Written by ForexBrokers.com
In this head to head comparison of Interactive Brokers vs Pepperstone, we will compare the trading platforms, mobile apps, range of investments, costs, market research, and more. Let's dive in.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Interactive Brokers, established in 1977, and Pepperstone, founded in 2010, are popular online brokers in the financial industry, each with its own set of regulatory licenses and trust scores. Interactive Brokers boasts a perfect Trust Score of 99, indicating a high level of trustworthiness. It holds 9 Tier-1 licenses, the gold standard of safety as per ForexBrokers.com, and 2 Tier-2 licenses. This strong regulatory backing contributes to its reputation as a reliable choice for investors. Interactive Brokers is also publicly traded, adding another layer of transparency for its users.
Pepperstone, though a newer entrant to the market, has been able to secure a solid Trust Score of 95, reflecting its strong standing. It holds 3 Tier-1 licenses and 2 Tier-2 licenses, indicating a firm commitment to adhering to global regulations, though fewer in number compared to Interactive Brokers. While Pepperstone is not publicly traded, its dedication to maintaining a trusted service is represented by its regulatory approvals. Neither broker operates as a bank, focusing solely on providing brokerage services to their clients.
| Feature |
Interactive Brokers
|
Pepperstone
|
|---|---|---|
| Year Founded | 1977 | 2010 |
| Publicly Traded (Listed) | Yes | No |
| Bank | No | No |
| Tier-1 Licenses | 9 | 3 |
| Tier-2 Licenses | 2 | 2 |
| Tier-3 Licenses | 0 | 0 |
| Tier-4 Licenses | 0 | 2 |
Interactive Brokers and Pepperstone are two well-regarded online brokers, each with a distinct approach to commissions and fees. Interactive Brokers, with a 5-star rating, is ranked #2 out of 63 brokers by ForexBrokers.com for its competitive commission structure. The broker aggregates prices from 17 leading interbank forex dealers and charges commissions ranging from $16 to $40 per million round turn, rather than marking up spreads. For example, the average spread on EUR/USD is 0.19 pips, with an all-in spread of 0.59 pips including commission. Interactive Brokers also offers incentives for active traders, lowering commissions as trading volume increases substantially.
On the other hand, Pepperstone, earning a 4.5-star rating and ranked #10, provides a different yet competitive pricing strategy, especially through its Razor account. This account type shows an average spread of 0.10 pips for the EUR/USD, with an all-in cost of 0.80 pips when commissions are considered. Although Pepperstone's Standard account offers commission-free trading, its higher spread of 1.1 pips makes it the more expensive option between the two. High-volume traders can benefit from the Active Trader program, which offers rebates and spread reductions based on trading volume, providing even more competitive pricing for eligible clients in regions like the UK, EU, and Australia.
In summary, while both brokers have unique offerings tailored to different trading volumes and styles, Interactive Brokers edges ahead with its lower commissions for substantial traders, while Pepperstone stands out with its Razor account’s pricing and accessible rebate programs for high-volume clients.
| Feature |
Interactive Brokers
|
Pepperstone
|
|---|---|---|
| Minimum Deposit | $0 | $0 |
| Average Spread EUR/USD - Standard | 0.59 | 1.00 |
| All-in Cost EUR/USD - Active | 0.59 | 0.70 |
| Active Trader or VIP Discounts | Yes | Yes |
| ACH or SEPA Transfers | Yes | Yes |
| PayPal (Deposit/Withdraw) | No | Yes |
| Skrill (Deposit/Withdraw) | No | Yes |
| Visa/Mastercard (Credit/Debit) | No | Yes |
| Bank Wire (Deposit/Withdraw) | Yes | Yes |
Dive deeper: Best Low Spread Forex Brokers.
When comparing the range of investment options between Interactive Brokers and Pepperstone, investors will find distinct differences. Interactive Brokers stands out with a vast selection, offering 8,500 tradeable symbols, including 90 forex pairs. Additionally, it provides access to exchange traded securities on both U.S. and international exchanges, allowing individuals to invest in companies like Apple and Vodafone. In the realm of cryptocurrency, Interactive Brokers offers the flexibility to buy both actual cryptocurrencies and cryptocurrency derivatives. This comprehensive offering has earned Interactive Brokers a full 5-star rating and the top rank for Range of Investments on ForexBrokers.com.
