While FOREX.com has more Forex pairs (91 vs 63) and serves Canada and USA markets, Pepperstone has lower spreads with lower minimum deposits, making them cheaper for retail traders. See our Pepperstone vs FOREX.com comparison.
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Our full comparison covers the 10 most important trading factors. Here are five noticeable differences between Pepperstone and FOREX.com:
Pepperstone is one of the largest forex CFD brokers in the world and processes an impressive $9.2 billion USD worth of transactions per day. Having been founded in Australia in 2010, the broker’s rapid growth is a testament to the strength of its products. Pepperstone accepts clients from nearly all countries across the globe but does not accept clients in Canada and the United States.
FOREX.com (along with sister broker City Index) became part of the StoneX group following their purchase of the Gain Capital brand. This broker serves all markets except Australia, Singapore and UAE, where users in these countries will be directed to the local City Index website.
Both brokers specialise in Contract for Difference (CFD) derivative products such as Forex, stocks, indices and commodities. Clients from the United States with FOREX.com, however, can only spot trade, not trade CFDs.
Does Pepperstone or FOREX.com cost less to trade with?
When trading, the main trading fees to take note of when choosing a broker are spread costs and commissions. When choosing a trading account, you should take note of how the account applied these fees.
Other fees to take note of are funding fees, swap fees (overnight/rolling costs) and currency conversion charges.
Standard Account information
As a standard account is commission-free, the main trading cost to pay attention to is the spread. The smaller (or ‘tighter’) this spread is, the cheaper it will be for you to trade. Spreads with a Standard account are wider than commission-based accounts as this is how the broker makes their profits.
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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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1.20 | 1.80 | 1.60 | 1.70 | 1.60 |
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1.13 | 1.01 | 1.71 | 1.66 | 1.12 |
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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 | 1.80 | 1.90 | 1.90 | 1.60 |
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1.32 | 1.95 | 1.37 | 1.70 | 1.40 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
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From the standard account spreads module, you can see the average spreads of top forex brokers, including Pepperstone and FOREX.com. Overall, Pepperstone has much tighter spreads than FOREX.com and is a very solid choice when choosing a forex broker.
Peppertone’s standard account has a minimum spread of 1.0 pips, on all major pairs excluding the EUR/GBP. For other minor and exotic currency pairs like the GBP/CAD, you can also expect spreads to have a minimum of 1 pip.
If you are using the FOREX.com trading platform, then commission-free trading will be with the broker’s Standard account. FOREX.com also have commission-free trading with a MetaTrader 4 account for traders outside Europe. European traders have the option of a MetaTrader 5 account.
On FOREX.com’s standard account, the minimum spread you will get is 0.8 pips (1 pip if you trade in the USA). However, this only applies to the EUR/USD and AUD/USD. For other forex pairs, you face higher minimum spreads, for example, at 1.8 pips for the EUR/JPY.
Note that for the rest of this article, we’ll be talking about FOREX.com’s non-USA offering unless otherwise stated.
Commission-based account comparison
While standard accounts only come with spread fees, commission-based accounts have a slightly more complex fee structure. These ‘raw’ accounts have market-priced spreads plus a volume-based commission on trades.
We have assembled a spread matrix below for your convenience, enabling a swift juxtaposition of average spreads for the STP-style accounts from various brokerages, inclusive of Pepperstone’s Razor Account.
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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 | 0.10 | 0.30 | 0.20 |
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0.20 | 0.30 | 0.20 | 0.40 | 0.20 |
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0.30 | N/A | 0.30 | 0.50 | 0.40 |
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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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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
From the above spread analysis, it is evident that Pepperstone’s spreads fluctuate between 0.1 and 0.3 pip for the EUR/USD on their Razor Account. However, spreads can plummet to as low as 0.0 pips.
The commission charges on the Razor Account are highly competitive when stacked against other brokers, standing at $7 AUD/USD per standard lot (100k units) round-trip. The comparison graphic below details the commission for other currencies. If your base currency isn’t displayed, your commission is converted from the USD rate.
