Pepperstone vs FP Markets: Which One Is Best?

2. Pepperstone: Better Trading Platform

In terms of trading platform 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.

MetaTrader Trading Platforms

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.

Third-Party Plugins

For external trading tools, Pepperstone offers more advanced third-party plugins. Pepperstone clients can access the following:

• 28 Smart Trader Tools and indicators compatible with MT4 and MT5
• Autochartist, which includes pattern recognition software, built-in filters, risk management tools, technical indicators, volatility analysis, daily market reports, and so much more

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.

Forex Trade Execution

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 Nov 2020 to 31 Nov 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.

Social Trading Tools

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.

Mobile Trading

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, a 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).

Verdict

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!

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3. Pepperstone: Superior Accounts And Features

The account types are 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:

• Standard account with no commissions and mark-up spreads
• Commission-based account with raw spreads derived directly from the Interbank market

A quick comparison shows that both forex brokers offer similar trading conditions, with Pepperstone having a slight advantage due to more tradable CFDs.

Additional Account Types

Pepperstone

Pepperstone has 3 other account types available. These include:

• Muslim traders via the Islamic account (swap-free) which can be with either Standard or Razor Account
• Professional money managers via PAMM and MAM trading accounts (supports 3 allocation methods including lot, percentage, and proportional)
• Active traders (via Premium Client account) which discount provided you meet minimum trading volume requirements. (see table below)

FP Markets

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 of 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 offer 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. However, Muslim traders can expect to be charged a swap commission or an administrative fee of up to $33.

Verdict

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.

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4. Pepperstone: Best Trading Experience And Ease

When it comes to trading experience and ease of use, both Pepperstone and FP Markets have their strengths. From our own testing, Pepperstone stands out with its range of platforms, especially with its MetaTrader 4 offering. On the other hand, FP Markets shines with its CFD offerings, making it a top choice for traders looking for diverse trading opportunities.

• Pepperstone is recognised as the best broker for MT4 trading.
• FP Markets is highlighted as the best broker for CFD trading.
• Pepperstone also excels in automation, with tools like Capitalise.ai enhancing the trading experience.
• Both brokers offer user-friendly interfaces, but the choice of platform can influence a trader’s preference.

After spending considerable time with both platforms, it’s evident that each broker caters to different trader needs. However, when it comes to the overall trading experience and ease of use, Pepperstone slightly edges out with its comprehensive tools and platform offerings.

Verdict

Pepperstone offers the best trading experience and ease of use among the two.

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5. Pepperstone: Stronger Trust And Regulation

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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 authorised to conduct online trading business and are regulated in the following tier-one and offshore jurisdictions:

• Australia – Pepperstone Australia – by the Australian Securities and Investments Commission (ASIC)
• United Kingdom – Pepperstone UK – by the Financial Conduct Authority (FCA)
• Europe – the Cyprus Securities and Exchange Commission (CySEC)
• Germany – BaFin
• UAE – Pepperstone AE – by the Dubai Financial Services Authority (DFSA)
• Kenya – the CMA
• Internationally – Pepperstone Markets – by the Securities Commission of the Bahamas (SCB)

Meanwhile, FP Markets and its corporate divisions are regulated in the following jurisdictions:

• Australia – First Prudential Markets Pty Ltd – by the ASIC
• Europe – First Prudential Markets Ltd – by the Cyprus Securities Exchange Commission (CySEC)
• Internationally – First Prudential Markets LLC, an entity registered in St. Vincent and the Grenadines

Money Protection

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.

Verdict

Overall, Pepperstone is licenced and authorised 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.

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6. FP Markets: Top Product Range And CFD Markets

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 by 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.

Forex Trading With Pepperstone And FP Markets

Pepperstone offers leveraged trading with 66 major, minor and exotic currency pairs compared to 61 currency pairs accessed through the 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:

• EUR/USD, GBP/USD, AUD/USD, USD/JPY, USD/CAD and USD/CHF with 0.0 pip spreads on Pepperstone’s Razor Account and FP Markets’ Raw Spread Account.
• Minors such as EUR/GBP with a minimum spread of 0.0 pips on Pepperstone’s Razor Account and 0.2 pips on FP Markets’ Raw Account
• Exotics such as USD/SGD with a minimum spread of 0.5 pips on Pepperstone’s Razor Account and 0.8 pips on FP Markets’ Raw Account

Cryptocurrency Trading

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, Ethereum and Ripple. Pepperstone also offers Dash, which is not available with FP Markets.

