Pepperstone

Pepperstone is an online broker from Australia. They let people trade CFDs. The company has offices in Melbourne, London, Düsseldorf, Dubai, Limassol, Nassau, and Nairobi. New traders can start with a deposit of at least 200 units in the main currency. They can use high leverage, up to 500:1. The U.K. regulates the company. It’s also registered with the Financial Conduct Authority and the Australian Securities and Investments Commission. Pepperstone doesn’t accept U.S. traders.

The company keeps customer accounts separate from its own funds. This adds extra security, which is important because the trading industry can be unstable. They offer lots of support, like chat and phone help 24/5, and a FAQ section with clear info about deposits, withdrawals, and trade problems.

Pepperstone provides many ways to trade, including desktop, mobile, and web platforms. They have a standard set of products, good educational resources, narrow spreads, and different types of accounts. These features make trading attractive for both beginners and experts.

Fees

Pepperstone has good prices, especially since it made forex spreads tighter in 2021. But, when it comes to spreads or commissions, it still can’t beat IC Markets. If you’re not trading a lot and want clear prices, the Standard account is commission-free. The spreads, which are around 1 pip on average, might interest you if you’re a casual trader.

On the other hand, the Razor account offers very small spreads, starting from 0 pips. But, there’s a small commission of $3 for each lot you trade on each side. This option is good if you want the smallest spreads for day trading.

Pepperstone becomes even cheaper for serious day traders with the Active Trader program. This program gives you money back on spreads based on how much you trade each month. If you trade a lot, like $10 million a month, you can get back 5% of the spread cost per lot. If you trade over 500 lots each month, you can get even more money back.

During our evaluation process, we found that commissions on MetaTrader platforms were a bit higher compared to cTrader and TradingView, at $3.50 per lot per side. Pepperstone also charges a small commission on share CFDs for all account types. For UK stocks, it’s a 0.10% fee, and for Australian shares, it’s 0.07%.

One thing to note is that holding positions overnight costs more than with other brokers. But, this only matters if you’re not closing out your positions by the end of the day. Unlike some other brokers, Pepperstone doesn’t pay interest on the money you have in your account, which could be a downside if you want to earn extra from your idle funds.

If you hold leveraged overnight trades, Pepperstone offers competitive swap rates, sometimes even paying traders. But if the currency of the asset you’re trading is different from your account’s base currency, you might have to pay a currency conversion fee.

Overall, Pepperstone’s fees are competitive, especially for high-volume Forex, index, and commodity traders. If you trade low volumes of equity, the commissions might be a bit higher, but they still compete well with high-volume traders. Pepperstone’s system supports various trading strategies, including short-term ones like scalping and high-frequency or algorithmic trading.

Pepperstone Regulation and Security

It’s safer to trade with a regulated broker because it reduces the chances of scams and bad practices. I suggest traders make sure the broker is regulated and confirm it by checking their license with the regulator’s database. Pepperstone has seven subsidiaries that are well-regulated.

Client deposits are kept separate from the company’s money in top banks. As a trader who trades a lot and quickly, I like the Kenyan subsidiary more than the Bahamas one because it gives protection against losing more money than you have and lets you borrow money up to 400 times what you have. In the Bahamas, traders can borrow up to 500 times what they have, but they don’t have protection against losing more money than they have. Pepperstone is known worldwide for being trustworthy and having a good reputation. That’s why I feel comfortable trading with the subsidiary licensed by the CMA. Each trader should think about what matters most for their way of trading.

Is Pepperstone safe and Legit?

Yes, Pepperstone is considered very safe and legit. Pepperstone isn’t publicly traded, doesn’t run a bank, and has approval from three Tier-1 regulators (which are highly trusted), two Tier-2 regulators (considered trusted), no Tier-3 regulators (average risk), and two Tier-4 regulators (higher risk). Pepperstone is authorized by these Tier-1 regulators: Australian Securities & Investment Commission (ASIC), Financial Conduct Authority (FCA), and is regulated in the European Union through the MiFID passporting system. You can find more about Trust Score or check where different Pepperstone entities are regulated.

Deposits and Withdrawals

According to Pepperstone, the minimum deposit amount required is $200 to start trading, but you can start with less if you want.

