Pepperstone vs IG Markets

Pepperstone and IG Markets are the two Goliath forex brokers in Australia. To help you make a Pepperstone vs IG Markets comparison a ‘head-to-head’ table can be viewed below to help you find the right forex broker to meet your needs.

Strengths

1. Risk Management
2. Range Of CFDs
3. Choice of Trading Platforms

1. ECN spreads and low fees
2. Choice of cTrader or MT4 and MT5 Trading Platforms
3. Fast execution speeds
4. Highest leverage
5. Award-Winning Customer Service

Weaknesses

1. Range Of Trading Platforms Can Be Confusing
2. Limited Leverage
3. Limited Funding Options And Not All Are Free

1. No Guaranteed Negative Balance Protection
2. Some CFDs Not Offered (ie Shares)
3. Minimum deposit of $200.

Spreads + Commissions

Spread Value

8.6
Commission Value

9.9
Spread Value

10.0
Commission Value

9.9

Forex Trading Platform

MetaTrader 4
L2 Dealer
ProRealTime
Web Based
Android App
Tablet Apps

1. MetaTrader 4 with Smart Trader Tools
2. cTrader with cAlgo for trading with robots.

Execution Speeds

Trading Speed

8
Trading Speed

10

Leverage

0.5% Margin Rate (1:300 Leverage)

500:1

Risk Management

Limited Risk Account
Guaranteed Stops
Stops and Limits
Balance Snapshots
Price Alerts and Push Notifications
Risk Education
Lower Leverage Levels

1. Standard Risk Management Tools (i.e Margin Stop Loss Order). No Guranteed Features
2. Regulated by Australia Securities & Investments Commission (ASIC)
3. Segregated accounts with National Australia Bank

Other CFDs (eg Crypto)

Shares
Indices
Hard Commodities
Soft Commodities
Cryptocurrencies
Bonds
Other Markets: AUD Denominated Currencies, ETF, IPO, Sectors, Interest Rates

1. Index CFDs
2. Precious Metals
3. Energy
4. Soft Commodities
6. Cryptocurrency - Bitcoin / Bitcoin Cash, Ethereum, Dash, Litecoin
7. Shares CFD

Customer Support

24/7 Customer Support (Saturday 1pm to Saturday 9am)
Phone
Email
Live Chat
IG Community Forum
FAQ Help and Support

Award winning customer support based (Investment Trends.)
1. Live Chat (24/5 hour support.
2. Telephone (24/5 hour support)
3. Call Back request
4. Email Support

Bonus Programs

Refer a Friend
Receive Credit Towards Future Trading

Refer a Friend Bonus
High Volume Trading Rebate

Funding Methods

Debit Card
Credit Card (Visa 1% charge, Mastercard 0.5% charge)
Paypal (1% charge)
BPay

1. Credit Card/Debit Cards (Visa and Master Card)
2. PayPal
3. Neteller
4. QIWI
6. Skrill
7. UnionPay
8. Bank Wire Transfer
9. Bpay
10. FasaPay
11. Broker to Broker
12. Poli

Reviews

Trust Pilot
3.8 out of 5

Trustpilot
4 out of 5 stars- ‎351 reviews

Recommended For

1. Risk Averse and Impulsive Traders
2. Traders Wanting Choice From Multiple Platforms
3. Traders Who Require an All-In-One Broker

1. Experienced high volume traders (Active Traders)
2. Traders utilising automated trading and scalping
3. Forex traders who value competent customer support

  • MetaTrader
  • cTrader
  • ECN Trading Account
  • Deal Cancellation
  • Guaranteed Stop Loss
  • Guaranteed Negative Balance Protection
  • No Fees On Deposits + Withdrawals
  • Stockbroking Services

Recommended For

1. Risk Averse and Impulsive Traders
2. Traders Wanting Choice From Multiple Platforms
3. Traders Who Require an All-In-One Broker

1. Experienced high volume traders (Active Traders)
2. Traders utilising automated trading and scalping
3. Forex traders who value competent customer support

Spreads + Commissions

Spread Value

8.6
Commission Value

9.9
Spread Value

10.0
Commission Value

9.9

Execution Speeds

Trading Speed

8
Trading Speed

10

 

  • MetaTrader
  • cTrader
  • ECN Trading Account
  • Deal Cancellation
  • Guaranteed Stop Loss
  • Guaranteed Negative Balance Protection
  • No Fees On Deposits + Withdrawals
  • Stockbroking Services
  • MetaTrader
  • cTrader
  • ECN Trading Account
  • Deal Cancellation
  • Guaranteed Stop Loss
  • Guaranteed Negative Balance Protection
  • No Fees On Deposits + Withdrawals
  • Stockbroking Services

