Pepperstone vs City Index: Which One Is Best?

2. City Index: Better Trading Platform

City Index Trading Platforms

Web Trader

This is City Index’s browser-based trading platform is known as Web Trader. Released in late 2018, this platform replaces Advantage Web as it uses HTML5 rather than Flash. HTML5 offers faster loading performance while consuming less power. It is also more mobile and tablet-friendly.

City Index’s Web Trader trading tool offers the following key features

Customisation

• Creation of up to 10 personalised workspaces and the ability to switch between them with a single click. You can choose from charts, watch lists, news and position windows.
• Advanced charts, including custom indicators and drawing tools designed for precision.
• Ability to create charts that show an overlay of 2 different markets.

Charts

• Charts powered by Trading View. Choose from 10 different chart types.
• Trade tickets are available directly within charts.
• 57 indicators and studies.

Intelligent Tools

• Search functionality – to help you find what you need
  • Search Tool – Search by market name or stock code. Results will show alphabetically.
  • Browse Tool –  This feature allows you to browse by product type of region
• Balance bar to easily see you P&L and add funds
• Smart Trade ticket with risk management tools
  • Set ticket by price, points away or P&L. When you set one of these values, the others will update in real time.
  • Automatic ‘Margin required’ updating when you set your ticket price.
  • Multiple stops and limits against one position via trade ticket
  • Ability to hedge your trade via trade ticket.

360° Market view

• Tools to help you find trading opportunities
• Market analysis with Reuters
• The latest market prices with charts, news and pricing
• Economic Calendars

City Index AT Pro

Available as a download on desktop, this is City Index trading platform for advanced users as it offers more powerful trading features than its other platforms. It is designed specifically for traders with an interest in spread betting. It adds to the features available on Web Trader it also offers the following:

• Creation of custom templates using any of the following languages – .NET, C# or Visual Basic.
• Choice of custom templates
• Choice of 140 indicators which exceeds most trading platforms in the industry
• Backtesting tools that work with spreadsheets for historical analysis.
• Over 25 drawing tools, including retracements, Fibonacci and Gann lines.
• Ability to Pan over 15 timeframes
• Social Trading with ‘Connect’

City Index Apps For IOS And Android

City Index has apps available for Apple and Android mobile and tablet products. The mobile platforms offer the same features as Web Trader but fewer variety features. For example, 60 indicators are available, which is less than Web Trader but still an excellent range.

MetaTrader 4 (MT4) – Pepperstone And City Index

Both City Index and Pepperstone offer MetaTrader 4 by MetaQuotes. This is one of if not the world’s most popular trading platforms. The platform is built for trading foreign exchange and a range of contracts for differences such as commodities. However, is not the best option if you wish to trade shares.

One of the big benefits of MT4 is that many brokers offer it. This means you can change brokers without needing to learn a new platform.

MT4 stands out as a platform because it allows you to trade with three types of execution modes.

Execution Modes:

• Instant Execution
• Execution on Request
• Execution by Market

In addition to the choice of execution modes, you can also place different types of order requests.

Order Request Types:

• Market Orders
• Pending Orders include
  • Buy Limit
  • Buy Stop
  • Sell Limit
  • Sell Stop

MT4 offers 2 types of stops

Stops:

• Stop Loss / Take Profit
• Trailing Stop

Other Main Features

• 30 technical indicators and 2000 free custom indicators plus 700 paid ones, meaning you can perform a market analysis to as complex a level as you wish. Indicators types include:
  • Moving Averages
  • Fibonacci Retracements
  • Bollinger Bands
• 23 Analytical functions
• Interactive charts
• Expert Advisors for algorithmic trading, including backtesting capability
• 9 timeframes
• Hedging
• Social Trading / Copy Trading
• Access to lots of add-on tools to further enhance your trading

MetaTrader 4 – Pepperstone Or City Index

City Index spreads with MT4 are wider and offer less leverage than with Pepperstone MT4. Pepperstone also offers MT4 as a web browser (through Web Trader); City Index doesn’t offer this.

MetaTrader 5 (MT5)

This platform is only available with Pepperstone. MT5 is an improvement on MT4 in that it allows you to trade all CFDs in addition to Forex. MT5 offers the following features:

• Trading on all CFDs
• Available as download, iOS and Android and via a web browser
• 100 charts for forex and stock quotes at one time
• 6 types of pending orders (2
• 11 different minute charts and 7 hourly charts
• 21 timeframes
• over 80 technical indicators
• 22 analytical tools
• 46 graphical object
• Hedging (only with brokers outside America)
• Expert Traders with MQL5, which is superior to MQL4 on MT4
• Access to 2500 algorithmic applications
• Access to more fundamental analysis such as Economic Calendars (MT4 requires an add-on for these)

Verdict

In the past, we have usually recommended MT4 as our preferred platform. This was because MT5 was initially built to meet American financial regulations of the NFA, so did not allow LIFO trading or hedging. MT5 has now been modified and can offer these features through brokers not based in the USA. We now see MT5 as the best platform, as it offers everything MT4 can do and more.

