Pepperstone Razor vs Standard Account

Pepperstone Standard vs Razor account brokerage is the key point of difference with the Standard account costing 1.0 pip more than Razor account but a $0 commission. The Razor account that has low spreads starting at 0.0 pips for currency pairs like EURUSD and AUDUSD. Razor commission is $3.50 per 100k traded.

View the complete review of Pepperstone or the Pepperstone Standard vs Pepperstone razor account comparison table below.

By Justin Grossbard / Updated: Wednesday, January 08th, 2020

Pepperstone Standard Vs Razor

Strengths

1. No Commission
2. Choice of cTrader or MT4 and MT5 Trading Platforms
3. Fast Execution Speeds
4. Highest Leverage
5. Award-Winning Customer Service

1. ECN Spreads and Low Fees
2. Choice of cTrader or MT4 and MT5 Trading Platforms
3. Fast Execution Speeds
4. Highest Leverage
5. Award-Winning Customer Service

Weaknesses

1. No Guaranteed Negative Balance Protection
2. Wider Spreads (when compared to ECN accounts)
3. Minimum deposit of $200.

1. No Guaranteed Negative Balance Protection
2. Some CFDs Not Offered (ie Shares)
3. Minimum deposit of $200.

Spreads + Commissions

Spread Value

8.5
Commission Value

8.8
Spread Value

9.2
Commission Value

9.9

Forex Trading Platform

1. MetaTrader 4 with Smart Trader Tools
2. cTrader with cAlgo for trading with robots.

1. MetaTrader 4 with Smart Trader Tools
2. cTrader with cAlgo for trading with robots.

Execution Speeds

Trading Speed

10
Trading Speed

10

Leverage

500:1

500:1

Risk Management

1. Margin Stop Loss Order
2. Automated Negative Balance Protection (Not Guaranteed)
3. Regulated by Australia Securities & Investments Commission (ASIC)
4. Segregated accounts with National Australia Bank

1. Margin Stop Loss Order
2. Automated But Not Guaranteed Negative Balance Protection
3. Regulated by Australia Securities & Investments Commission (ASIC)
4. Segregated accounts with National Australia Bank

Other CFDs (eg Crypto)

1. Index CFDs
2. Precious Metals
3. Energy
4. Soft Commodities
5. Cryptocurrency: Bitcoin / Bitcoin Cash, Ethereum, Dash, Litecoin
6. Shares CFD

1. Index CFDs
2. Precious Metals
3. Energy
4. Soft Commodities
5. Cryptocurrency - Bitcoin/Bitcoin Cash, Ethereum, Dash, Litecoin
6. Shares CFD

Customer Support

Award winning customer support based (Investment Trends.)
1. Live Chat (24/5 hour support.
2. Telephone (24/5 hour support)
3. Call Back request
4. Email Support

Award winning customer support based (Investment Trends.)
1. Live Chat (24/5 hour support.
2. Telephone (24/5 hour support)
3. Call Back request
4. Email Support

Bonus Programs

Refer a Friend
Rebate Program

Refer a Friend Bonus
Rebate Program

Funding Methods

1. Credit Card/Debit Cards (Visa and Master Card)
2. PayPal
3. Neteller
4. QIWI
6. Skrill
7. UnionPay
8. Bank Wire Transfer
9. Bpay
10. FasaPay
11. Broker to Broker
12. Poli

1. Credit Card/Debit Cards (Visa and Master Card)
2. PayPal
3. Neteller
4. QIWI
6. Skrill
7. UnionPay
8. Bank Wire Transfer
9. Bpay
10. FasaPay
11. Broker to Broker
12. Poli

Reviews

Trustpilot
4 out of 5 stars- ‎351 reviews

Trustpilot
4 out of 5 stars- ‎351 reviews

Recommended For

1. Beginner traders
2. Low volume traders
3. Forex traders who value competent customer support

1. Experienced high volume traders (Active Traders)
2. Traders utilising automated trading and scalping
3. Forex traders who value competent customer support

  • MetaTrader
  • cTrader
  • ECN Trading Account
  • Deal Cancellation
  • Guaranteed Stop Loss
  • Guaranteed Negative Balance Protection
  • No Fees On Deposits + Withdrawals
  • Stockbroking Services

Recommended For

1. Beginner traders
2. Low volume traders
3. Forex traders who value competent customer support

1. Experienced high volume traders (Active Traders)
2. Traders utilising automated trading and scalping
3. Forex traders who value competent customer support

Spreads + Commissions

Spread Value

8.5
Commission Value

8.8
Spread Value

9.2
Commission Value

9.9

Execution Speeds

Trading Speed

10
Trading Speed

10

 

  • MetaTrader
  • cTrader
  • ECN Trading Account
  • Deal Cancellation
  • Guaranteed Stop Loss
  • Guaranteed Negative Balance Protection
  • No Fees On Deposits + Withdrawals
  • Stockbroking Services
  • MetaTrader
  • cTrader
  • ECN Trading Account
  • Deal Cancellation
  • Guaranteed Stop Loss
  • Guaranteed Negative Balance Protection
  • No Fees On Deposits + Withdrawals
  • Stockbroking Services

Pepperstone Razor vs Standard account

As part of your research into Pepperstone Group Limited updated on the 5th of January 2020, it was noted there are two main account types. This is the Pepperstone Razor vs Standard account. Both these foreign exchange account types offer the same features including the same:

  • Forex Trading Platform (MT4, MT5 and cTrader)
  • 80+ Currency Pairings
  • CFD Leveraged Products
  • Customer Service
  • Minimum Deposits
  • Leverage of 500 to 1 with ASIC regulation (Pepperstone AU)
  • Leverage 30:1 (retail), 500:1 (professional) with FCA regulation (Pepperstone UK)
  • Choice of trading lots
  • Fast Trade Execution (as low as 0.05 of a second)
  • Hedging, Scalping
  • Expert Advisors

The key difference is that each Pepperstone account type charge traders like yourself differently. There is a full Pepperstone spread comparison page where more is reviewed about the fees associated with Pepperstone accounts.

