Pepperstone and FXTM are two MetaTrader 4 forex brokers offering ECN broker accounts types with EUR/USD spreads from 0.0 pips and tradable CFDs from Crypto to EFTs with FXTM offering higher leverage while Pepperstone has lower fees, superior CFDs trading platforms and customer service.
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Pepperstone’s Razor spreads can be as tight as 0.0 pips for a range of currency pairs including CAD/JPY, AUD/JPY, CHF/JPY, EUR/JPY, EUR/GBP, EUR/CHF, USD/CHF and CHF/SGD. The Razor account is similar to an ECN due to Pepperstone top-tier liquidity providers. Traders have access to a professional financial market environment with institutional grades spreads and ultra-fast execution.
The table below shows FXTM and Pepperstone’s average spreads. Average spreads are sourced directly from the broker’s website and updated monthly to ensure accuracy. As you can see, FXTM comes in a close second to Pepperstone, with tighter spreads across the board for all major currency pairs.
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Raw Spread comparison
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0.22 | 0.55 | 0.40 | 0.43 | 0.50 |
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0.50 | 0.70 | 0.60 | 0.40 | 0.30 |
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0.20 | 0.50 | 0.30 | 0.50 | 0.30 |
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0.20 | 0.50 | 0.40 | N/A | 0.30 |
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0.42 | 0.50 | 0.40 | 0.30 | 0.83 |
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0.30 | N/A | 0.54 | 0.68 | N/A |
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0.40 | 0.60 | 0.50 | 0.70 | 0.70 |
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0.50 | 1.10 | 0.60 | 0.80 | 1.10 |
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0.50 | 0.70 | 0.60 | 0.40 | 0.30 |
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1.23 | 1.17 | 1.13 | 1.23 | 1.41 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/09/2023
Fees
FXTM fees and commissions depend on the account. Many of FXTM’s account types charge no commission fees, including Standard Accounts, Pro Accounts, ECN Zero Accounts, Shares Accounts, and Cent Accounts. While some ECN accounts charge a commission fee of $2-4 per lot, others charge a floating commission dependent on the trade volume and equity. Pepperstone commission fees vary between trading platforms:
Unlike Pepperstone, FXTM charges inactivity fees resulting in FXTM being significantly more expensive than Pepperstone in regards to both trading and non-trading fees. If traders do not execute any trades for 6 months, a fee of $5 per month is imposed.
Overall Pepperstone has the lowest spreads on major currency pairs such as the EUR/USD. If your unsure what account to open then view the Pepperstone standard vs razor comparison to make sure you select the type that is right for you.
Pepperstone is offered on MetaTrader and cTrader platforms, while FXTM is restricted to MetaTrader platforms (MT4 and MT5). If you are unsure of which platform suits your trading needs, both forex brokers offer demo accounts to familiarise yourself with the software and practise trading and analysis. Although not as popular as MetaTrader software, cTrader has established a following due to its advanced trading tools attractive to experienced traders.
With MetaTrader platforms, forex traders tend to have a personal preference between the two different versions. MetaTrader 4 (MT4) remains the gold standard for many foreign currency traders, although MetaTrader (MT5) is popular due to the advanced analysis and research tools.
Both MT4, MT5, and cTrader desktop platforms are available on Mac and Windows computers. Yet, Mac users wanting to use MT4 are required to install additional software to enable Mac compatibility. For this reason, many forex traders on Mac computers prefer MT5 or cTrader.
MetaTrader provides online (WebTrader), mobile, and desktop platforms to enable trading from any location. Both the MT4 and MT5 versions of WebTrader offer one-click trading, real-time quotes, and comprehensive analysis and research tools. Yet MT5 WebTrader offers some unique features compared to its predecessor, including more tools and chart types as well as 21 timeframes compared to MT4’s 9 timeframes.
MetaTrader’s mobile applications are compatible with iOS and Android devices. MT4 and MT5 mobile applications offer a range of sophisticated trading tools and indicators. FXTM also offers a proprietary mobile app, FXTM Trader. The iOS and Android compatible app allows one-click trading, live currency stats, an account overview, and trading on over 250 products.
cTrader was originally designed as a web platform, therefore, the online platform offers an intuitive design suitable for beginners to experienced traders.
Expert Advisors, Automated Trading, And Other Trading Tools
Both Pepperstone and FXTM allow Expert Advisors and automated trading. Yet FXTM does not offer the advanced suite of Smart Trader Tools that Pepperstone provides.
Although FXTM lacks Pepperstone’s extensive Smart Trader Tools, FXTM offers substitutes with similar features. FXTM traders using cTrader can utilise the trading platform’s advanced algorithmic trading software, cAlgo. Additionally, FXTM’s Pivot Points Strategy is similar to Pepperstone’s Market Sentiment Smart Trader Tool.
Given Pepperstone’s platform options and features, FXTM comes in second to Pepperstone in regards to trading platforms.
Both FXTM and Pepperstone offer CFD trading on a large range of indices and shares as well as currency pairs with ECN-like spreads. This includes major, minor and exotic currencies, as well as cryptocurrency.
Due to the range of CFD products available at FXTM, it is easy to diversify your portfolio among asset classes. FXTM’s product range includes CFD trading on indices, shares, commodities and ETFs.
While Pepperstone offers CFD trading on 12 cryptocurrency CFD products, FXTM offers 4 cryptocurrencies. Pepperstone’s CFD offering wins this round.
