Our Pepperstone review found the broker offers a superior trading experience vs IC Markets across MetaTrader and cTrader. IC Markets offers lower spreads on the EUR/USD vs Pepperstone who offer lower AUD/USD currency pair spreads.
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Pepperstone and IC Markets offer two types of accounts, one that includes their fees through the bid-ask spread and one that keeps the spread at market price but charges a commission instead.
Both Pepperstone and IC Markets have no dealing desk and use straight-through processing (SPT) to connect you with a large pool of liquidity providers. This allows both brokers to deliver their clients some of the most competitive spreads in the market.
Standard Accounts
You won’t be charged a commission on trades when using standard accounts. Instead, brokers charge through the bid-ask spread which is the difference between the buy and sell price of CFD products.
Each month, the team at CompareForexBrokers.com takes the average spreads published on brokers’ websites and compiles them in table format for you to compare.
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Standard Account Spreads
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0.62 | 0.77 | 1.27 | 0.83 | 0.74 |
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1.10 | 1.20 | 1.40 | 1.40 | 1.40 |
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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 | 1.30 | 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 01/09/2023
View Pepperstone ReviewVisit Pepperstone
Looking at the table, the IC Markets standard accounts have tighter spreads compared to Pepperstone (and other competitors). Standard accounts is competitive with both brokers but IC Markets might be the better choice since their minimum spread is lower, this being 0.6 pips for the EUR/USD.
One thing to note is that the cTrader and TradingView (in the case of Pepperstone) trading platforms are not available for this account.
Another feature to note is that swap-free trading is available to traders that follow Sharia law. Pepperstone however only offers this to clients in Muslim-majority countries such as the UAE, Indonesia, Morocco etc.
Commission Accounts
Both IC Markets and Pepperstone also offer commission accounts that are structured differently from standard accounts. The fees are charged for each lot you trade rather than being included in the bid-ask spread. Despite commission fees, trading costs are slightly lower with this type of account.
Like we did with the Standard account, we compiled the published spreads from a range of brokers for the commission account.
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ECN Broker Spreads
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0.14 | 0.25 | 0.02 | 0.27 | 0.17 |
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0.47 | 0.50 | 0.12 | 0.40 | 0.22 |
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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 01/09/2023
View IC Markets ReviewVisit IC Markets
The table above shows that spread costs tend to average around 0.10 pips. IC Markets appears to be slightly lower than Pepperstone but both brokers are very competitive making either broker a safe choice. Spreads with each broker are variable and can be as low as 0.0 pips for the EUR/USD pair. Should you trade at this price, you will not be paying any spread fees when trading.
To open an account with either broker, there is no minimum deposit however $200 is suggested as you will need cash to execute your trade. Both brokers allow you to choose from the same 10 currencies as your account currency.
IC Markets Commissions
The IC Markets RAW Account commission rates will depend on the trading platform you are using and the account currency. If you are using MetaTrader 4 (MT4) or MetaTrader 5 (MT5) then commissions are USD 7 round turn per 100k. Round-turn commission costs per lot with other currencies include AUD 7.00, EUR 5.50, and GBP 5.00.
If you are using the cTrader platform trading costs will be USD 6 round turn per 100k which is converted to the base currency of the account at the current spot rate.
Pepperstone Commissions
If you are trading with MT4, MT5 and Capitalise.ai then commission costs will be USD 7 round turn per standard lot means that every completed trade (buy and sell) of 100k would cost you USD 7 to execute if your account currency is USD. Traders in Australia would pay the same in AUD while traders in the UK would pay GBP 4.50.
If you’re using cTrader or TradingView, the commission cost will differ slightly at USD 6 round turn per 100k traded. cTrader/TradingView accounts are converted from USD regardless of your account currency.
One feature to note is that Pepperstone does not offer a Swap-free option with this account.
Verdict On Which Broker Has The Lowest Fees
Between both brokers, we can see that Pepperstone and IC Markets are close competitors and remarkably similar in their products. IC Markets do publish lower spreads on average and while we don’t know how these averages are measured, being forced to choose a winner, we will have to go with IC Markets.
View IC Markets ReviewVisit IC Markets
Neither broker have a minimum deposit but do suggest starting with $200. Not only will you need some cash to trade but you will need to use margin requirements to open a trade.
