Our Pepperstone vs FP Markets comparison found both brokers offer over 60 currency pairs, 4 commodities and 14 indices, both broker also offer MetaTrader 4 and 5 forex trading platforms. Our review looks at the differences between each broker.
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The account types is the first metric used in our Pepperstone vs FP Markets broker comparison. Below you’ll find which of the two Australian-based forex brokers offers the best trading account to suit your trading needs. Our head-to-head comparison revealed that both Pepperstone and FP Markets offer 2 retail investor accounts:
A quick comparison shows that both forex brokers offer similar trading conditions with Pepperstone having a slight advantage due to more tradable CFDs.
Pepperstone has 3 other account types available. These include:
Australian clients of FP Markets have a choice of 3 IRESS accounts (Standard account, Platinum and Premier account) from which they can trade through the proprietary trading platform built by FP Markets experts. On the downside, the IRESS accounts have a steep minimum deposit requirement up to AUD $50,000 and a $55 monthly platform fee. IRESS is a trading platform that is best for DMA trading with shares. It is not available outside Australia.
FP Markets like Pepperstone also offers an Islamic account that is compliant with Sharia law. The swap-free accounts offered by FP Markets will not credit or debit the interest rate differential. But, Muslim traders can expect to be charged a swap commission or an administrative fee up to $33.
Overall, Pepperstone came first in our star scoring system as it pertains to both beginner traders and professional traders, has superior trading conditions, more CFDs to trade, lower entry fees and a fast account opening process.
View Pepperstone Review >>Visit Pepperstone >>
Low spreads and low trading costs account are important factors to take into account for forex traders especially when scalping and Pepperstone promise both. Both Pepperstone and FP Markets have some of the tightest spreads and lowest-cost of all forex brokers in the industry.
The EUR/USD average spread, based on brokers’ estimates is 0.16 pips with Pepperstone respectively 0.10 pips with FP Markets.
Both forex brokers offer interbank spreads that start from 0.0 pips and ECN pricing. Based on the real EUR/USD tick-by-tick price data (from 01 September 2020 to 30 September 2020) the live spreads offered by FP Markets on average are 0.0 pips 42.07% of the time. It’s important to note that during the busiest trading hours Pepperstone’s spreads are on par and matches FP Markets’ spreads.
For an in-depth spread comparison across different currency pairs, the table below features the average bid and ask forex spreads offered by the two forex brokers and their competition.
Data taken from broker website. Accurate as at 04/06/2021
Compare All Spreads >>
Note: This Pepperstone vs FP Markets spread comparison was done using price quotes from the broker’s commission accounts.
All CFD trading positions will inherently incur a spread cost. Working out the CFD fees of Pepperstone and FP Markets can further reveal which forex broker can help you reduce the trading fees and subsequently your profit potential.
Pepperstone’s spreads are among the lowest across all CFDs offered. You can trade with industry-leading spreads on index CFDs from 0.40 points (US500), from 0.3 points on crude oil, 0.6 points on gold and starting from $2.01 on cryptocurrencies* CFDs. By comparison, FP Markets boost CFD spreads starting from 0.5 points on index CFDs (US500), 0.3 points on crude oil and from $3.0 on cryptocurrency CFDs.
*NOTE: Under new FCA regulations, UK retail traders are no longer allowed to trade cryptocurrencies.
The bottom line is that Pepperstone topped FP Markets in terms of low spreads on forex and CFDs. At Pepperstone, forex traders can enjoy interbank spreads from 0.0 pips and price quotes derived from institutional-grade liquidity providers, no dealing desk and ECN trading conditions. The real-time market-leading pricing along with the raw spreads can satisfy high-frequency traders and can easily accommodate all types of scalping trading strategies.
The forex market is the ultimate competitive playground. However, when it comes to leverage trading, forex brokers can only flex their muscle as much as the financial regulatory bodies allow them. The leverage restrictions imposed by the financial authorities varies based on the financial jurisdiction of your broker’s subsidiary and the asset class you are trading with.
