Pepperstone Review 2020 - Verified Customer Reviews

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4.5
User Rating
4.4
(60)
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Pepperstone Review

Updated November 05, 2020
4.5
Score breakdown
Pricing: 4.5
Regulation: 5
Popularity: 4
User Rating: 4.4 (60)

Pepperstone overall score rank: 5 out of 35

Pepperstone forex broker review
KEY TAKEAWAYS

  • Competitive trading costs
  • Accepts Japanese clients
  • Regulated in the UK, Australia and Dubai
  • Fast deposits and withdrawals

Regulations and Money Protection

5.0  


Entity Name Pepperstone Markets Limited (BA) Pepperstone Group Limited (AU) Pepperstone Limited (UK) Pepperstone Financial Services (DIFC) Limited
Licence & Regulation Bahamas SIA Licence Australia ASIC Licence UK FCA Licence Dubai DFSA Licence
Client Money Protection ✔️ - segregated client money
Deposit Compensation Scheme ✔️
up to £85,000
Negative Balance Protection ✔️

Entity/Regulation

  • International customers: Pepperstone Markets Limited will be the counterparty for International customers. This entity, located at Sea Sky Lane, B201, Sandyport, Nassau, New Providence, The Bahamas is registered in the Bahamas, with company number 177174 B. The company is trading as Pepperstone Markets Limited and is regulated by the Securities Commission of The Bahamas with license number SIA-F217. 

  • Australian customers: Pepperstone Group Limited (ACN 147 055 703), located at Level 16, Tower One, 727 Collins Street, Melbourne, VIC 3008, Australia, is licensed by the Australian Securities & Investments Commission (ASIC) with license number ASFL 414530. Pepperstone Group Limited is registered to carry out financial services business in Australia, limited to the financial services covered by its AFSL license.

  • UK customers: Pepperstone Limited is a company registered in England and Wales under number 08965105. Registered office: 70 Gracechurch Street, London EC3V 0HR, United Kingdom. Pepperstone Limited is authorised and regulated by the Financial Conduct Authority (FCA) with registration number 684312.

  • UAE customers: Pepperstone Financial Services (DIFC) Limited is registered at Al Fattan Currency House, Tower 2, Level 15, Office 1502 A, P. O. Box 482087, DIFC, Dubai, United Arab Emirates and is regulated by the DFSA under license number F004356. Pepperstone Financial Services (DIFC) Limited is a wholly owned subsidiary of Pepperstone Group Limited. The product issuer is Pepperstone Group Limited registered and licensed by Australia's ASIC.

Client Money Protection

  • Pepperstone complies with the highest safety standards for client's funds. For this reason, Pepperstone client's funds are kept in top-tier international banks, such as the Barclays Bank and the National Australian Bank (NAB), fully segregated from the company's funds.

  • Pepperstone also complies with the client money handling rules and employs strict policies and procedures regarding the maintenance and operation of these accounts. Pepperstone holds client's money separately to the company funds and does not use these funds for any operational expenses or purposes.

Deposit Compensation Scheme

Only the UK company (Pepperstone Limited) offers a deposit compensation scheme. Pepperstone Limited is a member of the Financial Services Compensation Scheme (FSCS), an independent compensation fund of last resort for customers of authorised UK financial services firms. If Pepperstone Limited is unable to pay claims against it in the event the firm has stopped trading or has declared to be in default, clients might be entitled to compensation, up to the value of £85,000 per claim.

Negative Balance Protection

  • Only Pepperstone Limited (UK entity) offers Negative Balance Protection. The broker has an automated stop-out policy designed to minimise losses and to take action before the market moves further against open positions. The level at which the automated stop-out occurs depends on the platform used and the policy regarding covering negative balances varies depending on the circumstances.