Although IC Markets don’t enforce an amount, they recommend $200 for the minimum deposit. The amount is reasonable for most new traders to get a feel for the platform without risking too much capital. You can deposit using bank transfer, credit cards, PayPal, Skrill, Neteller, UnionPay, Bpay, FasaPay and Poli.
Pepperstone doesn’t have any recommendations or requirements for minimum deposits, so feel free to deposit any amounts you are comfortable trading. Options to deposit your funds include all major cards and bank transfers, POLi, BPay, PayPal, Neteller, Skrill and UnionPay.
Verdict On Funding
Although you can deposit any amount on both platforms, some users may find it confusing to have recommended amounts. The flexibility to encourage multiple deposit amounts from Pepperstone makes them a winner in this category.
View Pepperstone ReviewVisit Pepperstone
Both Pepperstone and IC Markets offer MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. These solutions are suitable for Windows, Mac, iOS, and Android as desktop or web trader platforms as well as mobile apps.
MetaTrader 4 (MT4)
MT4 is the most commonly used forex platform in the world. Since most brokers offer this platform, there are low barriers to switching brokers. MetaTrader 4 has an:
Pepperstone MetaTrader 4 Features
Smart Trader Tools is a Pepperstone MT4 enhancement that boasts 10 main features such as:
Overall, Smart Trader Tools offers Pepperstone traders using MetaTrader 4 with decision assistance combined with sophisticated trade management and execution. Market data is also transmitted to traders, while alarms help notify traders of key market events.
IC Markets MetaTrader 4 Features
Advanced Trading Tools in our IC Markets review was IC Markets answer to Smart Trader Tools with 20 features. Advanced Trading Tools contains all the features Smart Trader Tools offer but includes additional features:
Overall, we found Pepperstone was the best MetaTrader4 broker and completed a Best Brokers For Metatrader 4 detailing why this is the case.
MetaTrader 5
MetaTrader 5 is designed for CFD trading. Both Pepperstone and IC Markets offer Share CFD trading and therefore offer MT5. Below is a table comparing the differences:
| MetaTrader 4 | MetaTrader 5 | |
|---|---|---|
| General availability | Common | Growing |
| Number of Analytical tools | 33 | 68 |
| Number of indicators | 30 | 38 |
| Timeframes | 9 | 21 |
| Programming Language (for expert advisors) | MQL4 | MQL5 |
| Number of orders executable | 3 | 4 |
| Number of pending orders available | 4 | 6 |
| Partial Order Filling Policies | No | Yes |
| Order Fill Policy | Fill or Kill | Fill or Kill Immediate or Cancel Return |
| Hedging | Yes | Yes (since 2016) |
| Threading | 32bit / 2GB | 64 Bit / 4Gb |
| Speed / Stability | Fast / Stable | Faster / More Stable |
| CFD Trading | Decentralised | All (Decentralised and trading exchanges) |
| Strategy Tester | Single Thread | Multi-threaded + Multi-currency + Real ticks |
| Economic Calendar | with Add on | Yes |
| Depth of Market | No | Yes |
Our MetaTrader 5 comparison found that IC Markets was the best broker for this CFD platform.
Other Platforms
MT WebTrader
Both brokers offer MT WebTrader which is a MetaTrader platform for trading via web browsers. WebTrader offers many of the features available on MT4 but is designed to better handle the natural limitations mobiles will have due to size.
cTrader
cTrader is an alternative trading platform for MetaTrader. The platform is generally considered to have superior technical charting options than MetaTrader along with offer faster execution. Key features of cTrader include
If you are looking to trade other derivatives than forex pairs then cTrader might not be the best option. This is because cTrader is not designed for CFD and cryptocurrency trading. Its strength is in forex.
Social Trading And Copy Trading Platforms
Both brokers offer a range of social, copy and mirror trading platforms. Pepperstone offers Myfxbook, ZuluTrade, MirrorTrader, RoboX, MetaTrader Signals and DupliTrade. IC offers Myfxbook AutoTrade and ZuluTrade.
Verdict On Trading Platforms
Pepperstone is the winner for the forex platform category based on the unique software features offered, fast execution speeds and additional trading platform enhancements.
