Pepperstone vs Plus500

Forex broker Pepperstone offers ECN broker pricing with a commission of $3.50, choice of MetaTrader 4, 5 and cTrader trading platforms, leverage up to 500:1 and social trading. Plus500 is a market maker with no commission and large choice for trading CFDs including 9 cryptocurrencies

View the complete Pepperstone review or Plus500 review or alternatively below shows the head-to-head comparison table.

By Justin Grossbard / Updated: Tuesday, February 18th, 2020

Pepperstone Vs Plus500

Broker Reviewed

Pepperstone
Plus500

Regulations and Licenses

Feature
Pepperstone
Plus500
ASIC (Australia)
FCA (UK)
MAS (Singapore)
CFTC (U.S.A)
FSCA (South Africa)
Pending
FINMA (Switzerland)
CYSEC (Cypus)
IIROC (Canada)
FMA (New Zealand)

Brokerage

Feature
Pepperstone
Plus500
No Commission Account Spreads From (EUR/USD):
1.0
0.6
Commission Account Spreads From (EUR/USD):
0.0
Commission (per 100k traded side trip)
AUD/USD$3.50
Minimum Deposit
AUD/USD $200
$0
Volume Commission Rebates
Has Islamic Account
No Inactivity Fees
Funding Methods
16
3
No Deposit/Withdrawal Fees

Markets and Instruments

Feature
Pepperstone
Plus500
Forex Currency Pairs CFDs
66+
60+
Cryptocurrency CFDs
4+
10+
Index CFDs
2+
67+
Share CFDs
5+
1816+
Commodities CFD
4+
17+
Stockbroking
Retail Maximum Leverage
500:1
30:1
Professional Maximum Leverage
500:1
300:1

Trading Platforms + Tools

Feature
Pepperstone
Plus500
MetaTrader 4 (MT4)
MetaTrader 5 (MT5)
cTrader
Proprietary Platform
Automatic / Robot Trading
Social + Copy Trading
Standard Stop Loss
Guaranteed Stop Loss Order
Guaranteed Negative Balance Protection
ESMA regulated territories only
Demo Account
Unique Feature 1
Smart Trader Tools
Trade cannabis index and share CFDs
Unique Feature 2
Fast Execution Speed
Guaranteed stop loss trading option

Overall

Pepperstone
Plus500

 

 

 

 

Pepperstone vs Plus500 Execution Speeds and Risk Management

In our review of execution speeds, we found that Pepperstone offers excellent execution speed while Plus500 don’t publicise their execution speeds. Instead, Plus500 offers a range of risk management tools which may help manage the risks of slippage.

Pepperstone Execution Technology

Pepperstone Review Of SpeedPepperstone is very active about promoting the quality of its execution technology and execution speeds on their website. The broker claims an average execution speed of <50ms and a maximum speed of 240ms. This infrastructure helps ensure risks associated with ‘slippage’ are minimised as they use variable spreads. This exceptional speed is achieved via the following methods

  • Dedicated Fibre Optic Cable – Dedicated cables mean less data congestion. Fibre Optic is currently the fastest available technology for transmitting data.
  • Pepperstone Forex Trading Speeds
  • Equinix Servers near liquidity centres – Pepperstone use servers in data centres near the New York financial centres. This strategy means there less distance for data to travel when you execute an order.
  • Virtual Private Server (VPS) Partnerships – For traders needing 24/7 up-time and extra fast latency and speed Pepperstone have partnered with New York City VPS servers. A promotional code is available for a 20% discount.

Lag time resulting in ‘slippage’ can potentially be costly. Pepperstone, therefore, promise extremely fast execution speeds. This means the price the client opens their trade should be the final price. Despite the low risk, Pepperstone does not give any guarantees slippage won’t occur. This means your account can still go into negative.

Plus500 and Risk Management

Plus500 is a market maker so the quoted buy and sell price at the time of execution should occur. Slippage may still occur if the broker does not hold enough liquidity at the time of order. If this happens then your position will go to the next available order. Slippage can also occur if the market is very volatile and the broker’s quotes are not up to date when you place your order. Plus500 offers a range of risk management tools that can help manage your profits and losses when trading CFDs that carry a high level of risk.

Risk Management tools on offer

  • Pending Order – Available with both Pepperstone and Plus500. A close at Profit [Limit] / Close at Loss [Stop Loss] is an instruction to buy or sell when defined preconditions are met. When your set level of profit or loss is hit then the broker will seek to buy or sell your position. Pending orders, however, do not protect you from losing money from ‘Slippage’ as the broker may not have the liquidity to buy or find a buyer to sell before a price movement occurs.
  • Guaranteed Stop/Loss – You can pre-set absolute limit on your trading position to protect yourself against potential losses. If price movement is unfavourable, your position will automatically be closed at price limit regardless if slippage occurs. You must select Guaranteed Stop Order when opening your position and a certain amount of pips will be added to the spread to cover the broker’s risks.  With Pepperstone, protection against losses is not guaranteed. They only offer simple stop-loss or limit orders.
  • Trailing Stop – This helps you can lock in a certain amount of profit or protect a certain amount of loss when you place a pending order. Your position will remain open unless the price has moved a certain percentage away from its current market price. Neither Plus500 or Pepperstone provide a guarantee so you are still vulnerable to ‘slippage.
  • Negative Balance Protection – This helps protect your funds from going into debt. Should your account balance fall below a certain level of leverage margin’ then a Plus500 will make a ‘Margin Call for you to add funds to your account. If you don’t then they close your position. Your account can still be at risks if you don’t increase the balance as slippage may still occur. Pepperstone also offers this feature. Do note that neither broker guarantees this.

Stop Loss

Pepperstone vs Plus500 Execution Conclusion

“Slippage” can result in a large difference between your expected profit/loss and your actual profit or loss. While Plus500 provides a range of risk management tools there is a lack of transparency in the liquidity they hold and their methods for obtaining quotes. For this reason, we prefer the tight spreads and fast execution offered by Pepperstone when managing slippage.

Open a demo account >>Visit Pepperstone >>

Pepperstone vs Plus500 Leverage

Leveraged Products offered by Pepperstone is 500:1 while Plus500 offers 300:1. Unless the forex market is very volatile, changes in currency pairs tend to be minimal, it is for this reason, traders may like high leverage as higher leverage can mean greater profits for minor forex changes. On the flip side, it can just as easily mean more dramatic losses.

Pepperstone Leverage 500-1

Pepperstone vs Plus500 Leverage Conclusion

Many regulators around the world (such as in America) are starting to reduce available leverage. Experienced traders also don’t tend to use large leverage. While using large leverage does come down to individual preference and risk tolerance we recommend Plus500 because it does not allow excessive leverage. You don’t have to use the maximum available leverage however, you are free to reduce the leverage lower if you wish.

 

 

Pepperstone vs Plus500 Joining Bonus

Both Pepperstone and Plus500 offer a program that gives you bonuses for signing up with them. Depending on your need, the bonus may add some value to your account.

Pepperstone joining bonus

 

Plus500 joining bonus

Plus500 has first deposit bonus program which rewards you with extra funds to trade with. The more amount of funds you make on your first deposit, the more funds Plus500 will reward you with. To earn the bonus, you will need to achieve a minimum number of trades. Please see screenshot for a summary of each bonus level.

Plus500 Bonus Summary

Pepperstone vs Plus500 Conclusion – Joining Bonus

 

Back to top

We use cookies to ensure you get the best experience on our website. By continuing to browse you accept our use of cookies.

Chat now

Loading...

LiveChat Spinner