  • For MT4/5 accounts, the automated stop-out system will begin to close out trades when account equity falls below 20% of the margin requirements (ie. margin level falls below 20%). For cTrader accounts, the automated stop-out system will begin to close out trades when account equity falls below 50% of the margin requirements (ie. margin level falls below 50%. All the other Group entities do not offer a NBP protection mechanism, meaning that your loses can exceed your account balance.

Accounts, Instruments and Platforms

Accounts Instruments Platforms Social trading Maximum Leverage
✔️Standard
✔️Razor
❌PAMM
✔️Islamic Accounts
✔️Forex
✔️Indices
✔️Stocks
❌Futures
❌ETFs
❌Bonds
✔️Commodities
✔️Cryptos
✔️MT 4
✔️MT 5
✔️cTrader
✔️Myfxbook
❌ZuluTrade
✔️Mirror Trader
✔️Duplitrade
30:1 UK

500:1 Rest of World

Account types and currencies

  • Pepperstone has two types of trading accounts; Standard and Razor. Pepperstone also offers swap-free accounts for traders of Islamic belief.

  • Pepperstone also allows for social trading, including copy trading, via Myfxbook, Mirror Trader and Duplitrade.

  • Pepperstone does not have any PAMM accounts alternatives for money managers.

  • Pepperstone maximum leverage is 30:1 for accounts opened within Europe and 500:1 for accounts opened in other countries around the world.

  • Currently, Pepperstone trading accounts are available in AUD, CHF, EUR, GBP, JPY, NZD, SGD, USD and HKD.

Financial instruments

Trading with Pepperstone can be done via the MetaTrader 4 and 5 platforms and cTrader. All the trading platforms are available for desktop and mobile trading. The broker offers a limited selection of about 150 assets to trade, including Forex, indices, stocks, commodities, futures and cryptocurrencies.

  • FX market - 60+ currency pairs (including Minor and Exotic crosses).

  • Indices - 14 world indices including UK 100, NIKKEI 225 and AUS 200. Also within the indices range, 10 futures contracts of the same worldwide indices.

  • Stocks - 60+ shares from American top companies and banks, such as Amazon, Bank of America, Intel or Facebook.

  • Commodities - 15 commodities CFDs available for trading; 7 metals (Gold, Silver, Platinum and Palladium included), 3 energies including UK Oil, US Oil and Nat Gas and 5 soft (Coffee, Cotton, Sugar, Coccoa and Orange Juice).

  • Cryptocurrencies - 5 CFDs crosses for trading, including Bitcoin, Ethereum, Dash and Litecoin.

Pricing

4.5  


Pricing/
Account
Standard Razor
Spread EUR/USD from 1.0 pip from 0.0 pip
Commissions (1 lot) from 7 AUD/ GBP 4.59
Minimum Deposit from 200 AUD from 200 AUD

Spreads

Pepperstone's trading fees are, in general terms, low. But there are two clear and independent fee structures, depending if the account is a Standard or a Razor.

With a Standard trading account, there are no trading commissions, but the typical spread for the EUR/USD ranges from a minimum of 1.0 pip to an average of 1.3 pip. We consider this spread to be slightly higher compared with other top brokers.

On the other hand, the Pepperstone Razor account is more competitive, compared with the Standard, with lower spreads. For the EUR/USD pair the spread starts at 0.0 pip, with a typical spread of 0.3 pip. To get the benefit of the lower spread, Pepperstone charges a commission. The standard lot commission for 1 lot (100,000 units) is 7.00 AUD (3.50 AUD per side, per lot), or the equivalent on your account currency.

Rollover Rates

Regarding swap rates, Pepperstone does not publish or let any third-party software publish them on their behalf. As the broker states on their website "You can find our latest swap rates on our trading platforms. Swap rates posted on our platforms are indicative rates and are subject to change based upon market volatility." Therefore, the only way to find out the current rollover rates with the broker is by opening an account. In this case we can’t compare Pepperstone with other brokers to see if holding a 1 lot EUR/USD, long or short, is cheaper or more expensive.

