This Pepperstone vs AvaTrade Forex Broker review found Pepperstone has variable spreads, 2 account types and 4 trading platforms while AvaTrade has fixed spreads, 1 account option and 4 trading platforms.
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Our comprehensive comparison covers the 10 most important trading factors to help you make an informed decision. Here are five key differences between Pepperstone and AvaTrade:
One of the most important factors in deciding what broker to use is their fees. By using brokers with lower fees (especially spreads), you can keep more of your profit when trading.
The two main costs when trading are the spread and commission fees (where applicable). All brokers have a standard account with no commissions and Ava and Pepperstone are no exceptions. This account has wider spreads as it incorporates the broker’s service fee.
Some brokers have no dealing desk style account, with this account spreads are at market price. For this reason, you pay commission fees on top of the spread for each lot you trade. This cost is the broker’s service fee. Only Pepperstone has this type of account and they call it their Razor account.
To be fair, comparing spreads for Pepperstone and AvaTrade isn’t apples for apples.
This is because AvaTrade spreads are fixed or mostly fixed. Pepperstone spreads are variable. While both brokers have a standard account with no commissions, AvaTrades standard account spreads are going to be wider than Pepperstone’s because fixed spreads are extra wide to cover the extra risk the broker takes on to protect themselves from extreme market volatility.
For this reason, we feel it is better to separate our comparison between variable and fixed accounts.
Pepperstone has lower spreads for a standard account with variable spreads
Since AvaTrade does not offer variable spreads, only Pepperstone can win for the best standard account (variable spreads).
Spreads on Pepperstone’s standard account start from just 0.6 pips, which can be found on major pairs such as the most popular pair – the EUR/USD. Spreads for minor pairs such as EUR/CAD, EUR/JPY start from 1.0 pips. It is a similar story for other crosses such as AUD/SGD and EUR/AUD as well as exotic pairs.
The spreads module below compares standard account spreads between brokers with data taken from the broker’s website. As can be seen, Pepperstone is one of the leading brokers in the industry when it comes to no-commission trading.
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Standard Account Spreads
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1.10 | 1.20 | 1.40 | 1.40 | 1.40 |
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0.90 | 1.10 | 1.50 | 1.50 | 1.00 |
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1.13 | 1.01 | 1.71 | 1.66 | 1.12 |
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0.90 | 1.30 | 1.40 | 1.40 | 1.40 |
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0.70 | 2.20 | 1.10 | 1.10 | 0.60 |
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1.20 | 0.90 | 1.50 | 1.80 | 1.80 |
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1.20 | 1.40 | 1.50 | 1.60 | 1.50 |
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1.10 | 1.20 | 1.40 | 1.50 | 1.20 |
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1.10 | 1.20 | 1.30 | 1.30 | 1.30 |
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1.20 | 1.30 | 1.20 | 1.30 | 1.10 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
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AvaTrade is the best choice for fixed spreads with no commissions
There are not many brokers in the industry that offer fixed spreads. AvaTrade is a rare exception. As the name suggests, fixed spreads do generally not change, the exception being when liquidity is low or during extreme volatility. However, even though in unusual circumstances fixed spreads may change, they revert back to their fixed rate when conditions stabilise.
Liquidity providers do not provide fixed spreads, which means the broker set the spread. This means fixed spread brokers will always be market makers. Fixed spreads will always be wider than variable spreads because the broker is taking on the risk of losses should the raw spread prices change too much.
Despite the wider spread, fixed spreads are popular with beginner and risk-averse traders who want to avoid risks associated with market volatility. It is also popular for traders who need predictable trading conditions to execute their market strategy.
As can be seen in the spread comparison below, AvaTrader fixed spreads are competitive with only EasyMarkets coming close. Some of these spreads even compare well against brokers that only offer variable spreads with their standard account.
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Fixed Account Spreads
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0.90 | 1.10 | 1.50 | 1.50 | 1.00 |
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0.60 | 0.80 | 1.00 | 1.00 | 0.70 |
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0.70 | 1.20 | 1.50 | 1.30 | 1.00 |
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1.94 | 2.36 | 2.11 | 2.05 | 1.83 |
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1.60 | 1.90 | 1.70 | 2.10 | 1.60 |
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3.00 | 3.00 | 3.00 | 3.00 | 3.00 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
The only broker with an STP-style account is Pepperstone
An STP-style account refers to the process of straight-through-processing or STP for short. This involves your broker directly connecting the trades you make to their pool of liquidity providers, who provide the quotes for your spreads.