In line with the CySEC regulation in Europe and ASIC regulation in Australia, both brokerage trading firms offer a maximum leverage of 30:1 for forex trading on major fx pairs and 20:1 for minor and exotic FX pairs. Pepperstone’s FCA regulated branch in the UK also adheres to the same leverage caps as ASIC and CySEC.
If you want higher leverage, both broker’s operate offshore branches. FP Markets international branch is based in St Vincent and the Grenadines where no financial regulation exists and 500:1 forex leverage is available.
As a Pepperstone trader, you can access 500:1 leverage through the broker’s SCB regulated branch in the Bahamas, or 400:1 at the CMA regulated branch in Kenya.
The leverage limits across various CFD assets clearly advantages Pepperstone clients. Higher leverage means lower margin requirements and subsequently, you can trade bigger position sizes with smaller account size. The head-to-head leverage limits by CFD products shows that Pepperstone offers bigger CFD leverage ratios.
Overall, Pepperstone and FP Markets tie as both brokers are able to boost higher leverage ratios across all financial instruments offered via its global offshore branches. Both FX brokers offer forex leverage in line with the industry standards in each jurisdiction.
View FP Markets Review >>Visit FP Markets >>
In terms of trading platforms experience and technical tools, forex traders can access both brokers industry-leading software solutions like the MetaTrader 4 and MetaTrader 5. Additionally, Pepperstone clients can access the leading multi-asset cTrader by Spotware Systems. At the same time, FP Markets offers a proprietary trading platform IRESS which is only available for Australian traders. The IRESS trading platform provides to access shares trading using DMA trading execution.
To compare the range of trading platforms offered by the two Australian-based brokers, our team of FX experts reviewed what trading tools they offer, order execution speed, research capabilities, ECN platform technology, social trading tools and mobile trading capabilities.
For external trading tools, Pepperstone offers more advanced third-party plugins. Pepperstone clients can access:
On the other hand, FP Markets’ range of trading tools includes MetaTrader 4 Trader Toolbox with 12 online trading tools (alarm manager, correlation trader, correlation matrix, sentiment trader, etc.). Autochartist technical analysis tools are also included with FP Markets’ MetaTrader 4 and MetaTrader 5 platforms.
As a no dealing desk broker, Pepperstone can boast fast order execution speeds of 30ms compared to FP Markets’s 37ms average order execution speed (based on data collected from 01 August 2020 to 31 August 2020).
The ECN pricing model ensures fast order execution as you’re connected directly with the broker’s liquidity providers and reduced slippage on your stop-loss orders. Both brokers support Expert Advisors (EAs) which are further enhanced by the ultra-fast trade execution.
The real order execution speed, using market orders and a third-party script shows that Pepperstone clients have ultra-low latency order execution of 85ms compared to 95ms execution speed found with FP Markets’ trading platforms.
Note: FP Markets also provides DMA (Direct Market Access) exclusively via its proprietary trading platform IRESS.
Pepperstone offers advanced and diverse copy trading solution and social trading tools that can be used across the MetaTrader (MT4 and MT5) trading platforms. Pepperstone clients can subscribe to 3 social trading platforms (MyFxBook AutoTrade, MQL5 signals, and Pelican) and 3 exclusive copy trading platforms (DupliTrade, RoboX and Mirror Trader by Tradency).
By comparison, FP Markets clients can only access MyFxBook AutoTrade, which features an automated copy trading solution. The third-party social trading services offered by Pepperstone clearly give more options to choose from and subsequently more trading opportunities.
Trading on the go with dedicated mobile trading apps is possible with both forex brokers Pepperstone and FP Markets. Mobile trading with Pepperstone offers a dynamic experience on both iPhone iOS and Android apps. Pepperstone clients can use 3 trading apps (MT4, MT5 and cTrader) which are powered with real-time FX quotes, advanced charting capabilities, one-tap trading, user-friendly interface, +50 default indicators and so much more.
