78% of Pepperstone Limited’s retail investor accounts lose money when trading CFDs

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Pepperstone Review

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Pepperstone Limited (Pepperstone UK) is an online forex and CFD broker providing traders with low-cost pricing across all forex, CFDs and commodities with the security of financial regulation and customer support.

Pepperstone offers a range of online trading platforms including MetaTrader 4 (MT4), cTrader, WebTrader and mobile apps for iPhone, Android and tablets. Pepperstone also recently announced that it will be offering the MetaTrader 5 (MT5) platform to traders. By building on the success of the MetaTrader 4 Platform, MT5 offers faster processing times, the ability to hedge positions, advanced pending orders and more tools and indicators.

All client funds are segregated in trust accounts with custodian banks including National Australia Bank (Australia) and Barclays (UK). Pepperstone is authorised and regulated by the Australian Securities and Investment Commission (ASIC) and the Financial Conduct Authority (FCA).

Pros

  • Segregates client funds
  • Established in 2010
  • Regulated by Financial Conduct Authority,UK and ASIC
  • Min. deposit from $200

Cons

To open a live account, you’ll need a minimum deposit of at least $200. Alternatively, Pepperstone offers a demo account that you can use to practice and familiarise yourself with their platform.

Regulated by the Financial Conduct Authority, UK (FRN: 684312), and ASIC (AFSL #414530). Pepperstone puts all client funds in a segregated bank account and uses tier-1 banks for this. Pepperstone has been established since 2010, and have a head office in Australia.

Before we dive into some of the more detailed aspects of Pepperstone ’s spreads, fees, platforms and trading features, you may want to open Pepperstone ’s website in a new tab by clicking the button below in order to see the latest information directly from Pepperstone.

Visit Pepperstone

Full disclosure: We may receive a commission if you sign up with a broker using one of our links.

Pepperstone screenshot Open a demo account

78% of Pepperstone Limited’s retail investor accounts lose money when trading CFDs

What are Pepperstone's spreads & fees?

Like most brokers, Pepperstone takes a fee from the spread, which is the difference between the buy and sell price of an instrument.

The spreads displayed below are based on the minimum spreads listed on Pepperstone’s website. The colour bars show how competitive Pepperstone' spreads are in comparison to other popular brokers featured on BrokerNotes.

Pepperstone
EUR/USD (Average: 0.7 pips) 1.0 pips + $5.00 0.7 pips 0.1 pips
GBP/USD (Average: 1.1 pips) 1.1 pips + $5.00 1.7 pips 0.1 pips
USD/JPY (Average: 1.1 pips) 1.1 pips + $5.00 0.6 pips 0.1 pips
AUD/USD (Average: 0.8 pips) 1.1 pips + $5.00 0.6 pips 0.2 pips
USD/CHF (Average: 2.3 pips) 1.0 pips + $5.00 2.3 pips 0.2 pips
USD/CAD (Average: 2.9 pips) 1.0 pips + $5.00 0.5 pips 0.3 pips
NZD/USD (Average: 3.6 pips) 1.1 pips + $5.00 2.8 pips 0.3 pips
EUR/GBP (Average: 2.4 pips) 1.0 pips + $5.00 0.5 pips 0.1 pips

Spreads are dynamic and are for informational purposes only.

As you can see, Pepperstone’s minimum spread for trading EUR/USD is 1.0 pips - which is relatively high compared to average EUR/USD spread of 0.70 pips. Below is a breakdown of how much it would cost you to trade one lot of EUR/USD with Pepperstone vs. similar brokers.

See all Spreads

How much does Pepperstone charge to trade 1 lot of EUR/USD?

If you were to buy one standard lot of EUR/USD (100k units) with Pepperstone at an exchange rate of 1.1719 and then sell it the next day at the same price you would likely pay $7.7. Here’s a rough breakdown of the fees and how this compares against IG & Forex.com .

Pepperstone IG Forex.com
Spread from: $ 0.00 $ 6.00 $ 10.00
Commission: $0.00 $0.00 $0.00
Total cost of a 100k trade: $ 0.00 $ 6.00 $ 10.00
$6 more $10 more
Visit Pepperstone Visit IG Visit Forex.com

All fees/prices are for informational purposes and are subject to change.

General Fees

  • Pepperstone does charge inactivity fees
  • Pepperstone doesn’t charge withdrawal fees*

Commissions

  • Pepperstone does charge commission on CFD shares

What can you trade with Pepperstone?

