Pepperstone is an Australian-based ECN forex broker founded in 2010. The Melbourne-based company Pepperstone Group Ltd. is ASIC-regulated and also has offices in London, Dallas, Shanghai, and Bangkok. The broker offers its clients options to trade forex (more than 70 currency pairs), Index CFDs, precious metals, energy, and cryptocurrencies through its MetaTrader and cTrader trading platforms. It also has a UK subsidiary, which is duly authorized and regulated by the Financial Conduct Authority (FCA).
Pepperstone is a relatively new broker, however, it gained popularity for providing sophisticated trading solutions and good trading conditions. In 2014 it was awarded as the fastest-growing company in Australia by BRW Magazine.
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Many traders shop for a broker to work with and find endless reviews on the web, and not all are genuine. There are lots of websites that specialize in broker reviews and lots of talk about brokers in various forums, social media channels, and groups. While some information comes from a real trading experience of people that have used brokers’ services, some have a hidden agenda of promoting the broker(s). Promoting a forex broker is a legitimate and normal practice, as long as it’s done in a transparent way.
As of today, there are very few websites with trusted brokers’ reviews. One of the most trusted is forexpiecearmy.com, due to its security level which filters fake reviews. Anyway, use your intuition when you read Pepperstone reviews.
Their overall rating on the largest portal for broker reviews is average to good. What do Pepperstone’s disgruntled traders complain about?
Alleged spread manipulation is always an issue with online trading operations, as is the apparently unfounded denial of profits from traders. Some of the clients are not happy with the bureaucracy related to deposits and withdrawals, which can be denied for longer periods of time due to strict money-laundering policies imposed by their regulators (ASIC and FCA UK). Others are complaining about execution during volatile markets.
Here are just 2 examples:
The majority of their European and Australian clients are satisfied with the broker, while Asian clients have complained about the onboarding process, and especially deposits and withdrawals. Some others are not happy with the execution, but this is subjective and market conditions should be analyzed further.
Is Pepperstone Trusted?
- Investopedia: 3.6/5
- Forex Brokers: 92/99
Pepperstone Group has emerged as a top-tier player in the Australian brokerage industry since opening its doors in 2010, building a highly competitive and full-featured trading portal that focuses on forex, commodity, and index instruments. Numerous desktop, mobile, and web-based platforms, excellent educational resources, tight spreads, and multiple account types will appeal to novices and professionals alike.
Pepperstone holds professional indemnity insurance through Lloyd’s of London. They are an Australian-based broker, regulated by the Australian Securities and Investment Commission (ASIC) under ACN 147 055 703 and AFSL 414530 and the United Kingdom’s Financial Conduct Authority (FCA) under Company Number 08965105 and FRN 684312. ASIC requires financial services firms to “meet strict capital requirements and to implement and comply with internal procedures including risk management, staff training, accounting, and audits.” U.K. traders receive protection up to £50,000 under the Financial Services Compensation Scheme Protection (FSCS).
Client funds are held at National Australia Bank in a segregated account to avoid misuse. Pepperstone Group is independently audited by Ernst and Young. Trading platforms utilize automatic stop-out systems to eliminate negative balances but the website admits that “losses may exceed your deposit amount” in volatile market conditions.
Pepperstone Trust Score is 3.6/5 according to Investopedia’s Review.
Pepperstone is not publicly traded and does not operate a bank. Pepperstone is authorized by two tier-1 regulators (high trust), two tier-2 regulators (average trust), and one tier-3 regulators (low trust). Pepperstone is authorized by the following tier-1 regulators: Australian Securities & Investment Commission (ASIC) and the Financial Conduct Authority (FCA). Pepperstone is authorized by the following tier-2 regulators: Dubai Financial Services Authority (DFSA) and the Cyprus Securities and Exchange Commission (CySEC).
Pepperstone is considered low-risk, with an overall Trust Score of 92 out of 99 according to the forexbrokers.com expert opinion on Pepperstone.
How popular Pepperstone is?
Pepperstone is a middle-size broker in Australia with a good penetration in Thailand, UK and Brazil. Pepperstone is not popular in EU.
Pepperstone Trading Conditions
Account types and Spreads
Pepperstone offers two pricing models depending on the account type you open, ranging from the commission-based Razor Account to the Standard Account, which incorporates commissions into the prevailing spreads. Fees can also vary slightly, depending on the platform you choose to trade.
