If you’re already into online trading, you might be familiar with Pepperstone.
Pepperstone is an Australian forex and CFD site that serves clients worldwide.
The site is one of the top platforms for high-volume traders, thanks to its tight spreads. But it attracts plenty of others as well since it provides low-cost options. But low cost is not their only strength, as you will see in my review.
To give you more insights into this popular trading site, I tried the platform and found several interesting features.
So before you consider using Pepperstone, it might be helpful for you to read my review. Hopefully, by the end, you’ll find out whether or not this platform is for you.
Table of Contents
Introduction to Pepperstone
Before we go deeper into its features and options, let’s get to know the company. Pepperstone is an Australian-based forex broker that gives you access to trading instruments like indexes, shares, commodities, and crypto CFDs.
Founded by Owen Kerr and Joe Davenport in 2010, the company has expanded internationally to Dubai, Cyprus, London, and Kenya. They hit another stride when Champ Private Equity bought out a majority of the share in 2016.
Today, the company processes an average of $12.55 billion of trades every day with a client base of over 400,000 around the world.
Not only does Pepperstone boast heavy traffic in trades and users, but it has also received multiple prestigious awards from Trends, Deloitte, and Compare Forex Brokers.
Their latest ones are Good Money Guide 2023 Best MT4 Broker, DayTrading Broker of The Year Awards 2023, and TradingView Broker of the Year 2022.
Although it has acquired various achievements, Pepperstone still gives massive efforts to improve and innovate.
The company aims to provide low-cost spreads, quick executions, superior technology, and excellent customer support.
That’s why it still manages to be one of the world’s top platforms for forex trading.
How to Create & Close an Account at Pepperstone
When I tried opening an account at Pepperstone, it took about 15 minutes until it was finished. Safe to say that Pepperstone provides a swift, seamless, and easy way to sign up.
Before you go ahead and sign up, there are several documents you need. These include a copy of your government-issued ID and proof of address. You can use your driver’s licence or passport as ID and utility bills or bank statements for proof of address.
There are two different accounts that you can choose when you join Pepperstone: Standard and Razor.
If you’re a beginner, I suggest you use the Standard account. It has a simpler interface with basic features and has zero commission with 1 Percentage in Point or pip markup on the raw spread.
On the other hand, the Razor account caters to scalpers and traders that want to run the Expert Advisors. For this account, you’ll be offered raw spreads from 0.0 pips with a commission fee.
Pepperstone also has a free demo account that you can use to practice for beginners or those who are new to the platform. And if you’re a professional client, you can use their Active Trader program for rebates on trades and other benefits.
To close your account in Pepperstone, you can simply contact customer service and request an account deactivation from them.
Product Range of Pepperstone
Pepperstone offers only forex and CFD trading, with more than 1,200 instruments. Their product range includes:
- Forex: More than 60 currency pairs with tight spreads.
- Commodities: Precious metals (gold and silver), major metals, soft commodities, and energy are available with quick execution and tight spreads.
- Index CFDs: You can trade on the movement of 14 major stock markets without commission
- Crypto: They provide 10 cryptos available with features such as stop loss, take profits and pending orders. Unfortunately, UK retail traders are barred from using it as of January 2021.
- Capitalise.ai: Available with MT4, this allows you to save time by providing code-free automation so you can trade around the clock.
- Currency index CFDs: You can trade the value of one currency against another with this product.
- Social trading: With this product, you can gain access to a large social trading community to engage in copy trading. You can enjoy features like Myfx book, MetaTrader Signals, and DupliTrade.
- Spread betting: This gives you access to automated trading, competitive spreads, and swift execution. There are no tax implications for UK residents, which I think is a plus. There’s also an advanced version that professionals can use.
- ETFs: There are more than 100 ETF CFDs that track the performance of equity markets in over 35 countries. The territories offered are Asia Pacific, North America, Europe, the UK, South America, and the Middle East.
Features of Pepperstone Trading Platform
Pepperstone is compatible with mobile, web-based, and desktop trading; so you can choose which of the three you’re most comfortable with.
Their platforms include MT4, MT5, cTrader, and TradingView for Razor accounts.
Below is a more detailed review of each feature and platform:
- Mobile trading format: In the mobile format, you can choose between MT4, MT5, and cTrader. It’s also available in several languages that you can choose from. Some drawbacks include no two-step authentication and notifications. It’s a shame because I think this is something that they can easily add for better service and protection.
- Web-based trading format: The only available platform is MetaTrader in the web-based trading format. It also has no notification and two-step authentication. A plus point in the web-based platform is you can place basic order types, such as market, limit and stop, and order time limits.
- Desktop trading format: In my opinion, this is the best version. It has all the functionality offered in both mobile and web-based platforms as well as email and mobile push notifications.
- MT4: MetaTrader4 is one of the most popular platforms, with a fully customisable interface and extensive charts. You can also enjoy the live demo account, automated trading bots, copy trading, and advanced indicators.
- MT5: The latest version of MT, has the same tools provided by MT4 with updated functionality. It’s suitable for more experienced traders, so I don’t recommend beginners use this platform.
- cTrader: One of the most user-friendly platforms out there that’s great for both beginners and intermediate users. They provide indicators, detailed order tickets, instructional videos, and trade analysis.
- TradingView: Only available for those who sign up for Razor accounts. The features include charting, social trading, coding, automation, indicators, economic calendar, and data loss protection.
Pepperstone Research & Education
The company has a great research section that provides commentary, videos, and coverage. There’s also Autochartist, which will give you trading ideas based on their technical analysis.
