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Pepperstone Review

Steven Hatzakis

Steven Hatzakis | October 18th, 2019

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% 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.

Pepperstone offers a small set of tradeable products but provides forex and CFD traders with competitive pricing and one of the largest selections of third-party platforms, including numerous options for social copy trading.

Top Takeaways for 2019

After spending several hundred hours testing 28 forex brokers over six months for our third annual forex broker review, here are our top findings on Pepperstone:

  • Founded in 2010, Pepperstone is regulated in two tier-1 jurisdictions, making it a safe broker (average-risk) broker for trading forex and CFDs.
  • Catering to algorithmic traders, Pepperstone offers both the cTrader and MetaTrader platform suites. Also, Pepperstone provides multiple premium platform add-ons to enhance MT4.
  • Alongside finishing Best in Class (top 7) for MetaTrader, Pepperstone also finished Best in Class for copy trading, thanks to offering one of the largest selections of social trading platforms.
  • Pepperstone provides a small selection of tradeable products, but pricing is competitive with the commission-based Razor Accounts, which include active trader rebates for eligible traders.
  • Pepperstone offers consistently reliable customer service. The broker finished 8th (out of 23) in our national testing from locations across the United Kingdom.

Overall Summary

FeaturePepperstone
Overall 3.5 Stars
Trust Score79
Offering of Investments 3 Stars
Commissions & Fees 4 Stars
Platform & Tools 3.5 Stars
Research 4 Stars
Mobile Trading 3 Stars
Customer Service 4 Stars
Education 3 Stars

Is Pepperstone Safe?

help 79
Trust Score

Pepperstone is considered average-risk, with an overall Trust Score of 79 out of 99. Pepperstone is not publicly traded and does not operate a bank. Pepperstone is authorised by two tier-1 regulators (high trust), zero tier-2 regulators (average trust), and zero 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). Learn more about Trust Score.

Regulations Comparison

FeaturePepperstone
Year Founded2010
Publicly Traded (Listed) No
Bank No
Tier-1 Licenses2
Tier-2 Licenses0
Tier-3 Licenses0
Trust Score79

Offering of Investments

Rank: 23rd (of 28)

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

FeaturePepperstone
Forex: Spot Trading Yes
Currency Pairs (Total Forex pairs)59
CFDs - Total Offered86
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 a good range of options on its pricing plans, with its commission-based Razor Account being the best choice.

Account types: Pepperstone offers two pricing models depending on the account type you open, ranging from the commission-based Razor Account to the Standard Account, which incorporates commissions into the prevailing spreads. Fees can also vary slightly, depending on the platform you choose to trade.

Razor Account: The Razor Account can be used with either the MetaTrader (MT4) 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 October 2019) are comparable to industry peers when factoring in the commission of 0.753 pips to calculate the all-in cost of 0.91 pips on MT4 (or 0.86 pips on 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, according to Pepperstone.

Active traders: Pepperstone’s active trader program offers discounts on the applicable commission rates - depending on the amount you deposit and your expected trading volumes - helping to boost its ranking in the active trader category. A minimum of 200 lots is required to qualify for the lowest tier, with a rebate of $1.00 per standard lot, and applies only to Razor accounts.

Order-Routing: Pepperstone uses its EDGE infrastructure to help bridge the MetaTrader platform with liquidity providers to whom it routes your order for execution while incorporating its Pepperstone Price Improvement (PPI) technology to help improve execution rates. This EDGE technology is a highly proactive approach for an agency broker.

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FeaturePepperstone
Minimum Initial Deposit$200.00
Average Spread EUR/USD - Standard1.16 (as of May 19)
All-in Cost EUR/USD - Active0.86 (as of May 19)
Active Trader or VIP Discounts Yes

Platforms & Tools

While Pepperstone lacks a proprietary platform, it offers a 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 (desktop and web), MT4 Multi-terminal, MT5, 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 platform from Tradency, the ZuluTrade platform, and myFxbook for MT4, in addition to the native signals markets from MT4 and cTrader. The addition of Chasing Returns and DupliTrade ($5,000 minimum required) for social-copy trading further expanded the firm's offering.

cTrader vs MT4: While both cTrader and MT4 support algorithmic trading, cTrader has an advantage with its web-based platform, which offers a wider range of trading tools compared to MT4 Web. Meanwhile, the desktop version of MetaTrader 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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Research

Pepperstone's broad range of third-party social copy-trading platforms and research tools helps counterbalance its limited range of in-house content.

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.

Market analysis: When it comes to fundamental and technical analysis, Pepperstone offers content from third-party analysts. For example, the FX Weekly analysis from Boris & Kathy of BK Forex provides an "Event Risk Calendar Forecast" report. Trading Economics, a provider of market data, powers the firm's economic calendar.

In-house commentary: While Pepperstone's in-house research offers content such as "Daily Fix" and a "Chart of the Day" series, it lacks overall. To compete with industry leaders, including IG and Saxo Bank, Pepperstone will require more content in this area.

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Mobile Trading

Mobile trading at Pepperstone is conduct with either the MetaTrader 4 (MT4) or MetaTrader 5 (MT5) mobile app, or the cTrader app, all of which are available directly from the developer. While these apps are reliable and deliver a respectable experience, our testing found that the highest-ranked brokers offer proprietary apps.

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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 2019 Review, 229 customer service tests were conducted over six weeks.

Results

  • Average Connection Time: <1 minute
  • Average Net Promoter Score: 6.4 / 10
  • Average Professionalism Score: 4 / 10
  • Overall Score: 7.2 / 10
  • Ranking: 8th (23 brokers)

Final Thoughts

With barely 145 instruments available to trade, Pepperstone's niche offering is for those traders who focus exclusively on forex and the most popular CFD markets.

Considering Pepperstone's low minimum deposit and an 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 and the UK and has offices in the United States (US), United Kingdom (UK), China, and Thailand. The broker processes, on average, $12.55 billion of trades each day (October 2019).

Pepperstone is best known for its extensive selection of third-party trading platforms. Pepperstone offers not only the full MetaTrader suite but also cTrader and a complete variety of copy-trading platforms.

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 No
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

2019 Review Methodology

For our 2019 Forex Broker Review we assessed, rated, and ranked 28 international forex brokers over a six month time period. Each broker was graded on 81 different variables and, in total, over 60,000 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 involves 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 02/18/2019 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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