Saxo Capital Markets (Saxo Markets) and Pepperstone are both globally recognised top forex brokers. In this comparison, we review the two brokers’ different pricing structures, trading platforms and market access to determine which is the best broker for retail forex traders.
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Our comprehensive comparison dives deep into the 10 most pivotal trading factors to discern the distinctions between Saxo Markets and Pepperstone.
When comparing Saxo Markets and Pepperstone’s spreads, it is important to note the different commission and pricing structures each broker offers.
Pepperstone is a leading No Dealing Desk (NDD) broker that allows clients to trade with fixed spreads (Standard Account) or variable spreads (Razor Account) in an STP/ECN-like trading environment. You can view the Pepperstone Razor vs Standard accounts table if you want to understand the difference between the two account types.
On the other hand, Saxo Markets is a Market Maker and, therefore, only offers fixed spreads, and these spreads can vary from current market prices. Saxo Markets and Pepperstone’s fixed spreads are wider yet inclusive of commission, while Pepperstone’s variable spreads are tighter and incur a flat rate commission fee. Both brokers provide market access to a comprehensive selection of currency pairs, with Pepperstone offering over 92 and Saxo Markets 182 fx pairs.
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The table below shows the fixed no commission spreads offered by Saxo Markets, Pepperstone and other major online brokers. Saxo Markets offers narrower spreads for EUR/USD and AUD/USD currency pairs, while Pepperstone is more competitive with USD/CAD, GBP/USD and EUR/JPY. The data has been taken from the broker’s website and is updated each month.
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No Commission Account Comparison
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1.20 | 2.20 | 1.80 | 1.70 | 0.90 |
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1.10 | 2.00 | 1.40 | 1.50 | 1.20 |
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1.10 | 1.40 | 1.30 | 1.40 | 1.20 |
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0.60 | 0.90 | 0.90 | 0.70 | 0.70 |
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1.32 | 1.87 | 1.70 | 1.73 | 1.95 |
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1.70 | 2.50 | 2.00 | 2.70 | 1.60 |
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1.20 | 2.30 | 1.90 | 2.30 | 1.80 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 12/01/2024
In the following table, Pepperstone’s ECN-type Razor account is compared to top forex brokers with No Dealing Desk execution and flat-rate commission. As Saxo Markets only offers no-commission fixed spreads, the online broker is not included in this comparison. Like with the spread-only table, data is taken from the broker’s website and checked and updated each month.
Pepperstone offers the narrowest spread in four out of the five major currency pairs listed below. While brokers such as IC Markets and FP Markets provide access to spreads as low as 0.10 pips on the EUR/USD forex pair, Pepperstone is a fraction behind offering spreads of 0.13 pips. Although customers are paying round-turn commission fees, the institutional-grade spreads mean even with a flat-rate fee, trading is cheaper than when paying all-inclusive fixed spreads.
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Pepperstone ECN Pricing Commission Spread Comparison
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0.20 | 0.71 | 0.30 | 0.40 | 0.10 |
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0.20 | 0.50 | 0.20 | 0.30 | 0.10 |
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0.20 | N/A | 0.20 | 0.30 | 0.20 |
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0.42 | 0.30 | 0.20 | 0.83 | 0.44 |
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0.30 | 0.68 | 0.24 | N/A | 0.17 |
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0.40 | 0.70 | 0.30 | 0.70 | 0.20 |
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0.50 | 0.80 | 0.30 | 1.10 | 0.10 |
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0.50 | 0.40 | n/a | 0.30 | n/a |
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1.23 | 1.23 | 0.77 | 1.41 | 0.44 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 12/01/2024
Trading Fees
When trading no commission spreads with Saxo Markets or Pepperstone, commission charges are included in the spread, meaning there are no additional commission fees.
For those wanting to trade Pepperstone’s ultra-tight ECN-style spreads, orders carry a round-turn commission charge starting from AUD $7 round-turn per 100k traded when using MT4 or MT5. If you are using cTrader, commission costs equate to 0.0035% of the base currency being traded (i.e. €3.50 if you are trading 100,000 units of the EUR/USD).
