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Pepperstone Review

Steven Hatzakis

Steven Hatzakis | October 9th, 2020

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.6% 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 excellent customer service alongside one of the largest selections of third-party platforms, including multiple social copy trading options.

Top Takeaways for 2020

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. Our testing also found customer service to be excellent.

Overall Summary

FeaturePepperstone
Overall 4 Stars
Trust Score90
Offering of Investments 3.5 Stars
Commissions & Fees 4 Stars
Platform & Tools 4 Stars
Research 4 Stars
Mobile Trading 3.5 Stars
Customer Service 4 Stars
Education 3.5 Stars

Is Pepperstone Safe?

help 90
Trust Score

Pepperstone is considered low-risk, with an overall Trust Score of 90 out of 99. Pepperstone is not publicly traded and does not operate a bank. Pepperstone is authorised by two tier-1 regulators (high trust), one tier-2 regulator (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) Learn more about Trust Score.

Regulations Comparison

FeaturePepperstone
Year Founded2010
Publicly Traded (Listed) No
Bank No
Tier-1 Licenses2
Tier-2 Licenses1
Tier-3 Licenses1
Trust Score90

Offering of Investments

Rank: 24th (of 30)

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

FeaturePepperstone
Forex: Spot Trading Yes
Currency Pairs (Total Forex pairs)61
CFDs - Total Offered127
Social Trading / Copy-Trading Yes
Cryptocurrency traded as actual No
Cryptocurrency traded as CFD Yes

Commissions & Fees

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 0.16 pips on the EUR/USD in the Razor account (as of August 2020) is comparable to the industry average after including the commission of 0.70 pips to calculate the all-in cost of 0.86 pips on MT5 and 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 1.16 pips, as of August 2020.

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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FeaturePepperstone
Minimum Initial Deposit$200.00
Average Spread EUR/USD - Standard1.16 (August 2020)
All-in Cost EUR/USD - Active0.86 (August 2020)
Active Trader or VIP Discounts Yes

Platforms & Tools

While Pepperstone lacks a proprietary platform, it offers nearly every third-party platform a trader could ever want to use. Overall, we were impressed.

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 third consecutive year in 2020.

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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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
Charting - Indicators / Studies (Total)51
Charting - Drawing Tools (Total)31
Charting - Trade From Chart Yes
Watchlists - Total Fields7
Order Type - Trailing Stop Yes

Research

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

Education

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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Mobile Trading

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.

Gallery

FeaturePepperstone
Android App Yes
Apple iOS App Yes
Trading - Forex Yes
Trading - CFDs Yes
Alerts - Basic Fields Yes
Watch List Yes
Watch List Syncing Yes
Charting - Indicators / Studies30
Charting - Draw Trend Lines Yes
Charting - Trend Lines Moveable Yes
Charting - Multiple Time Frames Yes
Charting - Drawings Autosave No
Forex Calendar No

Customer Service

To score Customer Service, ForexBrokers.com partnered with customer experience research group Customerwise to conduct phone tests from locations throughout the UK. For our 2020 Review, 330 customer service tests were conducted over six weeks.

Results

  • Average Connection Time: <1 minute
  • Average Net Promoter Score: 7.9 / 10
  • Average Professionalism Score: 8.5 / 10
  • Overall Score: 8.42 / 10
  • Ranking: 4 th (22 brokers)

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. 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.

Pepperstone Trading Features

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
Charting - Indicators / Studies (Total)51
Charting - Drawing Tools (Total)31
Charting - Trade From Chart Yes
Watchlists - Total Fields7
Order Type - Trailing Stop Yes

Pepperstone Research Features

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

Pepperstone Mobile App Features

FeaturePepperstone
Android App Yes
Apple iOS App Yes
Trading - Forex Yes
Trading - CFDs Yes
Alerts - Basic Fields Yes
Watch List Yes
Watch List Syncing Yes
Charting - Indicators / Studies30
Charting - Draw Trend Lines Yes
Charting - Trend Lines Moveable Yes
Charting - Multiple Time Frames Yes
Charting - Drawings Autosave No
Forex Calendar No

2020 Review Methodology

For our 2020 Forex Broker Review we assessed, rated, and ranked 30 international forex brokers over a five month time period. Each broker was graded on 105 different variables and, in total, over 50,000 words of research were produced.

While encouraged, broker participation was optional. Each broker had the opportunity to complete an in-depth data profile and provide executive time (live in person or over the web) for an annual update meeting.

All data submitted by brokers is hand-checked for accuracy. Ultimately, our rigorous data validation process yields an error rate of less than 1% each year, providing site visitors 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 web site as of 01/20/2020 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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