In-depth Pepperstone Forex Broker Review

Pepperstone user-ratings $200
10/10
10 of 10 points 1 reviews
  • Asset varierity - 10/10
    10/10
  • Trading platform - 10/10
    10/10
  • Support - 10/10
    10/10
  • Fees - 10/10
    10/10
  • Deposit/Withdrawal - 10/10
    10/10

Facts about the company:

  • Type: Forex and CFD broker
  • Regulation: FCA (UK), ASIC (AU), DFSA (UAE)
  • Minimum deposit: 200 Dollars
  • Demo account: Free
  • Markets: 150+ Forex, CFD, Indices, Stocks, Commodities, Crypto currencies
10/10
Comments Rating 10/10 (1 review)

Pros

  • Free demo account
  • Wide variety in trading options and services
  • Regulated by various official authorities
  • Offers further educational material
  • Has received a number of prestigious awards
  • Low spreads
  • High Liquidity

Cons

  • A registration for the demo account is required
  • Demo account expires after 30 days

About Pepperstone

Pepperstone is an Australian online broker specializing in foreign exchange trading. The Online Broker is headquartered in Melbourne, Australia. The Online Broker offers over 72 currency pairs, metals, commodities and crypto currency CFDs. The Online Broker was founded in 2010 by Owen Kerr and Joe Davenport.

Screenshot of the Landing page of Pepperstone

The history and vision of Online Broker

The financial company called “Pepperstone Group” was founded in 2010 as the parent company of “Pepperstone Limited” with the declared goal of making the “world of online trading” better. The motivation for this came from frustration with the delays in order execution to date as well as unfavorable trading conditions and unsatisfactory customer service. The founders wanted to counteract these factors with superior technology, fair prices, and helpful customer service and thus reposition themselves in the market.

By 2014, the company was already ranked number one among the “BRW-Fast Starters” with a turnover of USD 60 million and a growth rate of 66%.

The average volume of money processed per day is 12.5 billion USD trades; for this reason, Pepperstone is one of the largest forex brokers in the world. The online broker has a client base of more than 73,000 traders in over 150 different countries.

What awards has Pepperstone received?

Online Broker Pepperstone has received numerous awards from renowned analysts in recent years.

In 2018, for example, the Australian “Investment Trends Report” ranked the company number 1 in the spreads sector.The Investment Trends Report examines and analyzes the best Forex providers worldwide and evaluates them on the basis of customer experience.

More recently, Pepperstone has been recognized by the Global Forex Awards in 2019, which ranks Pepperstone as one of the “best-performing forex brands on a global and regional level”. In this context, Pepperstone received the “Best Global Forex ECN Broker” award on the one hand and the “Best Forex Trading Support – Europe” award on the other.

In addition, Pepperstone has also received several other prestigious awards, which can be viewed at any time on the website.

Regulation and deposit protection at Pepperstone

When it comes to choosing the right online broker, deposit insurance, and regulation by the appropriate authorities always plays an important role. Pepperstone is regulated by the UK Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and the Dubai Financial Services Authority (DFSA) in the UAE.

The strict separation of customer capital and company funds is also important. This ensures that customers are protected against major losses even in the unlikely event of the company’s insolvency. Deposit protection covers up to a monetary value of 66,016 Dollars.

What instruments can be traded at Pepperstone?

In terms of tradable instruments, the Online Broker offers its customers a wide range from which they can choose. Traders can trade over 150 different trading instruments, including forex, indices, and stocks, but also digital cryptocurrencies, for example. The trading instruments available for selection are briefly described below.

Forex

Initially, Pepperstone clients can trade more than 61 different currency pairs. The characteristic of Forex trading is the very high liquidity with a daily trading volume of more than 1.5 trillion US dollars. As a trader, you can trade the classic major currencies, but also numerous secondary and exotic currency pairs. Both commissions and spreads are kept comparatively very low, as we will see at a later point.

Apart from this, the online broker also places a high value on the high-quality execution of orders paired with a low latency period and without a dealing desk.

Index CFDs

Next, Pepperstone will also offer index CFD trading, allowing clients to further diversify their portfolio. Pepperstone is one of the few brokers to offer its clients extended trading hours with numerous different time zones. As a result, 14 well-known stock markets worldwide are available, through which market movements can be followed in real-time.

The index CFDs have no hidden fees, no requests and also score points for low latency.

Also of interest are the comments from experts at Pepperstone, which provide a helpful market analysis that helps to make informed trading decisions.

Equity CFDs

Online broker Pepperstone also offers over 60 different stock CFDs with low commissions starting at $0.02 per share. Trading in equity CFDs is used to hedge other positions in your portfolio.

With leverage of 5:1, the capital intensity is also manageable. The shares offered are of high quality and include well-known major companies such as Facebook, Apple, Boeing, IBM, and Exxon.

Raw materials

In addition, there are various commodities that can be traded on the trading platform. These include commodities such as cotton, coffee, and sugar, but also precious metals such as gold, platinum, and palladium. There are no commissions, the spreads are fair. Commodities are also suitable for further diversifying your own portfolio and thereby hedging it.

