- 1 Pepperstone Review
- 2 What Are the Pros and Cons of Pepperstone?
- 3 Is Pepperstone Safe?
- 4 Available Assets
- 5 Account Opening
- 6 Commissions and Spreads
- 7 Leverages
- 8 Trading Platform
- 9 Deposit and withdrawal
- 10 Pepperstone License
- 11 Are your Funds Safe?
- 12 Special Offers
- 13 Our best advise for you
- 14 Pepperstone Breakdown
- 15 About Us
- 16 Methodology
Pepperstone offers several unique trading accounts. The Edge Standard account is intended for regular traders, offering STP processing and interbank spreads on the popular MT4, while the Razor account is targeted at advanced and EA traders and offers lower spreads (and, of course, higher trading costs). There is an additional account offered to high volume traders and institutional partners – the Edge Active Traders account, which offers higher level of service: superior ECN EDGE execution and also an experienced and dedicated manager working with the account holder. What is more, there is a swap-free account compliant with Sharia law available at Peperstone.
Why do we think that? First off, it covers some important features – more than many other Forex broker. Just check out what it’s got for.
Pepperstone is Known For:
Number 1 for spreads. Lightning-fast execution and Exceptional client service, see more.
What Are the Pros and Cons of Pepperstone?
- Strong regulation (ASIC and FCA)
- Very tight spreads
- Variety of trading platforms
- Multiple account types
- Positive slippage
- Does not offer bonuses
- No proprietary platform
Is Pepperstone Safe?
Forex Broker Expert reviews brokers for readers across the whole world to know whether they worth your time or not. We use a trust score algorithms to asses risk level. They major criteria we use in grouping a forex broker in to risk levels include total years in business, which regulatory licenses each firm holds, is the broker publicly traded in any stock exchange as well as our manual in house check.
Pepperstone has a trust rating of 80% which shows low risk. The Melbourne-based company operating this broker, Pepperstone Group LTD., is licensed as a dealer of financial securities by two tier 1 licensing authorities including Australian Securities & Investment Commission (ASIC) and the Financial Conduct Authority (FCA). ASIC requires licensed financial services providers to meet strict capital requirements and to comply with various internal procedures for risk management, accounting and audits. As for the minimum capital requirement, ASIC requires forex brokers to hold at least $ 1 million in order to provide financial services legitimately. The UK regulatory authority FCA requires forex brokers to possess a minimum of 730 000 EUR. Despite the regulation and the requirements set to brokers, one should be aware of the risks of trading Margin FX and CFDs.
The reason for a relatively lower trust rating is majorly because of the following: Pepperstone is not publicly traded, does not operate a bank and it is relatively new(Founded in 2010).
|Headquarters Location||Melbourne, Australia|
|Company Min. Capital(ASIC)*||$ 1 million|
|Company Min. Capital (FCA)*||730 000 EUR|
*Company Min. Capital(FCA) – Minimum capital requirement by FCA to open a financial service in United Kingdom.
The broker offers its clients options to trade forex (more than 70 currency pairs); Total of CFDs offered on Indices, precious metals, energy, and cryptocurrencies. There are no actual cryptocurrency traded.
|CFDs – Total Offer||86|
|Cryptocurrency traded as actual||No|
Pepperstone account opening is great. It is fully digital and user-friendly. On the negative side, it can take several days. All the Pepperstone account types requires AUD$200 minimum account opening balance and available in 10 base currency including AUD, USD, JPY, GBP, EUR, CAD, CHF, NZD, SGD and HKD.
The following table summarizes the different investment accounts available to Pepperstone clients.
|Account type||Minimum deposit||Min. trade size||Maximum leverage||Average Spreads|
|Edge Razor Account||$200 AUD||0.01 (micro lot)||1:500||0.8 pips + $7 per lot|
|Edge Standard Account||$200 AUD||0.01 (micro lot)||1:500||1.2 pips|
|Edge Swap Free Account||$200 AUD||0.01 (micro lot)||1:500||1.2 pips|
How to open your account
The account opening is easy and fully digital. The online application takes roughly 10-15 minutes. The account approval can be slow, it took four business days for us.
Four steps of Pepperstone account open:
- Register your email and password, confirm your email, and you advance on to the Secure Client Area
- Fill out your personal information, and set the currency
- Complete trading expertise survey
- Upload a copy of your passport/ID, and a utility bill or some other proof of address.
If a problem occurs, you can get help from the email and the live chat. They help you in many ways, e.g. you can send them copies of your ID/Passport, and they will upload it for you.
Commissions and Spreads
Commissions are available only on the Razor accounts which comes with very tight spreads. The Standard account is commission free but with a higher spread.
The commissions charged on Edge Razor Account amounts to $3.5 per 100k traded. When you choose this account type you can receive a very tight spread that only larger traders could otherwise access.
