Pepperstone Review

Pepperstone Review

Forex pairs, Indices, Metals, Soft Commodities, Cryptocurrencies & Energy

  • FCA & ASIC regulated ✔
  • EUR/USD spreads from 0
  • Cryptocurrency CFDs
  • Trader Friendly grade: A+
  • £100 minimum deposit
  • cTrader & MT4
  • STP and raw ECN spreads
  • MT4 Smart Trader Tools: T&Cs
No Dealing Desk Broker • Pepperstone

Pepperstone Review

Pepperstone is an ASIC regulated Australian broker which has become regulated additionally by the FCA in the United Kingdom. Pepperstone is an ECN broker offering trading conditions where trading styles such as scalping, automated trading and hedging are allowed. It offers MT4, MT5 and cTrader. Pepperstone says that it is a no dealing desk broker, with no intervention in orders, automatic order fulfillment and no delays, requotes or order rejections.

£1 commission and spread reduction offer

Pepperstone is offering to residents of the EEA commission charges of €1/£1 per lot per side on the Razor account and a spread reduction of 0.8 pips per lot round turn on FX pairs on the Standard account, T&Cs apply.

Quantas Trade and Earn Offer

Peppperstone has an offer, where a trader can earn Quantas points with their first Pepperstone deposit and by continuing to trade, T&Cs apply. For the first deposit, the trader can earn 10 Quantas points up to 10,0000 per $1 deposited. For trading, the trader can earn 10 points for every Forex lot trade, up to 10,000 point per month. This offer is valid for traders in Australia, Malaysia and South Africa.

EDGE Technology

This is what Pepperstone terms its ECN trading infrastructure, aimed to deliver low latency order execution and low spreads, by connecting to the Interbank market. It uses optical fibre cross connects from Banks (via Equinix NY4 servers) to Pepperstone's server to reduce latency, improve price fills and minimise slippage. Pepperstone accesses Dark Pool liquidity which it says helps enable Block Orders and Scalping to maximise price efficiency.

Cryptocurrency CFD trading

Pepperstone now offers trading in Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Dash CFDs. Leverage is up to 5:1 at Pepperstone (ASIC regulated) and leverage is up to 2:1 at Pepperstone (FCA regulated), hedging is available and there are no commission fees. Cryptocurrency trading is available on all Pepperstone's platforms. Pepperstone.

Account types and minimum deposit

There are four account types at Pepperstone. These are the EDGE Standard account, the EDGE Razor account, the EDGE Swap Free account and the EDGE Active Traders account.

The Standard account charges no commissions and offers STP spreads, the Razor account charges commissions and offers raw ECN spreads, the Swap Free account is Sharia compliant (it is an Islamic account) and offers STP spreads and the Active Traders account is for institutional and high volume traders. Pepperstone allows all trading styles including scalping, EAs and full hedging

The minimum deposit for the Standard, Razor and Islamic accounts is $AU200 or £100.

Pepperstone Razor vs Standard

  • The Standard account is an STP account
  • The Razor account is an ECN account
  • The Standard account does not charge commissions
  • The Razor account does charge commissions
  • The Standard account has higher Forex spreads
  • Standard EUR/USD spreads are from 1.0
  • Razor EUR/USD spreads are from 0.0, plus commission

Both account connects to Interbank liquidity, but the Standard account can include a mark up to the spread, and does not charge commissions.

Pepperstone Islamic account

This is a Swap Free STP account. It allows hedging, scalping and EAs. Its account currencies are AUD/USD, EUR and SGD. The average spread for EUR/USD is 1.0-1.2.

Active Traders account

The Active Traders account provides a dedicated account manager, VPS hosting services, reporting such as end of day profit and loss, volume tracking and daily equity snapshots, a segregated customer account and trading solutions customised to the trader.

ECN conditions

Pepperstone calls its infrastructure which connects MT4 to Interbank liquidity, EDGE technology. It uses optical fiber cross connects. The aim is to unify different pools of FX liquidity to deliver depth of market to the trader. So the objective is to deliver very fast execution with good prices.

Pepperstone says it uses Peppertone Price Improvement to deliver improved prices if the market moves in the trader's favour between the time the order placed and executed, if possible. Pepperstone uses Equinix NY4 servers and London LD4 servers.

Pepperstone says that there is no dealing desk intervention, that trade execution is as low as 50ms of latency and is settled immediately, which it says means that there are no rejects, requotes or delays.

Account opening

Account currencies are: AUD, USD, GBP, EUR, CAD, JPY, NZD, CHF, SGD and HKD. The Islamic account currencies are: AUD, USD, EUR, SGD.

