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Pepperstone Review

Steven Hatzakis

Steven Hatzakis | September 7th, 2021

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.

While Pepperstone offers a small set of tradeable products, it provides one of the largest selections of third-party platforms, including multiple social copy trading options.

Top Takeaways for 2021

Here are our top findings on Pepperstone:

  • Founded in 2010, Pepperstone is regulated in two tier-1 jurisdictions, making it a safe broker (low-risk) for trading forex and CFDs.
  • Catering to algorithmic traders and copy traders, Pepperstone offers both the MetaTrader and cTrader platform suites. Also, Pepperstone provides multiple premium platform add-ons to enhance the MetaTrader offering. Meanwhile, research at Pepperstone is better than the industry average but still trails leaders such as IG or Saxo Bank.
  • Pepperstone provides a small selection of tradeable products. That said, pricing is competitive for active traders on Pepperstone's Razor accounts, while for retail traders, it is in line with the industry average.

Overall Summary

FeaturePepperstone
Overall 4 Stars
Trust Score92
Offering of Investments 3.5 Stars
Commissions & Fees 4 Stars
Platforms & Tools 4 Stars
Research 4 Stars
Mobile Trading 4 Stars
Education 4 Stars

Is Pepperstone Safe?

help 92
Trust Score

Pepperstone is considered low-risk, with an overall Trust Score of 92 out of 99. Pepperstone is not publicly traded and does not operate a bank. Pepperstone is authorised by two tier-1 regulators (high trust), two tier-2 regulators (average trust), and one tier-3 regulators (low trust). Pepperstone is authorised by the following tier-1 regulators: Australian Securities & Investment Commission (ASIC) and the Financial Conduct Authority (FCA). Pepperstone is authorised by the following tier-2 regulators: Dubai Financial Services Authority (DFSA) and the Cyprus Securities and Exchange Commission (CySEC). Learn more about Trust Score.

Regulations Comparison

FeaturePepperstone
Year Founded2010
Publicly Traded (Listed) No
Bank No
Tier-1 Licenses2
Tier-2 Licenses2
Tier-3 Licenses1
Trust Score92

Offering of Investments

Rank: 18th

The following table summarizes the different investment products available to Pepperstone clients.

Cryptocurrency: Cryptocurrency trading is available through CFDs, but not available through trading the underlying asset (e.g. buying Bitcoin). Note: Crypto CFDs are not available to retail traders from any broker's UK entity, nor to UK residents.

Pepperstone offering of investments:

FeaturePepperstone
Forex Trading Yes
CFD Trading Yes
Tradeable Symbols (Total) 127
Forex Pairs (Total)61
US Stock Trading (Non CFD) No
Int'l Stock Trading (Non CFD) No
Cryptocurrency (Physical) No
Cryptocurrency (CFD) Yes
Social Trading / Copy-Trading Yes

Commissions and Fees

Rank: 12th

Pepperstone is an agency-execution broker that offers excellent pricing on its Razor account when combined with its Active Trader program for high-volume traders. Meanwhile, its Standard account has comparably higher spreads and is not impressive.

Razor account: The Razor account can be used with either the MetaTrader (MT4 or MT5) platforms or cTrader platforms and follows a commission-based pricing structure in addition to prevailing spreads. Average spreads of 0.09 pips on the EUR/USD in the Razor account (as of April 2021) is comparable to the industry average after including the commission of 0.70 pips to calculate the all-in cost of 0.79 pips on MT5 and cTrader.

Standard account: The standard account is commission-free but has similar spreads and is as competitive as the Razor account, with average spreads on the EUR/USD at 0.75 pips, as of April 2021.

Active traders: Pepperstone's active trader program rebates a portion of the spread, depending on your monthly trading volume and the applicable tier.

United Kingdom: In the UK, premium clients must trade at least $15M per month or 150 standard lots, to be eligible for the tier-1 rebate of 10% per lot, while tier-3 rebates can be negotiated for those who do more than 500 lots monthly.

Australia: A minimum of 200 lots is required to qualify for the lowest tier in Pepperstone's Active Trader program. Tier one provides a rebate of $1.00 per standard lot, which reduces the effective spread from 0.75 pips to 0.65 pips. At the same time, tier two rebates 15% or more of the commission (reducing the effective spread to 0.638), for those who trade more than 200 lots monthly.

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Pepperstone pricing summary:

FeaturePepperstone
Minimum Deposit$200.00
Average Spread EUR/USD - Standard0.69 (May 24th-28th 2021)
All-in Cost EUR/USD - Active0.79 (April 2021)
Active Trader or VIP Discounts Yes
Execution: Agency Broker Yes
Execution: Market Maker No

Platforms and Tools

Rank: 14th

While Pepperstone lacks a proprietary platform, it offers nearly every third-party platform a trader could ever want to use. Overall, we were impressed and Pepperstone finished Best in Class MetaTrader in 2021.

Platforms: Pepperstone offers the full MetaTrader and cTrader suites, including MT4 and MT5 (desktop and web), cTrader (desktop and web), and cAlgo. Traders can use either account type, Razor, or Standard, with any platform.

Copy trading: For social copy-trading, Pepperstone offers the MirrorTrader and RoboX platforms from Tradency, and myFxbook for MetaTrader, alongside cTrader and DupliTrade ($5,000 minimum balance required). Pepperstone finished Best in Class in the Social Copy Trading category for the fourth consecutive year in 2021.

cTrader vs MT4: While both cTrader and MetaTrader support algorithmic trading, cTrader has an advantage with its web-based platform, which offers a broader range of trading tools compared to MT4 Web. Meanwhile, MetaTrader's desktop version contains the algorithmic trading module – compared to cTrader, which requires the standalone cAlgo platform to run in parallel, a small but noteworthy difference.