Pepperstone offers over 89 different instruments to trade, including over 70 currency pairs. We’ve summarised all of the different types of instruments offered by Pepperstone below, along with the instruments offered by IG and Forex.com for comparison.

FX / Currencies Pepperstone IG Forex.com
# of forex pairs offered 70 90 80
Major forex pairs Yes Yes Yes
Minor forex pairs Yes Yes Yes
Exotic forex pairs Yes Yes Yes
Cryptocurrencies Yes Yes Yes
Commodity CFDs Pepperstone IG Forex.com
# of commodities offered 0 34 12
Metals Yes Yes Yes
Energies Yes Yes Yes
Agricultural No Yes Yes
Index & Stock CFDs Pepperstone IG Forex.com
# of Stocks offered 0 8000 220
UK Shares No Yes Yes
US Shares No Yes Yes
German Shares Yes Yes Yes
Japanese Shares No Yes Yes
See Pepperstone's InstrumentsSee IG's InstrumentsSee Forex.com's Instruments

What’s the Pepperstone trading experience like?

1) Platforms and apps

Pepperstone is one of the few brokers that offer both of the MetaTrader platforms; MT4 and MT5. To see how the two platforms compare, you can read our comparison of MT4 vs MT5 here. Pepperstone is one of a handful of brokers that offer the cTrader platform developed for traders looking for a STP/ECN solution. For a list of forex brokers that offer the cTrader platform, check out our comparison of cTrader brokers. The combination of downloadable platforms for both Mac and Windows allows traders to trade with their device of choice.

Pepperstone Screenshot

Pepperstone also offer mobile apps for Android and iOS, making it easier to keep an eye on and execute your trades while you are on the move.

See Pepperstone 's platforms

Trading Features:

  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection

Accounts offered:

  • Demo account
  • Mini account
  • Standard account
  • ECN account
  • Islamic account

Still not sure?

Open a practice account & learn to trade

2) Executing Trades

Pepperstone allows you to execute a minimum trade of 0.01 Lot. This may vary depending on the account you open. The maximum trade requirements vary depending on the trader and the instrument. As Pepperstone offer ECN and STP execution, you can expect very tight spreads with more transparency over the price you’re paying to execute your trades.

As a market maker, Pepperstone may have lower entry requirements compared to an ECN broker who benefits from a higher volume of trades and typically has larger capital and minimum trade requirements. Market makers typically have a lower minimum deposit, smaller minimum trade requirements and no commission on trades.

As a nice bonus, Pepperstone are one of very few brokers that claim to have no requotes, so you don’t have to worry about slippage (your trades being ordered at a different price to what you executed them at ).

As with most brokers, margin requirements do vary depending on the trader, accounts and instruments. You can see the latest margin requirements on their website.

Pepperstone also offers a number of useful risk management features, such as stop losses (with trailing stops), limit orders negative balance protection price alerts and much more. You can see all of the account features offered by Pepperstone here.

Finally, we’ve listed some of the popular funding methods that Pepperstone offers its traders on the right.

Funding methods:

  • Credit cards
  • Bank Transfer
  • PayPal
  • Skrill
  • Payoneer
  • Neteller

3) Client support

Pepperstone support a wide range of languages including English, Spanish, Polish, Chinese, Japanese, Korean, Vietnamese, and Arabic.

Pepperstone has a BrokerNotes triple AAA support rating because they offer a wide range of languages and support options.

4) What you’ll need to open an account with Pepperstone

As Pepperstone is regulated by Financial Conduct Authority,UK and ASIC , every new client must pass a few basic compliance checks to ensure that you understand the risks of trading and are allowed to trade. When you open an account, you’ll likely be asked for the following, so it’s good to have these handy:

  • A scanned colour copy of your passport, driving license or national ID
  • A utility bill or bank statement from the past three months showing your address

You’ll also need to answer a few basic compliance questions to confirm how much trading experience you have, so it’s best to put aside at least 10 minutes or so to complete the account opening process.

While you might be able to explore Pepperstone’s platform straight away, it’s important to note that you won’t be able to make any trades until you pass compliance, which can take up to several days, depending on your situation.

To start the process of opening an account with Pepperstone you can visit their website here.

CFDs are leveraged products and can result in the loss of your capital. All trading involves risk. Only risk capital you’re prepared to lose. Past performance does not guarantee future results.
This post is for educational purposes and should not be considered as investment advice. All information collected from https://pepperstone.com/ on 01/12/2019.