FP Markets’ forex apps allow you to manage your trading accounts on your iPhone and Android devices. However, FP Markets offering only includes MT4 and MT5 mobile apps.
Additionally, traders can use the MetaTrader Webtrader to access your Pepperstone and FP Markets trading account directly from your browser (Mac and Windows users).
Based on the range of platforms offered, accessibility, usability, execution speed, third-party plugins, technical tools, social trading integration and mobile trading apps, Pepperstone topped FP Markets on most metrics. MetaTrader 4 is best for forex trading, MetaTrader 5 is best for CFD trading and cTrader is best for automated trading. Click the button below and claim your favourite forex platform today!
When it comes to the range of markets available for trading, our review has concluded that both brokerages have a distinct focus on Forex trading, as they offer true ECN/STP trading conditions and trade execution.
There are 7 different asset classes included in the list of tradable CFDs offered with both brokers. But, Pepperstone clearly has the advantage of providing you with more instruments and more trading opportunities in +180 versus +140 trading instruments found with FP Markets.
Pepperstone offers leveraged trading with 66 major, minor and exotic currency pairs compared to 61 currency pairs accessed through FP Markets trading account. With Pepperstone forex trading is accessible through their MetaTrader 4, MetaTrader 5 and cTrader platforms on both their Standard and ECN trading account types. At the same time, FP Markets clients can only access FX trading via MT4 and MT5.
FX traders can speculate on the price movement of the following popular FX pairs:
Pepperstone offers 6 cryptocurrencies, which can be traded with a maximum leverage of 1:2 in Australia and Europe with no commissions. Yet, under Pepperstone’s FCA regulation, retail investor accounts are banned from trading cryptocurrencies.
The following major cryptocurrencies can be found with both brokers; Bitcoin, Bitcoin Cash, Litecoin and Ethereum and Ripple. Pepperstone also offers Dash which is not available with FP Markets.
CFDs are complex instruments that involve a high risk of losing capital rapidly, as leverage is used. Both brokers offer a good range of CFDs covering several asset classes, including:
Our review has found that none of the two brokerages has ETFs or Bonds included in their CFD product list.
FP Markets tops Pepperstone on the range of tradable financial instruments. While Pepperstone clients can access a wide range of CFD instruments on FX, indices, commodities and your favourite cryptocurrencies, FP Markets clients can access over 10,000 stocks. Whatever your favourite currency pair or trading instrument is, FP Markets has your back covered.
Both forex brokers offer multilingual 24/5 customer support service via live chat, email as well as over the phone. However, Pepperstone has been ranked as #1 for Forex Trading Support (Europe) in the Global Forex Awards 2019 and awarded for Best Client Relationship Manager Service in the Professional Trader Awards 2019.
We were quite impressed by the Pepperstone’s live chat option since we managed to contact a representative from the company within a minute and received relevant, precise answers to all our queries. We asked the support team about Pepperstone’s ECN pricing model and Shares CFD commissions.
Another way of contacting Pepperstone’s support team is via email at email@example.com, or over the phone by dialling +613 9020 0155. Meanwhile, Australian clients can contact the broker by using a toll-free number – 1300 033 375.
Additionally, Pepperstone has provided an online messaging form in the “Contact Us” section on its website.
In terms of educational and research materials, both brokers have provided extensive and well-structured content on their websites.
Beginners will probably find Pepperstone’s Forex and CFD trading guides quite useful, as they cover a variety of topics ranging from basic terms (pip value, trend lines etc.) to other trading-related concepts such as technical analysis, fundamental analysis or risk management.
In addition, Pepperstone has a good trading strategy guides section that includes content suitable for beginners, intermediate and advanced users.
The broker also offers a 10-chapter MetaTrader 4 course and rich market news and market analysis sections. And last but not least, Pepperstone conducts webinars on a regular basis that cover both the technical and fundamental side of trading.