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Pepperstone trading platform:

FeaturePepperstone
Virtual Trading (Demo) Yes
Proprietary Platform No
Desktop Platform (Windows) Yes
Web Platform Yes
Social Trading / Copy-Trading Yes
MetaTrader 4 (MT4) Yes
MetaTrader 5 (MT5) Yes
cTrader Yes
DupliTrade Yes
ZuluTrade No
Charting - Indicators / Studies (Total)51
Charting - Drawing Tools (Total)31
Charting - Trade From Chart Yes
Watchlists - Total Fields7
Order Type - Trailing Stop Yes

Research

Rank: 13th

Pepperstone's broad range of third-party social copy-trading platforms and research tools helps complement the content it develops in-house. Overall, Pepperstone delivers an okay balance of quality content across video and written format, which is a touch above the industry average.

Third-party tools: 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 is available to clients with an account balance of at least AUD 500. Finally, Delkos risk management tools are also available to Pepperstone clients.

In-house commentary: While Pepperstone's in-house research offers content such as "Daily Fix" and a "Chart of the Day" series, there are just a few articles and videos per week. To compete with industry leaders, including IG and Saxo Bank, Pepperstone will require more content in this area.

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Pepperstone research:

FeaturePepperstone
Daily Market Commentary Yes
Forex News (Top-Tier Sources) Yes
Weekly Webinars Yes
Autochartist Yes
Trading Central (Recognia) No
Delkos Research No
Social Sentiment - Currency Pairs Yes
Economic Calendar Yes

Education

Rank: 14th

Pepperstone has at least 22 trading guides organized by experience, including for beginner, intermediate, and advanced users. Dozens of videos are available for forex education. While Pepperstone is light on CFD content, it provides more forex content, but still trails education leaders such as FXCM or CMC Markets.

Articles: Besides nearly a dozen platform tutorials, Pepperstone has a "learn to trade forex" category with nine articles and one page in its CFD learning section. Pepperstone also holds a few webinars each month. For clients who deposit more than $2500, Pepperstone offers premium education content and trading signals from BK Forex.

Educational videos: Pepperstone's YouTube channel provides dozens of educational videos covering beginner to advanced themes, such as in its "Master the Trade" series. I found the content to be of high quality and in-line with the industry average for this category.

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Pepperstone education:

FeaturePepperstone
Has Education - Forex or CFDs Yes
Client Webinars Yes
Client Webinars (Archived) Yes
Videos - Beginner Trading Videos Yes
Videos - Advanced Trading Videos Yes
Investor Dictionary (Glossary) Yes
Tutorials/Guide (PDF or Interactive) Yes

Mobile Trading

Rank: 14th

There are multiple options for mobile trading at Pepperstone. Traders can choose either the MetaTrader 4 (MT4) or MetaTrader 5 (MT5) mobile app, or the cTrader app, all of which are available directly from their respective developers. While these apps are reliable and deliver a good experience, our testing found that the highest-ranked brokers offer proprietary mobile apps.

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Pepperstone mobile trading:

FeaturePepperstone
Android App Yes
Apple iOS App Yes
Alerts - Basic Fields Yes
Watch List Yes
Watch List Syncing Yes
Charting - Indicators / Studies30
Charting - Draw Trendlines Yes
Charting - Trendlines Moveable Yes
Charting - Multiple Time Frames Yes
Charting - Drawings Autosave Yes
Forex Calendar Yes

Final Thoughts

Pepperstone's niche offering of fewer than 200 instruments is for those traders who focus exclusively on forex and the most popular CFD markets (including spread-betting available in the UK and Ireland). Considering Pepperstone's low minimum deposit and excellent range of third-party platforms, Pepperstone caters to all forex and CFDs traders, regardless of experience level.

About Pepperstone

Founded in 2010 in Melbourne, Pepperstone is regulated in Australia, the UK, the UAE, and in the Bahamas. The brand has offices in the United States (US), United Kingdom (UK), China, and Thailand. Pepperstone processes, on average, $9.2 billion of trades daily for more than 110,000 retail trading accounts. Read more on Wikipedia about Pepperstone.

2021 Review Methodology

For our 2021 Forex Broker Review we assessed, rated, and ranked 27 international forex brokers over a three-month time period resulting in over 50,000 words of published research.

Each broker was graded on 108 different variables, including our proprietary Trust Score algorithm. This innovative scoring system ranks the level of trustworthiness for each broker based on factors such as licenses, regulation and corporate structure (read about Trust Score here).

As part of our annual review process, all brokers had the opportunity to provide updates and key milestones and complete an in-depth data profile, which we hand-checked for accuracy.

Ultimately, our rigorous data validation process yields an error rate of less than .1% each year, providing site visitors with quality data they can trust. Learn more about how we test.

Forex Risk Disclaimer

"There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses." Learn more.


Steven Hatzakis

About the author: Steven Hatzakis is the Global Director of Research for ForexBrokers.com. Steven previously served as an Editor for Finance Magnates, where he authored over 1,000 published articles about the online finance industry. Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level. Over the past 20 years, Steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative.

Trading CFDs, FX, and cryptocurrencies involve a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work. All data was obtained from a published website as of 12/14/2020 and is believed to be accurate, but is not guaranteed. The ForexBrokers.com staff is constantly working with its online broker representatives to obtain the latest data. If you believe any data listed above is inaccurate, please contact us using the link at the bottom of this page.

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