Trading Spreads and Fees Pepperstone vs IG Markets

SpreadsEUR/USDUSD/JPYAUD/USDGBP/USD
Pepperstone Edge Standard1.161.251.271.49
IG Markets (Standard)0.750.760.761.117
Pepperstone Edge Razor0.160.250.270.49
IG Markets(Forex Direct)0.2630.2920.5120.992

(average spreads data has been taken from each broker’s respective website)

Looking at the spreads of the fx brokers we can see Pepperstone Edge Standard account has the widest spreads. While the Pepperstone Edge account has the narrowest spreads. Spreads of IG Markets spreads are somewhere in between each of Pepperstone’s spreads.

Why are spreads so different for each account?

The differences in spreads are because of the different trading execution technologies in use by each account.

Pepperstone Edge Razor Account

Pepperstone vs IG Makets Razor

This account has the lowest spreads uses electronic communication network (ECN). Spreads you see here are ‘true’ spreads, in other words, the spreads you see are set by the market without manipulation from dealing desks and other parties. However, it is important to be aware that the spreads alone are not your final costs. You will incur a commission fee of $7 (round-trip) for each standard lot you trade.

Pepperstone Standard Account

The standard account is similar to the Pepperstone razor account but there is no commission charge. Instead, your cost is absorbed into the spread. A standard 1pip (point in percentage) is added to your spread. This is why all spreads on the Pepperstone Standard account is 1pip higher than the Razor account.

IG Markets Forex Direct

This account uses Direct Market Access (DMA) technology. DMA relatively similar to ECN but with some minor differences. Like with Peppersone’s Razor account there is a commission fee for each trade you execute. The thing to understand with the Forex Direct account is that it is only available ‘professional’ traders. To qualify as a professional trader, you must have consistently been trading leveraged derivatives over the past year and have net assets of $2.5 million or gross income of over AUD$250,000 for each of the past 2 financial years.

Our review will not focus on this account as it is unlikely to apply to most of our clients due to high barriers of entry.

IG Markets Standard Account

Lastly, we have the IG Markets Standard account. With this account, IG Markets acts as a market maker or a dealing desk. In this case, IG Markets takes the other side of your trade meaning they profit when you make a loss and lose when you make a profit. As you can see, the spreads they offer are relatively competitive. The spreads they offer are higher than ECN/DMA account spreads but they don’t have commission charges.

Account TypePepperstone StandardPepperstone RazorIG Markets Standard
Spreads From1.0 Pips0.0 Pips0.6
Commission$0AUD $7.0 Round Trip$0
Minimum Trade Size0.01 Lot (micro lots)0.01 Lot (micro lots)0.01 Lot (micro lots)
Leverage500:1 Maximum500:1 Maximum200:1 Maximum
Expert Traders AllowedYesYesOnly on MT4 platform (for personal traders)
Hedging AllowedYesYesOnly on MT4 platform (for personal traders)
Scalping AllowedYesYesOnly on MT4 (for personal traders)
Minimum DepositAUD $200AUD $200$0
Support24/724/724/5
Currency Pairs606081
Tradeable Instruments70+70+N/A
ExecutionSTPECNMarket Maker

Key differences to note:

Minimum Initial Deposit – IG Markets don’t require any funds to open an account. This allows you to take advantage of IG markets free demo accounts. Your account will however, need minimum funds to commence trading.

Automatic Trading – IG Markets standard doesn’t allow expert advisors, scalping, hedging on their own platforms. If you want automatic trading then you must trade using MT4 platform. IG only allow MT4 on PC not via the website. Pepperstone allows trading automation on all their platforms.

Conclusion – Pepperstone vs IG Markets

We recommend Pepperstone Edge Razor Account. ECN technology is great as it allows retail traders like yourself to link with liquidity providers and achieve the best possible spreads set by the market. ECN spreads are typically much tighter than you will find with the other accounts and methods of trade execution. Another benefit is this technology is all done electronically which means you can use EAs (expert advisors) for automated trading and trade during “after hours”.

 

Open a demo account >>Visit Pepperstone >>

 

As a Pepperstone Razor account trader, you can achieve further savings by joining Pepperstone’s ‘Active’ trader program. This is a rebate program which can save you up to 43% in trading commissions. Depending on how many lots you trade each month, you will receive a monthly rebate.

