Pepperstone vs City Index

Pepperstone are a no dealing desk broker specialising in MetaTrader platforms, City Index are a market maker that offer MT4 and their own platform. We compare each brokers platform along with spreads, leverage and risk tools so you can decide your broker

View our Pepperstone vs City Index comparison:


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

1. Choice of trading platforms
2. No deposits required or funding fees
3. Great expert analysis resources
4. Large range of markets


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

1. Demo Account is limited to 12 weeks
2. Inactivity fees
3. MetaTrader spreads may be higher than other platforms
4. No Social trading

Spreads + Commissions

Spread Value

Commission Value

Spread Value

Commission Value


Forex Trading Platform

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

MetaTrader 4
AT Pro
Web Trader

Execution Speeds

Trading Speed

Trading Speed




500:1 (MT4 Platform)
0.20% Margin (CFD Platform)

Risk Management

1. Standard Risk Management Tools (i.e Margin Stop Loss Order). No Guranteed Features
2. Regulated by Australia Securities & Investments Commission (ASIC)
3. Segregated accounts with National Australia Bank

Guaranteed Stop Loss Orders
Stops and Limits

Other CFDs (eg Crypto)

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

1. Forex
2. Indices
3. Equities
4. Cryptocurrencies
5. Bonds
6. Options
6. Commodities (including futures)
7. Interest Rates
8. Shares / 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

1. 24/5 via chat, phone, email
2. FAQ
3. Help

Bonus Programs

Refer a Friend Bonus
High Volume Trading Rebate

Rebate Program

Funding Methods

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

1. Visa and MasterCard Credit/Debit
2. Bank Electronic Funds Transfer
3. BPay
4. PayID


4 out of 5 stars- ‎351 reviews

2 out 5 stars on TrustPilot

Recommended For

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

Beginner Traders
Risk Averse Traders

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

Recommended For

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

Beginner Traders
Risk Averse Traders

Spreads + Commissions

Spread Value

Commission Value

Spread Value

Commission Value


Execution Speeds

Trading Speed

Trading Speed



  • 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

Trading Spreads and Fees – Pepperstone vs City Index

Before one compares the spreads of each broker, it is important to understand why each broker is different and the different accounts they offer.

Pepperstone Accounts

Pepperstone can be thought of as an Electronic Communication Network (ECN) or 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 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 their pricing using a deep pool of reputable external liquidity providers and pass their prices directly to you. For this reason, Pepperstone is known as a ‘no dealing desk broker.

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 in the case of Razor account (when using MT4/5) 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 vs City Index Pepperstone Accounts

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, this means there are no commission fees in addition to the spread you pay.

Pepperstone vs City Index - Accounts of City Index

Account Features Comparison
FeaturePepperstoneCity Index
Lots Size0.01 - 100 Lots0.01 - 100 Lots
CommissionStandard Account - 1pip
Razor Account - $7 Round trip for MT4 (cTrader varies)
Leverage500:10.20% (500:1) CFD Platform
200:1 MT4 Platform
Minimum Account OpeningAUD $200No Minimum
Scalping Allowed
Algo TradingExpert Advsors (MT4 Platform)
Via API interface (CFD Platform)
Hedging Allowed
News Trading
Social Trading
No Dealing Desk Excecution

Spreads comparison

With the above explanation in mind, the Pepperstone Standard account spreads can be fairly compared to both City Index accounts. The Pepperstone Razor account spreads are cheaper but don’t take into account the commission that will be added with your trade.

Avg Spreads Pepperstone vs City IndexEUR/USDUSD/JPYAUD/USDGBP/USD
Pepperstone Standard (no commission)
Pepperstone Razor (ECN)
City Index (CFD)0.690.770.731.22
City Index (MT4)

A look at these spreads and we can quickly see that using MetaTrader 4 with City Index is going to be the most costly option. If you are looking to trade with the MetaTrader platform, you would be better to trade with Pepperstone (or most other brokers) than City Index.

City Index (CFD) account is cheaper than Pepperstones Standard account. If you are looking at a commission-free account then City Index (CFD) is a valid option. The main catch is you will need to be using City Index own platform for trading purposes. (scroll down to see our review of their platform).

