Pepperstone and FXCM are both ASIC/FCA regulated, with FXCM offering the Trading Station platform vs Pepperstone, which offers both MT4 and MT5. Our 2024 analysis found Pepperstone superior based on spreads, execution speeds, range of CFDs and customer service levels.
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Our full comparison covers the 10 most important trading factors. Here are five key differences:
Try the FXCM vs Pepperstone fee calculator below based on the most popular forex pairs and base currencies.
FXCM Spreads
| FXCM | EUR/USD | USD/JPY | GBP/USD | AUD/USD | USD/CAD | EUR/GBP | EUR/JPY | AUD/JPY | All-in Cost EUR/USD - Active |
EUR/USD Standard Account |
|---|---|---|---|---|---|---|---|---|---|---|
| MyFxBook | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| BrokerChooser | 0.70 | 1.00 | 1.00 | 0.90 | 1.40 | N/A | N/A | N/A | N/A | N/A |
| ForexBrokers.com | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 1.38 | 1.38 |
| CompareForexBrokers | 0.56 | 0.30 | 0.60 | 0.90 | 0.40 | 0.60 | 0.70 | 0.80 | N/A | N/A |
| FXCM | 0.05 | 0.12 | 0.07 | 0.22 | N/A | 0.14 | 0.07 | 0.33 | N/A | N/A |
| Consensus | 0.44 | 0.47 | 0.56 | 0.67 | 0.90 | 0.37 | 0.39 | 0.57 | 1.38 | 1.38 |
Pepperstone Spreads
| Pepperstone | EUR/USD | USD/JPY | GBP/USD | AUD/USD | USD/CAD | EUR/GBP | EUR/JPY | AUD/JPY | All-in Cost EUR/USD - Active |
EUR/USD Standard Account |
|---|---|---|---|---|---|---|---|---|---|---|
| MyFxBook | 0.10 | 0.10 | 0.70 | 0.10 | 0.60 | 0.50 | 1.00 | 0.40 | N/A | N/A |
| BrokerChooser | 0.10 | 0.30 | 0.20 | 0.20 | 0.30 | N/A | N/A | N/A | N/A | N/A |
| ForexBrokers.com | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.87 | 0.77 |
| CompareForexBrokers | 0.19 | 0.36 | 0.41 | 0.19 | 0.61 | 0.40 | 1.10 | 0.70 | N/A | N/A |
| Pepperstone | 1.00 | 1.00 | 1.00 | 1.00 | 1.10 | 1.20 | N/A | N/A | N/A | N/A |
| Consensus | 0.30 | 0.44 | 0.57 | 0.37 | 0.65 | 0.70 | 1.05 | 0.55 | 0.87 | 0.77 |
The graph below shows the consensus data with Pepperstone showing lower spreads in most major currency pairs, except for the GBP/USD, EUR/GBP, and EUR/JPY.
When assessing Pepperstone vs FXCM based on transaction costs, our competitive review process discovered that Pepperstone spreads are extremely competitive and more advantageous than what FXCM has to offer. Trading with lower spreads and overall lower transaction costs is clearly an edge that can be found in trading with Pepperstone.
When evaluating head-to-head the EUR/USD spreads offered by Pepperstone and FXCM for each individual pricing model (commission-based and spread-based models), we concluded that Pepperstone beats FXCM in each comparison model. The table below outlines the Pepperstone and FXCM head-to-head average spreads for the EUR/USD and other major currency pairs.
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Raw Spread comparison
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|---|---|---|---|---|---|
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0.10 | 0.20 | 0.40 | 1.00 | 0.60 |
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0.10 | 0.20 | 0.30 | 0.50 | 0.30 |
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0.20 | 0.20 | 0.40 | N/A | 0.30 |
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0.44 | 0.42 | 0.40 | 0.30 | 0.83 |
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0.17 | 0.30 | 0.54 | 0.68 | N/A |
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0.20 | 0.40 | 0.50 | 0.70 | 0.70 |
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0.10 | 0.50 | 0.60 | 0.80 | 1.10 |
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n/a | 0.50 | 0.60 | 0.40 | 0.30 |
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0.44 | 1.23 | 1.13 | 1.23 | 1.41 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
FXCM’s Active Trader account advertises itself as offering discounts on the spread costs. However, they are still unbeatable when compared to Pepperstone’s spreads. Both Pepperstone Standard and Razor accounts are offering lower spreads than the FXCM’s Active Trader account.