Meanwhile, FP Markets is also quite competitive in the research and education front. It offers trading ideas on its Traders Hub blog based on both fundamental and technical analysis. It also provides daily market reports, where information is presented in a brief, compact manner.
As for education materials, the broker offers a plethora of educational articles in its Trading Knowledge website section as well as multiple video tutorials covering all the aspects of the MetaTrader 4 platform.
Additionally, the brokerage provides several high-quality E-books covering common mistakes in CFD trading, spot opportunities in volatile markets, technical analysis and fundamental trading.
Both forex brokers provide excellent customer service and dedicated account managers 24/7. But, Pepperstone outclasses FP Markets when we put side-by-side the education and analysis tools. At Pepperstone you can find trading guides, webinars, daily news, market analysis and webinars that are suited to all types of traders.
The minimum deposit requirement at Pepperstone is USD 200 or equivalent for all of the broker’s account types, while FP Markets requires a minimum deposit of USD 100 for MetaTrader accounts and a min deposit of AUD 50,000 for the Iress accounts.
Note* It’s worth mentioning that Pepperstone doesn’t enforce a minimum deposit requirement but it’s more of a recommendation. Traders are free to open a live account with USD 0.
When it comes to base account currencies allowed both forex brokers Pepperstone and FP Markets support 10 different base currencies (AUD, USD, JPY, GBP, EUR, CAD, CHF, NZD, SGD, HKD).
Pepperstone will not charge any deposit fees or withdrawal fees, regardless of the payment method chosen by clients. In comparison, FP Markets will not charge any deposit fees, but there will be a withdrawal fee associated with some of the funding options.
Both Pepperstone and FP Markets allows the traditional funding methods like debit or credit card by Visa or MasterCard and bank transfer. Other shared payment methods include the following electronic wallets:
Additionally, Pepperstone also supports Union Pay. In comparison, with FP Markets clients can fund their trading account by using some extra funding options like:
As for FP Markets withdrawal fees, depending on the funding method used you can expect to pay up to 1.5%. With Pepperstone you don’t have to worry about any type of withdrawal fees.
Overall, FP Markets offers more funding and withdrawal options, but one of the disadvantages with FP Markets is the withdrawal fees, mostly associated with electronic payment gateways. If you don’t want your broker to eat from your profits, it’s best to sign-up with Pepperstone, but if you like more funding methods it’s best to sign-up with FP Markets.
Both brokerages enjoy strong Forex regulation by some of the most reputable authorities across the globe. As such, both Forex brokers can be considered safe. Pepperstone and its corporate divisions are authorized to conduct online trading business and are regulated in the following tier-one and offshore jurisdictions:
Meanwhile, FP Markets and its corporate divisions are regulated in the following jurisdictions:
When it comes to client security, both brokerages assure that customer funds are kept fully segregated from their corporate accounts at top-tier banks.
Between the two brokerage trading firms, only Pepperstone has a negative balance protection policy (NBPP) for its FCA, ASIC and CySEC retail clients. Additionally, the Australian broker also uses an automated margin call level that will liquidate some of your open positions if the “account equity falls below 50% of the margin requirement of your trades.” This protective measurement will protect you from losing all your money at once.
We have an automated stop-out policy designed to minimise your losses and to take action before the market moves further against your open contracts – Pepperstone.
We should also note that Pepperstone offers retail clients risk management tools (Stop Loss orders, Trailing Stop etc.) to protect their active positions against unexpected shifts in market sentiment. Using a strict money management approach is also advisable.
Additional investor protection as laid out by the FCA includes up to GBP 85,000 in compensation through the FSCS.
Overall, Pepperstone is licensed and authorized in more jurisdictions than FP Markets. Pepperstone has more experience in the FX arena being a global leader in the retail space. As such, traders can expect their funds to be kept safe and at the same time enjoy a level playing field for clients.
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.