Pepperstone is one of the quickest growing global Forex Brokers, they offer spreads on the EUR/USD from 0.0 pips and commissions of £2.29 per lot along with popular trading CFD platforms such as MT4, MT5 and cTrader.
Updated: 08/06/2021
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In 2021 a comparison of UK forex brokers found Pepperstone was the best based on their average spreads, commissions, forex trading platform features and customer service. The Financial Conduct Authority (FCA) number is 684312 for Pepperstone Limited. As an FCA registered broker, there are limitations on leverage up to 30:1 for retail traders unless they qualify as professional trader.
The overall rating is based on review by our experts
The two most popular Forex trading platforms globally are offered by the Pepperstone Group:
1) MetaTrader Platforms
2) cTrader
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.
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.
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.
The utilization 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!
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:
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 offers two account types :
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 July – June 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.
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.
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.
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.
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?
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.
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.
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.
Since launching in 2010, many review pages have generated positive feedback regarding Pepperstone and their services. In August 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.
It’s evident that Pepperstone provides outstanding support service to the consumers based on the:
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.
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) and best spread betting platforms UK including the instruments below:
Pepperstone offers over 55 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 hypothesize on the ups and downs of financial markets. Offering several asset classes, including 14 indices from the Australian 200 Index, EU Stocks 50 Index and US Tech 100 Index. Trading with CFD’s is considered quite complex and is recommended to be left to the more experienced brokers.
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.
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.
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).
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.
Based on this Pepperstone UK review, it would be recommended that the Pepperstone Razor Account should be used by:
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.
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.
Open a demo account >>Visit Pepperstone >>
Pepperstone is unlike many other foreign exchange brokers. They are based in Australia with management operations that have ample currency trading experience. The firm was established in 2010, having Australian regulation, holding the Australian Financial Services Licence 414530. Most recently, the Pepperstone Melbourne office Champ was given the title of a strategic investor in the company.
Being a regulated Forex Broker through ASIC implies several regulations and satisfaction to meet capital requirements. The staff at Pepperstone need to undergo training and become compliant with industry risk management procedures, audits, and accounting standards. The majority of FX Broker scams arise when brokers put on a front, pretending to be a regulated trader. The National Australia Bank holds Pepperstone’s financial accounts as regulated brokers must keep client accounts with Australian financial institutions.
Traders on the Pepperstone YouTube channel, are able to sift through information, training and reviews on currency and Forex related topics plus the Pepperstone resource centre providing accessible information to traders. Although not relevant to UK traders, the Pepperstone offices in Melbourne do offer on-site trading for specific traders.
Under FCA regulations, there is a requirement for Pepperstone to obtain clients’ funds in a segregated bank account. One of the ‘big 4’ banks – National Australia Bank (NAB) has the responsibility to ensure this is all exercised in an appropriate manner. Underneath the umbrella of the Australian government bank guarantee allows NAB to be best placed as the segregated bank account for retail brokers.
The minimum deposit for both account types is £200 (the Razor ECN broker account or the STP standard Pepperstone account). Active Trader Program users will have a higher minimum deposit. Deposits can be made on a variety of platforms including; credit card, debit card, wire transfer, PayPal, Skrill and more as explained earlier. Withdrawals can be made through similar channels on the same business day.
When Forex Brokers offer a level of leverage, it pertains to the potential trade value of a trader’s deposit. Pepperstone provides its traders with a leverage level of up to 30:1. It means that traders can trade up to 30 times the amount of their initial deposit, ensuring they can maximise their exposure to the services provided by Pepperstone.
It is integral for brokers like FXCM to note that 79% of those who invest funds with Pepperstone, will lose their capital. Traders must have substantial knowledge and understanding of CFDs before stepping out into the trading arena. CFD trading has its own set of risks, and therefore all brokers, whether beginners or experienced should only trade with amounts they can afford to lose to mitigate this risk.
