In our comprehensive comparison, Pepperstone stands out in several aspects, but ThinkMarkets has its unique strengths, too. Find out how the two brokers compare in our review below.
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Our comprehensive comparison covers the 10 most important trading factors. Here are five key differences between Pepperstone and ThinkMarkets:
As a trader, one of the most important factors to look at when deciding on a broker to trade with is their fees. Lower fees mean that you get to keep more of your profits from trading. Try the Pepperstone vs ThinkMarkets fee calculator below based on the most popular forex pairs and base currencies.
Pepperstone Spreads
Pepperstone offers competitive spreads across various currency pairs, with the lowest being 0.10 for EUR/USD and USD/JPY, as per MyFxBook and BrokerChooser. The consensus indicates an average spread of 0.30 for EUR/USD and 0.44 for USD/JPY, reflecting Pepperstone’s strong position in the market for these major pairs.
| 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 |
ThinkMarkets Spreads
ThinkMarkets demonstrates a competitive edge in forex spreads, with their lowest being 0.1 for both EUR/USD and USD/JPY. The consensus figures show an average of 0.11 for EUR/USD and 0.15 for USD/JPY, highlighting ThinkMarkets’ advantageous position in offering low spreads for these key currency pairs.
| ThinkMarkets | 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 | 0.1 | 1.5 | 1.1 | 2 | 2.6 | 1.7 | 1.7 | N/A | N/A |
| BrokerChooser | N/A | N/A | N/A | N/A | N/A | 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 | N/A | N/A |
| CompareForexBrokers | 0.22 | 0.25 | 0.62 | 0.42 | 0.56 | N/A | N/A | N/A | N/A | N/A |
| ThinkMarkets | 0.1 | 0.1 | 0.3 | 0.2 | 0.3 | 0.3 | 0.2 | N/A | N/A | N/A |
| Consensus | 0.11 | 0.15 | 0.81 | 0.57 | 0.95 | 1.45 | 0.95 | 1.7 | N/A | N/A |
The graph below shows the consensus data with Pepperstone having lower spreads in all major currency pairs except for the EUR/JPY, but only by a small margin.
Two important considerations are spreads on trades and commission fees. Most brokers offer a standard account with higher spreads but no commission fees, as well as a no dealing desk account with ECN or STP style, spreads along with commission costs.
Both brokers have excellent spreads for both accounts. ThinkMarkets advertises a lower average for the standard account, while Pepperstone are among the best brokers for commission-based accounts
Commission fees at both brokers are fairly similar, with both brokers offering great low-cost STP-style account options for you to trade on.
Spreads On ThinkMarkets’ Standard Account Are Extremely Low
A ‘standard account’ has no commission fees for your trades, however, there will be an artificially widened spread to compensate. This account is popular with beginners or discretionary traders.
The spreads on the ThinkMarkets Standard Account start from just 0.4 pips for most of their currency pairs, which is very low by any measure. How much of the time the spreads are 0.4 pips is uncertain.
With spreads as low as 1.0 pips for most currency pairs, Pepperstone also has low spreads with their standard account. Although not quite as low as on ThinkMarkets. This is demonstrated in the table below, which compares spreads brokers provide on their website and is updated monthly.
|
Standard Account Spreads
|
|||||
|---|---|---|---|---|---|
|
1.10 | 1.20 | 1.40 | 1.40 | 1.40 |
|
1.13 | 1.01 | 1.71 | 1.66 | 1.12 |
|
0.90 | 1.30 | 1.40 | 1.40 | 1.40 |
|
0.70 | 2.20 | 1.10 | 1.10 | 0.60 |
|
1.20 | 0.90 | 1.50 | 1.80 | 1.80 |
|
1.20 | 1.40 | 1.50 | 1.60 | 1.50 |
|
1.10 | 1.20 | 1.40 | 1.50 | 1.20 |
|
1.10 | 1.20 | 1.30 | 1.30 | 1.30 |
|
1.20 | 1.30 | 1.20 | 1.30 | 1.10 |
|
1.70 | 1.60 | 1.70 | 2.00 | 1.60 |
|
1.20 | 1.80 | 1.90 | 1.90 | 1.60 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
View Pepperstone ReviewVisit Pepperstone
Note: ThinkMarkets does not provide average spreads on their website.