Pepperstone’s Razor account offers the lowest spreads however these spreads do not take into account the commission.

Let’s do a calculation to see if the City Index (CFD) or Pepperstone Razor is cheaper once the commission charge is taken into account.

In our scenario, we are going to go long for one lot with EUR/USD.  Let say we buy at 1.2630 and we exit at 1.2660. This means you make a 30 pip profit.

30 x $10 x 1 lot = $300

City Index (CFD)

When you buy, the CFD will quote you 1.2630 + 0.00006 pip (1.26306). This will cost you $6 per lot. When you sell City Index will quote you 1.2630 – 0.00006 pip (1.26294) also cost you $6 per lot. Thus round trip your cost is $12 per lot.

Put simply, out of $300, $12 has gone to transaction costs.

Pepperstone (Razor)

If you are dealing with Pepperstone Razor Account then you will have a commission of $3.50 each way (when using MetaTrader 4/5).

If you buy and sell at 1.2630 each way you get charged 0.16 to buy and to sell. This price is set by the liquidity provider so you will pay $3.20 for one lot round trip. If you add the $7 round trip commission  ($7 + $3.20) then your cost will be $10.20.  So for each $300 you will keep $289.80.

Other Costs

1. Overnight holding costs – You will incur a small charge from each broker for holding an open position overnight. This is an industry-standard.

2. Guaranteed Stop Loss Order (GSLO) –

  • City Index offers a GSLO option if you wish to manage your risk against losses. The cost of a GSLO is EUR/USD for 1 lot is 4 x qty of CFD that is charged in the base currency.

3. Currency Conversion Fees – Both brokers charge a fee to convert currency back to the base currency

4. Inactivity Fees

  • If you don’t trade with your City Index account for a 24 month period then you will incur a monthly $15 charge.
  • Pepperstone does not have an inactivity fee.

5. Deposit and Withdrawal Charges / Funding Charges

  • Pepperstone does not charge when using Visa or MasterCard to make deposits.  Bankwire, Paypal and bPay also do not incur charges from Pepperstone’s end. You will be charged USD$1 if using Skrill or Neteller.
  • Pepperstone does not charge for withdrawal with the exception of Bankwire with will incur a US$20 fee. Usual charges by the fund providers still apply (i.e. banks, PayPal, skrill will be passed onto you). You cannot withdraw with credit/debit cards.
  • City Index does not charge to deposit or withdraw with Visa or Master debit/credit cards
  • City Index requires a minimum of $50 when withdrawing. You can withdraw a maximum $20,000 on a single transaction and $20,000 per 24 hours if withdrawing online with a credit card.

Spreads Conclusion – Pepperstone vs City Index

If you are after the lowest spreads then we recommend Pepperstone’s Razor account. This is because ECN style spreads are usually narrower than spreads from a market maker.

If you don’t wish to deal with commissions then we suggest having a look at City Index CFD account.

While the saving of $1.80 using Pepperstone’s Razor account rather than City Index CFD account might not sound like much. the costs will add up especially if you are using leverage. The higher the leverage, the more capital you have to trade with and therefore the more lots you can trade. You will be saving $1.20 for each lot you trade. This will represent a significant saving over time.

You will need to consider other costs in addition to spreads. For example, Pepperstone does have a deposit charge when using a credit card.

Leverage – Pepperstone vs City Index

Leverage is essentially how much you can borrow from your broker to increase your capacity to trade with. Both brokers offer 500:1 leverage. This means for every $1 you deposit, the broker will lend you $500.

500:1 is more accurate in the case of Pepperstone. City Index offers both leverage and margin depending on which platform you trade with.

If you are using one of Cit Index’s own platform then you will trade with margin. Margin which simply means you must have a set amount of funds in your account to open a position. City Index requires your account to have a margin of up to 0.20% which is the same as 500:1.

If you are using MetaTrader 4 trading platform then you will trade on leverage. You can choose any leverage from 20:1 to 200:1. This obviously means City Index will give you less capital than if you choose other options in this comparison.

It is important to understand the risks of trading on margin or leverage. Borrowing from the broker means you are taking on a debt which you will need to pay back to the broker. It is therefore important that you trade responsibly.