The required minimum trading volume for the commodities offered on Pepperstone is 10 cents per pip, whereby flexible levers up to 30:1 are not associated with commissions. The margin for trading commodities is generally between 5 and 10 percent.

Crypto Currencies

And trading the most popular digital currencies is also possible at Pepperstone. The online broker offers its customers CFD trading with five well-known cryptocurrencies. Bitcoin, Bitcoin Cash, Ethereum, Dash, and Litecoin can be traded. The leverage here is set at a factor of 5:1.

Bitcoin:Yes
Bitcoin Cash:Yes
Ethereum:Yes
Dash:Yes
Litecoin:Yes

The special feature of the cryptocurrency market is that these have very high volatility, which can be exploited by traders for their own benefit. And even when trading cryptocurrencies, customers do not have to pay a commission fee.

Currency Index CFDs

Last but not least, trading in currency index CFDs is also possible with the online broker Pepperstone. The difference between this and normal foreign exchange trading is that the change of a certain currency can be compared with that of several other currencies at the same time.

The USDX is the benchmark in this context, which measures six majors against the US dollar. Clients can trade with a leverage of up to 5:1.

Deposits and withdrawals at Pepperstone

At this point, we would like to briefly outline the various ways of depositing or withdrawing funds at Pepperstone. The Online Broker offers a number of methods for deposits, which usually do not incur any fees.

The Online Broker generally accepts

  • Visa
  • Mastercard
  • Bank transfer

Usually a payout via bank transfer takes three to five days.

Spreads and commissions at Pepperstone

Factors such as spreads and commissions play a particularly important role in the selection of the appropriate online broker.

In principle, spreads are variable on the MetaTrader 4 and MetaTrader 5 platforms. Via the Razor account, the spread can even be reduced to as low as 0 pips for the EUR/USD currency pair in some cases. Of course, the spreads differ depending on the trading instrument and also on the account type. If you are interested, you can view the individual spreads on the website.

In terms of commissions, the minimum fees start at AUD 3.50 in each direction and USD 0.02 per share. Pepperstone offers standard, mini, and micro contract sizes to meet the different needs and requirements of clients.

Since the conditions are also primarily dependent on the type of account selected, the following is a brief look at them.

The account types at Pepperstone

As mentioned earlier, Pepperstone offers its customers two different account types. Depending on the account type selected, you will receive the corresponding conditions.

Basically, however, there are a number of advantages that are always there, regardless of the account type chosen. These can be illustrated as follows:

  • Maximum trading size of 100 lots possible
  • At the opening of the account, the minimum balance is 200 Dollars
  • The minimum trade size shall be 0,01 lots
  • Leverage of up to 30:1
  • Available base currencies: GBP, USD, EUR, CHF
  • scalping, hedging, expert advisors allowed
  • No-Dealing-Desk Procedure
  • The individual characteristics of the Standard and Razor account types are then illustrated in more detail.

Standard

Let’s first take a look at the standard account type. This account type is relatively clear and uncomplicated since all fees are included in the spread.

  • Average spread EUR/USD: 1.0 – 1.3 pips
  • Commission: $0
  • Rollover swaps: According to the market prices, visible in the respective trading platform
  • Recommended for: Beginners in trading

Razor

Now the conditions of the Razor account type are to be examined more closely. This is particularly suitable for customers who have a special trading style and already have a certain amount of experience. In this case, this account type may be more efficient. The conditions of this account type are as follows:

  • Average spread EUR/USD: 0.0 – 0.3 pips
  • Commission: From 6,17 Dollars roundturn per Standard Lot
  • Rollover swaps: According to the market prices, visible in the respective trading platform
  • Recommended for: Scalpers and traders who work with algorithms

What trading platforms are offered at Pepperstone?

The next step is to take a closer look at the trading platforms on which clients can trade at Pepperstone. The online broker relies on the platforms MetaTrader 4, MetaTrader 5, and cTrader. It is advantageous that each of these trading platforms is available free of charge on the smartphone as well as on the tablet and computer.

MetaTrader 4

The trading platform MetaTrader 4 is one of the most popular of its kind on the market. The platform is suitable for both beginners and advanced traders. Characteristic for the software is the uncomplicated user interface, which scores with numerous functions in an individually adaptable trading environment. Among the advantages and features of MetaTrader 4 are the following:

  • Helpful analysis tools to aid decision making
  • 85 pre-installed indicators for a better overview of market trends
  • Flexible order types, which are adapted to the chosen strategy
  • 28 additional Smart-Trader-Tools
  • Autonomous trading
  • Backtesting function for Expert Advisors
  • Display of numerous charts for quick and effective control of your own positions

MetaTrader 5

The MetaTrader 5 platform, on the other hand, is particularly recommended for clients who are looking for advanced trading functions and analysis tools. And this trading platform also convinces with its uncomplicated user interface, which is easy to control. Compared to MetaTrader 4, this platform has the following additional features and advantages:

  • Faster processing speed
  • Position hedging is possible
  • Integrated business calendar
  • 38 available indicators
  • Maximum of 500 orders
  • 21 Time frame
  • Advanced Pending Orders

CTrader

The trading platform cTrader is also a user-friendly software with a variety of useful functions and tools. The main goal of cTrader is to provide both simple tools and more complex functions to satisfy the needs of beginners and advanced traders. The advantages of cTrader can be summarized as follows:

  • Detailed trading analysis to create a fundamental understanding of your own strengths and weaknesses
  • Wide range of selectable indicators
  • Detailed order tickets, including base currency value in US dollars or pip difference
  • Multiple Take Profit orders can be set
  • Variety of helpful learning videos

What tools are available at Pepperstone?