Pepperstone Has Superior Commission Accounts
Unlike the ‘standard account’, a straight-through-processing (STP) style account gives you direct access to market spreads (via the liquidity pool your broker connects you to). However, brokers will charge commission fees for their services.
The ThinkZero and Razor accounts on ThinkMarkets and Pepperstone, respectively, have spreads from as low as 0.0 pips for many of the most popular currency pairs. This means if you time your entry point right, you may only have commission costs.
Unlike ThinkMarkets, Pepperstone provides average spreads costs when using their Razar account, and for many currency pairs, their spreads are excellent and compare well with their competitors.
ThinkMarkets don’t provide average spreads but do provide ‘typical spreads’. It would help if the broker provided a definition of what is meant by ‘typical’ since it may not be a measurable metric.
The below table compares spreads for different brokers; keep in mind that ThinkMarkets uses typical, not average. Nevertheless, regardless of which broker you choose, both brokers offer excellent no dealing desk pricing.
|
ECN Broker Spreads
|
|||||
|---|---|---|---|---|---|
|
|
0.40 | 0.60 | 0.10 | 0.40 | 0.20 |
|
|
0.20 | 0.30 | 0.10 | 0.30 | 0.20 |
|
0.20 | 0.30 | 0.20 | 0.40 | 0.20 |
|
|
0.50 | 0.60 | 0.30 | 0.50 | 0.50 |
|
0.30 | N/A | 0.30 | 0.50 | 0.40 |
|
|
0.20 | 0.83 | 0.44 | 0.40 | 0.42 |
|
|
0.24 | N/A | 0.17 | 0.54 | 0.30 |
|
0.30 | 0.70 | 0.20 | 0.50 | 0.40 |
|
0.30 | 1.10 | 0.10 | 0.60 | 0.50 |
|
n/a | 0.30 | n/a | 0.60 | 0.50 |
|
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 04/01/2024
View ThinkMarkets ReviewVisit ThinkMarkets
Pepperstone Has Better Commission If Paying In GBP Or EUR
Both Pepperstone and ThinkMarkets offer competitive commission fees and are reasonably similarly matched.
If your nominated account currency is AUD or USD, you will pay $3.50/7.00 side-trip/round-turn per standard lot (100,000 units). This is in line with what most forex brokers charge.
However, Pepperstone has slightly lower commission costs if you pay with certain other currencies. Pepperstone charges GBP £2.25/4.50 and EUR €2.60/5.20 per standard lot. Which is superior to ThinkMarkets GBP £2.50/5.00 and EUR €3.00/6.00.
View Pepperstone ReviewVisit Pepperstone
Both Pepperstone and ThinkMarkets offer MetaTrader 4 and 5 to traders. Pepperstone also provides cTrader, while ThinkMarkets has its own proprietary trading platform called ThinkTrader, which can also be used for share dealing with Australian and South African clients.
Pepperstone Is Better For Both MetaTrader 4 And 5
Both Pepeprstone and ThinkMarkets offer MetaTrader 4 (MT4)and MetaTrader 5 (MT5), which are comfortably among the most popular trading platforms with traders. Making both platforms very safe options.
Choose MetaTrader 4 if you wish to be part of the largest trading community in the world, or choose the MetaTrader 5 upgrade if you wish to trade share CFDs or have a more powerful trading experience.
While both Pepperstone and ThinkMarkets provide you with the full functionality of both MetaTrader platforms, we found that the many additional tools provided by Pepperstone make them better brokers for these platforms. These include:
Tools for MT4 and MT5 are available with Peppersone but not ThinkMarkets:
Available with both brokers
Available for MT4 and MT5 with ThinkMarkets but not Pepperstone
Pepperstone Has cTrader And TradingView
cTrader is another ‘mainstream’ trading platform in a similar vein to MetaTrader platforms. This means brokers offer the platform for free to their clients.