Despite the risks, trading on leverage or margin can work in your favour. Forex currency movement doesn’t change much on a daily basis so the large capital needed to achieve genuine returns can be achieved with leverage.


If you trade with Pepperstone or use City Index’s CFD trading platforms rather than MT4 then you have access to the maximum possible leverage. If you require lots of leverage then trading with MetaTrader 4 through City Index is not your best option.


Risk Management Inclusions

Spread betting by its nature does carry risks however there are strategies you can implement to minimise your risk. Pepperstone and City Index both offer the standard risk management tools such as Stop loss, limit orders and trailing stops and utilise automatic margin call system (for negative balance protection). Both brokers also allow hedging which means you can hedge your bets.

City Index however, offers a few more features that Pepperstone does not offer. These include:

  • Guaranteed stop-loss orders (GSTO) – For a premium as little as 1 PIP you can protect investment against unexpected loss. If the market is volatile, the market is prone to gapping or slippage or you don’t want to lose more than you initial deposit GSLO is a good option.
  • IF Done-Orders – Also known as contingent order. This is an order that has two steps, where the second-order is actioned only in the event criteria for the first is fulfilled.
  • One Cancel the Other – You can place two orders simultaneously. When one order is fulfilled, the other will automatically be closed.

Pepperstone vs City Index Risk Management Tools

Conclusion – Pepperstone vs City Index

If risk management is a consideration when choosing a broker then City Index offers more and better options when we compare with Pepperstone. Risk management tools are really useful if you are new to trading or trading in a very volatile market, if you have trading experience then you might find the standard risk management tools are adequate.

Trading Platforms – Pepperstone vs City Index

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 also more mobile and tablet friendly.

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


  • Creation of up to 10 personalised workspaces and 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 tool designed for precision
  • Ability to create charts that show an overlay of 2 different markets


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

City Index Charts

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
  • Latest market prices with charts, news and pricing
  • Economic Calendars

City Index Web Trader Platform

City Index AT Pro

Available as a download on desktop, this is City Index trading platform for advanced users as it offers the most 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 your own 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 At Platform

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.

City Index Mobile Platform Features

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 platform. The platform and is built for trading foreign exchange and a range of contracts for difference 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 these include
    • Buy Limit
    • Buy Stop
    • Sell Limit
    • Sell Stop

MT4 offers 2 types of 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

Pepperstone vs City Index MT4 Platform

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)

Pepperstone MT5

Conclusion – Pepperstone vs City Index

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 no allow LIFO trading or hedging. MT5 has now been modified and can offer these features through brokers not based in the USA. We therefore, 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 own trading platforms are also a great platform. They actually come with more inbuilt tools than MetaTrader and are an award-winning platform, ADVFN awarded it best spread betting platform in 2017 and UK Forex Award did 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 future, it can be difficult to move off a propriety platform.

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

Contracts for Difference (CFDs) – Pepperstone vs City Index

Both brokers offer a range of other CFDs for trade.


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

  • Share market CFDs – Pepperstone offer 60 US shares with leverage of 20:1. Surprisingly you cannot trade ASX CFDs.
  • Indices – choose from 14 different indices from major stock market around the world.
  • Commodities – Pepperstone offers all the major commodities available for trade.
    • Hard commodities: Gold and silver spreads average 1 and 1.56 pips. Spreads for Platinum and Palladium start at 5 pip.  The margin for these metals are 0.2%.
    • Soft Commodities such as Cotton have a margin requirement of 2%. 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 and require 0.2% for each 1 lot.
  • Cryptocurrencies – 5 Cryptocurrencies are available with leverage of up to 5:1 available.