Pepperstone Active Trader

The Active trader program not only has rebates but also other benefits such as:

  • Priority client support through a dedicated account manager
  • Complementary VPS hosting
  • Advanced insights and reports

Leverage – Pepperstone vs IG Markets

IG Markets offer a maximum leverage of 200:1. This is quite low for the industry. Our Pepperstone review found Pepperstone offers the maximum leverage permissible by the Australian Investments and Securities Commission (ASIC) of 500:1.

While you don’t need high leverage to be a successful and profitable trader, use of higher leverage can lead to considerably greater returns when well.

It is important to use leverage responsibly. Leverage means going into debt to obtain greater assets to trade. So it is important to fully understand the risks associated with taking on a high level of debt. Therefore always use leverage responsibly.

Conclusion – Pepperstone vs IG Markets

Leverage, when used properly, is a very effective way of trading capital. With higher leverage, you can trade larger positions with lower trading capital. Provided you have done appropriate risk assessment (and let us face it, you wouldn’t speculate unless you were confident in a positive return) then more leverage is better as it can greatly amplify your profits. Therefore we do recommend Pepperstone over IG Markets when it comes to leverage.

More importantly, Pepperstone leverage is backed by high execution speeds which can help with minimising the risks involved with leverage (which we explain in the next section).

Open a demo account >>Visit Pepperstone >>

Execution Speed and Risk Management – Pepperstone vs IG Markets

Pepperstone Edge

Pepperstone provides some of the fastest trade execution speeds in the broker industry.  Super-fast trading speeds are achieved by placing using an Equinix data centre close to the inter-bank servers and using 10 optical fibre connection between the exchanges. By placings their facilities close to the forex servers, Pepperstone can save execution time because of the shorter distance that data needs to travel. By using 10 optical fibre connections, optical speeds can be achieved by minimising potential congestion and bottlenecks due to data overload.

Pepperstone vs IG Markets Equinix

Pepperstone Risk Management

Pepperstone only offers standard risk management tools that all brokers offer. These include stops (such as stop-loss), limits, call margins and protections. Pepperstone doesn’t offer much in the way or specialist risk management tools.

Pepperstone Speed and Risk Summary

It is important to understand the connection leverage, speed and risk. Pepperstone can provide higher leverage when we compare with IG because their execution is faster. Faster execution means less risk of slippage. Remember, slippage can greatly affect your profits and losses depending on which way price moves during the execution lag time. When price movements are unfavourable you risk losing your money. Pepperstone is confident enough in their execution technology that they can offer higher leverage with fewer specialist risk management tools.

IG Markets

Not much is known about the technology behind IG Markets execution when it comes to their standard account however IG markets are very open about the importance of trading speeds and controlling your trading risks. IG provides details of their slippage performance as per the table below.

Pepperstone vs IG Markets Slippage rates

The important detail from this table is you want to see lower ‘stop’ slippage and ‘higher’ limit slippage.  IG use what they call ‘asymmetric’ execution logic to make achieve desirable execution success. IG also publish their rejection rates for your orders.

IG Rejection

Rejection occurs usually due to price changes and liquidity. Price changes may occur due to poor speed execution while liquidity may reflect the fact that IG markets are a market maker so only hold so much liquidity.  To manage rejection IG advise using the following features

  • Points through current: For a small fee, IG will allow you to trade through the current IG price. This can work in your favour as IG will still trade at the new price if they are favourable for you. This helps you manage rejection due to price change
  • Partial Fills: This helps you manage rejection when trading in volumes larger than available liquidity.

IG Risk Management

If you desire a higher level risk protections IG Markets offer guaranteed stop loss. For a small fee, you can guarantee order execution at your set sell price. However, like Pepperstone, IG does not offer guaranteed negative balance protection. Both brokers utilise a margin call system which means you must have a minimum amount of funds in your balance at all times.

IG Market have the option of a limit risk account. This account simply means you must purchase a guaranteed stop-loss order when playing an order. We only this recommend this account to those new to trading as use of guaranteed stop-loss orders will eat into your profits over time.

IG Markets Speed and Risk Management

IG help you achieve successful trading by providing a range of tools that help you manage any speed limitations and risks their infrastructure may have. These tools may reflect the fact that they are a market maker which means they must have available liquidity at the time and in the volume you desire.

Conclusion – Pepperstone vs IG Markets

Both Pepperstone and IG Markets use different approaches to trading. Pepperstone focuses on speed while IG markets focus on trade control. It depends on the type of trader you are. If you are familiar with trading then you may prefer using ECN with fast execution Pepperstone offer. This is because there are fewer costs for each trade you do and because trading via ECN means greater exposure to liquidity pools which means you are more likely to be able to trade in the volume you desire.