Pepperstone, on the other hand, offers a more streamlined selection with 1,726 tradeable symbols and 65 forex pairs. Unlike Interactive Brokers, Pepperstone does not offer exchange traded securities on U.S. or international exchanges but does feature copy trading capabilities, appealing to those who prefer automated strategies. While it doesn’t provide the ability to buy actual cryptocurrencies, it does offer cryptocurrency derivatives for those interested in speculative opportunities. With a 4-star rating and a rank of 26th in the Range of Investments category by ForexBrokers.com, Pepperstone serves investors seeking a focused yet more limited selection of trading options.
| Feature |
Interactive Brokers
|
Pepperstone
|
|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes |
| Tradeable Symbols (Total) | 8500 | 1726 |
| Forex Pairs (Total) | 90 | 65 |
| U.S. Stock Trading (Non CFD) | Yes | No |
| Int'l Stock Trading (Non CFD) | Yes | No |
| Social Trading / Copy Trading | No | Yes |
| Cryptocurrency (Physical) | Yes | No |
| Cryptocurrency (Derivative) | Yes | Yes |
| Disclaimers | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). |
Dive deeper: Best Copy Trading Platforms.
When it comes to trading platforms and tools, both Interactive Brokers and Pepperstone provide a variety of features to cater to traders' needs. Interactive Brokers offers a comprehensive experience with a simulated trading feature through a free virtual demo account, allowing new traders to practice without any risk. They have developed their own proprietary platform and offer both a Windows-based desktop download and a web-based trading platform. While Interactive Brokers does not support popular platforms like MetaTrader 4 or 5, they make up for it with an impressive range of 85 charting tools and the ability to trade directly from stock charts. Additionally, they offer an extensive watchlist customization with 659 fields available. This robust package earns them a five-star rating and third place out of 63 brokers in the Trading Platforms and Tools category.
Pepperstone, rich in features, also provides a simulated trading environment with a free virtual demo account. Like Interactive Brokers, they too develop their own trading platform and offer both desktop and web-based options. However, what sets Pepperstone apart is its support for popular platforms like MetaTrader 4 and 5, as well as copy-trading through DupliTrade. Their charting offerings include 30 drawing tools and the ability to trade directly from stock charts, though the watchlist feature is less extensive with just seven columns. While rated four stars and ranked 22nd out of 63 brokers by ForexBrokers.com, Pepperstone's offerings appeal to those looking for more traditional and social trading tools in their platform suite.
| Feature |
Interactive Brokers
|
Pepperstone
|
|---|---|---|
| Virtual Trading (Demo) | Yes | Yes |
| Proprietary Platform | Yes | Yes |
| Desktop Platform (Windows) | Yes | Yes |
| Web Platform | Yes | Yes |
| Social Trading / Copy Trading | No | Yes |
| MetaTrader 4 (MT4) | No | Yes |
| MetaTrader 5 (MT5) | No | Yes |
| DupliTrade | No | Yes |
| ZuluTrade | No | No |
| Charting - Indicators / Studies (Total) | 155 | 15 |
| Charting - Drawing Tools (Total) | 85 | 30 |
| Charting - Trade From Chart | Yes | Yes |
| Watchlists - Total Fields | 659 | 7 |
Dive deeper: Best MetaTrader 4 Brokers, Best MetaTrader 5 Brokers.
Interactive Brokers and Pepperstone both provide powerful mobile trading apps compatible with iPhone and Android devices, offering features that attract traders of all levels. Both platforms allow users to set stock and forex price alerts and support watchlist symbol syncing, ensuring seamless integration between mobile and online accounts. However, Interactive Brokers distinguishes itself with a notable offering of 97 technical studies for chart analysis, compared to Pepperstone’s 30. Both brokers support drawing trendlines and viewing multiple time frames on charts, but only Pepperstone automatically saves these drawings, which might appeal to those who frequently analyze market trends.