Pepperstone can open accounts for clients from most countries in the world but not from the United States of America, Japan, Burma, Canada, Côte d’Ivoire, the Democratic People's Republic of North Korea, the Democratic Republic of the Congo, Eritrea, the Former Federal Republic of Yugoslavia, Iran, Iraq, Lebanon, Liberia, Libya, Somalia, Sudan, Syria, and Zimbabwe.

Minimum and maximum trade size

The minimum trade size is 0.01 lots (micro lots) and the maximum trade size is 100 lots.

Platforms

Pepperstone provides MT4, MT5 and cTrader. Pepperstone also provide a suite of Smart Trader Tools for MT4 and MT5, with the aim of helping both beginners and experienced traders. This includes apps to help with decision making and trade execution and management, including the Trade Simulator for MT4. The Trade Simulator lets the trader test out strategies on past market data. A minimum balance of AU$500 is required to access Smart Trader tools by Pepperstone. Find out more about: Smart Trader Tools.

cTrader is a ECN trading platform, with support for automated trading and back testing and includes Level II pricing. The cTrader suite includes cAlgo, which is used for trading with and creating robots and indicators in C#. cTrader provides a wide range of time frames from tick to monthly, bar, candlestick, line and dot charts, and a large number of indicators.

MT4, MT5 and cTrader provide social/copy trading functionality. These platforms are available on desktop and mobile and support micro lot trading. Pepperstone also provides a web trader based on MT4. So the platforms available can be both accessible and advanced, as required by the client.

Negative balances

Pepperstone (FCA regulated) offers negative balance protection.

Markets

Pepperstone offers 95+ markets, covering Forex Pairs, Metals, Energy, Soft Commodities, Cryptocurrencies, Indices and Futures. Soft Commodities are instruments such as Sugar, Orange Juice and Cotton.

Spreads and leverage

  • Spreads at Pepperstone are variable. For the Razor account EUR/USD spreads can have a minimum of 0 (and an average of 0.2) and GBP/USD and AUD/USD spreads can have a minimum of 0.1 (GBP/USD can have an average of 0.57 and AUD/USD can have an average of 0.52).
  • For the Standard account, EUR/USD spreads can have a minimum of 1.0 (and an average of 1.2) and GBP/USD and AUD/USD spreads can have a minimum of 1.1 (GBP/USD can have an average of 1.57 and AUD/USD can have an average of 1.52).
  • UK100 can have an in market hours spread of 1 and an out of market hours spread from 1-5. Gold (XAU/USD) spreads can have a minimum of 0.6 and US Crude Oil spreads can have a minimum of 0.05.

Maximum leverage at Pepperstone (FCA regulated) is . Maximum leverage at Pepperstone (ASIC regulated) is 500:1.

Commissions

Commissions on the Razor MT4 and MT5 accounts depend on the account currency. In the case of USD, they are $7.5 round trip per lot, in the case of GBP they are £4.59 round trip per lot and in the case of AUD they are $7 round trip per lot. On the cTrader Razor account, commissions round trip per lot are 7 units in the first quoted currency being traded.

Funding

Clients can deposit using credit/debit card, PayPal, POLi, China Union Pay, bank transfer, BPay, Skrill, Neteller, Qiwi, Fasapay and broker to broker. Pepperstone does not change fees for deposits or withdrawals and no third party payments are acceptable.

Regulation

Pepperstone is the trading name of Pepperstone Group Limited and Pepperstone Limited. Pepperstone Group Limited is authorised and regulated by ASIC (AFSL 414530), registered office: Level 5, 530 Collins Street, Melbourne, VIC with ACN 147 055 703.

Pepperstone Limited is a limited company registered in England & Wales and is authorised and regulated by the Financial Conduct Authority (FRN 684312) with registered office: 5 Fleet Place, London, EC4M 7RD with Company Number 08965105.

Summary

This broker provides both raw ECN spreads with a competitive commission and provides STP spreads without a commission charge. It provides support for trading from beginners to advanced automated trading and allows all trading styles. To use the full range of service the trader will need to use MT4, MT5 or cTrader. However cTrader in particular while it has advanced features, is well designed and has a clear trading interface.

This broker could be looked at not only as an ECN trader for those who want to trade automated strategies or use styles such as scalping, it can also be seen as a broker which provides scope and support to give a trading infrastructure for different kinds of traders. This said, other brokers who provide a custom platform and a dealing desk environment with fixed or variable spreads may be more approachable for some kinds of trading. Also it does not provide Share CFDs. But for those whose interest is trading and exploring the range of possibilities, especially Forex Traders, this broker gets a Trader Friendly grade of A+.