Each of the Pepperstone online fx accounts uses different technology and charges differently. To help you choose the right account for your needs we explain the differences in technology and costs between each account. When you open a Pepperstone account you select your base currency. In the examples below apply AUD as our base currency. Our calculations will also assume you are using the MT4 platform (cTrader uses different calculation).

Pepperstone Standard Account – No Commission

In our comparison of Pepperstone spreads you will see the Pepperstone Standard Account has a wider spread when we compare with the Razor Account. In the table, you will notice the Pepperstone spread difference between the two accounts is 1 PIP. This is added by Pepperstone to the raw market price is how Pepperstone makes a profit for each online forex trade you make.

Pepperstone Razor vs Standard Spread Comparision

Pepperstone Razor vs Standard Spreads

Pepperstone Standard Account Technology

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. Pepperstone then adds the 1 PIP to the price.

Benefits of Standard (no commission) Accounts

Adding a PIP to the spread and not applying commission charges fees is similar to a service provider that provides a flat fee for their service. The cost is 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 thus, great for beginner traders.

Pepperstone Razor 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 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 completely set by liquidity providers and Pepperstone do not add any PIPs to the spreads.

When trading with Razor account you will pay commission for each side of the trade. This means you pay $3.50 for each standard lot you buy and $3.50 for each standard lot you sell. So $7.00 in total. If you are trading mini or micro lots then this $3.50 will be pro-rata.

Below imagines show your commission cost for each type of currency when trading MT4. Commission for MT5 is the same with the exception of USD which will cost you $3.50 rather than $3.76.

Peperstone Razor Account commission charges

Commission with cTrader

Commission with cTrader is a bit different from MetaTrader. You will be charged 3.5% of the base currency that is being traded.

For example: if you trade 100,000 with the EUR/AUD currency pair then your commission will be 3.5% of 100,000 charged in EUR as this is the base. You will be charged on each side of the trade when you open and close-out your contract.

Understanding the role of lots.

When you trade forex online you trade with Lots. Lots 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.

Pepperstone Lots

Comparing calculations of Standard and Razor Account

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.

Calculating The Pepperstone commission with micro lots Standard vs Razor

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.

Calculating The Pepperstone commission with mini lots Standard vs Razor AUS USD

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.

Calculating The Pepperstone commission with standard lots Standard vs Razor AUS USD

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.

Discount For High Volume Forex Traders

Frequent high-volume traders can receive a discount due to the Pepperstone Active Trader program.

Pepperstone Rewards Program Rebates for Active Traders

To eligible for the high-volume rebates, you must trade a minimum volume over a three month period.

Rebates are also only made Forex majors, minors, crosses and exotics including:

  • Foreign Exchange Majors – AUD/USD, EUR/USD, GBP/USD, USD/CAD, USD/CHF, USD/JPY
  • Foreign Exchange Minors – AUD/CAD, AUD/CHF, AUD/NZD, AUD/SGD, EUR/AUD, EUR/CHF, EUR/GBP, GBP/AUD, GBPCHF, NZD/USD
  • Foreign Exchange Crosses – AUD/JPY, CAD/CHF, CAD/JPY, CHF/JPY, EUR/CAD, EUR/JPY, EUR/NZD, GBP/CAD, GBP/JPY, GBP/NZD, NZD/JPY

Conclusion of the Pepperstone Razor vs Standard – Which Is Better?

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.

Why Should Beginner/Intermediate Traders Choose standard?

Our Pepperstone review found 3 reasons why you might choose Standard over Razor:

  1. Pepperstone currently applies $0.07 round-trip commission for micro-lots, $0.70 round-trip for mini lots and $7 round-trip commission for a standard lot. If the lot commission was to increase in future then Standard Account might be more cost-effective.
  2. Pepperstone currently applies 1 pip to the spread with their Standard account.
  3. Removing the need to calculate commission when trading keeps things simple thus allowing you to focus on understanding your trading strategies.

Pepperstone Regulation

Pepperstone UK is regulated in the UK and Europe with the Financial Conduct Authority (FCA). If you are joining from Europe or the UK you are likely to fall under FCA regulation. FCA is a tier-1 regulator which means you can be confident your funds are safe. FCA 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 join Pepperstone from outside the UK or Europe, you will likely be signing up with Pepperstone AU who with the Australian Securities and Investment Commission (ASIC).  ASIC is also a tier-1 regulator which means Pepperstone provide some of the safest business practices to protect your investments.

Pepperstone to GO Markets or IG Markets in our head-to-head comparison tables.

 


Our Rating

The overall rating is based on review by our experts

9.17
Spreads
10 / 10
Leverage
10 / 10
Trading Platform
10 / 10
Risk Management
7 / 10
Range of Markets
8 / 10
Customer Service
10 / 10