Although FOREX.com does not provide typical spreads for their commission-based accounts, you will face a minimum spread of 0.2 pips on popular pairs like the EUR/USD.
Commission costs and structures with FOREX.com vary depending on the country you join with the broker from. Strangely. FOREX.com does not offer a commission account to traders in the European Union.
In the US and countries outside the UK, Europe, Australia and Singapore, FOREX.com has a ‘commission account’. This account has a flat commission of $10 round-turn per lot. This account is best for average traders or retail traders.
If you are a high-volume trader, then you may prefer one of the broker’s tiered commission accounts. These accounts offer reduced commissions if you trade above certain volumes the previous month.
FOREX.com call this account the DMA account for all countries outside the US (where it is called the STP account.) Commissions start at $120 ($140 in Canada and US) per USD million traded round-turn but can be as low as $40 ($60 in Canada and US) per million if you trade $1bn of volume in the previous month.
Verdict
Overall, we found that Pepperstone has much lower spreads on both account types.
For the most part, Pepperstone’s commission costs are lower than Forex. The exception is if you trade more than $250M a month, which leads to a commission of $7.00 per lot, which only matches Pepperstone’s commission costs. Savings on commission costs with FOREX.com only really occur if you trade $500M a month or more.
Note: While commission costs in the USA and Canada are slightly higher, comparisons with Pepperstone don’t apply as Pepperstone doesn’t accept clients from these markets.
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Both Pepperstone and FOREX.com offer a fair few platforms and trading tools for you to use.
Pepperstone offers a robust assortment of platforms, including MetaTrader 4 and MetaTrader 5 (MT4/MT5), Capitalise.ai, TradingView, and cTrader.
FOREX.com offers both MT4 and TradingView, along with NinjaTrader and their proprietary platform.
Pepperstone and FOREX.com both offer distinct account types tailored to different trading needs. Pepperstone’s standard account is known for its tighter spreads, with a minimum spread of 1.0 pips on major pairs, excluding the EUR/GBP. On the other hand, FOREX.com’s standard account offers a minimum spread of 0.8 pips for the EUR/USD and AUD/USD but higher spreads for other forex pairs.
When it comes to commission-based accounts, Pepperstone’s Razor Account stands out, with spreads fluctuating between 0.1 and 0.3 pip for the EUR/USD and competitive commission charges of $7 AUD/USD per standard lot round-trip. In contrast, FOREX.com’s commission structures vary based on the country of registration, with some regions not even offering a commission account.
In terms of funding, Pepperstone does not require a minimum deposit, though a recommendation of at least $200 is given to meet margin requirements. FOREX.com, however, mandates a minimum deposit of $100 in the chosen base currency.
Verdict
Based on the diverse account offerings and competitive features, Pepperstone appears to have a slight edge in providing superior account types and features for traders.
Having delved deep into both platforms, I can confidently say that trading with Pepperstone and FOREX.com offers unique experiences. Pepperstone, for instance, boasts a robust assortment of platforms, including MetaTrader 4 and MetaTrader 5 (MT4/MT5), Capitalise.ai, and cTrader.
These platforms are user-friendly and come with a plethora of trading tools, making the trading journey smoother. On the other hand, FOREX.com offers both MT4 and TradingView, along with NinjaTrader and their proprietary platform, which are equally intuitive and equipped with advanced features.
Verdict
While both brokers offer commendable trading platforms, Pepperstone edges out slightly with its diverse platform offerings and superior automation features, providing an unparalleled trading experience.
Pepperstone Trust Score
FOREX.com Trust Score
One of the best ways to stay safe when forex trading is using a broker that is regulated in the country you are trading from.
Pepperstone is regulated by 5 top-tier and one second-tier regulator; meanwhile, FOREX.com has its own five top-tier regulators and one third-tier one.
