Pepperstone Review

Pepperstone is a CFD broker that is focused on forex trading.

It was founded in 2010 and is based in Australia.

Seeking to offer a global service, Pepperstone has branches in London, Cyprus, Germany, Dubai, Kenya, the Bahamas and its headquarters in Melbourne.

75.3% of retail investor accounts lose money when trading spread bets and CFDs with this provider.

You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Pepperstone is an award-winning brokerage, having received awards from Deloitte, Compare Forex Brokers and Investment Trends, among others, for their customer service and trading conditions.

With its global presence, Pepperstone is multi-regulated by:

• FCA (Financial Conduct Authority, UK)
• BaFin (Federal Financial Supervisory Authority, Germany)
• CySec (Cyprus Securities and Exchange Commission)
• ASIC (Australian Securities and Investments Commission)
• DFSA (Dubai Financial Services Authority)
• SCB (Securities Commission of the Bahamas)
• CMA (Capital Markets Authority, Kenya)

Pepperstone’s international coverage means that it can offer trading from late Sunday to Friday, depending on where in the world you are.

Similarly, their customer support line is open 24/5 and extended weekend support hours.

Pepperstone is generally considered a low-risk brokerage to use, mainly because of its extensive regulation.

Interested in trading currency pairs but want to find out more first? Read What Are The Benefits Of Forex Trading?

Who Is Pepperstone For?

Pepperstone is ideal for traders:

• At all levels of experience
• Who are interested in a low-risk brokerage service
• Who wish to deal in CFDs
• Who are interested in spread betting
• Who like to have the option of Algo & EAs
• Who appreciate excellent customer service

Pepperstone does not currently accept US clients.

Pepperstone Products and Services

Pepperstone now offer more than 1,200 instruments.

It does provide a solid base for those interested in forex CFDs, however, with over 90 forex pairs, ranging from majors to exotics.

In addition, Pepperstone offers CFDs for the following markets:

• 25 major stock market indices
• A wide range of commodities
• 30+ cryptocurrencies (only available to professional traders in the UK)
• Spread betting in the UK
• Stocks CFDs and indices
• ETFs
• Forwards

Pepperstone also provides a spread betting service to UK residents across many of the above markets.

Spread betting is not trading; however, instead, it is a form of gambling where you bet on the performance of a market asset.

If you think that spread betting sounds ideal, read our article How to Spread Bet.

Pepperstone Platform Features and Tools

Pepperstone aims to accommodate the needs of the majority of traders by offering multiple trading platforms: TradingView, MetaTrader (MT4, MT5) and CTrader.

TradingView offers charting functionality and social trading on both desktop and mobile app.

MetaTrader is most commonly used to trade forex; however, it can also trade with other markets through CFDs or spread betting.

Available in both MT4 and the upgraded MT5, this platform offers a wide range of technical indicators, market analysis tools, and reports.

Whichever version of MetaTrader you use, this platform is easy to customize to your individual needs and level of expertise.

MetaTrader can be downloaded to a Windows PC, Apple Mac, and most mobile devices.

cTrader has similar functionalities to MetaTrader: indicators, analysis, and reporting. However, it generally covers a smaller range of markets than MetaTrader.

cTrader can be used on Windows but is not available for Mac.

The deciding factor between cTrader and MetaTrader, however, is which interface you prefer and find the most intuitive.

Pepperstone also offers social trading.

Trading tools include Atochartist, cTrader automate, Free TradingView subscriptions.

To find out more, read What Is Social Copy Trading?.

Pepperstone Account Types

There are three types of Pepperstone accounts:

Demo Account

Before you begin trading with real money, you can open a demo account with Pepperstone.

Using virtual money, you can familiarise yourself with your trading platform of choice, CFDs, spread betting, and social trading too.

Standard Account

Whether you intend to trade forex, CFDs, spread bet or use social trading, the standard account will serve your needs.

The standard account is commission-free, with standard spreads and an average forex pip (percentage in point or price interest point) increase of 1.0.

As a new trader, the standard account will generally be the place to start.

Razor Account

With all the conditions and functionalities of the standard account, the Razor account features commission-based pricing and a lower pip rate starting at zero.

The Razor account is suitable for more experienced traders, especially those interested in algorithmic trading and scalping.

Swap-Free Standard Account

Should you intend to trade within the rules of Sharia Law, Pepperstone provides a swap-free trading account.

Other than the swap-free element, this account carries the same functionality as the standard account.

If you are interested in making a start with investment, why not read Signs You Are Ready To Live Trade?

Professional Account

If eligible, you can apply for a Pepperstone Pro account and enjoy lower margins, additional account features and access to the Active Trader Program, which will allow the possibility of earning cash rebates on your trades.

Pepperstone Commissions and Fees

Pepperstone charges a commission to holders of Razor accounts when trading forex and certain CFDs.

Pepperstone recommends that customers deposit £500 when they open a live account. However, there is no set minimum deposit.

Pepperstone does not charge for holding an account or for leaving an account inactive for any period.

Bank withdrawal fees are only charged to customers who live outside the EU and Australia.

