor Trading with 0.01 lot (ie. 0.10 USD) with 0.27 pipe value plus 0.07 commission is 0.10 x 0.27 = 0.027 + 0.07 = 0.097
0.03 cents for each standard lot can be saved using the Razor account.
Standard Trading with 0.10 lot (ie. 1 USD) with 1.27 pip value and no commission is 1 x 1.27 = 1.27 Razor Trading with 0.10 lot (ie. 1 USD) with 0.27 pip value plus 0.70 commission is 1 x 0.27 = 0.27 + 0.70 = 0.97
0.30 cents for each standard lot can be saved using the Razor account.
Standard Trading with 1 lot (ie. 10 USD) with 1.27 pip value and no commission is 10 x 1.27 = 12.70 Razor Trading with 1 lot (ie. 10 USD) with 0.27 pip value plus 0.70 commission is 10 x 0.27 = 2.7 + 7 = 9.7
$3 for each standard lot can be saved using the Razor account.
Frequent high-volume traders can receive discounts via the Pepperstone Active Trader program.
To be eligible for the high-volume rebates, you must trade a specific minimum volume over a three-month period.
Rebates are also only made for forex majors, minors, crosses and exotics including:
Pepperstone ECN Razor account outperforms its standard account when it comes to trading costs, regardless of the number of lots you trade with. This is why we recommend Pepperstone’s ECN account for a high volume of expert traders. View our full review of Pepperstone if you want to learn more about this Australian forex broker. There is also a spread and fees Pepperstone article detailing the brokerage costs of the forex brokers.
Our Pepperstone review found 3 reasons why you might choose Standard over Razor:
Pepperstone is regulated in seven financial jurisdictions being:
The FCA, CySEC, BaFin, CySEC and ASIC regulation restricts leverage for retail traders to 30:1 and requires the broker to negative balance protection. Professional traders can access leverage of 500:1 however will not have negative balance protection.
If you are trading with the brokers branch based in Dubai you’ll be able to trade with leverage of 50:1. If you want higher leverage, Pepperstone’s branch in Kenya provides access to 400:1 leverage, the Bahamas branch 500:1.
Pepperstone to GO Markets or IG Markets in our head-to-head comparison tables.
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Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.