Using an STP (sometimes incorrectly called ECN) trading execution is intended to allow for true market prices as there is no dealing desk or price manipulation by the broker. Instead of widening the spread, the broker charges a commission fee in addition to the spread.
Since AvaTrade does not offer an STP-style account, Pepperstone wins this category by default.
As the name implies, spreads are razor-thin, starting from just 0.0 pips on the most popular forex pairs. Comparing average STP spreads to other brokers in the table below, you can see that Pepperstone is very consistent with its competitiveness.
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ECN Broker Spreads
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0.40 | 0.60 | 0.10 | 0.40 | 0.20 |
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0.20 | 0.30 | 0.20 | 0.40 | 0.20 |
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0.50 | 0.60 | 0.30 | 0.50 | 0.50 |
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0.30 | N/A | 0.30 | 0.50 | 0.40 |
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0.20 | 0.83 | 0.44 | 0.40 | 0.42 |
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0.24 | N/A | 0.17 | 0.54 | 0.30 |
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0.30 | 0.70 | 0.20 | 0.50 | 0.40 |
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0.30 | 1.10 | 0.10 | 0.60 | 0.50 |
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n/a | 0.30 | n/a | 0.60 | 0.50 |
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0.77 | 1.41 | 0.44 | 1.13 | 1.23 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
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Pepperstone commissions vary depending on your account currency. If you are trading with AUD or USD then you will pay $3.50/7.00 side-trip/round-turn for a standard lot of 100 thousand units. In GBP and EUR, commission fees are £2.25/4.50 and €2.60/5.20 per standard lot respectively.
These commission costs are in line with commission costs charged by most other brokers.
Verdict: Pepperstone, with its ultra-low spreads, is the more cost-effective option for traders focused on minimising trading costs.
Pepperstone offers a comprehensive suite of trading platforms, including MetaTrader 4, MetaTrader 5, cTrader, and TradingView. This variety allows traders to select a platform that aligns closely with their trading style and technical requirements. AvaTrade, in contrast, offers MetaTrader 4 and its proprietary AvaTradeGo platform. While these are solid platforms, they don’t provide the same level of choice and flexibility as Pepperstone.
| Broker | Trading Platforms Offered |
|---|---|
| Pepperstone | MetaTrader 4, MetaTrader 5, cTrader, TradingView |
| AvaTrade | MetaTrader 4, AvaTradeGo |
Verdict: Pepperstone, with its diverse range of robust platforms, provides a superior trading environment.
Pepperstone provides traders with a choice between its Standard and Razor accounts. The Standard account is commission-free but comes with slightly higher spreads. The Razor account, on the other hand, offers lower spreads but includes a commission. This flexibility allows traders to choose an account that best suits their trading strategy. AvaTrade offers a one-size-fits-all approach with its standard account, which features fixed spreads.
| Broker | Account Types Offered |
|---|---|
| Pepperstone | Standard, Razor |
| AvaTrade | Standard |
Verdict: Pepperstone’s multiple account options offer greater flexibility, making it the better choice for traders looking for tailored account features.
When it comes to trading experience and ease, both brokers have their merits. Pepperstone offers a seamless experience with its Razor account, known for market price spreads. On the other hand, AvaTrade’s fixed spreads provide a predictable trading environment, especially beneficial for beginners.
AvaTrade also has its unique platforms like AvaTradeGo and AvaOptions, which come with exclusive features. So, whether you’re a seasoned trader or just starting, both brokers offer platforms that can cater to your specific needs.
| Broker | Average Execution Speed | User Interface |
|---|---|---|
| Pepperstone | 30ms | User-friendly |
| AvaTrade | Not specified | Standard |
Verdict: With faster execution speeds and a more intuitive user interface, Pepperstone offers the best overall trading experience and ease of use.
Pepperstone Trust Score
AvaTrade Trust Score
When it comes to trust and regulation, both Pepperstone and Avatrade have their merits. Pepperstone is regulated by some of the most stringent authorities, including ASIC and FCA. This gives me a sense of security knowing that they’re held to high standards. Avatrade, on the other hand, is also well-regulated but has a broader range of regulatory bodies, including ASIC and some less common ones like the IFSC.
| Pepperstone | AvaTrade | |
|---|---|---|
| Tier 1 Regulation | ASIC (Australia) FCA (UK) BaFin (Germany) CYSEC (Cyprus) |
ASIC (Australia) CIRO (CANADA) CYSEC (Cyprus) |
| Tier 2 Regulation | DFSA (Dubai) | ADGM (UAE) ISA (Israel) JFSA (Japan) CBI KNF (Poland) |
| Tier 3 Regulation | SCB (Bahamas) CMA (Kenya) |
FSC- BVI FSCA (South Africa) |
Verdict: Pepperstone takes the lead with its more robust regulatory framework. If you’re looking for a broker where you can trade with peace of mind, Pepperstone is the one for you.