Swap Rates, or overnight financing fees, apply to all spreads and commission fee structures for positions held longer than one day. For traders of the Islamic faith, swap-free accounts are offered by both Pepperstone and Saxo Markets. In accordance with Sharia Law, Islamic account holders pay a flat-rate financing fee rather than paying and receiving interest.
Pepperstone and Saxo Markets clients gain access to very different trading platforms. When trading with Saxo Markets, clients can choose either desktop, web or mobile versions of the broker’s proprietary platform, while Pepperstone customers can trade using one of the 3 largest platforms worldwide – MetaTrader 4, MetaTrader 5 or cTrader.
| Trading Platform | Saxo Markets | Pepperstone |
|---|---|---|
| MetaTrader 4 | Yes | Yes |
| MetaTrader 5 | No | Yes |
| cTrader | No | Yes |
| TradingView | Yes | Yes |
| Copy Trading | No | Yes |
| Proprietary Platform | Yes | Yes |
Saxo Markets Trading Platforms
Saxo Markets’ proprietary platforms offer a range of advanced trading tools and order types. The SaxoTraderGO platform is suitable for all levels of experience and is user-friendly for those new to trading while also offering advanced trading tools required by active traders. The SaxoTraderGO platform is available as a Webtrader platform or as a mobile trading app, compatible with iOS and Android devices.
SaxoTraderPRO is designed for experienced traders wanting a multi-screen desktop interface. With multiple order types and in-depth analysis tools, complex trading strategies can be developed and executed in a professional environment. Beginner traders are better suited to use Plus500’s web-based trading platform, which has a user-friendly interface.
Pepperstone: MetaTrader 4, MetaTrader 5 And cTrader
Pepperstone clients can choose from the 3 best trading platforms available to retail investor accounts. When choosing between cTrader, MT4 and MT5, Pepperstone customers need to consider what account type and asset classes they want to trade.
cTrader is only available to Razor account holders and offers an institutional-grade trading environment.
Both Standard and Razor account holders can use either MetaQuotes platform. MT4 is the gold standard of retail trading platforms and is highly regarded for its advanced technical analysis tools, Expert Advisor (EA) features, Smart Trader Tools and Autochartist.
While MT4 is the most popular platform amongst forex traders, MT5 allows Pepperstone customers to trade Share CFDs, which are not offered on MT4.
cTrader, along with both MetaQuotes platforms, are available as Webtrader interfaces or trading apps compatible with Android and iOS devices.
Verdict
Pepperstone’s trading platform options are hard to beat as the broker offers the 3 most popular platforms available across all devices(MAC, Windows, mobile Apps). Although Saxo Markets proprietary platform is comprehensive, MT4, MT5 and cTrader provide the most advanced automated trading and technical analysis tools for forex traders. Therefore, Pepperstone is the winner.
When trading with Saxo Markets, clients can choose between a Classic, Platinum and VIP account type. All tiers offer fixed forex spreads, with high-volume active traders being rewarded through lower trading costs. Platinum traders will pay lower fees and tighter spreads than Classic account holders and receive priority customer support. VIP clients receive Platinum benefits plus direct access to Saxo Markets’ customer service team and trading experts, as well as the brokers’ VIP network and exclusive events.
Saxo Markets Account Types
Unlike Saxo Markets, Pepperstone customers can only choose between a commission-free Standard account or an ECN-type Razor account.
A Standard account is suited to new traders as commission charges are included in spreads, simplifying fee calculations. When trading through a Pepperstone Razor account, customers gain access to ultra-tight spreads and pay a $7 round turn commission fee per 100k traded. While the pricing structure varies, both account types offer the same customer support and trading platform options.
Pepperstone Account Types
For active traders’, Pepperstone’s premium account service provides rewards to those trading high volumes (over USD $15 million per month). Benefits include a dedicated account manager, investment advice, premium rebates, invites to VIP events and advanced trading tools.
| Saxo Capital Markets | Pepperstone | |
|---|---|---|
| Standard Account | Yes | Yes |
| Raw Account | No | Yes |
| Swap Free Account | No | Yes |
| Active Traders | Yes | Yes |
| Spread Betting (UK) | No | Yes |
Verdict
When comparing the different account types, Pepperstone’s comes out on top. The forex broker’s Razor account offers institutional grade spreads and low commission fees, while Saxo Markets clients pay much higher spreads with limited Platinum and VIP benefits.