Deposits/Withdrawals and Other Fees

  • Deposit fees - Trading accounts can be opened in 9 different currencies and maintained via 9 different funding methods, including cards, bank wires and e-payments such as Neteller, PayPal and FasaPay. Deposited funds are available almost instantly. Pepperstone does not charge any fees for deposits.

  • Withdrawals fees - Same policy applies for withdrawals (processing times are typically 2 working days). Pepperstone does not charge any additional fees for withdrawals. However, there is a $20 fee for bank withdrawals for clients outside the EU and Australia.

  • Inactivity fee - Pepperstone does not charge an inactivity fee or any account maintenance fees.

Popularity

4.0  


Forex
Education
Deposit
Options
Deposit/Withdrawals Fees Non expiring demo account Customer
Support
Webinars
Video Tutorials
Fundamental & Technical Analysis
Market Insights
Cards
Bank Wire
E-payments
✔️ Multi language
24/5 Support
Live Chat

Established in 2010, with headquarters in Melbourne, Australia and offices in China, Thailand, Ukraine, United Kingdom and the United States, Pepperstone caters for traders from all over the world, also with the multitude of account currencies available – from AUD to SGD.

Pepperstone is also a popular Forex broker amongst traders for the variety of trading platforms on offer. Traders can choose the more traditional MT4, MT4 MultiTerminal, MT5 to Multi-Account Manager (MAM) and cTrader.

  • Trading accounts - The Pepperstone Razor account is a popular choice with traders looking to save on trading costs, with a lower spread and a competitive commission of $7.00 per lot traded. Extra points for Pepperstone's policy of no fees on deposits or withdrawals.

  • Forex education - Pepperstone also gets a few extra popularity points for their range of Forex education materials, available through the Education tab. Pepperstone clients can find market analysis, video tutorials, Forex trading course and webinars.

Funding Methods Bank Wire, Broker to Broker, China Union Pay, FasaPay, Neteller, Paypal, POLi, Local Bank Transfer
Support Languages Arabic, English, French, German, Italian, Polish, Portuguese, Russian, Spanish, Thai, Vietnamese

  • Minimum deposit - Opening a trading account with Pepperstone is fast and very easy, all done via the web. The minimum deposit requirement with Pepperstone is 200 AUD. Of course, if your base account currency is not in AUD, then you will need to deposit the equivalent when opening an account.

  • Customer support - Pepperstone loses a couple of points with traders for their customer support service. We found several traders complaining about the support quality. Multi language customer support service is available 24 hours, 5 days a week, in 11 languages. Pepperstone's support is available via phone call, contact form, email and live chat directly from the broker's website.

Broker Profile

With headquarters in Australia, the Pepperstone Group is an execution-only Forex broker that provides trading solutions sophisticated enough for veteran traders, yet, simple enough for the Forex novice.

Based in Melbourne, Australia, the company was founded in 2010 by a veteran management team with years of experience in the Forex and technology industries. The company holds an AFSL (Australian Financial Services License) issued and is regulated by the Australian Securities and Investment Commission (ASIC). Pepperstone is also regulated and licensed in the UK by the FCA (Financial Conduct Authority) and in Dubai by the DFSA.

Pepperstone offers direct access to multiple liquidity providers in the Forex market, without the usual burdens of a deal desk. They aim to make Forex trading fairer, more professional and convenient for traders.

Overall, on our Pepperstone review, the broker scores a well-deserved 4.5 out of 5 as it is a very reputable choice for traders looking for a highly regulated broker. Also a positive note for the tight spreads (Razor account only) and for the great choice of trading platforms and Forex education materials.

Data supplied in partnership with CashBackForex - Forex Rebates places Pepperstone on the top 3 brokers for popularity with traders opening an account in 2020.


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Pepperstone User reviews

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Pepperstone user rating score rank: 6 out of 35

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Pepperstone Products

Forex
Indices
Metals
Commodities (coffee, sugar...)
Oil/Energies
Bitcoin
Cryptocurrencies