Both IC Markets and Pepperstone achieve the fastest execution speed in the industry by using dedicated fibre optic cable. Faster execution speeds help prevents ‘slippage’ from occurring.
Pepperstone Edge Technology
Pepperstone Edge Technology when it comes faster and better-trading consist of the following:
Overall, Pepperstone has very solid features when it comes to execution speeds. The use of dedicated cables and the best technology will give traders confidence transaction processing will not suffer delays or lags.
IC Markets Technology
IC Markets technology is very similar to Pepperstone’s. Both use very similar fibre optic technology and have the same one-click trading feature, but the low latency technology differs.
Overall IC Markets offer an excellent range of advanced technology to achieve very fast order execution speeds with low latency on major currency pairs. IC Markets state on their website they 100% guarantees their execution.
Verdict On Execution Speeds
Our tests found Pepperstone had the fastest market order execution speeds.
Pepperstone Limited published that most trades were executed in less than 30ms. Based on this and test results, IC Market’s slippage will be higher making Pepperstone superior for high-speed traders (e.g. scalping traders/automation).
Both Pepperstone and IC Markets boast a vast array of Contracts for Difference (CFDs) on top of forex. This is not the same as share trading, which you can compare on the Pepperstone vs IG page. IC Markets’ range of CFDs is greater however, Pepperstone is not an ‘all-in-one’ financial broker and therefore offers a more limited range when compared with IC Markets. Both ECN style providers offer:
Both Pepperstone and IC Markets offer these cryptocurrencies – Bitcoin, Bitcoin Cash, Ethereum, Dash, Litecoin while IC Markets also offers Ripple. Both brokers offer leverage of 5:1. See our comparison with Plus500 for a broker with a large range of CFDs.
IC Markets, unlike Pepperstone, also offers the following:
Crude oil and many other commodities can be traded with fast execution speeds and low spreads.
Verdict On The Widest Range Of Markets
IC Markets are an all-in-one Broker. If having access to all types of CFDs is important, then IC Markets is likely our preferred broker when looking at CFDs in isolation. Click the button below if you want to discover trading CFDs with a leading CFD provider.
Both brokers are considered safe and trusted due to being regulated by multiple top-tier financial authorities. Each financial regulator and jurisdiction enforce different rules for retail CFD and forex trading.
IC Markets cater to a global client base with subsidiaries in 3 major financial hubs:
Pepperstone operates 7 different subsidiaries in the following jurisdictions:
When choosing a CFD and forex broker, there are many features to consider, one of which is the financial jurisdiction the broker is located. If you want to trade forex with high leverage, you may not receive investor protection policies such as negative balance protection (as discussed below). See the video below to learn more about selecting a forex broker.
Verdict On Regulation
While both online brokers are overseen by multiple top-tier financial regulators, Pepperstone is the clear winner with 7 subsidiaries compared to IC Market’s 3 branches. Both brokers have a strong presence in Europe and Australia with CySEC and ASIC financial services licenses, yet Pepperstone also operates in the UK under FCA regulation as well.
Pepperstone and IC offer risk management feature in the form of order types and investor protection policies. As both brokers operate multiple subsidiaries, the level of investor protection you will receive varies depending on where you reside and the branch you are trading with.
Investor Protection Policies
Regardless of the broker or subsidiary, your trading account balance will be held in a bank account that is segregated from the broker’s operational capital. Segregated client funds protect your money in case a broker becomes insolvent and this is common practice throughout the world.
Those trading with IC Markets CySEC regulated branch, and Pepperstone’s CySEC, BaFin and FCA regulated branches will receive negative balance protection (NBP). NBP ensures your trading account balance can not enter a negative balance if the market moves against you. This means you will never end up owing money to IC Markets or Pepperstone, as your open positions will automatically be closed before your balance hits zero.
While NBP is only required in European and UK financial jurisdictions, ASIC a few years ago introduced their own stricter CFD and forex trading rules including NBP.
Both Pepperstone and IC Markets lack premium pending order types. However, there are standard order types like limit and stop orders available on all trading platform options. I.e:
It should be noted that CFDs are complex instruments involving high risk due to leverage. Retail investor accounts can lead traders to high losses even with risk management features such as stop-loss orders in certain trading conditions. It’s important to understand the risks before trading.