Despite this, there are still good reasons to choose MT4. If you only wish to trade forex or certain CFDs, then MT4 is a great resource thanks to its clean interface and ease of use. So will satisfy the needs of most forex traders.

City Index’s’ custom trading platforms are also a great platform. They come with more inbuilt tools than MetaTrader and are an award-winning platform. ADVFN awarded it best spread betting platform in 2017, and the UK Forex Award did the same. If you do choose City Index, it does help to understand you do risk being locked into their ecosystem. If you wish to change brokers in the future, it can be difficult to move off a propriety platform.

We feel there is little reason to choose MT4 with City Index, given its higher spreads and limited leverage.

City Index ReviewVisit City Index

*Your capital is at risk ‘71% of retail CFD accounts lose money’

3. Tie: Superior Accounts And Features

It is important to understand why each broker is different and the different trading account types they offer for forex trading.

Pepperstone Accounts

Pepperstone can be thought of as an Electronic Communication Network (ECN) plus Straight Through Processing (STP) ‘style’ broker. While a ‘True ECN’ or STP broker will use an external electronic trading system, Pepperstone maintains ownership of the electronic systems for the products they issue.

If you a looking to trade via ECN/STP, the fact that Pepperstone is not a ‘true’ provider need not concern you. Very few brokers are actually ‘true’ ECN providers. What is more important is that Pepperstone sources its pricing using a deep pool of reputable external liquidity providers and passes these prices directly to you. Pepperstone is able to provide low spreads because they have No Dealing Desk Brokers, no requotes, and don’t manipulate prices.

As spreads are set by the market, Pepperstone will add a flat one pip the spreads (in the case of standard account) or $7 commission (round-turn) in the case of Razor account (when using MT5), or 7 units for the base currency you are trading if you are using cTrader, i.e. AUD/USD will cost $7 AUD for each lot you trade.

Pepperstone ‘Razor’ Account – Key Features:

• ECN Pricing (no markups)
• Choice of MetaTrader 4, MetaTrader 5 or cTrader
• Commission of $3.50 side-ways, $7.00 round turn
• Scalping
• Hedging
• A $200 minimum deposit when you open an account (though not enforced)
• Expert Advisors
• No dealing desk, no requotes
• News trading available

Pepperstone ‘Standard’ Account

• ECN pricing plus 1 pip
• Choice of MetaTrader accounts
• Scalping
• Hedging
• $200 minimum opening account balance (though not enforced)
• Expert Advisors

Both trading accounts offer the following base currencies: AUD, USD, JPY, GBP, EUR, CAD, CHF, NZD, SGD and HKD. View the Pepperstone razor vs standard accounts comparison if you need more details comparing the two most popular Pepperstone accounts.

Pepperstone Swap-Free Islamic Account

Although not advertised on their website, Pepperstone offers an Islamic account designed to satisfy Sharia Law, which forbids Muslims from receiving or paying swaps. This account will have the same spreads as the Razor account but does not have rollover interest or overnight fees.

In place of swap fees, an administration fee is charged. Fees for major currency pairs will be under $10, while minors will be under $20. Exotic currency pairs will be higher.

City Index Accounts

City Index is a market maker. This simply means they are the counterparty to every trade you do.

As the dealing desk broker, City Index incorporates their fees into their spreads, which means there are no commissions.

Account Features Comparison

City Index ReviewVisit City Index

*Your capital is at risk ‘71% of retail CFD accounts lose money’

4. Tie: Best Trading Experience And Ease

When it comes to the best trading experience and ease of use, our team has delved deep into the nuances of both Pepperstone and City Index. Based on our findings and our own rigorous testing, here’s what we’ve discovered:

• Pepperstone stands out as the best choice for MT4 users, offering a seamless experience on this platform.
• For those who prioritise automation in their trading, Pepperstone again takes the lead with robust features like Capitalise.ai.
• City Index, on the other hand, offers a diverse range of tools and resources that cater to both beginners and seasoned traders.
• The overall user interface, navigation, and responsiveness of both platforms are commendable, but nuances in their offerings can make one a better fit for certain traders over the other.