Both brokers offer a wide range of products and markets, but there are some differences worth noting.
| Feature | Pepperstone | AvaTrade |
|---|---|---|
| Forex Pairs | Yes | Yes |
| Commodities | Yes | Yes |
| Indices | Yes | Yes |
| Stocks | Yes | Yes |
| Cryptocurrencies | Yes | Yes |
| Bonds | No | Yes |
| ETFs | No | Yes |
| Options | No | Yes |
| Futures | No | Yes |
| Spread Betting | No | Yes |
Verdict: AvaTrade offers a more diverse range of CFDs and Markets.
Pepperstone and AvaTrade both offer educational resources, but the depth and breadth differ.
Verdict: Based on our testing, AvaTrade scores higher in offering comprehensive educational resources.
Customer service is crucial in trading, and both brokers excel in different areas.
| Feature | Pepperstone | AvaTrade |
|---|---|---|
| 24/5 Support | Yes | Yes |
| Live Chat | Yes | Yes |
| Email Support | Yes | Yes |
| Phone Support | Yes | Yes |
| Account Manager | Yes | No |
| Multiple Languages | Yes | Yes |
Verdict: Based on our testing, Pepperstone offers superior customer service.
Both brokers offer a variety of funding options, but there are some differences.
| Funding Option | Pepperstone | AvaTrade |
|---|---|---|
| Bank Transfer | ✓ | ✓ |
| Visa/Mastercard | ✓ | ✓ |
| PayPal | ✓ | ✓ |
| Neteller | ✓ | ✓ |
| Skrill | ✓ | ✓ |
| POLi | ✓ | ✗ |
| BPay | ✓ | ✗ |
Verdict: Pepperstone offers more diverse funding options.
When it comes to the minimum deposit, Pepperstone has no minimum requirement, while AvaTrade requires at least $100.
| Broker | Minimum Deposit |
|---|---|
| Pepperstone | No minimum |
| AvaTrade | $100 |
Verdict: Pepperstone offers a lower minimum deposit requirement
Pepperstone is the winner because it offers a more comprehensive trading experience across multiple factors. The table below summarises the key information leading to this verdict.
| Criteria | Pepperstone | AvaTrade |
|---|---|---|
| Lowest Spreads And Fees | ✓ | ✗ |
| Better Trading Platform | ✓ | ✗ |
| Superior Accounts And Features | ✓ | ✗ |
| Best Trading Experience And Ease | ✓ | ✗ |
| Stronger Trust And Regulation | ✓ | ✗ |
| Top Product Range And CFD Markets | ✗ | ✓ |
| Superior Educational Resources | ✗ | ✓ |
| Superior Customer Service | ✓ | ✗ |
| Better Funding Options | ✓ | ✗ |
| Lower Minimum Deposit | ✓ | ✗ |
For beginner traders, AvaTrade is the better choice due to its comprehensive educational resources.
For experienced traders, Pepperstone offers a more robust trading environment with superior platforms and features.
Pepperstone generally offers lower costs, especially when it comes to spreads. With spreads starting as low as 0.0 pips on major currency pairs, it’s hard to beat. Avatrade isn’t far behind but tends to have slightly wider spreads. For more details on low-cost brokers, check out our guide on low commissions.
Both brokers offer MetaTrader 4, but Pepperstone has the edge with its customised version that includes additional features. If you’re a fan of MT4, you might find Pepperstone’s platform more appealing. For more on this, visit our best MT4 brokers page.
Avatrade offers social trading features, including copy trading through its platform. Pepperstone doesn’t offer built-in social trading but is compatible with third-party platforms. For more on social trading, check out our best copy trading platforms guide.
Pepperstone offers spread betting, but only for UK and Ireland residents. Avatrade doesn’t offer spread betting. For more information, you can visit our best spread betting brokers in the UK.
Pepperstone, being an Australian-based broker regulated by ASIC, is a superior choice for Australian traders. Avatrade is also ASIC-regulated but is based overseas. For more, check out our Australian forex brokers guide.
Both brokers are FCA-regulated, but Pepperstone has a more robust presence in the UK. Avatrade is also FCA-regulated but is not based in the UK. For more information, visit our best UK forex brokers page.
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