Pepperstone is an Australian-based forex trader that has gained popularity within the financial markets due to its diversity, high security, and favourable fees. Pepperstone is highly regulated and secure, thanks to its robust security measures, which help protect user funds and data from hacks.
Commitment to excellence has seen the broker win multiple prestigious awards from some of the most prominent organisations within the financial industry, including Deloitte, Investment Trends, and Compare Forex Brokers. Below we take a look at various aspects of the broker and see if it's worth your time and money.
Pepperstone Review Overview
Pepperstone boasts over 150 financial instruments, including forex, share, index, commodities, fiat currency, and cryptocurrencies. The broker is popular with scalpers thanks to its tight spreads, fast executions, and automated trading solutions. Unlike other brokers who require at least 100 units of base currency as a deposit, this platform asks for only one unit, and deposits can be made using several payment methods like credit cards and bank transfers. There is a demo account to practice your trading, and you can trade with leverage of up to 500.
3 Reasons to Use Pepperstone
Access many assets to trade
The broker offers over 150 financial instruments across FX, cryptocurrencies, commodities, equities, indices, energy, and many more, which can be traded on three excellent platforms. Also, given the fact that you can trade with as low as 1 unit of the base currency, it's ideal for scalpers with orders executed in milliseconds.
Value for money and security
You will enjoy the transparency of this broker. Pepperstone offers access to raw spreads, allowing its users to know exactly what they are being charged from a liquidity provider and how much the platform makes. This, coupled with regulation from ASIC, FCA, DSFA, and SCB and high security, should have you relaxed and focused on trading only.
Get a decent reward for referring a friend
For a platform that has no minimum deposit, a reward of 100 Australian dollars seems too high. But, that is the reality of Pepperstone. Once you sign up, you will have your own referral link, which you can invite as many friends as you want and make a decent sum from the endeavour.
What is Pepperstone?
Pepperstone was established in 2010 by Owen Kerr and Joe Davenport as they sought to resolve issues with online brokers within the financial markets. Some of these issues included slow trade executions, high fees, and poor customer support. The broker is headquartered in Melbourne, Australia.
According to Kerr, "they looked at the foreign exchange landscape and came up with ideas on how they could create a better broker experience through automation and technology." And the idea seems to have worked, according to Davenport, who says the two founders saw an opportunity, so they developed a product and brought it to the market, and so far it has been highly successful.
In 2014 Pepperstone was ranked number one on BRW Fast Starters after a 66% growth that saw its revenue hit $60 million. The firm would sell most of its business to Champ Private Equity in March 2016, but 2.5 years later, its senior management would buy back the stake led by the CEO Tamas Szabo. From the beginning, Pepperstone has utilised the services of several third-party traders like MT4, MT5, and Zoho CRM. However, in 2012 it developed its own alternative to MT4 known as EDGE FX. Currently, the firm has around 175 employees.
Two separate legal entities offer Pepperstone's services today. These include Pepperstone Limited, which serves clients from the UK and EEA countries. The FCA regulates this company, and due to this, it offers FSCS protection of up to 50,000 GBP per person. The other firm is Pepperstone Group limited, which caters to clients based outside the UK and EEA countries and is regulated by the AFSL.
How Does it Work
Pepperstone offers two different account types when signing up; the standard account and the Razor account, which all serve different trading needs. These accounts can be accessed through the services of third-party traders MT4, MT5, and cTrader, which are available through the web, desktop app, and mobile app. The platform makes its money through spreads, swaps, and commissions by employing the services of different liquidity providers and other pricing sources, thereby offering competitive quotes and low spreads on various financial instruments.
The broker also has plenty of research tools that one can utilise to make informed trading decisions. There are plenty of educational resources for traders of all skill levels, including guides, videos, and even webinars. If you want detailed market reports, there is a section dedicated to market analysis where all events that can impact the markets are covered.
Incredibly, you don't have to be an expert trader to make money on this platform since you can engage in social trading by copying successful traders to make money. To enable you to engage in this activity, Pepperstone has partnered with some of the world's leading social trading platforms in Myfxbook, MetaTrader Signals, and DupliTrade.
How does Pepperstone Make Money?
Pepperstone makes most of its money from tight spreads, swaps, and low commissions. The spreads vary depending on the hours and the amount of trading activity going on. They are sourced from different sources, ensuring traders get the best prices on the platform. During liquid times, these spreads can go to 0 on the Razor account. Swap rates are charged for positions held overnight, and the commissions are quite decent and transparently displayed on the platform.
Pros & Cons of Pepperstone
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Breaking Down Pepperstone: Our Analysis and Review
Below we will take a look at a few aspects of Pepperstone that help it stand out compared to other traders. From regulation and licenses to security and different nations from where you can access this broker.