Demo Accounts do exist both on the cTrader and MetaTrader platforms. Please see our demo article which elaborates on the positives of a demo account – more specifically for traders new to the industry and the exchange of foreign currencies. Traders can still access demo accounts once they’ve embarked on a life journey – ensuring an opportunity to test trades and plan strategies, which suits traders with expertise.
Pepperstone offers technical analysis, which assesses the trends of pricing over a period of time, with a focus on charting. For Pepperstone brokers, there exist 3 types of charts:
(1) A line chart, which essentially connects one closing price to another. This assists in identifying the trend of a market over a given time. (2) Bar charts provide forex traders with further guidance on the price action. The bars are plotted vertically and can be incorporated to predict future price movements.
(3) Candlestick charts, also informing on highs and lows over an amount of time, however, this generates data on reversals and pivot points in live markets.
Fundamental analysis will seek information on events, occurrences and forces that sway foreign exchange markets. These include political, financial, and economic factors. The news and daily updates (provided by Reuters) are critical to the impact on currency markets. These alerts range from surplus and deficit information, political policies as well as trade trends and inflation.
For a modern trader, it’s important to have access to a trading application that offers the core functions of a Forex Trading Platform and combines them with the functionality of a mobile app. This is done through the MT4 or MT5 App for iPhone® and Android®. This enables buying and selling of currency pairs on the go. On the other hand, cTrader rather has a mobile trading platform allowing access to those who desire to trade as they run along with their busy life schedule.
Although having the title of a worldwide Forex Broker, as well as holding regulation in multiple continents – due to local laws and regulations, some countries cannot access Pepperstone and their residents are unable to facilitate accounts. These countries include:
Both accounts that Pepperstone offer can be accessed through 10 foundation currencies including the Pound, US dollar, The Euro, Japanese Yen, Hong Kong dollar and Australian dollar
Once a trader has decided that Pepperstone is for them. An account can be established quite simply. You can access the Pepperstone site by clicking on the ‘visit website’ button at the bottom of the article. Traders should find themselves between 5-10 spare minutes to complete the entire application, on the assumption that all the correct information and details are conveniently located.
Step 1
Completion of a form, which includes the type of application that is being sought after. Meaning is the trader an individual, trust or company. Following this, the regular fields should be filled out (i.e name, phone number, e-mail).
Step 2
Upon completing the form further information will be required, including several other personal matters. Here, the trader will be able to decide on what level of leverage they require, as well as being asked their level of expertise by the broker.
Step 3
The trader will then require ID verification, as well as proof of address (i.e presentation of a utility bill). Providing a passport will assist in avoiding the need to prove an address.
Step 4
The trader will then have the accessibility to download the Forex Trading Platform and begin their trading experience. This is of course on the assumption that the paperwork and relevant information has been through the appropriate process. This procedure may sometimes take up to a week. If any issues do arise, customer service channels will be open to support and provide assistance.
Once you’ve signed up for an account, you will also need to select a base currency. Pepperstone UK offers four base currency options, being the GBP, USD, CHF or EUR. The account base currency is the currency you can deposit and withdraw funds with. The fx broker offers a good range of fee-free funding methods, including bank transfer and e-wallet payment options.
Compare Forex Brokers have also applied their knowledge and understanding to created broker comparison tables assisting traders in choosing the right broker for their investments. These comparisons range on a whole variety of aspects, including leverage, customer service, spreads and popularity of Forex platforms offered. Please continue to read the reviews and comparison on our websites, written by those with knowledge and expertise in the industry. There are also country related reviews that ascertain the leading brokers in several categories in a relevant country.
This Pepperstone UK review was based on information and data obtained from the Razor FX trading accounts, as well as the UK and Australian Pepperstone Forex brokers website. This review is quite standard and factored in spreads of other CFD providers at the time of the Pepperstone UK review. If you see any issues with the content provided in this article, please let us know via ‘contact us’.
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.
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