For those interested in creating watchlists with real-time quotes, both apps deliver effectively, but Interactive Brokers receives a higher user rating of 5 stars for its overall mobile experience, while Pepperstone scores 4 stars. As ranked by ForexBrokers.com, Interactive Brokers takes the #4 spot out of 63 brokers for mobile trading apps, illustrating its powerful user capabilities and comprehensive features. Pepperstone, on the other hand, ranks at #21, indicating room for improvement compared to its high-ranking competitor. Overall, while both apps are quite proficient, Interactive Brokers seems to offer more advanced features and has earned a higher reputation among users.
| Feature |
Interactive Brokers
|
Pepperstone
|
|---|---|---|
| Android App | Yes | Yes |
| Apple iOS App | Yes | Yes |
| Mobile Alerts - Basic Fields | Yes | Yes |
| Watchlist Syncing | Yes | Yes |
| Mobile Charting - Indicators / Studies | 97 | 30 |
| Mobile Charting - Draw Trendlines | Yes | Yes |
| Mobile Charting - Multiple Time Frames | Yes | Yes |
| Mobile Charting - Drawings Autosave | No | Yes |
| Mobile Watchlist | Yes | Yes |
Dive deeper: Best Forex Trading Apps.
Interactive Brokers and Pepperstone both deliver essential daily market commentary and offer forex news from prestigious sources like Bloomberg and Reuters. While Pepperstone provides advanced technical analysis tools like Autochartist, Interactive Brokers counters with Trading Central's resources. Both platforms give traders access to sentiment-based tools, which display the ratio of long and short positions for various instruments. However, Interactive Brokers takes a step further by offering market insights from TipRanks and research tools from Acuity Trading, adding substantial value to its suite of resources.
For traders looking for comprehensive market research, Interactive Brokers holds an edge with its extensive array of tools, earning a 5-star research rating. In comparison, Pepperstone garners a commendable 4.5 stars. Both platforms feature an economic calendar, keeping users informed about upcoming economic events. Despite Pepperstone's robust offering, Interactive Brokers' additional research tools and higher ranking by ForexBrokers.com (#3 compared to Pepperstone's #12) make it a preferred choice for those seeking in-depth market research and analysis.
| Feature |
Interactive Brokers
|
Pepperstone
|
|---|---|---|
| Daily Market Commentary | Yes | Yes |
| Forex News (Top-Tier Sources) | Yes | Yes |
| Autochartist | No | Yes |
| Trading Central (Recognia) | Yes | No |
| Social Sentiment - Currency Pairs | Yes | Yes |
| TipRanks | Yes | No |
| Signal Centre (Acuity Trading) | Yes | No |
| Economic Calendar | Yes | Yes |
Dive deeper: Best Brokers for Forex Research.
When comparing the educational offerings of Interactive Brokers and Pepperstone for beginners diving into forex or CFDs, both platforms provide a substantial amount of resources. Each offers over ten educational pieces ranging from articles and videos to archived webinars, which are crucial for new traders. Both companies offer monthly online webinars and maintain searchable archives of past sessions, making it easier for learners to access a wealth of information at their own pace. Furthermore, they each present at least ten beginner-targeted educational videos, ensuring that newcomers have ample guidance on fundamental trading concepts.
For those who are at an advanced level, both Interactive Brokers and Pepperstone provide over ten videos dedicated to more complex trading strategies. They also supply an investor dictionary with definitions of more than 50 investing terms, which helps traders, whether new or seasoned, strengthen their understanding of important concepts. Although both brokers excel in educational content, Interactive Brokers holds a higher overall rating of 5 stars compared to Pepperstone's 4.5 stars. It's ranked 3rd out of 63 brokers by ForexBrokers.com for its educational efforts, whereas Pepperstone stands at 17th. This suggests that while both are strong choices, Interactive Brokers may offer a slight edge in educational quality and recognition.
| Feature |
Interactive Brokers
|
Pepperstone
|
|---|---|---|
| Education (Forex or CFDs) | Yes | Yes |
| Client Webinars | Yes | Yes |
| Client Webinars (Archived) | Yes | Yes |
| Videos - Beginner Trading Videos | Yes | Yes |
| Videos - Advanced Trading Videos | Yes | Yes |
| Investor Dictionary (Glossary) | Yes | Yes |
Dive deeper: Best Forex Brokers for Beginners.