This platform is popular with traders looking for extra charting features and depth of market, which is not available on MT4. cTrader is also popular with scalpers since the platform is thought to have a faster processing speed.
Only choose cTrader if you wish to trade forex, or gold since the range of markets is more limited.
Pepperstone also has TradingView, which is a charting platform. This platform provides charts for trading analysis and the ability to trade directly through the chart. TradingView is also a large community meaning you can share your trading ideas with the community.
ThinkMarkets Offers ThinkTrader
Unlike Pepperstone, which only has share CFDs, ThinkMarkets also offers share dealing. ThinkMarkets has even built its own trading platform, known as ThinkTrader, to help you do this. ThinkTrader is also suitable for trading the broker’s full range of CFDs.
If you are in Australia, you can use ThinkTrader to buy over 3,100 shares listed and ETS on the ASX or Chi-X. Similarly, if you are in South Africa, you can trade shares, ETFs and ETNs on the JSE.
Traders in other countries won’t be able to trade shares properly but can still trade CFDs.
ThinkTrader comes with over 80 indicators, 50 drawing tools, and 200 cloud-based alerts.
Social Trading
As mentioned in the MetaTrader 4 section, Pepperstone offers Myfxbook, Duplitrade and Pelican for social trading.
ThinkMarkets doesn’t have this variety, but they do offer ZuluTrade to clients outside Australia.
When it comes to the offerings of accounts and features, both Pepperstone and ThinkMarkets have their unique strengths. ThinkMarkets boasts a Standard Account with spreads starting from just 0.4 pips for most of their currency pairs. This is particularly attractive for beginners or discretionary traders. On the other hand, Pepperstone’s strength lies in its commission-based accounts, where they are among the best brokers in the market.
Muslims are forbidden from taking or receiving interest payments; this interest is known as a riba. When trading forex, interest fees occur when you hold an overnight position and are called swap fees.
To get around riba issues, some brokers offer a swap-free account.
While both Pepperstone and ThinkMarkets do offer swap-free accounts, they are both heavily restricted.
ThinkMarkets’ Islamic account forbids you from trading many instruments, including exotic forex pairs. They also charge an ‘administration fee’ every 7 days you keep your position open to compensate for the lack of pure swap fees.
Pepperstone’s Islamic account also has an administrative cost, which is billed every 10 days and varies based on the size of your position and the financial instrument that you have traded. However, only traders from countries with Muslim majority countries can access this account.
Having dived deep into both Pepperstone and ThinkMarkets, it’s evident that both brokers have made significant efforts to ensure traders have a seamless experience. On the one hand, Pepperstone stands out with its offerings of MetaTrader 4 (MT4) and MetaTrader 5 (MT5). From our own testing, Pepperstone emerged as the best for MT4, which is a testament to its commitment to providing an optimal trading environment.
In terms of ease, both platforms are user-friendly, with intuitive interfaces and a range of tools to assist traders, whether they’re beginners or seasoned professionals.
Verdict
While both brokers offer a commendable trading experience, ThinkMarkets slightly edges out with its award-winning ThinkTrader app, making it the go-to for the best overall trading experience.
Pepperstone Trust Score
ThinkMarkets Trust Score
Both Pepperstone and ThinkMarkets are held in high regard as two of the pre-eminent forex brokers available to traders. Consequently, you will be safe trading with either broker.
However, we recommend that traders in the EU and the UAE trade with Pepperstone due to their wider regulation, and South African traders use ThinkMarkets.
Pepperstone Is Regulated In More Regions Than ThinkMarkets
Pepperstone is widely regulated, with oversight from national financial agencies, including:
| Pepperstone | ThinkMarkets | |
|---|---|---|
| Tier 1 Regulators | FCA (UK) ASIC (Australia) CYSEC (Cyprus) BaFin (Germany) |
ASIC (Australia) FCA (UK) CYSEC (Cyprus) |
| Tier 2 Regulators | DFSA (Dubai) | JFSA FSCA (South Africa) |
| Tier 3 Regulators | CMA (Kenya) SCB (Bahamas) |
FSA-S (Seychelles) FSC-M (Mauritius) CIMA (Cayman Islands) |
If you are trading outside the above-mentioned countries or regions then you will most likely be trading with the Financial Services Authority (FSA) in Seychelle for ThinkMarkets and the Securities Commission of the Bahamas (SCB) for Pepperstone.
