Pepperstone UK Review 2021

Pepperstone Has Market Leading Spreads And Fees

Pepperstone is well-known as one of the best UK brokers for ultra tight forex spreads. Pepperstone offers two account types, both of which offer competitive spreads when compared to other top UK forex brokers.

Standard Account

The standard account type is ideal for beginner traders as you are paying no commission fees on top of the spread. Rather, you can trade no commission forex spreads that equals the raw spread + at least 0.6 pips increase (e.g. 0 pip spread plus 0.6 pip = 0.6 pip)

	EUR/USDAUD/USDEUR/GBPEUR/JPYUSD/CADAUD/JPYGBP/USDUSD/JPYUSD/SGD	EUR/USDAUD/USDEUR/GBPEUR/JPYUSD/CADAUD/JPYGBP/USDUSD/JPYUSD/SGD	EUR/USDAUD/USDEUR/GBPEUR/JPYUSD/CADAUD/JPYGBP/USDUSD/JPYUSD/SGD	EUR/USDAUD/USDEUR/GBPEUR/JPYUSD/CADAUD/JPYGBP/USDUSD/JPYUSD/SGD	EUR/USDAUD/USDEUR/GBPEUR/JPYUSD/CADAUD/JPYGBP/USDUSD/JPYUSD/SGD
	0.69	0.77	1.27	1.30	0.95
	0.80	0.90	1.70	2.30	2.60
	1.90	2.00	2.40	2.30	2.50
	1.40	2.50	2.50	2.60	2.60
	1.30	1.50	1.50	1.60	1.80
	1.58	1.96	1.74	2.09	2.22
	1.30	1.70	2.10	1.70	2.10
	1.70	1.80	2.00	2.30	2.20

Data taken from broker website. Accurate as at 01/09/2021

The table above compares Pepperstone’s commission-free standard spreads to other top brokers. As you can see, Pepperstone is a great option for UK traders with ultra-competitive average spreads for all major currency pairs.

Please note, average spreads are sourced directly from broker’s websites and updated monthly. 

Compare Standard Account Spreads

Razor Account

Pepperstone’s Razor pricing is similar to an ECN account with spreads starting from 0.0 pips plus commission fees. The commission fee you pay per trade depends on the trading platform you are using plus the volume you are trading.

• MT4 & MT5: Starts from $3.50 per side per 100,000 units traded.
• cTrader: 0.0035% of the base currency of the fx pair being traded. E.g. If you are trading 100,000 units of EUR/USD, you will pay €3.50 per side.

Likewise to their no commission spreads, Pepperstone’s Razor account pricing is among the best worldwide for retail traders. Regardless of the currency pair you want to focus your trading strategies around, Pepperstone offers tight spreads coupled with low commission fees.

ECN Spread comparison	EUR/USDAUD/USDEUR/GBPEUR/JPYUSD/CADAUD/JPYGBP/USDUSD/JPY	EUR/USDAUD/USDEUR/GBPEUR/JPYUSD/CADAUD/JPYGBP/USDUSD/JPY	EUR/USDAUD/USDEUR/GBPEUR/JPYUSD/CADAUD/JPYGBP/USDUSD/JPY	EUR/USDAUD/USDEUR/GBPEUR/JPYUSD/CADAUD/JPYGBP/USDUSD/JPY	EUR/USDAUD/USDEUR/GBPEUR/JPYUSD/CADAUD/JPYGBP/USDUSD/JPY
	0.09	0.17	0.27	0.30	0.35
	0.10	0.20	0.50	0.40	0.40
	0.20	0.20	0.40	n/a	0.30
	0.17	0.30	0.54	0.68	N/A
	0.20	0.40	0.50	0.70	0.70
	0.10	0.50	0.60	0.80	1.10
	n/a	0.50	0.60	0.40	0.60

Data taken from broker website. Accurate as at 01/09/2021

Razor account spreads to varying ECN trading account types can be reviewed below. These spreads were derived from various spread reports. The EUR USD spread is considered the trendsetter, starting from 0 pips, with an average spread of 0.13* based on information from Sept – Sept 2019. In comparison to the AUD/USD, spreads also start from 0 pips and maintain an average spread at 0.14.

In 2019 the branded active trader program was initiated to reward traders who attained “frequent flyer” status when it came to trading. The program allows for members to benefit from receiving a portion of the commission from their FX trades back into their trading account as rebates. Traders will earn GBP 1 rebate per FX lot traded up to 500 lots. That’s a typical rebate of between GBP 200 – 500 per month, paid into your account daily.

Pepperstone is highly recommended for high-volume traders as they offer the most competitive commission (i.e. lowest) of any retail Forex broker on a global scale. The maximum level will mean that a commission rate is up to 43% on a regular trading commission. Additionally, a swap-free account, aka Islamic Account, is available for those unable to make or receive payments derived from interest rates.