Aside from that, Pepperstone has Charting and Smart Trader Tools to help you make trading decisions. Lastly, there’s a daily newsletter called the Daily Fix to provide you with more information on political and economic news.
Pepperstone also has great educational and instructional videos that aid you to use the platform and trade in general.
Aside from their demo account, you can access all their materials on their YouTube channel. Although these instructional tutorials are great, I think they can improve this by adding interactive quizzes to maintain engagement with the audience.
Is It Expensive?
One of Pepperstone’s strengths is its low fees, which is why it’s popular among high-volume traders and beginners.
Here is a breakdown of their fees:
- Standard account: You will be charged based on spread only without a commission fee. On average EUR/US, the spread is 0.60 pips. This offers the best value for beginner and intermediate traders.
- Razor account: The average spreads will be at 0.17 pips on EUR/US. I think this is one of the lowest spreads compared to other Forex brokers I’ve seen. You will also be charged commissions based on your platform, currency, and trading volume.
- MetaTrader: They have MT4 and MT5 platforms that you can use, and commissions will be based on the currency you choose. The commission is GBP 0.02 (GBP 0.05 round turn) per 001 lots or 1000 base currency.
- cTrader: There is a $6 round-trip commission for cTrader. For instance, you’ll be charged $3 to open a contract and $3 to close it for a trade of $100,000.
- Trading View: Same rate as cTrader.
- Swap rate: You’ll be charged a swap rate for holding your CFD or your spread position overnight. For CFD and spread bet indices, the rate is at 2.5%. Another potential fee is LIBOR if you’re long, but you’ll receive it if you’re short.
Savings Accounts & Withdrawal
This is another service that Pepperstone does well, as I think it’s pretty seamless and quick. They also have free deposits and withdrawals, so it’s a big win for clients.
If you want to withdraw money, you simply select the Funds tab in your account and withdraw funds. You’ll be shown a selection of withdrawal methods and after you choose one they’ll send an email to you for confirmation.
Safety & Security
Since this platform has been trading internationally for more than a decade, I think it’s pretty fair to say they have a secure system.
It’s regulated by several jurisdictions based on their operational hubs, such as:
- Financial Conduct Authority
- Australian Securities and Investments Commissions
- The Federal Financial Supervisory Authority
- Capital Markets Authority of Kenya
- Securities Commission of the Bahamas under Pepperstone Markets Limited
- Cyprus Securities and Exchange Commission
Aside from the aforementioned authorities, clients are also protected by the following schemes:
- EU’s Cyprus Investor Compensation Fund up to €20,000
- UK’s investor protection fund up to €85,000
- Germany and Austria’s 90% claims on securities up to €20,000 and 100% up to €100,000
- Negative balance protection for retail clients in the UK
Customer Support
The customer support at Pepperstone is great.
According to online reviews, it scored a high 4.6 on Trustpilot, citing helpful staff and quick response. You can also reach them via several different channels such as phone, email, Whatsapp, or using online chat on the site.
Aside from the different channels, they also provide support in multiple languages, namely English, Vietnamese, Thai, and Russian. This can be helpful for international traders who are looking for detailed explanations.
One point of complaint for Pepperstone is the fact that it’s only available for 5 days a week. Which means there’s limited support on the weekend. One user mentioned how they needed to wait two days until their issue was resolved due to this.
I didn’t have any issues with customer service. All my questions were answered promptly by the support team, both via Whatsapp and the live chat feature. But for people who are more active on weekends, this can pose a problem.
Who Should Use Pepperstone?
With different platforms and accounts available on Pepperstone, it caters to different markets at the same time.
Whether you’re a beginner or an experienced trader, the site is versatile enough to welcome anyone who is a forex and CFD trader.
But since it does not offer real stocks or ETFs, Pepperstone might not be suitable for those who are looking for said products.
Alternatives to Pepperstone
This platform may not be suitable for all traders, especially those looking for product ranges or features that are not available on Pepperstone.
Here are several alternatives to Pepperstone that you can try instead:
- Alpari: One of the largest forex brands, Alpari supports more platforms compared to Pepperstone. It also offers a free trial period, which is a plus for clients who are still finding their best options.
- AvaTrade: A much more versatile site that offers a more extensive product range compared to Pepperstone, with the crypto exchange as one of their strengths.
- CopyFX: This platform offers a similar product range, with a more simplified user interface.
Pepperstone Pros & Cons
Pros
- Low cost, tight spreads, and limited commissions
- No inactivity fee
- Provides extensive information via Pepperstone Research
- Swift sign-up and execution
Cons
- Customer service is only available during weekdays
- Their mobile and web platforms are lacking in two-step authentication and notifications
Pepperston Review – Final Thoughts
Overall, the site is versatile enough for both beginner and experienced traders, especially for those who are forex and CFD traders. It still has minor shortcomings, but the platform is worth a shot.
I hope that my review has given you some insights into what Pepperstone has to offer. You can now make a more informed decision about whether it’s the right trading platform for you.
FAQs
Can Pepperstone be trusted?
Yes, based on its regulation by the Financial Conduct Authority (FCA), Pepperstone can generally be considered trustworthy.
Does Pepperstone work in the UK?
Yes, Pepperstone operates and provides its services in the United Kingdom. Traders based in the UK can access and utilise Pepperstone’s offerings for their financial trading activities.
Is Pepperstone suitable for beginners?
Yes, Pepperstone can be a suitable choice for beginners who are new to financial trading. The platform offers user-friendly interfaces, educational resources, and support to help beginners navigate the trading process. With access to various trading tools and a range of markets, beginners can start their trading journey with Pepperstone and gradually develop their skills and knowledge.