Traders in the UAE, Australia and Singapore wanting a FOREX.com environment can consider trading with City Index. Both brokers were previously owned by Gain Capital Group and have since been bought by the StoneX Group.
| Pepperstone | FOREX.com | |
|---|---|---|
| Tier 1 Regulation | ASIC (Australia) FCA (UK) BaFin (Germany) CYSEC (Cyprus) |
FCA (UK) CIRO (CANADA) NFA/CFTC (USA) CYSEC (Cyprus) |
| Tier 2 Regulation | DFSA (Dubai) | JFSA (Japan) |
| Tier 3 Regulation | SCB (Bahamas) CMA (Kenya) |
CIMA (Cayman) |
Verdict
Both brokers are using top-tier regulators – the most important factor when choosing a broker is that the broker is regulated in your home country.
The financial instruments offered by the two brokers are contracts-for-differences (CFDs). These are a form of derivative, with underlying assets ranging from forex pairs to shares/ETFs/indices, commodities, and even cryptocurrencies.
The exception is in the USA with FOREX.com, where spot, not CFD, products are offered.
Pepperstone provides you with 62 different currency pairs and over 1,000 share CFDs. Maximum leverage is set at the maximum allowed by regulation, which is 30:1 on major forex pairs if you are a retail trader and 500:1 if you are a pro trader. In Kenya, leverage is 400:1, and in regions outside the major trading hubs, you get 200:1 leverage.
FOREX.com offers more forex pairs, at 82 in the US and 91 outside of the US. They also have over 3,000 share CFDs, much more than Pepperstone. Leverage is also slightly different, at 50:1 in the US and 33:1 in Canada, and for other regions, at 200:1. For pro traders, leverage is maxed at 400:1.
Verdict
Our product winner is FOREX.com, on account of their wider variety of forex pairs and other CFD options.
Pepperstone:
FOREX.com:
Verdict
Based on our team’s testing, Pepperstone offers superior educational resources compared to FOREX.com.
In the competitive world of forex trading, customer service can make or break a broker’s reputation. Both Pepperstone and FOREX.com have made significant strides in ensuring their clients receive top-notch support.
Pepperstone, for instance, is known for its rapid response times and knowledgeable support team. They offer multiple channels of communication, ensuring that traders can reach out in the way that’s most convenient for them. FOREX.com, on the other hand, also provides a range of support options, but based on our testing, their response times can sometimes lag behind.
Here’s a comparative table highlighting the key customer service features of each broker:
| Feature | Pepperstone | FOREX.com |
|---|---|---|
| Live Chat Availability | 24/5 | 24/7 |
| Response Time | Within minutes | Varies |
| Support Languages | Multiple | Multiple |
| Phone Support | Available | Available |
| Email Support | Responsive | Average response |
| Knowledge Base/FAQ | Comprehensive | Detailed |
In the realm of customer service, it’s not just about availability but also the quality of support provided. Both brokers have their strengths, but it’s the nuances in service quality, response times, and depth of knowledge that set them apart.
Verdict
Based on our team’s testing scores and the data gathered, Pepperstone offers superior customer service, standing out with its rapid response times and in-depth support.
One of the most important steps before trading is funding your account.
For Pepperstone, you are not required to deposit a minimum amount, although they do recommend you trade with at least $200 to meet margin requirements.
The funding methods available will depend on the country you are trading from and, except for international bank transfers, don’t have funding fees.
Visa and MasterCard are available as credit and debit cards to all traders in all countries except the UAE. Here, retail traders can only use debit cards, while professional traders can also use credit cards.
It is also interesting to note that except for PayPal with Pepperstone UK and Kenya, eWallets are not available in the UK, Kenya, Europe and UAE. Traders in other countries, such as Australia, however, can make deposits with eWallets such as Skrill, Neteller, BPAY, POLi and Union Pay.
FOREX.com accounts have a minimum deposit of $100 in your base currency of choice; however, Wire Transfer is free. PayPal is available in the UK, while Skrill and Neteller are available in Europe and outside the UK, Canada and the USA. All countries allow credit and debit cards, with the USA also accepting Automatic Collection House.