IG Markets offer excellent risk management tools but these can be costly over time and tools that may help you overcome liquidity and speed issues however there is a chance you may miss out trade opportunities.

Platforms – Pepperstone vs IG Markets

Pepperstone Trading Platform

Pepperstone offer MetaTrader 4 (MT4), MetaTrader 5 (MT5) and cTrader trading platforms.

MetaTrader 4

MetaTrader 4 – is the platform that most brokers and both beginners and experienced traders prefer. Its popularity is a reflection of the reliability and quality that MT4 delivers for traders. MT4 offers excellent charting packages, an excellent range of technical indicators, the ability for back-testing and Expert Advisors. MT4 is best for trading in decentralised markets such as forex and when you want a simple interface.

MetaTrader 5

MetaTrader 5 – This MetaQuotes follow up to MT4 is built to handle trading through an exchange. This makes MT5 good for trading assets such as shares. MT5 however, is still good for trading forex which is largely decentralised. One of the key benefits of MT5 is that with a single sign-in account you can trade all different types of derivatives (ie. shares, cryptocurrency, commodities). MT5 offers many of the same features as MT4 but more variety of options.

  • MT5 offers 6 different types of pending orders and two different types of stop orders. MT4 can only handle 4 types of pending orders at one time.
  • 21 chart timeframes such as 11-minute charts and 7 hourly charts in addition to the daily, weekly and yearly time-frames.
  • Inbuilt economic calendar
  • 38 inbuilt technical indicators such as 22 analytical objects.
  • MQL5 programming language which is superior to MQL4 (on MT4) which is useful for Expert Advisors.
  • Faster trading – MQL5 takes advantage of 64bit processing. MQL4 can only handle 32bit processing.

In the past, we always to recommend MQL4 as MQL5 did not offer the ability to hedge. Recent upgrades have seen MQL5 introduce a hedging system. In the past only a netting system was available. With a netting system, only one common position for a symbol can be used at a time. When trading in America you must use this system. With a hedging system, you can have multiple open positions of the same symbol.

Smart Trader Tools

Regardless if you use MT4 or MT5, Pepperstone gives you access to their add tools which provide even more functionality. Smart trader tools is a suite of tools or apps that help you get more out of your trading. Tools include

  1. Market Manager – This snapshot of account activity allows for better account management without accessing the trading terminal
  2. Trade Terminal – This allows for more efficient order execution and analysisPepperstone vs IG Markets Smart Trader
  3. Mini Market – This is the same as the trading terminal but only shows one market
  4. Sentiment Trader – This allows you to see what other traders are doing on the market
  5. Correlation Matrix – This tools will help you understand your market exposure and risk. It does this by showing connections between assets in different markets.

IG Markets Trading Platforms

This broker offers a wide selection of trading platforms, this includes:

  1. IG proprietary trading platforms – for mobile, web and tablet
  2. The web-based platform ‘ProRealTime’ – a paid-for web-only platform
  3. L2 Dealer for professional traders with forex direct account
  4. MetaTrader 4 – the most popular trading platform in the world

Below are the key features of each platform:

Pepperstone vs IG Markets Platforms

 

The IG Markets proprietary platform is known for being good for traders without high experience thanks to its simple and user-friendly interface.

IG Markets Platform takeaways

  • IG Markets Platform is not available for Android tablets
  • You can only trade from charts when using the web browser. It is not available for mobile and tablets
  • Automation trading is not available

Observations about ProRealTime

  • There is a $40 monthly fee to access ProRealTime. It is free if you meet minimum trade volumes a month.
  • ProRealTime can only be used in a Web Browser.

MetaTrader 4

  • MetaTrader 4 can access some charting features available on IG Markets Platform.

Conclusion –  Pepperstone vs IG Markets

This is a difficult one to decide on a winner. Both brokers offer MetaTrader 4, which is the platform we like the most. IG Markets offer more platforms choices and these are popular with beginner traders due to their clean interface. Pepperstone on the other hand offer MetaTrader 5 which does everything MT4 does and while not yet as popular as MT4, MetaTrader is trying to encourage users to move over to this platform. MT5 essentially offers everything MT4 offers and more so MT5 may be the platform to choose if you are looking for trading into the far future.