CFD Trading

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:

• Stocks – FP Markets offers two options – first, direct market access to over 10,000 Shares CFDs traded on 9 major exchanges through its Iress platform; second, access to 54 Shares CFDs through its MetaTrader 5 platform. FP Markets also offers access to real Stocks traded on the Australian Securities Exchange only. In comparison, Pepperstone offers CFDs on 64 US Shares, which can be traded with commissions as low as $0.02 per share on its MetaTrader 5 platform
• Stock Indices – CFDs on 14 major indices with Pepperstone vs CFDs on 12 stock indices with FP Markets
• Commodities – CFDs on 12 Energies and Soft Commodities, 10 Metal pairs with Pepperstone vs 5 Commodity CFDs contracts and 4 CFD contracts on Spot Metals with FP Markets
• Currency Index – CFDs on 3 currency indices (USDX, EURX and JPYX) with Pepperstone versus 1 tradable currency index with FP Markets

Our review has found that none of the two brokerages has ETFs or Bonds included in their CFD product list.

Verdict

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.

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7. Pepperstone: Superior Educational Resources

Pepperstone:

• Offers a comprehensive range of educational materials.
• Provides webinars, seminars, and tutorials for traders.
• Features a dedicated section for beginner traders.
• Includes advanced trading strategies for experienced traders.
• Has a rich library of eBooks and articles.
• Supports traders with market analysis and insights.

FP Markets:

• Provides a diverse range of educational resources.
• Conducts regular webinars and workshops for traders.
• Has a section dedicated to novice traders.
• Offers insights into advanced trading techniques.
• Features a collection of trading eBooks and guides.
• Equips traders with daily market analysis.
• Webinars in multiple languages that cover all types of traders, on a regular basis.

Verdict

Based on our team’s testing, Pepperstone offers superior educational resources compared to FP Markets.

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8. Pepperstone: Superior Customer Service

Both forex brokers offer multilingual 24/5 customer support service via live chat, email, and over the phone. However, Pepperstone has been ranked as #1 for Forex Trading Support (Europe) in the Global Forex Awards 2019 and awarded Best Client Relationship Manager Service in the Professional Trader Awards 2019.

We were quite impressed by 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 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.

Education And Research Materials

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. 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.

Verdict

Both forex brokers provide excellent customer service and dedicated account managers 24/7. However, Pepperstone outclasses FP Markets when we put the education and analysis tools side by side. At Pepperstone, you can find trading guides, webinars, daily news, market analysis and webinars that are suited to all types of traders.

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9. Tie: Better Funding Options

Both Pepperstone and FP Markets allow traditional funding methods like debit or credit card by Visa or MasterCard and bank transfer. Other shared payment methods include the following electronic wallets:

• PayPal
• POLi
• BPay
• Skrill
• Neteller

Additionally, Pepperstone also supports Union Pay. In comparison, FP Markets clients can fund their trading account by using some extra funding options like:

• PayTrust (local bank transfer)
• Fasapay
• OnlinePay
• Klarna
• Broker to broker
• Nganluong.vn (Vietnamese clients)
• Directa24 (South America)

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.

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.

Verdict

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.

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10. Pepperstone: Lower Minimum Deposit

Pepperstone requires a lower minimum deposit of $0 against FP Markets’ $100. The $100 amount set by Plus500 depends on the currency you deposit in, so if your base currency is EUR, your minimum will be €100. Even though FP Markets has a higher minimum deposit, it is still reasonable, as Pepperstone recommends at least $200 to open a trading position.

Verdict

Technically, Pepperstone wins with their $0 minimum deposit requirement. While not the only factor in choosing a broker, it definitely gives Pepperstone that added push to be considered as the better option here.

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So Is FP Markets or Pepperstone The Best Broker?

Pepperstone is the winner because it offers better trading conditions in terms of lower average spreads, greater trust factors, trading platform range, and superior customer service.

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

Pepperstone: Best For Beginner Traders

Pepperstone is better suited for beginner traders due to its comprehensive range of educational materials, user-friendly platforms, and dedicated customer support.

FP Markets: Best For Experienced Traders

FP Markets is the preferred choice for experienced traders, offering a wider range of tradable financial instruments and a proprietary trading platform, IRESS, exclusive for Australian traders.