Pepperstone Research and Education

Most brokers with an international presence will provide research and education tools and resources to their customers.

Pepperstone’s overall offering is on a par with many of its competitors.

Research

Pepperstone offers a mixture of their own research material and that sourced externally from third-party providers.

The Pepperstone research offering includes:

• Their Navigating Market and Daily Fix articles
• In-house videos
• Weekly webinars
• An Economic Calendar
• AutoChartist software providing automated pattern recognition and trading signals
• Smart Trader Tools
• Risk management tools

Education

Pepperstone’s educational resources start with their demo account, which is an excellent way to familiarise yourself with trading, Pepperstone itself, and the MetaTrader and cTrader platforms.

In addition to this, their educational offering includes:

• A range of articles and trading guides aimed at all levels of trading experience
• An archive of past webinars
• MetaTrader 4 course
• Forex trading course
• Educational videos

There is a noticeable focus on forex education, with less material relating to CFDs.

You might also be interested in The Best Ways To Learn More About Forex Trading.

Advantages of Pepperstone

So why would you consider trading through Pepperstone instead of another broker?

• Extensively regulated – Pepperstone is regulated by seven regulatory bodies, offering a higher level of protection to customers and making this a safe, low-risk broker to trade through.

• No minimum deposit – There is no minimum deposit to open a live account with Pepperstone. This is particularly attractive for new traders who may not have a large amount of money to begin trading with.

• Free withdrawal options – There is no fee to withdraw funds to a credit/debit card, domestic bank or PayPal for UK clients.

• Low fees – Pepperstone forex fees are low, while their CFD fees are low overall; however, this may vary depending on the specific trading details.

• No inactivity or account fees – There is no fee to open a live account with Pepperstone. Should your account remain dormant for any time, Pepperstone will not charge an inactivity fee.

• Fully digital account opening – The process to open an account with Pepperstone is fully digital, easy to use, and can be completed between one to three days.

• Customizable reports – Whether you use MT4, MT5, TradingView or cTrader, the reporting function is highly customizable to suit your individual needs, regardless of your level of trading experience.

• Demo account – Pepperstone offers a demo account to allow you to practice trading with virtual funds as you learn and familiarise yourself with MetaTrader, TradingView or cTrader.

• Good educational resources – Pepperstone provides a good offering of educational resources from articles to videos, webinars and courses.

• Multiple languages – All three trading platforms are available in several languages, including Arabic, English, Chinese and French. Customer support is also available in multiple languages.

• Good customer service – Pepperstone offers excellent customer support service Monday to Friday through telephone, email, or live chat. Response time tends to be quick, and Pepperstone customer service agents are polite, professional, and knowledgeable.

Disadvantages of Pepperstone

There are plenty of benefits to trading through Pepperstone, but here are the downsides:

• No investor protection for clients outside UK, EU and EEA – Under regulation by the FCA, BaFin, and CySec, clients in the UK, EU and EEA have a level of protection. In the UK, the protection amount is £85,000. For EU and EEA clients, the amount is €20,000. Clients outside the UK, EU, and EEA, however, are not protected.

• No physical stocks or ETFs – Pepperstone offers CFDs only. It does not provide the opportunity to trade in physical stocks or ETFs.

• Higher CFD financing fees – Although Pepperstone generally has low or zero fees, there are high fees for holding a CFD position overnight.

• Withdrawal fee for international bank wire transfers – There is an international bank transfer withdrawal fee. The cost is around $20 or your equivalent currency.

• No two-step verification – Pepperstone does not provide a two-step verification when you log in, leaving your account vulnerable to being hacked.

• Basic news feeds – The in-house Pepperstone newsfeed is hard to search and poorly structured, with a small number of articles, compared to its competitors.

• Not transparent – Pepperstone does not offer much information about its finances or who owns the company. In comparison to other brokers, their disclosed information is limited.

How to Set Up an Account With Pepperstone

Pepperstone’s account opening process is online and relatively straightforward.

Completing the application process should take no more than 15 minutes, and you will generally receive a decision within three days.

Begin the process by clicking on the red ‘start trading’ or ‘get started’ button on the Pepperstone website.

You will be redirected to the application screen. From here:

• Provide your email address and a password.

• On the next screen, provide your personal details, including nationality and tax identifier, for example, national insurance number in the UK.

• Provide information on your trading preferences, employment, and income. Fill in the declaration and provide ID. You will generally be asked for two pieces of ID, the first being a form of photo ID, such as your passport, driving license, or national ID, and the second being proof of your residency, for example, a utility bill, bank statement or mortgage statement no older than three months.

During the application process, you will be asked to choose the account type you want to open and the currency you want to trade.

Once you receive approval, you can deposit funds in your account and begin to trade.

Final Thoughts

Overall, Pepperstone is a safe, well-regulated broker with very low spreads; however, you are limited to CFDs. Fees are generally low or zero.

For traders in the UK, EU and EEA, there is a layer of financial protection.

Pepperstone does not have the transparency of many of its competitors.

The lack of a two-step verification could leave its accounts more vulnerable than accounts offered by other brokers, however.

WikiJob does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.