For the spreads on Forex pairs, we usually look at the EURUSD pair because it is the most popular.
The average spread amount to 1.2 pips on the EUR/USD for the Edge Standard account and 0.8 pips for the Edge Razor account.
What’s more, there is a non trading fee in the form of admin charges applicable to the Islamic account type, if a trade has been held for 3 days or more. Their amount ranges from 3 to 150 points, depending on the currency pair.
In many countries now, there are now limits to leverage use. For instance the max leverage allowed in US is 50:1 and in Japan leverage is limited to 25:1. Australia is still a resort for traders seeking for regulated brokers with high leverages. The maximum leverage provided by Pepperstone is 500:1 which is comparatively high.
During our 2019 review of Pepperstone, we saw that they offer Forex traders 3 trading platforms: MetaTrader4, MetaTrader5 and cTrader.
The industry standard MT4 is available for Mac, iPad/tablet, Android and iPhone. Also, a web-based MT4 version is offered, called WebTrader.
A web version of the cTrader platform is also offered, as well as such for mobile devices. What is more, the cTrader platform has a cAgo option, allowing trading with robots and developing of custom indicators in C#.
The three trading platforms offered by Peppersrone are probably the most popular ones in the industry.
The MT5 was developed and marketed as an improvement on MT4, yet many brokers still prefer the earlier technology, because MT5 does not allow hedging, and what is more, MT4’s indicators and Expert Advisors (EA) are not supported on the MT5 platform. As regards the cTrader platform, it is custom-made for use with ECN brokerages and offers simple user-friendly interface.
Deposit and withdrawal
When you want to invest with a company online, you have to know how your funds are transferred and the accepted ways of depositing and withdrawal of profits.
Pepperstone offers its clients a wide range of payment methods available: Bank Wire, Credit/Debit cards (Visa & MasterCard accepted), Skrill, Local Bank Deposit, Neteller, Bpay, Union Pay, PayPal, BPay, FasaPay, WebMoney, QIWI and POLI.
Here are the Forex Broker Expert, we have reviews of more than 200 Forex brokers and trading software. The number one item we check when reviewing a broker to see if they are a scam is a valid license.
The reason smart people online invest with a licensed broker, is because there are many investment scams online. By using a licensed and regulated broker, you know your money is safe, and the company is monitored by the governments regulators.
- Pepperstone operated in Australia by Pepperstone Group Limited is licensed by the Australian Securities & Investment Commission (ASIC)
- UK branch is licensed by the Financial Conduct Authority (FCA).
Are your Funds Safe?
One of the major reasons to use a regulated Forex broker is the ability to enjoy compensation in case the broker becomes insolvent.
Unlike the EU-based brokers, Australian ones are not covered by any compensation scheme. Clients of the UK subsidiary of Pepperstone, however , fall under the umbrella of the Financial Services Compensation Scheme (FSCS), which protects consumers up to £50,000 per person per company.
These are some features that we saw that are only offered by few brokers or solely by Pepperstone for research, education, mobile trading and improved customer care.
Advanced Tools: Pepperstone has partnered with Equinix and through its NY4 data centre the broker participates in the Equinix Financial eXchange. Via this exchange Pepperstone accesses a number of low-latency networks, and is able to exchange data directly with strategic partners and customers. Furthermore, Pepperstone was the first to offer the new trading functionality of the analysis tools provider Autochartist – “Trade Now” e-mail trading service. Pepperstone also offers Smart Trader Tools, an MT4 add-on with tools such as sentiment indicators, which is available to clients with an account balance of at least AUD 500.
Market analysis: When it comes to fundamental and technical analysis, Pepperstone offers content from third-party analysts. For example, the FX Weekly analysis from Boris & Kathy of BK Forex provides an “Event Risk Calendar Forecast” report. Trading Economics, a provider of market data, powers the firm’s economic calendar.
In-house commentary: Pepperstone’s in-house research offers content such as “Daily Fix” and a “Chart of the Day” series.
Mobile Trading: Mobile trading at Pepperstone is conduct with either the MetaTrader 4 (MT4) or MetaTrader 5 (MT5) mobile app, or the cTrader app, all of which are available directly from the developer.
Customer service: Pepperstone support is easy, fast and a bit professional. Online connection time is in average of <1minute.
Our best advise for you
Pepperstone is one of the leading Australian-based brokerages, offering real fast execution, extremely low spreads, transparent pricing and reasonable trading costs. Having industry backed and recommended broker as your partner is a step in the right direction. What are you waiting for? Sign up with an authentic broker today!