Spreads Are Even Lower Due To Price Improvement Technology

Price Improvement Technology (PIT), is another method in which Pepperstone can create a reduction in brokerage fees. When a volatile market exists, PIT works in three major steps to enhance the benefit of large price movements.

1. A trader makes a Forex or CFD Trade through one of the designated platforms; MT4 or cTrader.
2. Trade is then executed, whilst a more favourable price movement is detected.
3. PIT aims to fill the price at a level of greater benefit to the trader.

Zero Fees On Deposits And Withdrawals

Often, international institutions charge their own fees, which need to be subsequently paid by a client. Pepperstone prides itself on the notion that it doesn’t charge fees for deposits. Payments must be made by first-party bank accounts. However, if bank accounts and names don’t match – payments will not be accepted.

1. Visa – Instant funding through Verified By Visa is available with no charge.
2. MasterCard – MasterCard SecureCode allows a deposit of fast funds which similar to Visa fees are not included.
3. PayPal – Funding an account with PayPal means zero fees
4. POLi & BPay – Traders who have eligible bank accounts can make transfers at any time
5. China Union Pay – Offering funding at any time, plus no fees or charges
6. Wire Transfer (Domestic & International) – These are available, however, can be time-consuming
7. Skrill (Moneybookers), Qiwi & Neteller – Instant deposit method, available 24/7 with no additional charge
8. Fastapay – Deposit money instantly, with no fees

Any withdrawal requests that are received before 8:00 am GMT, are processed on the day they are received. Post the 8:00 am deadline, the deposit will be put through the next day. The Pepperstone account will receive funds via the bank account which has been linked to the relevant account, this is not allowed to be a third party, as is the case for deposits.  A credit card can be employed for withdrawals if the amount being withdrawn is equal or is less than the deposited amount. If this isn’t the case – an alternative method will be required for the account.

It’s important to note that when employing a bank wire transfer the waiting period is often between three to five working days whilst an International Telegraphic Transfer, incurs a fee of approximately 10.5 pounds.

Trading with a Pepperstone Razor account provides a broker with low trading costs and without a dealing desk. Leading spreads in a multitude of markets as well as access to price improvement technology and low commissions.

Determined to understand and become better educated on all things Pepperstone? Learn more and view the full fee article.

Pepperstone Review: Trading Platforms

The two most popular Forex trading platforms globally are offered by the Pepperstone Group:

1) MetaTrader Platforms

• Global platform powerhouse, MetaTrader4
• A more powerful and precise version, MetaTrader5
• MetaTrader prides itself on its simplicity and ease
• Ideal for automated trading, day trading, scalping and hedging
• Keeps traders ahead of the market with up to date quotes, news and market analysis features

2) cTrader

• A trading platform made for traders by traders designed to replicate an institutional trading environment
• Personalised for each trader through pre-set & detachable charts
• Enables traders to code their own strategies in C# (seen in our cTrader review)

Generally, it’s difficult to separate the Forex trading platforms that are offered by the CFD broker. The resources provided, accessibility of the platform coupled with the desire to use Forex automation (EAs) point towards the use of MetaTrader 4. However, MetaTrader 5 (MT5) provides automation in different code. View our MT4 vs MT5 guide to determine which MetaTrader Forex platform would best suit your trading habits.

cTrader, on the other hand, provides advanced trading platform customisation with cTrader Automate (formerly cAlgo) combined with advanced risk management and order functionality. With no need to download Webtrader, it can be used as a backup plan for the popular Forex trading platforms for traders who access Pepperstone from a public computer.

Pepperstone Execution Speeds

The Pepperstone Razor account, better suited for scalpers and algorithmic traders, avoids Forex Trading dealer intervention connecting you directly to the interbank market. The main difference between the Razor account and Standard account is the raw spreads and commissions made from the Razor account, allowing for it to be a lower cost setup.

As a true ECN broker, Pepperstone combines fast global trading servers with the leading optic fibre network latency can be low as 0.05 of a second (50ms). Relative to other Forex brokers, Pepperstone ranks fastest in terms of speed.

1) Fast Global Trading Servers

The Equinix servers, one of the leading firms at NASDAQ, recently partnered with Pepperstone. Equinix has servers set up at two strategic locations in terms of liquidity pools with London and Wall Street accessible to 60+ Exchanges, 400+ buy/sell firms and over 150 Financial Service Providers.

2) Optical Fibre From Australia To Wall Street

The utilisation of an optical fibre network from the Pepperstone head office in Sydney to the equinox server in New York ensures that global traders do not need to hesitate when it comes to location. Potential remoteness issues are non-existent. The optic fibre connection reduced the latency by up to 10 times!