After testing 63 of the best forex brokers, our research and account testing finds that Interactive Brokers is better than Pepperstone. Interactive Brokers finished with an overall rank of #2, while Pepperstone finished with an overall rank of #16.
Interactive Brokers is a highly trusted multi-asset broker with an extensive offering of tradeable global markets. It delivers competitive fees and high-quality research and education, as well as a modern, institutional-grade trading platform suite.
| Feature |
Interactive Brokers
|
Pepperstone
|
|---|---|---|
| Overall Rating |
|
|
| Trust Score | 99 | 95 |
| Range of Investments |
|
|
| Commissions & Fees |
|
|
| Platforms & Tools |
|
|
| Research |
|
|
| Mobile Trading |
|
|
| Education |
|
|
Interactive Brokers and Pepperstone both offer cryptocurrency derivatives, but only Interactive Brokers provides the ability to purchase actual delivered cryptocurrency.
Interactive Brokers and Pepperstone both facilitate ACH or SEPA transfers and bank wire transactions for depositing or withdrawing funds, but unlike Interactive Brokers, Pepperstone also supports PayPal, Skrill, and Visa or Mastercard payments, providing more diverse funding options for its users.
Please note:
We review each broker’s overall global offering – a “Yes” checkmark in our Compare Tool does not guarantee the availability of any specific features in your country of residence. To verify the availability of any features within your country of residence, please contact the broker directly.
Select Brokers
↓×Compare
0 of 5| Overall Rating | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Overall Rating |
|
| |
| Commissions & Fees |
|
| |
| Range of Investments |
|
| |
| Platforms & Tools |
|
| |
| Mobile Trading |
|
| |
| Research |
|
| |
| Education |
|
| |
| Trust Score | 99 | 95 | |
| Winner | check_circle | ||
| Review | Interactive Brokers Review | Pepperstone Review |
| Broker Screenshots | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Trading Platforms Gallery (click to expand) |
|
| |
| Mobile Trading Gallery (click to expand) |
|
| |
| Research Gallery (click to expand) |
|
| |
| Education Gallery (click to expand) |
|
|
| Regulation | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Trust Score | 99 | 95 | |
| Year Founded | 1977 | 2010 | |
| Publicly Traded (Listed) | Yes | No | |
| Bank | No | No | |
| Regulated in one or more EU or EEA countries (MiFID). | Yes | Yes | |
| Tier-1 Licenses | 9 | 3 | |
| Tier-2 Licenses | 2 | 2 | |
| Tier-3 Licenses | 0 | 0 | |
| Tier-4 Licenses | 0 | 2 |
| Tier-1 Licenses (Highly Trusted) | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Australia (ASIC Authorised) | Yes | Yes | |
| Canada (CIRO Authorised) | Yes | No | |
| Hong Kong (SFC Authorised) | Yes | No | |
| Japan (SFC Authorised) | Yes | No | |
| Singapore (MAS Authorised) | Yes | No | |
| Switzerland (FINMA Authorised) | Yes | No | |
| United Kingdom (U.K.) (FCA Authorised) | Yes | Yes | |
| USA (CFTC Authorized) | Yes | No | |
| New Zealand (FMA Authorised) | No | No | |
| Regulated in one or more EU or EEA countries (MiFID). | Yes | Yes |
| Tier-2 Licenses (Trusted) | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Kenya (CMA Authorised) | No | Yes | |
| Israel (ISA Authorised) | No | No | |
| South Africa (FSCA Authorised) | No | No | |
| UAE (DFSA/Central Bank Authorised) | Yes | Yes | |
| India (SEBI Authorised) | Yes | No | |
| Jordan (JSC Authorised) | No | No |
| Investments | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes | |
| Tradeable Symbols (Total) | 8500 | 1726 | |
| Forex Pairs (Total) | 90 | 65 | |