In order to trade successfully, you usually need useful tools that allow you to manage your trading processes more efficiently. In this context, Pepperstone, the online broker, offers a whole range of different and helpful tools that clients can make use of. For this reason, the various tool groups offered by Pepperstone will be briefly described below.

Smart-Trader Tools

First and foremost, the so-called Smart-Trader Tools should be emphasized. These are expert advisor tools that help to improve the execution and control of trades. With the help of these tools, trading strategies can be optimized and risks minimized. The Smart-Trader Tools comprise a total of 28 trading apps. However, a detailed execution of all tools in this area would go beyond the scope of this article. If you are interested, you can view them at any time on the Pepperstone website. Therefore, only three essential Smart-Trader tools will be briefly described below:

  • Mini-Terminal and Smart-Lines: These risk management tools serve as support to reduce the existing risks in the best possible way.
  • Trade-Terminal: All trades can be made without problems from only one terminal.
  • Correlation Matrix: Non-correlating currency pairs can be traded.

cTrader Automate

This tool allows traders to test and perfect their own strategies. This is realized through trading robots and personalized indicators using the well-known C# programming language and the cTrader API. This API includes a variety of helpful tools and allows traders to do the following, among others:

  • Delivery of essential market information
  • Trading History
  • All order types and position modification settings
  • Data on symbols, accounts, connectivity, and error messages to generate automatic strategies with exact information

AutoChartist

A fundamental challenge in trading is to recognize which movements in the market are important. The AutoChartist tool hides irrelevant market data and highlights those currency pairs, market data, and technical indicators that indicate large market movements. For this reason, AutoChartist is an important tool to find relevant market movements so that you can take advantage of them at the right time

Furthermore, AutoChartist provides automated notifications when emerging and complete chart patterns such as “triangles, wedges, highs and lows” are detected.

API Trading

As mentioned above, Pepperstone, the online broker, supports automated trading via its API (Application Programming Interface Trading). This technology allows users to develop their own customized systems. The advantages of this can be summed up in a nutshell:

  • Customers get the chance to gain deep market insight
  • Separate customer account provides security for the capital invested
  • Selection of several liquidity providers, so that the optimal price can be identified

Demo account at Pepperstone

Before deciding on a live account with Pepperstone, you have the option of testing the Online Broker via a demo account. All you need to do is register without obligation using an e-mail address and password and then download the platform. You can then trade on the Pepperstone demo account over a period of 30 days and try out various trading strategies.

The demo account is equipped with a virtual balance of 59,021 Dollars, the market prices are real and appear in real-time.

Registration:Required
Duration:30 days
Virtual balance:50,000 Dollars

Offers for further education

For interested dealers, Pepperstone also offers a number of further training opportunities on its website. These include a variety of online resources as well as trading guides and expert webinars in English.

Furthermore, the online broker also provides all interested parties with some helpful articles on the subject of trading, which primarily cover the basics and are therefore recommended for beginners.

The customer service at Pepperstone

The Online Broker also has a support area on its website in case questions arise. The focus here is on a clearly arranged FAQ sector, which answers the most frequently asked questions briefly and concisely. Apart from that, there is also the possibility to contact the Online Broker directly. For this purpose, an e-mail address as well as a British telephone number is provided.

Support available:24/5
Telephone:+44 (800) 0465473
Address:support@pepperstone.com
Languages:6 languages

Conclusion

On the Internet, the reviews of customers are predominantly positive. The online broker can score points in particular with its broad selection of tradable instruments and fair trading conditions. In addition, Pepperstone is strictly regulated by recognized authorities and is therefore subject to strict conditions. Only the initial investment of 200 Dollars alone may be an obstacle for some. The bottom line is that the Australian broker is a good choice for trading.


Most asked questions:

How is Pepperstone regulated?

Not only is this online broker regulated by the UK Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC) but also by the Dubai Financial Services Authority (DFSA) in the UAE.

Do you need to register for a free demo account?

Yes, you have to complete a registration for the usage of a demo account for 30 days. By providing an e-mail address as well as an individual password, you are not obliged to keep using the trading service after this period of time.

What can you trade on Pepperstone?

The online broker offers a variety of options, including forex and CFD trading. Furthermore, stocks, indices, commodities and crypto currencies are also available to choose.

How many Platforms does Pepperstone provide?

In total, there are three possible platforms that you can pick: MetaTrader 4 as well as MetaTrader 5 and CTrader.

One Response

  1. Andre Witzel September 8, 2020

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