3) Smart Trader Tools (MetaTrader Only)

A package of 16 trading tools and 15 custom indicators are on offer to traders that choose MT4 or MT5 trading platform. Some of the more sought after features include:

1. Correlation Matrix, showing relationships between instruments
2. Autochartist highlighting the statistically significant movements in the market
3. Alarm Manager alerts trading of key price changes and market events
4. Sentiment Trader showing the sentiment of past and live trading data
5. Connect Feature delivering news, analysis as well as an economic calendar
6. Excel RTD merging real-time data with excel
7. Trade Simulator allows for the testing of strategies (only for MT4)
8. Stealth Orders keep pending orders hidden from the market
9. Session Map highlighting which currency markets are live and operational
10. Mini Terminal still see markets whilst hiding MetaTrader

Pepperstone Trading Platform Conclusion

Fast execution speeds, and enhanced, top of the range features ensures that Pepperstone offers a pair of the most sought after Forex platforms.  Offering the quickest trading environment of the Forex brokers combined with outstanding options in the platform category, Pepperstone can only be awarded the maximum amount of points in this particular category, ticking every box when it comes to trading platforms.

Pepperstone’s Customer Service is Award-Winning

Gaining a 3% rise in the market share does not come without reasons. For Pepperstone, this great increase within the retail Forex trading market comes off the back of their exceptional customer support. Pepperstone won the Investment Trends overall client satisfaction award, further making a statement that the assistance provided to brokers is simply unparalleled.

What are the core aspects that have allowed Pepperstone to excel in its customer support division?

1) Personalised Customer Service

Having a team that holds years of expertise within the Forex trading sector is the perfect place to start when building an award-winning department. These real traders are able to educate and assist in answering any and every Forex inquiry. Traders feel that whether they are at the outset, in the middle or even experts in the trading arena – they can ask questions and seek guidance pertaining to any matter. In some high-volume trading cases, a dedicated account manager may be assigned to that specific forex broker, allowing Pepperstone to attain a better understanding of their trading needs.

2) 24-Hour Support

Support is constantly available whenever Forex markets are open around the globe. The five offices, located in strategic positions; (1) London, (2) Shanghai, (3) Dallas, (4) Bangkok and (5) Melbourne highlights Pepperstone’s desire to service all their clientele. This 24-hour support also extends Pepperstone’s reach beyond traders in the UK.

3) Customer Support Channels

Pepperstone possesses a strength, with its ability to engage in live chat to provide a high level of support to traders. This feature, accessible around the clock, similar to their phone customer support (with respective national numbers for corresponding office locations) – are brilliant tools in ensuring brokers are always able to reach out for assistance. Although notably less used, it’s important for traders to note that E-mail support is available.

Additionally, the CFD broker offers a range of educational resources to supplement their award-winning customer support, with materials such as webinars and trading platform tutorials available.

Pepperstone Broker Reviews Match Their Awards

Since launching in 2010, many review pages have generated positive feedback regarding Pepperstone and their services. In Sept 2019, Pepperstone’s overall score was 8.9 from over 450 reviews, placing them on the front foot when it comes to trader satisfaction.

When it comes to reviewing content, a couple of issues are to be of note concerning Pepperstone. The first being about ‘exotic pairings’ which are currency pairings outside of the major global currencies). Another issue that was brought up in the reviews pertained to the withdrawal of money from accounts. Overall, the overwhelming amount of reviews leaned towards positive features that Pepperstone possesses, including the speed of the VPS, being <5ms, quick deposits and how accessible creating an account is.

Investment trends, in their annual survey, asserted that Pepperstone was the best broker in terms of customer service, value for investment, relevant platforms and execution speeds.

Pepperstone Customer Service Conclusion

It’s evident that Pepperstone provides outstanding support service to the consumers based on the:

• Well versed and experienced customer service team that have attained multiple awards
• A multitude of touch points open to guidance and assistance for brokers
• Overwhelmingly positive reviews from traders

The only broker that was able to top the excellent reviews Pepperstone received was OANDA – who are well known for their determination to be the best in this category.

No Stockbroking Services

Unfortunately, Pepperstone focuses solely on trading in a specialist range of services. The larger brokers present their services as the “all in one trading solution.” Such brokers include IG and CMC Markets. They offer a variety of markets, including stockbroking. Pepperstone focuses on UK forex broker services (CFDs).

1) FX Trading

Pepperstone offers over 80 currency pairs, including the Great Britain Pound, Japanese Yen, Australian Dollar, Euro and the most popular being the United States Dollar.

2) CFD Trading

Another name for CFD trading (Contract for Difference) is derivative trading, which essentially enables retail brokers to hypothesise on the ups and downs of financial markets. Offering several asset classes, including 23 indices and hundreds of stocks. Trading with CFD’s is considered quite complex and is recommended to be left to the more experienced brokers.