Regulation, Licenses, and Security
The parent company behind this broker (Pepperstone Group LTD) is regulated by the Australian Securities and Investments Commission (ASIC) under ABN number 12 147 055 703. The license was awarded on October 27, 2010. The regulation offers the broker an edge when compared to other brokers and inspires confidence among customers. As part of its ASIC regulation, the platform is protected by the Act of Grace mechanism. Also, users have protection from damages thanks to the Scheme for Compensation for Detriment caused by Defective Administration.
Pepperstone LTD is the body that serves UK and EEA traders. It's regulated by the Financial Conduct Authority (FCA) with the license awarded on May 8, 2015, under the registration number 684312.
Additionally, earlier this year, the company received a forex license in Dubai from the DFSA. The broker will operate in the emirate under Pepperstone Financial Services (DIFC) Limited, its local subsidiary. The permit allows the company to offer its services to residents of other Gulf states.
Supported Countries on Pepperstone
The full list of countries supported on Pepperstone can be seen by scrolling down the drop-down menu on the account registration form. Unfortunately, the services of the broker are not available to US residents, and it has something to do with the fact that the SEC doesn’t regulate this platform.
Is Pepperstone Secure?
Pepperstone has always maintained high standards when it comes to security but was hacked recently, according to a statement made on August 6. One of its service providers was compromised using malware by hackers leading to the breach. However, the company was quick to reassure customers that the attackers didn't do much damage.
No funds were lost even though they may have accessed personal information used to login on the platform. Breaches occurring is nothing new. It happens to any business handling money, but what is commendable about this situation is that the company was able to detect the intrusion immediately it occurred and move swiftly to tighten loose ends.
The level of transparency is impressive too. The platform also protects users in case of bankruptcy, or any other misfortune befalls the company. Thanks to the UK investor protection fund, customers within the EU have the protection of up to 85,000 euros. Unfortunately, those outside the EU aren't so lucky.
There is also negative balance protection for forex spot trading, but this only applies to retail clients within the EU.
Key Services and Additional Features
Pepperstone offers many unique features on top of excellent trade executions and low spreads, making it attractive to traders interested in various markets it provides. Below we will take a look at six features that you will find alluring on this platform.
Access to various markets
Pepperstone offers a range of market opportunities. You can trade forex in one of the most liquid markets - from FX majors, minor, and exotics, at low commissions and competitive spreads. Forex can be traded with up to 500:1 leverage.
You can also trade commodities like coffee, cocoa, and many others with up to 500:1 leverage. And finally, there are cryptocurrencies. You don't need to have an exchange wallet to trade cryptos on the platform.
Access to three top trading platforms
Pepperstone offers its users access to three top trading platforms where they can place trades using mobile phones, the web, or even on the desktop. There is MetaTrader 4, the world's most popular trading platform where you can identify high profitability trades using the Autochartist. Then there is the MetaTrader5, which improves on MT4, and it's even more powerful, and finally, there is the CTrader, which is perfect for beginners.
Access a Plethora of Educational Resources
This broker has a section flooded with educational resources for traders of all skill levels. You can also learn how to trade forex and analyse the market through charts, technical analysis, and even attending webinars.
Plenty of research and analysis
Pepperstone supports plenty of research tools that one can utilise to make informed trades. These include compressive coverage of global economic events that have the potential to impact markets, including videos and expert commentary from top market analysts. There is also an economic calendar that shows key events likely to influence the market.
Access help through customer support
The customer support on this platform is excellent and quite responsive. You will see an icon on the bottom right on the dashboard where you communicate to the support through a live chat and receive immediate help. If the issue isn't resolved, you can seek additional assistance by writing to them via email or making a direct call.
Learn as you earn using social trading
Pepperstone is one of the few brokers that allow traders to engage in social trading. The activity is highly rewarding, especially for new traders or anyone that hasn't mastered trading successfully. You can follow and copy trades from experts using the help of third-party services while you learn the craft at your own pace.
Supported Cryptocurrencies on Pepperstone
On Pepperstone, you can trade five top crypto coins. There are no commissions charged, and you can hedge on a single account. The coins include Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), and Dash.
Pepperstone offers trading through three third-party platforms; MetaTrader 4, MetaTrader 5, and cTrader. You are free to choose whichever trader suits your needs best. All of them offer different perks. Despite the launch of MT5 a few years ago, MetaTrader 4 remains the most popular trading platform in the world and for good measure. The trader is highly customisable, offers over 28 indicators when combined with smart trader tools, helps the user identify high probability trades using the Autochartist, and helps you build and run expert advisors.
Still, MetaTrader 5 is quite powerful and boasts greater functionality. It has access to some markets that are not available through MT4. You can use and code easily using MQL5, enjoy faster processing and inbuilt indicators, and tailor your trading style through advanced customisation.
Then there is cTrader with an intuitive design and suitable for those getting started with trading. It replicates an institutional trading environment and allows the users to control slippage and order fills using some of its advanced features.
Also, there are tools that help you manage your trading risk, improve your strategy, and generally stay in the know. These include; Smart Trader Tools for MetaTrader, cTrader Automate, Autochartist, and API trading.