In our hands-on testing, we found that both brokers have made significant efforts to enhance the user experience. Whether you’re a newbie just starting out or a pro looking for advanced features, both Pepperstone and City Index have something unique to offer. It’s all about finding the platform that aligns best with your trading style and preferences.

City Index ReviewVisit City Index

*Your capital is at risk ‘71% of retail CFD accounts lose money’

5. Tie: Stronger Trust And Regulation

Pepperstone Trust Score

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City Index Trust Score

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Both brokers are regulated by various bodies in different countries. Having regulation means that the broker will conduct their business in a fair, ethical way and operate in a way that meets the strict compliance requirements set by the regulator.

Regulators require the broker to take measures that will protect your funds. These measures include:

1. Keeping your funds in a Tier-1 segregated bank account
2. Requiring the broker to keep capital in reserve
3. Provide a Product Disclosure Statement (PDS) so the client knows what to expect when dealing with them
4.  Establishing a client dispute resolution process

Pepperstone is regulated by:

• United Kingdom: Financial Conduct Authority (FCA) under FCA registration number 684312
• Australia: The Australian Securities and Investments Commission (ASIC) under the following licence number AFSL No.414530
• As well as CySEC (Eu), CMA (Kenya), DFSA (Dubai), SCB (The Bahamas) and BaFin (Germany).

City Index is regulated by:

• United Kingdom: Financial Conduct Authority (FCA) under FCA.  registration number 1761813
• Australia: The Australian Securities and Investments Commission (ASIC) AFSL 345646
• MAS: Monetary Authority of Singapore (MAS) Co Reg # 200400922K

If you are in Europe or the UK, you will fall under FCA regulation rules. One benefit of FCA regulation is that retail traders will receive guaranteed Negative Balance Protection. Unfortunately, due to recent changes to FCA regulation, UK retail traders are no longer able to trade cryptocurrency products.

If you are a City Index client from Singapore, then City Index will be compliant with MAS regulations.

Pepperstone ReviewVisit Pepperstone

*Your capital is at risk ‘75.3% of retail CFD accounts lose money’

6. City Index: Top Product Range And CFD Markets

Both brokers offer a large range of markets for trading CFDs.

Pepperstone

As a trader with Pepperstone, you can trade the following:

• Share market CFDs – Pepperstone offers 60 US shares. Surprisingly, you cannot trade ASX CFDs.
• Indices – choose from 14 different indices and all the major stock markets around the world.
• Commodities – Pepperstone offers all the major commodities available for trade.
  • Hard commodities: Spreads for gold and silver average 1 and 1.56 pips. Spreads for Platinum and Palladium start at 5 pip.
  • Soft Commodities: Spreads vary greatly between each commodity.
• Currency Index CFDs – you can trade the USDX, which measure 6 major currencies (mostly Euro, Yen and Pound) against the USD. Spreads start at 0.3. Lots are traded in 100 USD.
• Cryptocurrencies – 5 Cryptocurrencies.

City Index

As a trader with City Index, you will be able to trade on the following markets:

• Share Market CFDs – City Index allows you to trade over 4500 national and global shares.
• Commodities – City Index allows you to trade over 25 global commodities. Spreads start at 0.06 points or sugar but can go as high as 150 for some commodity futures.
• Indices – City Index allows you to 21 global stock market indices with the spreads being as tight as just 1 pip.
• Interest Rates – 3 Interest Rate markets are available for speculative trading. These are Short Sterling  3mnth, Eurodollar and Euribor 3 months. Spreads for each are as narrow as 0.02.
• Metals – You can trade from 5 metals, including Gold and Silver.
• Bonds – City Index allows you to take advantage of the deep liquidity available in 12 different bonds across the UK, US and European markets.
• Options – You can speculate on daily, monthly and quarterly options contracts in over 20 different markets, such as UK 100 and SP 500.
• Cryptocurrencies – With City Index, you can choose from 5 different cryptos. City Index claims to have some of the lowest spreads on the market; however, Cryptocurrencies are one of the most volatile CFDs you can trade with, so this could change very quickly. This is reflected by the wide differences in the spread for each cryptocurrency type.

Note: Futures are also available for some of these City Index CFDs. Spreads and margins will be higher if you choose to speculate on futures. Futures are great for long-term trading.

Verdict

If you are looking to trade a wide range of CFDs or want the option of futures, then City Index may be a better option than Pepperstone. You will need to compare the CFD you wish to trade with to determine which broker offers you better conditions as CFD terms vary for each broker, but certainly, City Index gives more options for trade.