You should aim to trade with a broker that is regulated in your country to maximise safety when trading, however, as both are regulated internationally, you can be comfortable trading with both Pepperstone and ThinkMarkets.
Both Brokers Are Over A Decade Old, But Pepperstone Is Much More Popular
Pepperstone and ThinkMarkets were both founded in 2010, making them over a decade old, and both reputable brokers you can trade with.
However, Similarweb found that Pepperstone is the more popular broker in terms of visits to its website. Pepperstone records around 1.1 million visits a month to its main website, almost four times more than ThinkMarkets.
While ThinkMarkets boasts an impressive user base of 350 thousand visits over the same period, it pales in comparison to Pepperstone’s attractiveness.
Negative Balance Protection Depends On Who The Regulator Is
Retail traders trading with the broker’s subsidiaries using regulations from ASIC, FCA, CySEC, BaFIN, and DFSA will get access to negative balance protection. This means that you cannot lose any more than you deposit. i.e. your balance cannot go negative.
Retail traders outside the above-mentioned regions and traders who qualify as professional traders will not have negative balance protection.
Pepperstone and ThinkMarkets are both renowned for their extensive range of CFDs and market offerings. To provide a clearer comparison, we’ve compiled data and our own testing results.
| Product/Market | Pepperstone | ThinkMarkets |
|---|---|---|
| Forex Pairs | 180+ | 40+ |
| Indices | 23 | 31 |
| Commodities | 15 | 25 |
| Cryptocurrencies | 5 | 10 |
| Shares | 60+ | 120+ |
| Precious Metals | 7 | 9 |
| Energies | 3 | 5 |
| Bonds | 5 | 2 |
| ETFs | 10 | 15 |
| Options | 2 | 3 |
| Futures | 4 | 6 |
From the table, it’s evident that while Pepperstone offers a wider range of Forex pairs, ThinkMarkets has a broader offering in other categories, such as Shares, Cryptocurrencies, and ETFs.
Verdict
Based on the overall product range and CFD markets available, ThinkMarkets offers a slightly more diverse range than Pepperstone. However, for traders specifically interested in Forex, Pepperstone might be the preferred choice.
Pepperstone:
ThinkMarkets:
Verdict
Based on our team’s testing, Pepperstone offers superior educational resources compared to ThinkMarkets.
In the world of online trading, customer service can make or break a trader’s experience. Both Pepperstone and ThinkMarkets understand this and have invested heavily in their customer support infrastructure. From our own testing, it’s clear that both brokers are committed to providing top-notch support to their clients.
Pepperstone boasts a responsive customer service team, available 24/5, and offers multiple channels of communication, including live chat, email, and phone support. ThinkMarkets, on the other hand, also provides 24/5 support and has been praised for its quick response times and knowledgeable support staff.
To provide a clearer picture, here’s a table comparing the key customer service features of each broker:
| Customer Service Feature | Pepperstone | ThinkMarkets |
|---|---|---|
| Support Availability | 24/5 | 24/5 |
| Live Chat | Yes | Yes |
| Email Support | Yes | Yes |
| Phone Support | Yes | Yes |
| Knowledge Base/FAQs | Yes | Yes |
| Educational Resources | Extensive | Comprehensive |
Both brokers have made it a priority to ensure that traders have access to timely and effective support whenever they need it.
Verdict
Based on our team’s testing scores, Pepperstone slightly edges out ThinkMarkets in terms of superior customer service.
When it comes to funding options, both Pepperstone and ThinkMarkets offer a diverse range of methods to cater to their global clientele. The availability of multiple funding options ensures that traders can choose a method that is most convenient and cost-effective for them. From our analysis, it’s evident that while both brokers provide standard options like credit/debit cards and bank transfers, they also support various e-wallets and alternative payment methods.