Both brokers focus on intermediate to advanced traders and lack the risk management tools that some beginner brokers offer (while charging higher fees). From a reputation standpoint, Pepperstone has the most sort after top-tier regulation with the FCA in the UK and CySEC in Europe that both enforcing negative balance protection.
Both Pepperstone and IC Markets boast live chat, phone and email customer support. Pepperstone’s customer service is award-winning, while IC Markets has a 24/7 server and a greater range of help desk tools.
Pepperstone
Pepperstone has developed a strong reputation for top customer service. “Investment Trends” have awarded Pepperstone as number #1 for customer services. Pepperstone customer service team in Australia consists of individuals who trade themselves. This means clients can have confidence that support understands the issues and concerns of all types of traders. This customer service level has helped Pepperstone reviews achieve a score of 4.4 out of 5 on TrustPilot from 595 respondents.
Pepperstone award-winning customer support is complemented by excellent trading education resources that include trading guides, webinars, MetaTrader 4 course, forex trading course, market news and more.
IC Markets
IC Markets customer support team have 3 offerings that Pepperstone don’t have. These are:
Pepperstone has superior customer service based on our analysis and the number of third-party rewards (such as Investment Trends) over the past five years. While structurally both brokers have similar contact points, the quality of the customer service team at Pepperstone makes them the best forex broker globally for the category.
Our review found both forex brokers were the same in this category. Neither Pepperstone nor IC Markets charge fees for deposits or withdrawals, but international institutions may charge a fee. Both brokers have very similar funding policies the main difference is the hours one can place a withdrawal request and expect to receive the payment the same day.
Pepperstone Minimum Deposit
The minimum deposit is $200 for Pepperstone. This applies to their Standard, Razor and Islamic Account.
If a withdrawal request is received before 7:00 am AEST, then the withdrawal will be processed the same day otherwise. If received after 7:00 then the withdrawal will be processed the next day. Any bank account connected to a Pepperstone trading account will receive the funds (this needs to be first-party).
A credit card can also be used for withdrawals if the amount matches or is less than the deposited amount. If a withdrawal is more than the deposited amount then an alternative withdrawal method will be needed. Bank wire transfers take on average 3 to 5 business days to settle.
IC Markets Minimum Deposit
The minimum deposit is $200 for IC Markets. This applies to their Standard, Raw and Islamic Account.
If a client wishes to receive a withdrawal of funds on the same day, then a request must be submitted before midday Australian Eastern Standard Time. If a withdrawal request is submitted later than this time then funding will be deposited into clients the next business day.
Both IC Markets and Pepperstone accept similar payment methods. This includes Skrill, PayPal and NETELLER. Traders who select AUD base currency (in Australia) can use BPAY for fast free transfers. Both brokers offer UnionPay, but IC Markets only offer it when RMB base currency is selected. IC Markets also offer RapidPay and Klarna for GBP base currency accounts only.
Some base currencies including NZD, JPY, CAD and CHF have the most limited deposit and withdrawal options so it’s worth viewing the broker site first before opening an account.
View Pepperstone ReviewVisit Pepperstone
The overall winner is Pepperstone based on their range of trading platforms, fast execution speeds and low spreads and commissions. Pepperstone has greater regulation and superior customer service based on awards and our testing. We recommend Pepperstone for intermediate to expert forex and CFD traders.
View Pepperstone ReviewVisit Pepperstone
Founded in 2010, Pepperstone is an Australian-founded broker with offices with headquarters in Melbourne and offices in the UK, Germany, Cyprus, Dubai, the Bahamas and Kenya. With US$9.2bn of trades every day and 300,000 clients, the broker is up there as one of the world’s largest.
Like Pepperstone, IC Markets is also Australian-founded with headquarters in Sydney. Founded in 2007, the broker also has offices in Cyprus and Seychelles. In March 2022, IC Markets had trading volumes of US$1.11 Trillion making them the largest forex brokers in the world by trading volume.
Ask an Expert
Is it better to copy trade on Pepperstone or on IC Markets?
Either broker is suitable. Both brokers allow trading with MetaTrader signals if you are using MT4 or MT5. IC Markets also offers ZuluTrade and Myfxbook while Pepperstone offers Myfxbook outside the UK and Europe and Pelican Trading for Uk and Europe traders. DupliTrader is also available for all Pepperstone clients for copy trading