Navigating through the trading world requires a platform that not only offers robust features but also ensures a seamless user experience. In our meticulous testing, we’ve explored the depths of both Saxo Markets and Pepperstone, evaluating their platforms against various parameters that matter the most to traders. From the ease of use, interface design, to the availability of tools, every aspect was put under the microscope to bring you an unbiased view.
Diving deeper, Pepperstone’s platform stands out with its intuitive design, ensuring even beginners find their way around efficiently. The platform not only simplifies trading but also ensures that the users have all the necessary tools at their fingertips. On the other hand, Saxo Markets, with its extensive offerings, caters to a wide spectrum of traders, ensuring that diverse trading needs are met, albeit with a steeper learning curve for new users.
Verdict: Pepperstone edges out with its user-friendly interface and efficient trading experience, making it a preferable choice for traders who prioritize ease of use and swift execution.
Saxo Markets Trust Score
Pepperstone Trust Score
Pepperstone: Pepperstone is a globally recognized forex broker known for its commitment to transparency and regulatory compliance. The broker operates under the regulatory oversight of several top-tier financial authorities.
This ensures that they maintain a high level of transparency and trustworthiness in their operations. Their dedication to providing a secure trading environment is evident in their practices and the trust they’ve garnered from traders worldwide.
Saxo Markets: Saxo Markets, a subsidiary of Saxo Bank A/S, is a renowned international Fintech company with a significant presence in major financial hubs worldwide.
Saxo operates under the regulatory guidance of multiple top-tier financial authorities, including the Danish Financial Supervisory Authority (FSA) and other global bodies such as the Financial Conduct Authority (FCA), Swiss Financial Market Supervisory Authority (FINMA), and the Australian Securities and Investments Commission (ASIC). Their adherence to these stringent regulations ensures that they offer a secure and transparent trading environment for their clients.
| Saxo Markets | Pepperstone | |
|---|---|---|
| Tier 1 Regulation | ASIC (Australia) FCA (UK) MAS (Singapore) FINMA (Switzerland) | ASIC (Australia) FCA (UK) BaFin (Germany) CYSEC (Cyprus) |
| Tier 2 Regulation | SFC | DFSA (Dubai) |
| Tier 3 Regulation | SCB (Bahamas) CMA (Kenya) |
Verdict: Both Pepperstone and Saxo Markets are highly trusted and regulated entities in the forex industry. However, considering the global presence and the broader regulatory oversight of Saxo Markets, they might have a slight edge in terms of trust and regulation. Still, the choice between them would largely depend on individual preferences and trading needs.
While Pepperstone’s product range focuses on forex pairs, clients can also trade Index CFDs, Share CFDs, Commodities, Currency Index CFDs, as well as Cryptocurrencies. On the other hand, Saxo Markets offers some of the most diverse market access available to retail investor accounts.
Contracts For Difference (CFDs)
Both online brokers operate multiple subsidiaries throughout the world, and the leverage you can trade with depends on the local authorities’ regulations. If you sign up for Pepperstone’s global branch, regulated by the Securities Commission of the Bahamas (SCB), you’ll gain access to the highest leverage offered by the broker. For forex, this is 200:1 for Pepperstone’s SCB firm and 30:1 or less for Saxo subsidiaries in Europe and the UK, as well as Singapore, Hong Kong and Australia.
Pepperstone’s (SCB) leverage caps are lower for indices. But with no commission fees and leverage up to 200:1, Pepperstone clients can easily diversify their investment portfolios with access to 23 different Stock Index CFDs. For traders who prefer a Currency Index, clients can trade the USDX with a maximum leverage of 100:1.
While Pepperstone clients pay lower commission fees, Saxo Markets customers gain access to an extensive product catalogue. Traders can choose from thousands of CFDs derived from assets such as Commodities, ETFs (Exchange Traded Funds), Futures, Bonds, Listed Options and Mutual Funds.
