Pepperstone Review - Online CFD Broker
Our Pepperstone Review - Updated August 2021
Pepperstone is an Australian retail forex broker that was established in 2010. The broker subsequently opened an office in London in 2015, in order to offer its services to European clients too. Pepperstone now has offices in Cyprus, London, Düsseldorf, Melbourne, Dubai, and Kenya.
Pepperstone is regulated by the UK Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySec), Germany's Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Securities Commission of The Bahamas (SCB), and the Australian Securities and Investments Commission (ASIC). Pepperstone is considered a low-risk broker because it is regulated by a few tier-1 jurisdictions.
Pepperstone offers both the MetaTrader and cTrader platforms, both of which have numerous add-ons to improve the platform’s performance. The broker offers various tradeable products with competitive pricing.
Our Pepperstone Review Ratings
There are two main account types at Pepperstone – Standard and Razor. All of Pepperstone’s account types offer the following features:
- No dealing desk execution
- Minimum deposit of $200
- Expert advisors
- News trading
- Minimum 0.01 lots trading size
- Maximum 100 lots trading size
The accounts incur different charges depending on which one you have, the platform that you use, and the base currency that you've chosen.
Both accounts offer institutional grade spreads, however, the Razor account is more suitable for scalpers and algorithmic traders, while the Standard account is more suitable for new traders. This is because the Razor account offers a better spread but incurs commission charges, while the Standard account offers a higher spread but no commission. The Standard account is considered an easier alternative, however, some traders might prefer the lower cost setup in the Razor account.
Account Opening & KYC
Opening an account with Pepperstone is relatively simple and straightforward. First, you will need to complete your personal information such as name, surname, date of birth, phone number, email, etc. Then you will need to verify your account. For that, you will have to submit the following documents:
- Proof of residency such as a recent utility bill or bank statement (less than three months old)
- A government-issued ID, passport, or driver's license. UK clients must provide their National insurance number, while other countries must share their Tax Identification numbers.
Most brokers will typically verify your documents in about 24 hours, but the account will be active in just thirty minutes after uploading documents. The whole procedure is swift and straightforward.
Once the broker verifies your documents, you can start trading. You can choose from nine currencies including GBP, USD, EUR, and CHF.
Pepperstone values client fund security and prioritizes this by strictly following the guidelines of their regulators. The broker is regulated by the following authorities:
- CySEC (Cyprus Securities and Exchange Commission) for other EEA clients under the company number ΗΕ 398429
- FCA (UK's Financial Conduct Authority) for UK clients
- BaFin (Federal Financial Supervisory Authority) for German and Austrian clients
- DFSA (Dubai Financial Services Authority) for Middle Eastern clients
- ASIC (Australian Securities and Investments Commission) for Australian clients
- CMA (Capital Markets Authority of Kenya) for African residents
- SCB (Securities Commission of The Bahamas) for all other clients
Pepperstone also complies with MiFID II (Markets in Financial Instruments Directive), whose objective is to ensure brokers offer financial transparency and greater client fund protection to their customers. In addition to this, Pepperstone is regulated by ICF (Investor Compensation Fund). The aim of ICF is to protect clients and offer compensation investments if the brokerage firm they are using goes bankrupt. Investors' funds are protected up to €20,000.
The broker also offers negative balance protection for clients from the United Kingdom, European Union and the European Economic Area. Non-EU clients do not fall under the negative balance protection scheme.
Besides forex, Pepperstone also offers a decent selection of CFD products such as cryptos, commodities, indices, and shares.
Forex: Majors, Minors, Crosses, and Exotics.
Crypto: Bitcoin, Bitcoin Cash, Ethereum, Dash, Litecoin, Polkadot, Ripple, and others.
Stock (US, UK, DE, AU): Netflix, Facebook, AstraZeneca, Volkswagen, Woolworths, and others.
Indices: S&P 500, NASDAQ, DAX 30, Hang Seng 50, and many more.