Pepperstone offers different ways to pay, except for cryptocurrencies. They don’t charge extra for deposits or withdrawals, except for a $20 fee for bank transfers. You might have to pay fees to other companies that handle your payments. You can manage all your money stuff securely online, and there are options for all kinds of traders.

If you’re into forex trading, it’s good to know there’s no set minimum for deposits or withdrawals with Pepperstone. Getting your money out is easy and quick. It’s nice when brokers make it easy to take out money, just like putting it in. Apart from bank transfers, there aren’t any fees. But watch out for extra costs from payment processors, which can depend on where you are. I suggest using separate payment methods for trading and everyday banking.

Ranking and Awards

The Pepperstone ATP Rankings are a fair way the ATP uses to decide who gets into tournaments and their seedings. It’s based on performance and applies to both singles and doubles, except for the Nitto ATP Finals. Fans call them ‘the world rankings’. For instance, if Novak Djokovic is No. 1 in the Pepperstone ATP Rankings, he’s the top player globally. Similarly, a player ranked No. 7 is called a ‘Top 10 player’.

Pepperstone has won many respected awards from Investment Trends, Deloitte, and Compare Forex Brokers. We’re proud to be recognized for our great customer service, trading conditions, and value for money. For example, in 2023, Pepperstone was named the “Best MT4 broker.”

Pepperstone Leverage

Pepperstone gives its clients a way to borrow money to trade with. This is called leverage. With Pepperstone, the most leverage you can get for forex trading is different depending on where you are trading. For example, if you’re trading under ASIC, DFSA, FCA, or BaFIN, the maximum leverage is 30 times. But if you’re trading under SCB, it’s 200 times, and under CMA, it’s 400 times.

Leverage is like a loan from Pepperstone. It’s a ratio between the money you borrowed and the money you put in yourself. So, if you put in $1 and you can trade with $30, that’s high leverage. It’s the same idea for other jurisdictions and amounts like $200 or $400. You need to be careful when using leverage because a bigger trade can mean bigger losses too.

When you want to trade with Pepperstone, you need to deposit some money into your account. This is called margin. The margin is a percentage of the total amount you want to trade with. For example, if the margin is 0.5%, you need to put in 0.5% of the total amount you want to trade.

The amount of leverage you can get and the margin you need depends on where you’re trading and what you’re trading. Usually, forex trading has higher leverage, while cryptocurrency trading has lower leverage.

Investment Programs and Account types

If you want to actively trade yourself or with expert advisors, Pepperstone is a good choice. However, Pepperstone doesn’t have investment programs like trust management. But they do offer social trading, where traders can get signals from experienced traders and automatically copy their trades.

While Pepperstone doesn’t have traditional investment options like PAMM accounts, they have a variety of trading assets available. This means traders can trade currency pairs and futures.

Here are the different types of accounts Pepperstone offers:

• Pepperstone Standard Account: Great for new traders.
• Pepperstone Razor Account: Ideal for scalpers and algorithmic traders.
• Pepperstone Spread Betting Account: Especially for traders in the UK.
• Pepperstone MAM/PAMM Account: Suitable for trading with fund managers.
• Pepperstone Islamic Account: Designed for Muslim traders.
• Pepperstone Professional Account: Perfect for experienced traders.

These accounts come with different conditions for trading, depending on your needs.

Trading Platforms

Pepperstone gives traders three platforms for trading with algorithms and copying trades easily. You can pick between MT4/MT5 platforms, upgraded with Smart Trader suite plugins, which we think are great. There’s also an Autochartist to help traders even more. Moreover, Pepperstone offers the cTrader platform, connects with TradingView, and provides service for advanced algorithmic trading without needing to code. We think the choice of platforms is excellent overall. Additionally, Pepperstone offers social trading through third-party providers like Myfxbook, MetaTrader Signals, and DupliTrade.

Customer Service

Pepperstone provides support through email, chat, and phone 24 hours a day, 5 days a week. You can also reach out through social media or an online form. They give each client an account manager to help with account-related issues. Since Pepperstone doesn’t have a dealing desk, clients can’t contact one in emergencies. If you’re near Melbourne, Australia, you can visit their office, but getting help online is usually faster. 

Frequently Asked Questions

Does not offer a sign-up bonus