Pepperstone BreakdownPepperstone review summary and highlights
2020 Annual Forex Broker Reviews From ForexBrokerExpert.com
Different Forex brokers offer different account types which goes by different names like standard, classic, premium, VIP or gold. The most popular minimum deposit for a Forex basic account is $250. Leverages can go as high as 1:200. As for the pips charged on these accounts, EURUSD is usually the pair with the lowest spread and the ideal thing is that each type of account is unique and will either have fixed or floating pips depending on which account portfolio you have chosen.
Regulatory Side of Things
Regulatory agencies have already unleashed their bombshell on many fraudulent brokers. Most of these financial services provider are owned and operated by company based outside regulatory jurisdictions. However, these brokers still illegally target residents which they do not have the authorization to do so. Countries like the US, Japan, Australia among others are the safest for retail Forex traders because they have a strict regulatory framework which protects traders from incurring losses in the hands of unregulated brokers. Even the FCA which regulates brokers in the UK are reliable and if you can find a broker who is regulated either in the UK, Australia, Japan or the US you can be sure that this broker will not involve themselves in dirty games to make you lose your funds. These brokers are highly supervised and cannot afford to have their licenses revoked for offenses related to mishandling their clients.
Some Forex brokers offer generous leverage to traders but this is possibly as a result of not being regulated. Some brokers offer leverage as high as 1:200 but European Securities and Markets Authority (ESMA) restricted leverage to 1:30 for all brokers who are operating in the EU. A similar move was pulled by regulators in the US, Japan and South Korea. This basically means that find a broker who can offer 1:200 or high leverages in any of these jurisdictions is nearly abnormal. In the same note, spread of 0.1 pip on a demo account is actually too good to be true and we are sure that if you actually fund a trading account with such broker, the story will change completely.
Australia is one of the main regulators where leverage is not restricted yet. Therefore, if you are still attracted with the idea of trading with high leverage, we recommend that you should look for brokers who are regulated by the ASIC. These brokers must be based in Australia and will guarantee you high leverage according to your needs.
Our Best Advise for You
Some brokers could have made a nice Forex broker but due to their short comings, it is only best to avoid such a broker. There are more competitive brokers out there who do whatever it takes to secure their clients.
The worst thing is that some Forex brokers are pure scams. Once you fund your account with them, there is no withdrawing funds whatsoever.
Any attempt to do so will be thwarted with silly terms and conditions which are clearly oppressive on the side of the client and favorable on the side of the broker.
Forex Traders are being wooed by brokers incorporating a wide variety of trading instruments such as Forex, CFDs and Crypto currency trading instruments. You should ask your Forex broker for up to 100 Forex pairs including lots of exotic pairs which include Norwegian Krone, Danish Krone, Swedish Krona, Czech Krona, Hungarian Forint, Polish Zloty, Mexican Peso, Russian Ruble, Turkish Lira, South African Rand, Hong Kong Dollar, Singapore Dollar and Philippine Peso.
Definitely there is no limit to what you can trade on CFDs. Many brokers offer variety of stocks, indices, commodities, natural gas, oil, gold, silver, platinum, palladium including Crypto currencies. Crypto currencies include Bitcoin, Ethereum, Litecoin, Monero, Ripple, Zcash, Dash, IOTA and Stellar. Unless these brokers are regulated and are providing assurance that they will not scam traders, definitely many people would choose them for their trading.
Initial Deposit Requirement
In terms of the acceptable initial deposit, we can say that $250 is acceptable for a basic account. This is not like a basic $500 or more which some brokers are notoriously asking even when they know that the nature of their operation is dubious. If you ever find a broker who accepts this amount, you can go ahead and sign up because it is generally a reasonable amount. Again, even if you are an experienced trader already, under funding your account will damage your trading account because it will not let you achieve your full potential in that trading account.
Most Forex brokers offer MT4, MT5 or both trading platforms. However, you should keep in mind that some brokers provide these services via a third party which could mean something else. There is no reason why a broker should let another company host a metatrader platform for them.
Many Forex broker support MT4 platform for trading. This is not a bad thing but you have to consider that this services is common nowadays including those who are properly regulated. So this should not be the reason as to why you are picking an offshore broker for purposes of trading. It won’t be viable in the long run.
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At the end of the day, if you partner up with the wrong broker you can end up losing more money to fees, slippages and errors than actually trading yourself. Choosing a broker to partner with is a. big. deal…
So wouldn’t you rather read our 2020 Forex Broker Rating to see the features and what to expect?
Here at Forex Broker Expert, we’re dedicated to helping you get started trading online and have your own forex account. Most importantly, we want to help you make a success of it. Since starting up in 2010, we’ve connected hundreds of thousands of readers to the right forex trading platform for their needs.
We do this through conducting our own research. We’re constantly testing (and re-testing) the most popular forex brokers on the market to give you completely impartial advice about every single broker we feature on our site. We even get people just like you to give them a go and give us their feedback.
Our aim is to provide you with the very best information so you can make an informed decision about which forex broker is best for you – and feel happy with your choice!