Pepperstone CFDs

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.  You can trade with leverage from 20:1 and commission cost are $5 for shares on the Australian stock market or from 0.08% for trades of large volumes. American shares will cost 0.02% or $15 while share on the UK market will cost €10 or 0.1% commission. When trading you will require 5% margin
  • 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. Margins are between 1% and 3% for all commodities.
  • Indices – City Index allows you to 21 global stock market indices with the spreads being as tight as just 1 pip. Leverage of 200:1 (o.5% margin) is available.
  • Interest Rates – 3 Interest Rate market are available for speculative trading. These are Short Sterling  3mnth,  Eurodollar and Euribor 3 month. Spreads for each are as narrow as 0.02 with margin starting at 0.25%
  • Metals – You can trade from 5 metals including Gold and Silver. Gold spreads are around 0.3 with a margin of 0.50% while Silver is around 2 with a margin of 1%.
  • Bonds – City Index allow you to take advantage of the deep liquidity available in 12 different bonds across the UK, US and European markets. Spreads start at 0.02 points. Bong margins begin at 0.25%
  • Options – You can speculate on daily, monthly and quarterly options contract in over 20 different markets such as UK 100 and SP 500. Spreads start at 4 points. Margin range from 0.5% to 2%
  • Cryptocurrencies – With City Index, you can choose from 5 different cryptos. City Index claim 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. Margin rates for all cryptos are 25% but for BitCoin Cash it is 50%

City Index CFDs

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.

Conclusion – Pepperstone vs City Index

If you are looking to trade a wide range of CFD 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 it CFDs terms vary for each broker but certainly City Index gives more options for trade.

Customer Service – Pepperstone vs City Index


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

Pepperstone Customer Services


Pepperstone offers a wealth of training tools for your trading education. These include:

  • Writeups are freely available on their website that explain all the basics you need to know with trading FX and CFDs.
  • Fortnightly Webinars which you can attend via registration. These webinars cover a range of advanced topics.
  • Trading guides for beginner and advanced level which aims to demystify a range of topics you will need to know when trading.


Pepperstone Education

Market Analysis:

Pepperstone has their own in-house analysis team providing all the latest Market news, trading opportunities and financial events you will want to know about during the course of your trading.


Pepperstone Market Analysis

Demo Account:

Pepperstone allows you 30 demo access to a demo platform for any of MT4, MT5 and cTrader. This 30-day restriction can be removed with a request to Pepperstone support. Pepperstone will provide you with $50k in virtual funds.

City Index Customer Support

Customer Service with City Index is available throughout the working week (24/5) from the Australian based office. The City Index team are able to provide 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.

City Index Customer Support

Research and Education:

City Index provides a wealth of free resources that will improve your trading ability and confidence. Features include

  • Trader strategy courses values at over $5000 developed by Tony Sycanmore from TECHFX TRADERS. The course is divided into 3 modules. Demystifying Forex, Learn to Trade and Trade like a Pro
  • Trading Instructional Videos covering these like learn to trade CFDs and FX, How to optimise your trading performance (i.e. when to enter and exit a trade) and education on technical and fundamental analysis
  • Webinar masterclasses run by TECHFX TRADERS covering a different topic each session.
  •  Introduction to Trading article series

City Index Education

Demo Account:

City Index has 2 free demo accounts programs for you to test your trading skills on. Each is the same except one is for City Index CFD and the other is for MT4.  With the demo accounts you will get the following:

  1. 12 weeks
  2. $20,000 in virtual funds.
  3. 100 FX pairs

If you choose CFD platform you will gain access to 4,500 markets. MT4 is mainly FX and selected CFDs. Once the 12 week period is over, you will lose access to the demo platform and will need to apply for a fresh demo account. This means you will lose access to the data you already have.

City Index Demo Account

Conclusion – Pepperstone vs City Index

Both City Index and Pepperstone offer excellent customer service so you can be confident you will get the needed support with either broker. We found City Index’s support tools to be more in-depth than Pepperstones however Pepperstone does offer a better demo arrangement given the higher access to funds and possible unlimited access.

Bonus Programs – Pepperstone vs City Index


If you are part of the Pepperstone Active Trader program and you meet minimum trade volumes per month you will be rewarded with a cash rebate. This will be deposited into your account on a daily basis.

Pepperstone Rebate

Pepperstone also has a refer a friend program. If you refer someone and this person signs up with Pepperstone and deposits at least US$1000 into their account and makes at least five trades with standard lots then you will be reward with USD100.

Pepperstone Refer a Friend


City Index

A cash rebate program is on offer with City Index. The more you trade each month the more City Index will reward you. The amount City Index rebate will vary according to the asset class trade. This rebate can be withdrawn as cash once deposited in your bank account each month.

City Index Rebate