Pepperstone offers retail investors two main account types. Standard accounts are commission-free and offer minimum EUR/USD spreads of 1.0 pips. Yet Pepperstone’s most popular account, the Razor Account, gives traders’ access to ECN-type spreads as low as 0.0 pips with AUD$7 round turn commission (per 100k traded).
Both Standard and Razor accounts provide no dealing desk execution, Expert Advisor compatibility, and are available in 10 base currencies (AUD, JPY, CHF, NZD, HKD, EUR, GBP, USD, CAD, SGD).
A reason why Pepperstone is so popular among forex traders’ is the rebate and incentive programs offered to investors. High volume trading is rewarded with cash rebates paid daily into traders’ accounts. For instance, if you trade between 200-500 lots, a typical monthly rebate would be between $200-500.
High volume traders may also qualify to upgrade from a retail investor account to a Premium Pepperstone client. VIP clients receive increased leverage, market insights from Pepperstone’s in-house analysts, premium rebates, and invitations to VIP events, seminars, sporting events, and private dining experiences.
FXTM offers Standard, ECN, and Pro account types. Within each account type, there are sub-accounts with varying commissions, lot sizes, leverage, and product availability.
Leverage with FXTM varies according to the appropriate regulator. Traders in Europe will have the standard leverage ratio of 30:1 for major currency pairs but traders outside this region can access significantly higher than the market average as FXTM offering floating leverage up to 1000:1. Yet, investors who are new to forex trading should be aware of the high risk that comes with high leverage.
FXTM offers ECN trading where there is no dealing desk (NDD) involvement. With no dealing desk interference, FXTM provides deep interbank liquidity and instant trade execution to ECN account holders.
Pepperstone can be contacted 24 hours a day, five days a week via multiple channels such as live chat, email, and phone support. Customer service representations are fluent in an array of languages, including English, Russian, Vietnamese or Thai. Representatives are helpful, offering quick answers, and helpful responses.
FXTM offers similar customer service features as Pepperstone. The forex broker also provides a multilingual customer service team to cater to its international client base. FXTM is available via live chat, phone, and email 25/4. Email responses from FXTM lag behind Pepperstone in speed, with FXTM taking 2-4 hours to respond, while Pepperstone takes 0-2 hours.
When it comes to customer service with Pepperstone vs FXTM, it’s a tie between the two forex brokers. Both offer helpful and efficient responses, multilingual representatives, and a range of contact methods. Yet, due to Pepperstone’s quicker email response, they win by a whisker.
FXTM does not charge any fees on deposits and requires a minimum amount of $500 for all account types except a Pro Account, which requires $25,000. The broker ensures all traders around the globe have a suitable deposit and withdrawal method, with online bank transfers available in a range of countries such as Thailand, Vietnam, Malaysia, Iraq, China, and Bangladesh plus many more. Additionally, traders can deposit funds with Visa and Mastercard credit cards, bank wire transfer, as well as via cryptocurrencies i.e. Bitcoin via Skrill. Unfortunately, only VIP account holders can deposit funds via Skrill and Neteller.
Withdrawals
At FXTM withdrawals can be made with the same methods as deposits with the addition of China Union Pay. Yet, some withdrawal methods, including credit cards, carry either fixed or percentage-based fees. FXTM generally processes withdrawals within 24-48 hours, with the exception of Neteller and Skrill withdrawals which are processed within one business day.
Pepperstone is an Australian forex broker and is regulated by ASIC (Australia) and FCA (UK), and is in the process of receiving an FSCA (South Africa) financial services license. Pepperstone is seen as a trustworthy forex broker as it is regulated by regulatory bodies in Australia and the United Kingdom. Traders in the UK are protected through the Financial Services Compensation Scheme (FSCS) offering investors cover of up to £50,000 if the forex broker fails. Additionally, Pepperstone holds client funds in segregated bank accounts in accordance with FCA and ASIC regulation.
FXTM is not ASIC regulated but overseen by the FCA (UK), CySEC (Cyprus), and FSCA (South Africa). FXTM forex traders in the UK receive similar protection to Pepperstone clients with FSCS protection. Although international clients (including South African investors) receive no protection, CySEC ensures EU clients receive up to €20,000 if FXTM fails.
In regards to regulation, Pepperstone is considered more trustworthy due to being based in Australia and overseen by two major authorities, the FCA and ASIC. While FXTM, on the other hand, operates from Cyprus and lacks ASIC oversight.
FXTM and Pepperstone both offer automated trading, excellent customer service and demo accounts. Yet, when comparing all aspects of the two forex brokers, FXTM fails to beat Pepperstone’s tight ECN-like spreads and low fees.
Although FXTM offers spreads as low as 0.1 pips to ECN and Pro account holders, Pepperstone’s Razor account gives access to institutional-grade spreads as tight as 0.0 pips with a lower commission attached to trades. As well as less competitive spreads, FXTM’s charges non-trading fees (such as withdrawal and inactivity fees) meaning trading with Pepperstone is significantly cheaper.
Lastly, Pepperstone wins FXTM vs Pepperstone due to the crypto CFD availability and top-tier regulation imposed by ASIC and the FCA. As well as being less trustworthy in regards to regulation and investor protection, FXTM fails to give clients access to CFD trading on cryptocurrency such as Bitcoin, while Pepperstone offers trading on 12 different crypto CFDs.
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