3) Commodity, Energy & Precious Metal Trading

Offering a 30:1 leverage on commodities, Pepperstone allows brokers to trade on precious metals such as Silver, Gold, Palladium, and Platinum. Similar leverage is offered across both oil and gas products in the energy sector. Soft commodities present a strong point of diversification for traders, their pricing surrounding the moving and delivery of physical assets. Soft commodities present themselves as an exciting global range of trading instruments as upon maturity – the financial trade gives rise to a delivery somewhere in the world. Soft commodities include cocoa, coffee, orange juice as well as cotton.

Although UK retail investor accounts have had to crypto CFDs in the past, Pepperstone.com’s UK branch is no longer able to offer cryptocurrencies such as Bitcoin, Dash, Litecoin or Ethereum due to recent changes to FCA regulation. If you want to trade cryptocurrencies, certain traders may be able to sign up to the Pepperstone Group Limited’s Australian branch that holds an AFSL and is overseen by the country’s top-tier regulator, ASIC.

Limitation on features of Risk Management

CFDs are complicated instruments, and therefore brokers must be aware that there are risks involved when trading with such services. Furthermore, the employment of leverage heightens the chances of inexperienced brokers losing their capital in the blink of an eye. It is imperative that brokers understand the risks and are guarded with the tools to mitigate these risks. Pepperstone provides some of these tools, however, does not equip traders with the entire toolbox. Continue reading to ascertain further details of the risk management features on hand.

Currency Trading Orders Types

When faced with currency trading orders, Pepperstone presents brokers with three different order types. These include; a limit order as well as a stop-loss order which essentially withdraws from a trade upon achievement of a certain price. Such boundaries can be set as a price or as the maximum the trader is willing to gain/lose in a certain trade. The final currency trading order moves with the market as it fluctuates – establishing itself as a trailing stop. This will activate only when the predetermined level has been attained.

Having understood the above limitations, it should be noted that Pepperstone does not offer guaranteed stop-loss orders. These are essentially similar to ‘stop-loss’ orders with the slight difference that the maximum loss is locked in at a specific level, as opposed to losses able to surpass the specific level in a market that is of high volatility. Although guaranteed stop-loss orders may have caused a substantial hike in fees, they are effective in risk management for traders who don’t possess the desire to expose themselves to risk or untested currency tested.

Another risk management tool that Pepperstone does not provide is negative balance protection. Although there are measures created to prevent an exit from a CFD trade exceeding a trader’s deposit – this is not 100% full proof. If a trader is averse to risk, it would be wise to consider a broker that does offer negative balance protection (i.e.easyMarkets).

Regulation Of Pepperstone

It’s evident that Pepperstone is a strong candidate in terms of regulation and authorisation. The broker is regulated by the FCA (Financial Conduct Authority) in the UK, as well as being regulated by the Australian Securities and Investments Commission (ASIC). These bodies allow for the broker to trade in Forex and CFDs and have been heralded as sought after regulators on a global scale.

Forex and CFDs are considered complex instruments due to the high risk of losing money when trading online. Therefore, trading with a top-tier regulated broker is vital.

Final Thoughts On Pepperstone

Based on this Pepperstone UK review, it would be recommended that the Pepperstone Razor Account should be used by:

• • Traders on an intermediate level, who are searching for the lowest fees and spreads as well as popular Forex Trading Platforms. Such traders will also be determining the broker of their choosing by reading reviews. For this reason, Pepperstone’s Razor Account is most appropriate.
  • Traders with ample experience, those looking to test their skills and expertise with features that are advanced, including automated trading, higher leverage and speedy execution on trades.

This award-winning combination of top-class customer service, the lowest fees, and a variety of successful features puts Pepperstone’s brand in lights among brokers in the UK.

Not Accepting US Clients

Another drawback of Pepperstone is the fact that they are not open for business in the United States. Due to the strict regulatory frameworks in the US, there are not many retail forex brokers operating on the other side of the Atlantic. Only Oanda, which has its headquarters in New York and IG  Markets are among the few brokers that are licensed by the USA’s Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA).

Use our Best Regulated Forex Brokers USA comparison page to view the complete list of NFA and CFTC regulated forex brokers.

However, despite not having an established solid presence on the US soil, Pepperstone remains a global leading FX broker and one of the world’s largest MetaTrader 4 (MT4) providers. Pepperstone accommodates clients from over 120 countries worldwide and is capable of processing on average USD 12.55 billion in daily trading volume coming from 110,000 traders.

Pepperstone is compliant with regulatory frameworks from 5 distinctive tier-one jurisdictions, including UK’s FCA, Australia’s ASIC, Europe’s CySEC, Germany’s BaFin and UAE’s DFSA. Additional regulators include SCB and CMA. All clients’ money is segregated with tier one banks.

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