Their spreads are tight, customer service is excellent and it generally garners the praise of customers and industry experts.
Pepperstone is one of the most popular brokers that has won praise from users and experts for some very good reasons. Its spreads are competitively priced, its customer service is simply excellent and deposits and withdrawals mostly don’t incur charges in the UK, EU and Australia. It also executes trades quickly and is highly regulated in the jurisdictions in which it operates.
There are two potential drawbacks though. The first is that it doesn’t have its own proprietary software, so you’ll have to use a third-party tool like MetaTrader. We actually loved this aspect as it gives you a bit more freedom to find the platform for you. We also loved the access to tools like Autochartist that can integrate with MetaTrader. However, some do find the out-the-box MetaTrader interface to be basic. The second drawback is that Pepperstone focuses on Forex and CFD trading which means if you want to trade other asset classes you will have to look for another broker. You should also note CFDs are risky. Between 74-89 % of retail investor accounts lose money when trading CFDs.
💰 Well-priced spreads and fees.
⚖️ Trusted, highly regulated broker.
💨 Fast execution speeds.
🛠️ Lots of tools to help you trade like Autochartist and Capitalise.ai.
🖥️ You’ll probably end up using MetaTrader (which some love some don’t).
📜 Only CFDs and Forex.
Pepperstone is an online forex, spread betting and CFD (Contract for Difference) broker that provides trading services to individuals and institutional clients. Founded in 2010 and headquartered in Melbourne, Australia, Pepperstone has grown to become a globally recognized broker in the financial markets. It’s Grade is 86% making it the best trading platform out there – but you have to keep in mind it only really does forex, spread betting and CFDs.
Spread betting and Contracts for Difference (CFDs) are both essentially contracts that allow traders to speculate on the price movements of assets without owning them themselves.
These are popular in the financial markets because they offer the potential for profit in both rising and falling markets. However, they also carry a high level of risk, particularly because they are often offered with "leverage" - i.e. where you can borrow more money than you have to amplify any gains and, conversely, any losses.
[.custom-color]Pepperstone offers a range of accounts to cater to the different types of traders.[.custom-color]
Standard Account
This is a straightforward trading account with competitive spreads (but not as low as other accounts). It doesn't incur trading fees on forex and CFDs so it's probably suitable for the vast majority of novice and intermediate traders.
Razor Account
The Razor account is known for its tight spreads and lower trading costs. It is designed for active traders, scalpers, and those who are more sensitive to spreads. You are however generally charged a commission fee which is the trade off for the tighter spreads.
Swap-Free (Islamic) Account
Pepperstone offers Islamic accounts, also known as swap-free accounts, which comply with Shariah law. Importantly, these accounts do not incur overnight swaps or interest charges.
Active Trader Program
This one is really for the big boys i.e. high-volume and institutional traders. It has a few key benefits, including dedicated account managers, reduced trading costs and customised solutions, but these won't be needed unless you are trading on an industrial scale.
Demo Account
Pepperstone provides demo accounts for traders who want to practice their trading strategies without risking real money. It's a good idea to start with one of these.
[.custom-color]I rate Pepperstone and having one of the most competitive fee structures for CFD and forex. However, they can be a bit complicated.[.custom-color]
The specific fees you’ll encounter when trading with Pepperstone can vary depending on the type of account you choose, the trading platform you use, the financial instruments you trade etc. Typically the types of fees fall into these categories:
[.custom-color]It’s good for FX and CFDs but lacks options to buy actual shares.[.custom-color]
[.custom-color]Leverage restrictions are fairly standard.[.custom-color]
In the UK, Australia and the EU you can leverage major currencies at 30:1, minor currency pairs at 20:1, commodities at 10:1 and individual equities at 5:1. In Australia and the EU you can leverage cryptocurrencies at 2:1, but this is not possible in the UK where the FCA bans it.
[.custom-color]Account opening is straightforward. However, you will have to go through an appropriateness test which you’re unlikely to pass if you’re a complete beginner.[.custom-color]
You sign up and register with your email and password (or you can log on with Apple, Facebook or Google if you’re already signed into an account on your browser).
You then go through to the secure client area where you’ll be asked for details like your name, date of birth and phone number.
You’ll then be asked to decide if you want a demo or a live account. After that, you will have to choose your platform and account type. Note that if you choose MetaTrader you will have to enter your password for the platform so it is advisable to set this up first.
If you opt for a live account you will have to take an “appropriateness test” which essentially just asks you about your experience of trading. We decided to say we had no experience trading to see if the checks and balances were working – and indeed they were as we served with the following box:
If you pass the appropriateness test you will then need to upload a picture of your passport, diver’s licence or national identity plus a utility bill or bank statement with your address on it.
Officially, approval is said to take 1-3 working days but, in our tests, we were approved within 24 hours.
[.custom-color]Pepperstone does not have its own proprietary trading software. Instead, it provides its clients access to third-party platforms such as MetaTrader 4, MetaTrader 5, and cTrader, which are some of the industry’s most recognised trading platforms.[.custom-color]
MetaTrader 4 (MT4):
MetaTrader 4 is a very popular trading platform known for its robust charting tools, automated trading capabilities via Expert Advisors (these are trading robots that have been written in MQL4 – some examples are here), and a very customisable user experience. I think it is suitable for traders of all levels being quite beginner-friendly while still offering powerful functionality.