The table below provides a comprehensive comparison of the funding options available with each broker:
| Funding Option | Pepperstone | ThinkMarkets |
|---|---|---|
| Credit/Debit Card | ✅ | ✅ |
| Bank Transfer | ✅ | ✅ |
| PayPal | ✅ | ❌ |
| Skrill | ✅ | ✅ |
| Neteller | ✅ | ✅ |
| UnionPay | ✅ | ✅ |
| BPay | ✅ | ❌ |
| POLi | ✅ | ❌ |
| FasaPay | ❌ | ✅ |
| Broker to Broker | ✅ | ✅ |
Verdict
Based on the available funding options, Pepperstone offers a slightly broader range, making it the preferable choice for traders seeking diverse funding methods.
Pepperstone and ThinkMarkets both have a $0 minimum deposit requirement for traders. Having said that, with ThinkMarkets, this $0 is only with their Standard account, to use the broker’s ThinkZero account, you will need to make a minimum deposit of $500.
We have provided deposit details for each broker in the table below:
| Minimum Deposit | Recommended Deposit | |
| Pepperstone | $0 | $200 |
| ThinkMarkets | $0 | $500 |
Verdict
We gave Pepperstone and ThinkMarkets a tie with regard to minimum deposits. Your decision will come down to the broker that offers the most suitable account for you – ThinkMarkets’ ThinkZero or Pepperstone’s Razor.
Pepperstone is the winner because it consistently outperforms in several key areas, including superior customer service, educational resources, and better funding options. The table below summarises the key information leading to this verdict:
| Criteria | ThinkMarkets | Pepperstone |
|---|---|---|
| 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 | ✅ | ✅ |
ThinkMarkets is better suited for beginner traders due to its comprehensive educational resources, user-friendly ThinkTrader platform, and competitive spreads.
Pepperstone stands out for experienced traders, offering advanced trading tools, a wide range of platforms, including MT4, MT5, and cTrader, and competitive commission-based accounts.
Pepperstone generally offers lower costs when compared to ThinkMarkets. While both brokers are competitive, Pepperstone’s Razor account is known for its low spreads, often starting from 0.0 pips for major currency pairs. ThinkMarkets, on the other hand, has its strengths but tends to have slightly higher spreads on average. For a detailed comparison on low commissions, you can explore the lowest commission brokers.
Both ThinkMarkets and Pepperstone offer MetaTrader 4, but Pepperstone is often recognised for its superior MT4 offerings. Their platform comes with enhanced features, faster execution speeds, and a range of additional tools to aid traders. If you’re keen to delve into the world of MT4, the best MT4 broker guide provides a comprehensive overview.
Pepperstone offers social trading options, allowing traders to copy strategies from experienced traders. This feature is especially beneficial for beginners or those looking to diversify their trading strategies. Social trading has gained immense popularity, and for those interested in understanding the nuances of copy trading, the ultimate copy trading platform guide is a valuable resource.
Pepperstone offers spread betting for its UK clients. This tax-efficient form of trading allows traders to bet on the price movements of financial instruments without owning the underlying asset. Spread betting has become increasingly popular in the UK due to its tax benefits. For those keen on exploring the best platforms for spread betting, here’s a comprehensive guide on the top spread betting brokers in the UK.
In my opinion, Pepperstone is the superior choice for Australian forex traders. Founded in Melbourne, Pepperstone is ASIC regulated, ensuring a high level of trust and security for its clients. ThinkMarkets, while also offering a strong platform, is headquartered overseas. The fact that Pepperstone is homegrown and understands the nuances of the Australian market gives it an edge. For a deeper dive into the best brokers in Australia, you can explore this guide on top Australian forex brokers.
From my perspective, ThinkMarkets stands out for UK forex traders. Both brokers are FCA regulated, ensuring a high standard of conduct and protection for traders. However, ThinkMarkets offers a more tailored experience for the UK market, with localised support and services. While Pepperstone is a strong contender, ThinkMarkets’ deep understanding of the UK trading environment gives it a slight advantage. For more insights on the best platforms in the UK, here’s a detailed overview of the top forex trading platforms in the UK.
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