Additionally, the spreads on the FXCM Active Trader account are closely tight to the monthly volume you trade. This means that in order to take advantage of the spread cost discounts, you need to generate more trading volume.
For example, FXCM EUR/USD average spreads on the regular account is 1.3 pips and 0.2 pips on the Active Trader account. By comparison, Pepperstone is able to offer through its Tier 1 liquidity providers EUR/USD 1.0 pips for the Standard account, respectively EUR/USD 0.0 pips for the Razor account.
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|---|---|---|---|---|---|
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1.10 | 1.20 | 1.40 | 2.00 | 1.50 |
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0.70 | 2.20 | 1.10 | 1.60 | 1.60 |
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1.90 | 2.00 | 2.40 | 2.30 | 2.50 |
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1.40 | 2.50 | 2.50 | 2.60 | 2.60 |
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1.20 | 1.80 | 1.90 | 2.30 | 2.30 |
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1.32 | 1.95 | 1.37 | 1.87 | 1.73 |
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1.30 | 1.70 | 2.10 | 1.70 | 2.10 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
Compare Standard Account Spreads
Commissions Comparison
Both forex brokers offer different types of commission structures. The commission-based model offered by FXCM is based on the volume you trade and the initial deposit. FXCM Active Trader account claims to save you up to 62.4% in total trading costs. FXCM commissions per $1 million traded are $30 or $3 per 100,000 units traded (1 standard lot) per side.
By comparison, the Australian forex broker Pepperstone offers different levels of commissions across the three main trading platforms:
Verdict
When compared side by side, it appears that FXCM has a moderate advantage over Pepperstone in terms of the commissions charged. However, our team of experts considers FXCM’s commission advantage to vanish when we take into consideration factors such as slippage and order execution speed.
FXCM doesn’t have the same level of access to liquidity compared to Pepperstone, which is able to give forex traders better quotes and faster execution. Open a free demo account and start trading the forex market with competitive quotes and low spreads.
View Pepperstone ReviewVisit Pepperstone
Our team of experts at Compare Forex Brokers reviewed the technological solution offered by Pepperstone and FXCM to find out which forex broker offers the best trading platforms. When we place side by side, both forex brokers offer a good selection of unique trading platforms that are designed to accommodate the needs of most trading styles. To break down which trading platform has the best features, our industry experts carefully examined each individual trading platform supported by these two brokers.
This included characteristics such as:
In addition to the quality of the trading platform, our experts added extra value to the popularity element. Using a popular trading platform adds the extra benefit of getting the chance to interact with other fellow traders and exchange trading tips and tricks.
Range Of Trading Platforms
The trading software solution offered by Pepperstone and FXCM is available through:
Both forex brokers offer the world’s most popular trading platform MetaTrader 4. MetaTrader 4 is the most widely adopted trading platform by FX traders all over the world. The difference between Pepperstone and FXCM consists of the trading conditions that can be found on the MetaTrader 4.
On the one hand, FXCM takes the other side of your orders, which classifies FXCM as a market maker broker. At the same time, with Pepperstone, your orders are matched directly in the interbank foreign exchange market through its ECN infrastructure.
The full range of trading platforms that can be found with Pepperstone includes:
By comparison, FXCM offers access to the forex market through three featured trading platforms, including:
The trading platforms offered by Pepperstone and FXCM are available for desktop along mobile applications. The slight edge offered by FXCM is the TradeStation, which is a proprietary trading platform built in-house by FXCM experts. FXCM TradeStation’s customisable dashboard lets you follow all the currency pairs or instruments that matter to you.
On the other hand, Pepperstone offers the all-in-one trading platform MetaTrader 5 and the advanced trading technology that comes through the cTrader platform, which is considered by many industry experts to be the best FX and CFDs trading platform.
Social Trading Platform
FXCM’s ZuluTrade is a copy trading platform that allows forex traders the option to follow different forex trading strategies developed by professional traders all over the world. This is the ideal solution for mirror traders who want to subscribe to forex trade signals that are automatically copied on their personal trading accounts.
Pepperstone social trading network took again a bigger score as you can access multiple forex trading strategies from the world’s best forex traders via 6 mirror trading tools and social trading platforms:
Range Of Technical Tools
The head-to-head comparison revealed that both forex brokers offer powerful analytical tools. Pepperstone took extra points in our star scoring system due to its superior collection of technical tools that include:
The most powerful technological features that every FX trader will ever need can be found through Pepperstone’s trading platforms. In contrast, while FSCM offers the MetaTrader 4 platform, unfortunately, you can’t access the trading features that come with Autochartist. However, FXCM compensates for the lack of trading tools through its award-winning trading platform TradeStation.