Share CFDs
Unlike the rest of Pepperstone’s product range, to trade Share CFDs, Pepperstone clients are restricted to the MetaTrader 5 trading platform. When using MT5, traders gain access to hundreds of different stocks from four major global exchanges. For US shares, commission fees are as low as USD $0.02 per share.
When trading with Saxo Markets, customers gain access to over 8,800 Stocks. Commission fees vary according to the location of the exchange, for instance, ASX (Australia Securities Exchange) Shares carry a 0.10% commission fee, while SGX (Singapore Exchange) commission fees are 0.20% per trade.
Cryptocurrencies
Pepperstone offers access to 12 cryptocurrency CFDs with tight spreads and no commissions. Clients can trade major cryptos like Dash, Litecoin, Ethereum, Bitcoin and Bitcoin Cash, as well as crypto baskets. Yet due to the high-risk nature of Cryptocurrency markets, financial authorities cap leverage at different levels.
Pepperstone’s SCB-regulated entity offers crypto leverage of 5:1. But Saxo and Pepperstone’s ASIC-regulated subsidiaries can only offer a maximum leverage of 2:1 for cryptocurrency, while the UK’s FCA does not allow crypto trading at all for retail investor accounts.
Saxo Markets offers two cryptocurrencies as Exchange Traded Notes (ETNs) – Bitcoin and Ethereum. The high risk of Crypto CFD trading is reduced as ETNs are not traded on leverage.
Disclaimer: In accordance with the Financial Conduct Authority’s (FCA) ban on crypto CFD trading, both forex brokers have stopped offering cryptocurrency trading to UK retail clients. However, clients from the rest of the world, where there are no such restrictions, are still welcome to speculate on the price movement of various crypto assets.
Verdict
While Pepperstone clients gain access to more than enough asset classes and products to develop diversified trading strategies, Saxo Markets wins this round due to the CFD broker’s catalogue of thousands of financial instruments.
Embarking on a trading journey necessitates a robust foundation of knowledge and insights, which is where educational resources become paramount. Both Saxo Markets and Pepperstone have invested in crafting educational platforms designed to empower traders with the knowledge they need to navigate the markets effectively. From webinars, articles, to e-courses, the educational resources provided by these brokers aim to cater to traders across various experience levels, ensuring they are well-equipped to make informed trading decisions.
In our evaluation, Saxo Markets stands out with its detailed and diverse educational content, providing traders with a wealth of information and insights to navigate through their trading journey. Pepperstone, on the other hand, shines with its beginner-friendly content, ensuring that novice traders have a smooth onboarding experience into the world of trading with easy-to-understand resources and guides.
Verdict: Saxo Markets offers superior educational resources, providing a comprehensive and detailed educational platform that caters to traders at every level.
Pepperstone is known for its award-winning multilingual customer service, with the forex broker offering 24/5 assistance via live chat, phone and email. As well as customer support, Pepperstone provides a range of educational materials, including online webinars, courses and training guides.
Although Saxo Markets offers also offers 24/5 support in multiple languages, the service is limited to phone and email. The lack of live chat is a major flaw in Saxo Markets’ customer service, with the chatbot FAQ less helpful than direct contact through a Saxo Markets representative. Like Pepperstone, Saxo Markets provides customers with a range of educational resources such as webinars and the Saxo Academy.
Verdict
When comparing Pepperstone and Saxo Markets, Pepperstone provides superior customer service due to offering a wider range of contact methods and educational materials.
Pepperstone and Saxo Markets both charge no deposit and withdrawal fees for the majority of the broker’s funding methods.
Although Saxo Markets does not charge deposit fees, unfortunately, the broker does not offer electronic wallet deposit methods, with traders restricted to funding their accounts via bank transfers and credit or debit cards (Visa or Mastercard). To withdraw funds, Saxo Markets clients are limited to bank transfers, Saxo Markets do not charge fee for this.