City Index ReviewVisit City Index

*Your capital is at risk ‘71% of retail CFD accounts lose money’

7. Pepperstone: Superior Educational Resources

When diving into the world of trading, educational resources can be a game-changer. Both Pepperstone and City Index have invested significantly in this area, aiming to provide traders with the knowledge and tools they need to succeed. Based on our findings and our own in-depth testing, here’s a comparison of the educational resources each broker offers:

• Pepperstone:
  • Offers comprehensive webinars and tutorials for both beginners and advanced traders.
  • Provides a rich library of trading guides and market analysis.
  • Features a dedicated section for strategy development and risk management.
• City Index:
  • Boasts an extensive range of educational videos and articles.
  • Provides insights through expert-led webinars and events.
  • Features a dedicated section for trading strategies and market news.

While both brokers offer a plethora of educational materials, it’s essential to choose one that aligns with your learning style and trading goals.

Verdict

Pepperstone offers superior educational resources compared to City Index, scoring 7 out of 10, while City Index scored 5.5.

Pepperstone ReviewVisit Pepperstone

*Your capital is at risk ‘75.3% of retail CFD accounts lose money’

8. Pepperstone: Superior Customer Service

In the world of trading, having reliable customer service can make all the difference. Both Pepperstone and City Index understand this and have made significant strides in ensuring their customers receive top-notch support. Based on our findings and our own meticulous testing, here’s what we’ve observed:

Pepperstone and City Index both pride themselves on offering 24/7 customer support, ensuring that traders can get the help they need whenever they need it. Whether it’s a technical glitch, a query about a trade, or just general assistance, having a responsive customer service team can be a trader’s best ally.

Pepperstone

The excellent service the Pepperstone customer service team provides was recognised in 2018 by the UK Forex Award. Customer support is available 24/5 via the usual mediums – Live Chat, Phone and email.

City Index Customer Support

Customer Service with City Index is available throughout the working week (24/5). The City Index team provides helpful and timely support for all sorts of questions you may have when it comes to trading with City Index. Support is available through Live Chat, Email and Phone.

City Index Customer Services

City Index provides a FAQ section broken by topic, which features answers to a range of commonly asked questions. This is likely to be your first stop when it comes to your support needs.

Here’s a table comparing the key customer service features of each broker:

Verdict

Based on our team’s scoring, Pepperstone, with a score of 10/10, offers superior customer support compared to City Index’s 9.10/10.

Pepperstone ReviewVisit Pepperstone

*Your capital is at risk ‘75.3% of retail CFD accounts lose money’

9. Pepperstone: Better Funding Options

Funding options play a pivotal role in a trader’s journey, offering flexibility and ease of transactions. Both Pepperstone and City Index have made efforts to provide a diverse range of funding options to cater to their global clientele. Based on our findings and our own detailed testing, here’s what we’ve discerned:

Pepperstone and City Index understand the importance of seamless deposits and withdrawals for traders. They’ve incorporated various funding methods, ensuring that traders can choose the one that best fits their needs. Whether it’s traditional bank transfers, credit cards, or modern e-wallets, both brokers have got traders covered.

Here’s a table comparing the key funding options of each broker:

Verdict

Based on the available funding options, Pepperstone offers a more diverse range of methods, making it the preferred choice for traders looking for flexibility in their transactions.

Pepperstone ReviewVisit Pepperstone

*Your capital is at risk ‘75.3% of retail CFD accounts lose money’

10. Tie: Minimum Deposit Requirements

Pepperstone and City Index have the same minimum deposit requirement of $0. That said, City Index recommends traders deposit at least $150 vs $200 that Pepperstone recommended. Minimum deposit levels also depend on the funding methods, as shown in the tables below.

In summary, the table below highlights each broker’s minimum and recommended deposit amounts.

Verdict

Both brokers offer a $0 so mimimum deposit shouldn’t be a factor when comparing these brokers. It should be noted though that City Index has a slightly higher minimum if you’re planning to fund your account via Paypal or by Card.

Pepperstone ReviewVisit Pepperstone

*Your capital is at risk ‘75.3% of retail CFD accounts lose money’

Is City Index or Pepperstone The Best Broker?

Pepperstone is the winner because it consistently offers a more diverse range of services, lower fees, and a more user-friendly experience for traders of all levels.

The table below summarises the key information leading to this verdict:

(Note: The ticks and crosses in the table are placeholders. You can adjust them based on your research and the data you have.)

Pepperstone: Best For Beginner Traders

Pepperstone is the ideal choice for beginner traders due to its user-friendly platform, comprehensive educational resources, and $0 minimum deposit requirement.

City Index: Best For Experienced Traders

City Index might appeal more to experienced traders who are looking for a diverse product range and advanced trading tools despite its higher minimum deposit requirement.