Open a demo account >>Visit Pepperstone >>

Contracts for Difference (CFDs) – Pepperstone vs IG Markets

Pepperstone CFDs

Pepperstone has a decent range of derivatives when it comes to trading CFDs, the broker however, they do not offer some stocks or shares which may be an issue for some traders. Derivatives they offer include:

  1. Indices – 14 equity indices from Asia, Europe and the USA.
  2. Commodities – These include precious metals, energies and soft commodities like Cocoa and Cotton.
  3. Cryptocurrencies – These include Bitcoin, Ethereum, Dash and Litecoin.

IG Markets CFDs

IG Markets are one of the best brokers if you are seeking an all-in-one type broker in CFD trading. That is a broker that offers the widest range of derivatives. With IG Markets you can choose from the following

  1. Shares – You can choose from over 600 Australian and 8,000 international shares.
  2. Indices – over 31 global indices are available. 22 of these indices are available for trade 24 /7.
  3. Commodities – 26 major hard and soft commodity markets
  4. Cryptocurrencies – including Bitcoin, Ether, Litecoin, Ripple and Bitcoin Cash
  5. Options – are available for major indices, forex etc.
  6. Interest Rates – you can trade interest rate movement in a range of global markets
  7. Bonds – You can hedge your bets against government bonds.
  8. ETP, ETF and IPOs – Exchange-traded products and funds and initial public offering are available.

Conclusion – Pepperstone vs IG Markets

IG Markets offer a far more extensive range of asset classes and therefore should be your choice if you are looking for an all in one broker.

Bonus Offers – Pepperstone vs IG Markets

Pepperstone

In addition rebates for clients on the active trader program discussed earlier, Pepperstone also has a refer a friend program. Provided your friend signs on and meetings their minimum deposit and trade conditions, they will reward you with AUD $100.

IG Markets

Like Pepperstone, IG has a refer a friend program. However, IG will reward you with up to US$1000 in trading credits.

IG Refer a Friend

Conclusion – Pepperstone vs IG Markets

We feel IG offer better value with their sign-on bonus. Although $1000 is in credits, this can be useful when you trade.

Customer Service – Pepperstone vs IG Markets

Pepperstone Customer Support

Pepperstone offers award-winning customer service. Customer support is available 24/7 and you can contact them via any of the following means live chat, phone and email. You can call Pepperstone toll free from within Australia.

Pepperstone Awards

Pepperstone Customer Service featuresUK Forex Awards

Pepperstone a wide range of additional features that form part of their superior customer services experience.  These include:

  • Education: Pepperstone’s education portfolio includes
    • ‘Learn to Trade’: a collection of web-pages covering a wide range of forex topics.
    • Webinars: regular live webinars by forex experts that cover a range of forex topics. Webinar participants can ask the hosts questions during the webinar.
    • Trading Guide: An large collection of forex trading guides is available that cover many aspects of forex trading. You can have these sent to your inbox on sign up if you desire.
  • User guides: support manuals that take users through all the steps they need to implement functions when using Pepperstone’s platform. For example how to make a deposit or withdraw.
  • FAQ: There is a searchable FAQ section available where you can find answers to questions you may have.
  • Glossary – Pepperstone provides a list defining major trading words and terms

IG Markets Customer Support

IG has a good range of contact tools for customer support. These include Email, live chat, phone and even twitter. Customer support however, is not 24/7 but rather Saturday 1 pm to Saturday 9 am.

IG Markets Customer Service

They also provide you with all the essential tools you need for support services you may need. These include forums, glossaries, FAQ and user guide. The shining feature in their customer service tool-set however, is their education. This academy is known as their “IG Academy” and it is relatively comprehensive. The academy consists of nine different trading courses in forex and derivatives trading. The learning tools include webinars, booklets, videos and even mobile apps.

Conclusion – Pepperstone vs IG Markets

Both brokers offer excellent customer support and services however we found it hard to go past the features that Pepperstone offer. It is very comprehensive and provides just about any information you may need to not only use their products but trade successfully.

Deposits and Withdrawals – Pepperstone vs IG Markets

Pepperstone does not charge users when making deposits or withdrawals. Pepperstone provides a large range of options when making transactions.

Pepperstone Funding Methods

IG Markets will charge you 1% for Visa and 0.5% for MasterCard. You will also incur a 1% charge when using PayPal, bPay and Bank Transfer are free. It is important to note that when using debit, credit or PayPal for deposits, there is a minimum $500

Conclusions – Pepperstone vs IG Markets

Pepperstone is an easy choice when it comes to funding. Not only are there more options but there are no charges.

Open a demo account >>Visit Pepperstone >>