FXCM TradeStation offers robust chart tools, including:
Verdict
Overall, Pepperstone offers the newest generation of forex technical and analytical tools. The advanced technical analysis software solution can help forex traders filter new trading opportunities through the day-to-day forex market noise. While FXCM’s range of technical tools is more limited, forex traders still have access to exclusive chart tools that can enhance their experience. Our team of experts considers Pepperstone to be the winner in this category.
Open a demo account to explore the multiple trading platforms available through Pepperstone and FXCM. In order to start trading with a demo account, please click the button below to take full advantage of some exclusive offers that can only come through us.
Our review process for comparing forex trading brokers examined the account types offered by Pepperstone and FXCM. We did the hard work for you so that you can start trading with both forex brokers by signing up with your preferred brokerage account.
Both forex brokers Pepperstone and FXCM offer a standard account through which retail traders can have access to a range of different CFD products. The second trading account offered by Pepperstone and FXCM is dedicated to active traders who like scalping or algorithmic traders who want to have access to a variety of risk management tools and backtesting facilities:
Below, you can study the similarities and differences that come with the Pepperstone Razor account and the FXCM Active Trader account.
| Pepperstone | FXCM | |
|---|---|---|
| Forex Leverage | 30:1 | 30:1 |
| Crypto Leverage | 2:1 | 2:1 |
| Minimum Deposit | $200 | $25,000 |
| Commissions per 1 St lot | $3.5 | $2.5 |
| Scalping Allowed | YES | YES |
| Hedging Allowed | YES | NO |
Verdict
The head-to-head comparison of the retail investor accounts and the commission-based accounts offered by both forex brokers revealed that trading CFDs on the Pepperstone trading accounts can be slightly more advantageous. FXCM took a lower score due to not allowing ease of access to its financial services. The minimum deposit for the FXCM Active Trader account is $25,000, which is higher even than the premium account offered by Oanda, which requires $20,000.
When it comes to accessibility to its premium account, Pepperstone has set high standards in the forex industry. No forex broker can be proud to offer ease of access to institutional-grade accounts. Only IC Markets has the same low entry level for the premium accounts.
When it comes to trading, the experience and ease of use are paramount. From our in-depth analysis and our own testing, we’ve gathered some insights that might interest you. Pepperstone, for instance, stands out with its MetaTrader 4 platform, which is renowned for its user-friendly interface and advanced features. On the other hand, FXCM offers platforms like TradeStation, which, while powerful, might have a steeper learning curve for some.
Verdict
Based on our findings, Pepperstone offers the best overall trading experience in terms of ease and user-friendliness.
Pepperstone Trust Score
FXCM Trust Score
In the world of forex trading, trust and regulation play a pivotal role. Both FXCM and Pepperstone have established themselves as reputable brokers, but there are some distinctions worth noting. FXCM, with its rich history, has been serving retail and professional traders since 1999.
Despite facing challenges, including a bailout to avert bankruptcy, it remains listed on the New York Stock Exchange (NYSE: FXCM) and is regulated in several jurisdictions. On the other side, Pepperstone, headquartered in Melbourne, Australia, stands on the former site of the Australian Stock Exchange (ASX).
It boasts top-tier regulation from both the Australian Securities and Investments Commission (ASIC) and the UK’s Financial Conduct Authority (FCA). This dual regulation ensures that Pepperstone adheres to the high standards set by two of the most prestigious regulatory agencies in the world.
| FXCM | Pepperstone | |
|---|---|---|
| Tier 1 Regulation | ASIC (Australia) FCA (UK) CYSEC (Cyprus) CIRO (CANADA) BaFin (Germany) |
ASIC (Australia) FCA (UK) BaFin (Germany) CYSEC (Cyprus) |
| Tier 2 Regulation | FSCA (South Africa) ISA (Israel) |
DFSA (Dubai) |
| Tier 3 Regulation | SCB (Bahamas) CMA (Kenya) |
Verdict
While both brokers have their merits, Pepperstone edges out with its dual regulation from ASIC and FCA, making it the more trusted and regulated broker.
Our leading industry experts used our due diligence process to establish which is the best forex broker in terms of financial markets and instruments available for trading. Both forex brokers Pepperstone and FXCM offer their clients a diversity of popular currency pairs and CFD instruments.