On the other hand, Pepperstone has a diverse range of deposit and withdrawal methods consisting of bank transfer, credit card and e-wallet methods. Withdrawals and deposits can be made free of charge, except for International Transfers that carry an AUD $20 fee. Funding methods include Bank Transfer, Visa, Mastercard, Union Pay, POLi, Skrill, Neteller, PayPal and BPay.
Both brokers offer a wider range of base currencies than competitors. While Pepperstone allows customers to set up a trading account with one of 9 currencies, Saxo Markets offers 19 different currency options.
While Saxo Markets provides a wider range of base currencies to choose from, Pepperstone offers a far greater selection of deposit and withdrawal methods, making them the winner of this round.
Initial minimum deposit requirements differ dramatically between Pepperstone and Saxo Markets. When trading with Pepperstone, both a Standard account and Razor account type require an AUD $200 minimum deposit.
When compared to Pepperstone, Saxo Markets’ minimum deposit requirements are much higher. To open a Classic account, an initial deposit of USD $10,000 is required, ruling out the online broker as an option for many new forex traders. To open a Platinum account, an initial deposit of USD $200,000 is needed, while a VIP account requires USD $1 million.
Pepperstone is the winner because it offers a more comprehensive range of services, lower fees, and a user-friendly platform suitable for both beginners and experienced traders. The table below summarises the key information leading to this verdict:
| Criteria | Pepperstone | Saxo Markets |
|---|---|---|
| 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 | ✅ | ❌ |
Pepperstone is the ideal choice for beginner traders due to its user-friendly platform, comprehensive educational resources, and dedicated customer support.
While both brokers cater well to experienced traders, Saxo Markets offers a more diverse product range and advanced trading tools, making it slightly more suitable for seasoned professionals.
Pepperstone generally offers lower costs compared to Saxo Markets. Traders often prefer Pepperstone for its competitive spreads and reduced commission fees. For instance, Pepperstone’s average spread for major currency pairs is notably lower. Those keen on diving deeper into spread comparisons can refer to this comprehensive guide on lowest spread forex brokers in the UK.
Both Pepperstone and Saxo Markets support MetaTrader 4, but Pepperstone is often favored for its enhanced MT4 features and tools. The broker provides a seamless trading experience on MT4, complemented by advanced charting tools and expert advisors. For traders specifically looking for the best MT4 experience, this list of best MT4 brokers can be a valuable resource.
Pepperstone offers social trading features, allowing traders to copy strategies from seasoned professionals. Saxo Markets, on the other hand, doesn’t have a dedicated social trading platform. Social trading can be a game-changer for many, especially beginners, as it allows them to leverage the expertise of experienced traders. For a detailed insight into the best platforms offering this feature, check out this guide on the best social trading platforms.
Pepperstone offers spread betting, while Saxo Markets does not. Spread betting is a popular financial derivative in the UK, allowing traders to speculate on the price movements of various assets without owning the underlying asset. For those interested in exploring spread betting further, especially on the MT4 platform, here’s a guide to the best MT4 spread betting brokers in the UK.
In my opinion, Pepperstone stands out as the superior choice for Australian forex traders. Founded in Australia and regulated by ASIC, Pepperstone has a strong reputation in the Australian market. Their commitment to transparency, competitive spreads, and advanced trading tools make them a top choice for many. Saxo Markets, on the other hand, is an international broker with its roots overseas. For a broader perspective on the best brokers in Australia, you can refer to this list of Best Forex Brokers In Australia.
For UK forex traders, I believe Saxo Markets has a slight edge. Being FCA regulated and with a significant presence in the UK market, they offer a robust trading platform and a wide range of financial products. Pepperstone, although a strong contender, is originally from Australia. Saxo’s comprehensive research tools and educational resources cater well to the UK audience. For those looking to explore more options in the UK, here’s a detailed guide on the best forex brokers in UK.
Ask an Expert
What are the disadvantages of Saxo Markets?
While Saxo is a good broker overall, some disadvantages to be aware of include high minimum deposits with their Platinum and VIP accounts, the broker is more expensive than their competitors and popular platforms like MT4, MT5, cTrader and TradingView are not available.
Does Saxo have an inactivity fee?
No,Saxo does not have an inactivity fee.