Pepperstone Review 2021 - Verified Customer Reviews

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4.5
User Rating
4.4
(84)
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Pepperstone Review

Updated August 25, 2021
4.5
Score breakdown
Pricing: 4.5
Regulation: 5
Popularity: 4
User Rating: 4.4 (84)

Pepperstone overall score rank: 4 out of 45

Pepperstone forex broker review

Risk Warning: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.4% of retail investor accounts lose money when trading spread bets and CFDs with Pepeprstone Markets Limited. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

KEY TAKEAWAYS

  • Competitive trading costs with the Razor account
  • Good offering of social trading platforms
  • Regulated in Europe, Australia and Dubai
  • Fast deposits and withdrawals

Regulations and Money Protection

5.0  


Entity Name Licence & Regulation Client Money Protection Deposit Compensation Scheme Negative Balance Protection
Pepperstone Markets Limited (BA) Bahamas SCB Licence ✔️
segregated client money
✔️
Pepperstone Group Limited (AU) Australia ASIC Licence ✔️
Pepperstone Limited (UK) UK FCA Licence ✔️
up to £85,000
✔️
Pepperstone EU Limited Cyprus CySEC Licence ✔️
up to €20,000
✔️
Pepperstone Financial Services (DIFC) Limited Dubai DFSA Licence ✔️

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.

  • European 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.

    Pepperstone EU Limited is a company registered as a Cyprus Investment Firm (CIF), and authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) with licence number 388/20. Pepperstone EU Limited registered office is at 142 Franklin Roosevelt Avenue, Limassol, Cyprus. The CySEC licence allows Pepperstone EU Limited to carry out brokerage activities in Europe, as an intermediary in the financial markets, respecting the MiFID obligations.

  • 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

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.

The Cyprus regulated company, Pepperstone EU Limited, is a member of the Investor Compensation Fund (ICF), an investor compensation fund for clients of registered CIF companies, and its functions are regulated by the CySEC directive DI87-07. If Pepperstone EU Limited is unable to meet its obligations, retail customers can be entitled to financial compensation, up to the value of €20,000 per claim, irrespective of the number of accounts held, currency and place of offering of the investment service.

Negative Balance Protection

  • All entities on the Pepperstone group offer 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%. The other Group entity, Pepperstone Markets Limited, does not offer a NBP protection mechanism, meaning that your losses 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 Europe

30:1 Australia

200:1 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 Australia, and 200:1 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 great selection of over 1,000 assets to trade, including Forex, indices, stocks, ETFs, commodities, and cryptocurrencies.

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

  • Indices - 23 world indices including UK 100, NIKKEI 225 and AUS 200.

  • Stocks - 900+ shares CFDs from several markets, including 600+ shares from the NSYE and NASDAQ of American top companies and banks, such as Amazon, Bank of America, Intel or Facebook. Also available, top equities from the UK's LSE, Germany's XETRA and Australia's ASX.

  • ETFs - 100+ ETFs CFDs of several sectors including mining, energy, technology, bond markets and retail, tracking the overall performance of the equity markets in 35 countries and across 6 continents.

  • Commodities - 32 commodities CFDs available for trading; 12 metals, including Gold, Silver, Platinum and Palladium included, 4 energies including UK Oil, US Oil and Nat Gas and 16 soft, including Coffee, Cotton, Sugar, Cocoa and Orange Juice.

  • Cryptocurrencies - 11 CFDs crosses for trading, including Bitcoin, Doge, Ethereum, Dash and Litecoin. Also available for trading, Uniswap, Crypto 10, Crypto 20 and Crypto 30.

Pricing

4.5  


Pricing/
Account
Standard Razor
Spread EUR/USD from 0.6 pip from 0.0 pip
Commissions (1 lot) from 7 USD
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 0.6 pip to an average of 0.7 pip. We consider this spread to be competitive when compared with other top brokers.

On the other hand, the Pepperstone Razor account is even 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 0.1 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 USD (3.50 USD 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
❌ - 30 days 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 rating score rank: 6 out of 45

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Pepperstone Products

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