Pepperstone has a lower minimum deposit amount of $0, compared to FOREX.com’s $100 minimum. The broker Pepperstone offers a distinct advantage by requiring no minimum deposit to start trading, beneficial for novice traders.
| GBP | USD | EUR | AUD | |
|---|---|---|---|---|
| Credit Card / Debit Card | £0 Minimum Deposit | $0 Minimum Deposit | €0 Minimum Deposit | $0 |
| Paypal | £0 Minimum Deposit | $0 Minimum Deposit | €0 Minimum Deposit | $0 |
| Bank Wire | £0 Minimum Deposit | $0 Minimum Deposit | €0 Minimum Deposit | $0 |
| Skrill | £0 Minimum Deposit | $0 Minimum Deposit | €0 Minimum Deposit | $0 |
On the other hand, FOREX.com has a tiered approach to their minimum deposit requirements, with just the initial amount shown below.
| Minimum Deposit | GBP | USD | EUR | AUD |
|---|---|---|---|---|
| Credit Card / Debit Card | £100 | $100 | €100 | $100 |
| Bank Wire | £100 | $100 | €100 | $100 |
| Skrill | £100 | $100 | €100 | $100 |
| Neteller | £100 | $100 | €100 | $100 |
Here’s a comparative table highlighting the minimum deposit amounts of each broker:
| Minimum Deposit | Recommended Deposit | |
| Pepperstone | $0 | $200 |
| FOREX.com | $100 | $1,000 |
Verdict
Pepperstone stands out by offering a $0 minimum deposit, however, you will still need a sufficient amount to start a trading position. In Pepperstone’s case, they say you’ll need at least $200.
Pepperstone is the winner because it consistently outperforms in the majority of the key areas that traders value most. The table below summarises the key information leading to this verdict.
| Criteria | FOREX.com | Pepperstone |
|---|---|---|
| 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 | ❌ | ✅ |
Pepperstone is the ideal choice for beginner traders due to its user-friendly platform, comprehensive educational resources, and low entry barriers.
While both brokers cater well to experienced traders, Pepperstone offers a slight edge with its advanced trading tools and competitive spreads.
Pepperstone generally offers lower costs compared to FOREX.com. Specifically, Pepperstone boasts tighter spreads, especially on major currency pairs. For instance, their average spread for the EUR/USD is often more competitive. To get a broader perspective on low commission brokers, you can check out this comprehensive guide on brokers with the lowest spreads.
Both FOREX.com and Pepperstone offer MetaTrader 4, but Pepperstone is often recognised for its enhanced MT4 features and tools. They provide a seamless trading experience with faster execution speeds. For traders specifically interested in MT4 platforms, this detailed review of the best MT4 brokers can provide more insights.
Pepperstone stands out when it comes to offering social or copy trading features. They have partnerships with various social trading platforms, allowing traders to copy strategies from experienced traders. If you’re keen on exploring more about social trading platforms, here’s a comprehensive list of the best forex social trading platforms.
Neither Pepperstone nor FOREX.com offer spread betting as a primary service. Spread betting is a unique form of trading popular in the UK and some other regions, and not all brokers provide this service. If you’re specifically interested in spread betting, you might want to explore this comprehensive guide on the best spread betting brokers in the UK.
In my opinion, Pepperstone is the superior choice for Australian forex traders. Not only is Pepperstone ASIC regulated, but it’s also an Australian-founded broker, which gives it a home-ground advantage in understanding the needs of Aussie traders. They offer competitive spreads, a range of trading platforms, and exceptional customer service. If you’re an Australian trader looking for more options, here’s a detailed review of the best Australian forex brokers.
For UK traders, I personally lean towards Pepperstone. While both brokers are FCA regulated, which is crucial for UK traders, Pepperstone’s commitment to providing a seamless trading experience sets it apart. Moreover, even though Pepperstone is founded overseas, their dedication to catering to UK traders is evident in their tailored services and offerings. For a broader perspective on UK forex trading, this guide on the best forex brokers in the UK can be quite insightful.
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