The table below shows side-by-side the range of CFD markets offered by Pepperstone and FXCM.
| Pepperstone | FXCM | |
|---|---|---|
| Forex Currency Pairs | 80+ | 39+ |
| Index CFDs | 23 | 13 |
| Share CFDs | 700+ | - |
| Commodities | 16 | 9 |
| Cryptocurrencies | 12 | 6 |
| Currency Index CFDs | 1 | 3 |
| Metal | 3 | 3 |
| Stock Baskets | NO | 6 |
Forex Currency Pairs
When comparing Pepperstone and FXCM, we have discovered that the Australian-based forex broker offers double the range of currency pairs (+80 vs. +39 currency pairs) that can be found on FXCM trading platforms. However, FXCM has neutralised the lack of currency pairs by offering some unique financial instruments that can’t be found with other forex brokers.
CFDs Share Trading
While FXCM doesn’t offer CFD shares trading, you can have exposure to the stock market via the FXCM Stock Baskets, which are comprised of the best-performing stocks in each sector. FXCM’s range of sector indices available on your FXCM trading account includes:
FXCM’s Stock Baskets is comprised of 5 individual stocks and works the same way as any other stock sector indices. Both forex brokers offer the US Dollar Index, but FXCM allows forex traders to also speculate on two additional currency indices:
Cryptocurrency Range Of Coins
Additionally, FXCM’s innovative range of products also includes a cryptocurrency basket (CryptoMajors), which works as a benchmark for the cryptocurrency market. Excluding the cryptocurrency index, both forex brokers offer the same range of cryptocurrencies, which includes:
The only difference between Pepperstone and FXCM is that the Australian-based FX broker offers Dash, while the New York-headquartered forex broker offers Ripple as an alternative digital currency.
Our research process revealed that Pepperstone offers more advantageous trading conditions for the cryptocurrency market both in terms of leverage offered and spreads. Below you can view the head-to-head comparison of the two forex brokers.
| Pepperstone | FXCM | |
|---|---|---|
| Crypto Leverage | 2:1 | 2:1 |
| Bitcoin Spread | 40.00 | 50.00 |
| Ethereum Spread | 4.0 | 1.8 |
| Litecoin Spread | 3.0 | 60.0 |
| BitcoinCash Spread | 2 | 4.1 |
Verdict
Pepperstone is the clear winner with hundreds more CFDs than FXCM. If you want to consult the full range of available instruments, make sure you check both forex brokers’ websites. Additionally, review their webinars and educational materials to learn more about the full services they provide to retail forex traders.
Education is a cornerstone for any trader, be it a novice or a seasoned professional. Both FXCM and Pepperstone have invested significantly in this area, ensuring their clients have access to top-tier educational resources. From our analysis and our own testing, here’s a breakdown of what each broker offers:
However, based on the scores from our testing, it seems there’s a clear winner in terms of educational offerings.
Verdict
Pepperstone stands out with its superior educational resources, making it the preferred choice for traders keen on continuous learning.
Our review process required both forex brokers to offer multiple channels of communication with their clients. The customer support service at Pepperstone and FXCM is available on a 24/5 basis. Forex traders can contact the support teams of these two respected brokers by using one of the following means of communication:
FXCM has a stronger international presence with 11 offices worldwide across 4 continents, including the United States, Canada, Australia, the UK, and Hong Kong.
Our team of industry experts has ranked both forex brokers as offering a satisfactory and excellent experience. Your questions are always answered quickly and with relevant information. One of the few advantages that come with an FXCM trading account is the quality of customer service.
When assessing the quality of your interaction with the support team of these two forex brokers, we also took into consideration if Pepperstone and FXCM offer multilingual support. Our findings are as follows:
Both forex brokers have gained industry-wide recognition through multiple awards that attest to the premier brokerage service offered by Pepperstone and FXCM.
Verdict
The head-to-head comparison showed both forex brokers offering industry-leading service to their clients. Most forex traders appreciate the high standards and the commitment to provide an overall superior customer experience. Try your trading skills by opting for a demo account with your favourite forex broker and gain more experience before you risk real capital.
The head-to-head comparison shows that Pepperstone offers more options for account funding and withdrawals (9 payment options vs. 6 payment options). By comparison, while FXCM offers the standard methods of money transfers (debit and credit cards, bank wire transfers, and electronic wallets), FXCM provides access to 6 different types of payment methods, including:
Our Pepperstone review showed that the Australian-based forex broker supports most of the range of funding options offered by FXCM and some more, including PayPal, POLi, BPay, Union Pay, and MasterCard.