Razor Account: The Razor Account can be used with either the MetaTrader (MT4) or cTrader platforms and follows a commission-based pricing structure in addition to prevailing spreads. Average spreads of 0.16 pips on the EUR/USD in the Razor Account are comparable to industry peers when factoring in the commission of 0.753 pips to calculate the all-in cost of 0.91 pips on MT4 (or 0.86 pips on cTrader).
Standard Account: The standard account is commission-free but has higher spreads instead and is not as competitive as the Razor Account, as average spreads on the EUR/USD are 1-1.3 pips, according to Pepperstone. Industry leaders like Admiral Markets are offering spreads starting with 0.5 pips for Eur/Usd.
Speaking of trading costs, we should also mention that admin charges are applicable to the Islamic account type if a trade has been held for 3 days or more. Their amount ranges from 3 to 150 points, depending on the currency pair.
We’ve noticed high costs for holding positions overnight (forex swap).
As for leverage, the maximum leverage provided by Pepperstone is 500:1. This is considered to be high leverage especially bearing in mind in many countries there are limits on leverage, far lower than this. For instance, the max leverage allowed in the US is 50:1 and in Japan leverage is limited to 25:1.
Besides, this broker offers one of the highest leverage levels for trading in Bitcoin CFDs – 1:20.
AUD $200 minimum is required to open an account, backed up by a comprehensive list of funding sources that include Visa, MasterCard, PayPal, Bank Transfer, Skrill, and Neteller. Standard credit/debit card deposits get charged 1.8% for AUD currency and 3% for all other currencies. Withdrawal fees vary, with no charges when using Verified by Visa or Mastercard SecureCode. At the other end of the fee spectrum, $20 is charged for international withdrawals. No dormant or inactive fees were found when reviewing site disclosures and FAQs.
Software and Tools
Pepperstone provides its clients with a choice of three platforms: MetaTrader 4, MetaTrader 5, and cTrader. The industry-standard MT4 is available for Mac, iPad/tablet, Android, and iPhone. Also, a web-based MT4 version is offered, called WebTrader. A web version of the cTrader platform is also offered, as well as for mobile devices. What is more, the cTrader platform has a cAlgo option, allowing trading with robots and developing of custom indicators in C#.
The three trading platforms offered by Peppersrone are probably the most popular ones in the industry. The MT5 was developed and marketed as an improvement on MT4 and brokers and advanced traders prefer it, even if MT5 does not allow hedging (see here our guide MT4 vs MT5). As regards the cTrader platform, it is custom-made for use with ECN brokerages and offers a simple user-friendly interface (see here a comparison of the best forex platforms today).
Pepperstone provides multiple premium platform add-ons to enhance the MetaTrader offering (see the Supreme Edition add-on).
For social copy-trading, Pepperstone offers the MirrorTrader and RoboX platform from Tradency, the ZuluTrade platform, and Myfxbook for MT4, in addition to the native signals markets from MT4 and cTrader. The addition of Chasing Returns and DupliTrade ($5,000 minimum required) for social-copy trading further expanded the firm’s offering. See here how copy trade platforms rank in our top.
Pepperstone offers traders access to AutoChartist, a popular software provider of automated pattern recognition and trading signals. Pepperstone also offers Smart Trader Tools, an MT4 add-on with tools such as sentiment indicators, which are available to clients with an account balance of at least AUD 500.
When it comes to fundamental and technical analysis, Pepperstone offers content from third-party analysts. For example, the FX Weekly analysis from Boris & Kathy of BK Forex provides an “Event Risk Calendar Forecast” report. Trading Economics, a provider of market data, powers the firm’s economic calendar.
Pepperstone offers an excellent choice for Australian traders but is less attractive for European traders due to the lack of share CFDs. Asian traders should be aware of the well-known ASIC and FCA UK bureaucracy for both onboarding and payments. Their lightning-fast execution systems, multiple account types, competitive pricing, and multiple platforms outshine the vast majority of worldwide forex brokers. Professionally handled trust issues add to an already outstanding reputation while their commitment to new features and perks should keep this broker on the fast growth track well into the next decade.
GET A FOREX PRO ON YOUR SIDETo trade forex and CFDs, you need a well-regulated broker, where your money is safe, one that features a user-friendly trading platform with ultra-light execution, tight spreads, and fees. Trading with a trusted forex broker is crucial for success in international currency markets.
Here’s the Overall rankings for the best online brokers who participated in our 2021 Broker Review, sorted by Overall ranking.
Pepperstone is considered low-risk. Pepperstone is not publicly traded, does not operate a bank, and is authorized by two tier-1 regulators (high trust), two tier-2 regulators (average trust), and one tier-3 regulator (low trust).
The required Pepperstone minimum deposit is $0.