| U.S. Stock Trading (Non CFD) | Yes | No | |
| Int'l Stock Trading (Non CFD) | Yes | No | |
| Social Trading / Copy Trading | No | Yes | |
| Cryptocurrency (Physical) | Yes | No | |
| Cryptocurrency (Derivative) | Yes | Yes | |
| Disclaimers | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). |
| Cost | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Average Spread EUR/USD - Standard | 0.59 | 1.00 | |
| All-in Cost EUR/USD - Active | 0.59 | 0.70 | |
| Active Trader or VIP Discounts | Yes | Yes | |
| Inactivity Fee | No | No | |
| Execution: Agency Broker | Yes | Yes | |
| Execution: Market Maker | No | Yes |
| Funding | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Minimum Deposit | $0 | $0 | |
| PayPal (Deposit/Withdraw) | No | Yes | |
| Skrill (Deposit/Withdraw) | No | Yes | |
| Visa/Mastercard (Credit/Debit) | No | Yes | |
| Bank Wire (Deposit/Withdraw) | Yes | Yes | |
| ACH or SEPA Transfers | Yes | Yes |
| Trading Platforms | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Proprietary Platform | Yes | Yes | |
| Desktop Platform (Windows) | Yes | Yes | |
| Web Platform | Yes | Yes | |
| Social Trading / Copy Trading | No | Yes | |
| MetaTrader 4 (MT4) | No | Yes | |
| MetaTrader 5 (MT5) | No | Yes | |
| cTrader | No | Yes | |
| DupliTrade | No | Yes | |
| ZuluTrade | No | No |
| Trading Tools | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Virtual Trading (Demo) | Yes | Yes | |
| Alerts - Basic Fields | Yes | Yes | |
| Watchlists - Total Fields | 659 | 7 | |
| Charting - Indicators / Studies (Total) | 155 | 15 | |
| Charting - Drawing Tools (Total) | 85 | 30 | |
| Charting - Trade From Chart | Yes | Yes | |
| Charts can be saved | Yes | Yes |
| Mobile Trading | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Android App | Yes | Yes | |
| Apple iOS App | Yes | Yes | |
| Mobile Alerts - Basic Fields | Yes | Yes | |
| Mobile Watchlist | Yes | Yes | |
| Watchlist Syncing | Yes | Yes | |
| Mobile Charting - Indicators / Studies | 97 | 30 | |
| Mobile Charting - Draw Trendlines | Yes | Yes | |
| Mobile Charting - Multiple Time Frames | Yes | Yes | |
| Mobile Charting - Drawings Autosave | No | Yes | |
| Mobile Economic Calendar | Yes | Yes |
| Research | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Daily Market Commentary | Yes | Yes | |
| Forex News (Top-Tier Sources) | Yes | Yes | |
| Autochartist | No | Yes | |
| Trading Central (Recognia) | Yes | No | |
| TipRanks | Yes | No | |
| Social Sentiment - Currency Pairs | Yes | Yes | |
| Economic Calendar | Yes | Yes |
| Education | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Education (Forex or CFDs) | Yes | Yes | |
| Client Webinars | Yes | Yes | |
| Client Webinars (Archived) | Yes | Yes | |
| Videos - Beginner Trading Videos | Yes | Yes | |
| Videos - Advanced Trading Videos | Yes | Yes | |
| Investor Dictionary (Glossary) | Yes | Yes |
| Major Forex Pairs | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| GBP/USD | Yes | Yes | |
| USD/JPY | Yes | Yes | |
| EUR/USD | Yes | Yes | |
| USD/CHF | Yes | Yes | |
| USD/CAD | Yes | Yes | |
| NZD/USD | Yes | Yes | |
| AUD/USD | Yes | Yes | |
| Review | Interactive Brokers Review | Pepperstone Review |
| Overall | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Overall Rating |
|
| |
| Commissions & Fees |
|
| |
| Range of Investments |
|
| |
| Platforms & Tools |
|
| |
| Mobile Trading |
|
| |
| Research |
|
| |
| Education |
|
| |
| Trust Score | 99 | 95 | |
| Winner | check_circle | ||
| Review | Interactive Brokers Review | Pepperstone Review |
IG
CMC Markets
FOREX.com
XTB
eToro
AvaTrade
Plus500
Pepperstone
FP Markets
Tickmill