Deposits And Withdrawal Fees
Both forex brokers Pepperstone and FXCM have very similar policies in terms of deposits and withdrawal fees. The only major difference is that FXCM charges a $40 withdrawal fee for bank transfers. Neither Pepperstone nor FXCM applies any deposit fees. For a complete review of Pepperstone fees, please read the full Pepperstone fee analysis.
Credit and debit card transfers are instant with both forex companies, while the bank transfers take the standard 2-3 business days before the funds are cleared into your forex trading account.
Deposit Currency Supported
Our team of experts assessed if Pepperstone and FXCM’s trading accounts offer deposits in different foreign currencies. The ideal forex broker will offer different base currencies to accommodate the needs of forex traders from around the world.
In our FXCM review assessment, we placed a negative score because FXCM only supports the major currencies:
By comparison, Pepperstone supports more than that. The Australian-based forex broker stands out in the forex industry by supporting minor currencies as well. Forex traders can make a Pepperstone deposit using the following currencies: USD, EUR, GBP, JPY, AUD, CAD, CHF, HKD, SGD, and NZD.
Verdict
In terms of the deposit and withdrawal methods, supported currencies, and transaction fees, our team of industry experts views Pepperstone as the overall winner in this section. The only advantage FXCM can offer is that you can start trading on the foreign exchange market with a minimum deposit for a live account of $50.
Pepperstone has a lower minimum deposit of $0 than FXCM’s minimum of $50. These minimum amounts apply to all base currencies and most payment methods.
We have also discovered the deposit amount recommended by each broker.
| Minimum Deposit | Recommended Deposit | |
| FXCM | $50 | $50 |
| Pepperstone | $0 | $200 |
Verdict
Pepperstone takes the lead with a zero minimum deposit requirement. They provide an easy entry for beginner traders, but it still takes around $200 to start trading, as the broker suggests.
Pepperstone is the winner because of its comprehensive offering across multiple key factors, including superior educational resources, better trading experience, and a broader product range.
The table below summarises the key information leading to this verdict:
| Criteria | Pepperstone | FXCM |
|---|---|---|
| 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 | ✅ | ❌ |
For those just starting out in the trading world, Pepperstone offers a more beginner-friendly environment with its extensive educational resources and user-friendly platform.
For seasoned traders looking for advanced tools and a wider product range, Pepperstone stands out as the preferred choice.
Pepperstone generally offers lower costs compared to FXCM. They are known for their competitive spreads, which are often more advantageous than those of FXCM. For instance, Pepperstone’s Razor account offers spreads starting from 0.0 pips. For a more detailed comparison of broker costs, you can refer to this comprehensive guide on low commissions.
Both Pepperstone and FXCM offer MetaTrader 4, but Pepperstone is often preferred for its seamless integration and enhanced features on this platform. They provide a user-friendly experience, making it easier for traders to navigate and execute trades. For traders specifically looking for the best MT4 experience, this list of top MT4 brokers can be a valuable resource.
Pepperstone stands out when it comes to offering social or copy trading features. They have integrated platforms like ZuluTrade and Myfxbook, allowing traders to follow and replicate the strategies of professionals. This approach not only simplifies trading for beginners but also offers a way to diversify trading strategies. For more insights on social trading platforms, check out this comprehensive guide on the best forex social trading platforms.
FXCM offers spread betting services, especially catering to UK traders. Spread betting is a tax-efficient way of trading in the UK, and FXCM provides a platform tailored for this purpose. Those interested in diving deeper into spread betting can explore this comprehensive guide on the best spread betting brokers in the UK.
In my opinion, Pepperstone stands out as the superior choice for Australian forex traders. Founded in Melbourne, Australia, Pepperstone is ASIC regulated, ensuring they adhere to the stringent standards set by the Australian regulatory body. Their local presence, combined with a deep understanding of the Australian market, makes them a top pick. Moreover, they offer a wide range of trading instruments, including CFDs. For those keen on exploring more about Australian forex brokers, this detailed review of Australian forex brokers can be insightful.
For UK traders, I believe Pepperstone offers a more comprehensive trading experience. While they are headquartered in Australia, they are also FCA regulated, ensuring they meet the high standards set by the UK’s regulatory body. Their commitment to transparency, combined with a robust trading platform, makes them a preferred choice for many in the UK. For a broader perspective on the best brokers in the UK, this comprehensive guide on the best UK trading platforms is worth a read.
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