Pepperstone Trading Platform at a Glance
As we have mentioned before, Pepperstone offers its trading platform through the web, mobile, and desktop. The web trading platform is available in 41 different languages, ensuring it caters to its diverse customer base. During our research, we found the trading platform to be highly customisable. You can easily change the size and position of the tabs. Its search function is fantastic, and you can find assets grouped in different categories. When it comes to placing orders, there is the market, limit and stop order. And two order time limits, i.e., good till cancelled (GTC) and good till time (GTT). You can set alerts and notifications on the desktop trading platform and access detailed portfolio and fee reports by clicking on the "History" tab.
The mobile app is available for both Android and IOS users.
Deposits and Withdrawals on Pepperstone
Traders on Pepperstone can fund and withdraw their money on this broker using several ways, including bank transfers, credit and debit cards, PayPal, Neteller, Skrill, POLi, Union Pay, and BPay. Bank transfers can take up to five business days, but other options should be fast. Also, Pepperstone offers more payment modes than many other top brokers, which is quite impressive.
As for withdrawals, bank transfers may incur some fees, but the rest of the modes are free. However, it should be noted that payment processors may carry their own hidden fees when making transfers. Also, to facilitate the payment and for the sake of adhering to AML regulations, the name of the account you use to transfer funds has to match with your name.
Payment Methods Accepted by Pepperstone
Payment methods accepted by Pepperstone include:
- Credit/debit cards
- Union Pay
- Bank transfer
Minimum Deposit Required by Pepperstone
Pepperstone doesn't have a minimum deposit, but you can start with at least 200 of the base currency due to the margin requirements of trades. But, whatever you choose to deposit is up to you.
Minimum Trade Size for Cryptocurrencies on Pepperstone
The minimum trade size for cryptocurrencies on Pepperstone is one unit of the coin.
Pepperstone Fees and Spreads
Fees and spreads on Pepperstone are competitive, and this offers traders an opportunity to develop their portfolios in a low-cost environment. If you are using the Razor account, you will likely experience spreads of around 0.16 pips and a commission of 7 euros on the EUR/USD.
The commission on this account usually is seven units of the base currency. The standard account doesn't charge any commissions, but its spreads are a bit higher. For the same EUR/USD pair, you will experience spreads of about 1.16 pips.
The broker notes that the spreads can go as low as 0 pips of the Razor account for the trading pair during liquid times.
The standard spread for USD/JPY is the same as that of EUR/USD on both accounts, but that of GBP/USD is a bit higher at 0.40 on the Razor account and 1.40 on the standard account.
There are overnight charges incurred for positions held open overnight. They are applied on your account each day, even on weekends, and they are set at benchmark regional interest rates for the underlying product plus or minus a fixed charge of 2.5%
Pepperstone Registration Process
The registration process at Pepperstone is easy and straightforward. All one needs to do is visit the broker's official website and create an account by entering their email address and then clicking on "Get Started." Proceed to choose the account type you would like to operate, select your country of residence, and set a strong password. The next step will require you to enter personal details before you can continue to confirm your identity by uploading a government-issued ID. The document will be reviewed, and if everything checks out, the account will be verified. Now you are free to fund the account and start trading.
Valid proof of address documents are as follows:
- Bank statement which shows the transaction paid or owed
- Utility bills such as mobile, gas, water, or internet
How to Trade Cryptocurrencies on Pepperstone
There are five necessary steps required to trade cryptocurrencies on Pepperstone:
Step 1 – Open an eToro account.
Step 2 – Search for the crypto which you would like to buy.
Step 3 – Click on "Trade."
Step 4 – Insert your desired investment amount.
Step 5 – Click on "Open Trade."
Our Pepperstone Conclusion
Pepperstone is an excellent platform and one of the top brokers. It's easy to trade on this platform, thanks to social trading that allows users to copy the trades of the most successful individuals on the platform using DupliTrade, Myfxbook, and MetaTrader Signals. The fees and commissions offered are quite competitive. You will be impressed by the vast number of tradable financial instruments offered on the platform, which can be traded via the web, desktop, or mobile app.
Unlike other brokers that impose minimum deposits, this platform doesn't have any limits, and there are plenty of methods available when it comes to funding your account.
This broker is definitely for any trader who cares about choosing a well-regulated platform that is reliable with very tight spreads.
The broker allows one to hold up to 100 live accounts as long as they have at least ten units of currency in as many live accounts.
All withdrawals are processed within 24 hours on business days. But, how quickly the funds get to your account will depend on the method you have chosen. Bank transfers will take 1 - 5 business days, while PayPal, Neteller, and Skrill can take up to 2 business days.
Unlike many brokers, this platform allows its users to enter and exit trades quickly thanks to its efficient trading platform that helps fast trade executions.
Yes. The ASIC regulates this platform in Australia and the FCA in the United Kingdom.