MetaTrader 5 (MT5):
MetaTrader 5 is an upgraded version of MT4, providing enhanced trading features like more order types, an economic calendar, and better charting tools. It also has a nicer interface and is a bit more user-friendly for people new to trading. MT4 is still the more popular platform as lots of people have already gotten used to it, but if you’re new we’d recommend future-proofing by picking MT5.
cTrader:
You might want to work up to this one as it is quite advanced. cTrader provides Direct Market Access (DMA), fast order execution and a user friendly interface. It’s a suitable platform for scalpers and high-frequency traders.
TradingView
TradingView is a web-based platform offering a range of charting tools and social networking features. It’s on this latter community point where it really shines offering plenty of advice, tips and even live streams from other users. It’s also the most aesthetically pleasing look and feel. Currently, Pepperstone is one of only two brokers that can offer spread betting through TradingView.
WebTrader
This is Pepperstone’s own web-based trading interface. It is not a bad interface but we would recommend you use one of the third-party tools mentioned above.
For a beginner we’d recommend going with MT5 or TradingView.
[.custom-color]We really liked the array of tools that Pepperstone offers.[.custom-color]
Capitalise.ai
Capitalise.ai is an innovative platform that empowers traders to automate their trading strategies without any coding knowledge. A key feature is that users can translate their trading ideas into automated strategies using plain English. The platform supports real-time monitoring and backtesting - i.e. allowing you to see how your strategy would have done against historical data - allowing you to evaluate your strategies before jumping in. It connects to a bunch oft trading platforms. Additionally, features like looping and scheduling provide you with greater control over their trading activities.
AutoChartist
Autochartist is a powerful analytical tool that automates the process of chart pattern recognition, allowing you to use technical analysis to spot opportunities quickly. Using advanced algorithms, Autochartist scans markets in real-time to identify key price levels, trend formations, and chart patterns such as triangles, channels, and Fibonacci retracements. Basically, it lets you automate technical analysis so you can get to opportunities first.
Smart Trader Tools
Retail and Pro clients get access to a suite of 28 apps that they can use with MetaTrader 4 and 5. The top 4 are:
cTrader Automate
This is a feature within the cTrader platform enabling traders to create and deploy automated trading strategies the C# programming language. Traders can design trading robots, called cBots, which can then get to work for you. It's pretty advanced stuff.
They also support automated trading via their API.
[.custom-color]Pepperstone has done a pretty good job at partnering with reputable social trading platforms[.custom-color]
Pepperstone offers various social trading tools which means you can copy other traders! Here are some social trading tools and platforms that Pepperstone has integrated:
Myfxbook AutoTrade:
This has two parts. Myfxbook is a community platform that allows traders to follow the strategies of experienced traders. AutoTrade is the account mirroring service that enables automatic copying of trades directly in Pepperstone.
MetaTrader Signals:
Within the MetaTrader platforms (MT4/MT5), traders have the option to follow "signals" from other traders. These can be provided for free or sometimes there will be a charge. The signals can be followed manually or trades can be copied automatically to your trading account.
[.custom-color]Pepperstone’s research, insights and trading ideas could be stronger, though their YouTube videos are high quality.[.custom-color]
When trying out Pepperstone, an area that we felt was really lacking was their market knowledge and tips for trading. They do have a few things you can use:
Economic Calendar
Pepperstone’s economic calendar is a tool for traders to track upcoming economic events, announcements, and data releases. It lists a schedule of events from various countries with impact ratings indicating their potential market significance. The calendar also provides historical data, forecast data for comparison, and updates with actual data post-event. However, it’s quite hard to filter and search.
Market Analysis
The news feed might be the best, but the analysis offered by Pepperstone is pretty decent. The daily blogs can be quite interesting and their weekly video analysis, The Trade Off, is pretty entertaining too.
[.custom-color]Pepperstone’s educational materials are top-notch.[.custom-color]
Education is an area where Pepperstone shines. It offers:
[.custom-color]Customer service is excellent.[.custom-color]
We tried both the webchat and the phone number for existing customers to see how long it would take us to be connected. On the phone, we were connected to an agent within 15 seconds and our emails were answered within a couple of hours. Our only concern is their automated chat bot which we found quite annoying.
[.custom-color]Generally it’s good for beginners, but always remember that CFDs and Forex are risky.[.custom-color]
Pepperstone itself is keen to only let you onto their platform once you have a basic level of knowledge (see above how you can get rejected during the sign-up process). To do this it provides great educational materials.
The integration with MetaTrader means you can use a platform that is really well-documented for beginners, or you can use TradingView if you want to spend more time learning by watching others in real-time. We found TradingView especially easy to use in our tests.
We would advise beginners to stay away from CTrader until they find their feet.
[.custom-color]Pepperstone as a business however is really highly regulated.[.custom-color]
Pepperstone is regulated by several huge financial authorities including the Australian Securities and Investments Commission (ASIC) and the Financial Conduct Authority (FCA) in the UK. These regulators have stringent guidelines to ensure transparency and fairness. As part of regulatory compliance, Pepperstone is required to keep client funds segregated from company funds. This provides a layer of protection to traders’ money. In addition, if you are in the UK, your funds will be protected up to £85,000 in the event that Pepperstone goes into administration.
We have to say yes if you are a fan of MetaTrader and are only looking to trade Forex and CFDs. Their spreads are tight, customer service is excellent and it generally garners the praise of customers and industry experts – and from our tests, we come to exactly the same conclusion. We do wish the interface was a bit more modern, however.