Pepperstone offers the popular MT4 and MT5 platforms, as well as Spotware’s cTrader platform to its traders.
MT4 was built by the fintech company MetaQuotes – the platform is well-known and appreciated by traders worldwide. MT4 was released in 2005 and is built on the MQL4 programming language. There are numerous analysis tools available and up to nine timeframes. MT4 also offers over 50 technical indicators and allows traders to create bespoke indicators for advanced technical analysis.
MT4 allows automated trading, which is highly popular among modern traders. As the platform is extremely customizable, there are a wide number of EAs (Expert Advisors) available to install.
The platform offers order types like Market Orders, Pending Orders, Stop Orders, and Trailing Stops. MT4 is available as downloadable software for most operating systems. The platform allows three trade execution models to choose from:
- Instant execution
- Execution on request
- Execution by market
MT4 is great for novice traders as the platform offers a simple and straightforward user experience. The platform’s software is highly compatible with most operating systems and does not overwhelm the PC when in use. It can also be used on browser as well as Android and iOS mobile devices.
The platform is available in a variety of languages. In addition to this, it facilitates communication between brokers by posting messages.
MT5 (MetaTrader 5)
MT5 is MetaQuotes’ newer platform, designed to cater to more seasoned traders, as well as day traders. It is a multi-functional, multi-asset platform that allows traders to work with several different accounts from different brokers. Aside from forex, it allows traders to trade stock and commodities.
MT5 was built on the MQL5 programming language, which is actually an automated trading software that executes trades on the trader’s behalf. It can perform numerous functions including advanced algorithmic trading (copy trading) through expert advisors (EAs) and superior tools for comprehensive price analysis. Traders can also subscribe to trading signals and enable them to facilitate automatic trades on their behalf. MT5 has four execution modes:
- Instant execution
- Execution on request
- Execution by market
- Execution by exchange
The platform allows you to open 100 stock or currency charts at a time, and in 21 timeframes to monitor even minor price movements. MT5 also offers 80 technical indicators and 44 analytical objects, such as Gann, Fibonacci tools, geometric shapes, etc.
cTrader was created by a London-based fintech company, Spotware. cTrader is a very new, innovative platform that’s popular for its uncluttered, clean design, which is very mellow and modern. cTrader was designed to swiftly execute trades and offer elevated charting tools.
Initially launched with FxPro, cTrader is a very straightforward and functional platform. Beginners identify it as being much less clunky than MetaTrader. The platform offers multi-chart, single-chart and free-chart modes and offers over 50 indicators, split into 5 categories of Trend, Oscillator, Volatility, Volume, and Other. cTrader also offers a copytrading tool called cTrader Copy.
Pepperstone offers a sizable range of financial instruments across six asset classes:
- Forex: Major, minor, and exotic currency pairs.
- CFDs: A contract for difference is an agreement between the buyer and the seller to exchange the difference between the buying and selling price of two assets. You can trade over 60 U.S. stock CFDs like Apple, Boeing, Facebook and Alibaba.
- Indices: Traders speculate and invest in numerical changes in the value of a particular sector of the market. Some important indices are the Nasdaq 100, the LSE 100, and S&P 500.
- Shares: Stocks of popular public companies like Facebook, Google, Apple, etc.
- Commodities: Hard and soft commodities like gold, copper, natural gas, crude oil, corn, cotton, wheat, etc.
- Cryptocurrencies: Popular cryptos like Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Dash.
Trader Education Tools
Pepperstone offers several valuable resources to help traders educate themselves in trading better. There are materials and facilities available for both beginner traders and more advanced ones, such as:
- Demo account – allows users to practice trading.
- Market analysis – a thorough, daily analysis that gives traders the opportunity to hear about high impact economics, expert commentary, videos and more from Pepperstone’s global market analysts.
- Webinars – traders can tune in on educational webinars to expand their knowledge and skills.
- Economic calendar – an important calendar that contains all the financial events around the world.
- Trading guides – detailed guides on trading for beginners and advanced traders.
- Trading Glossary – a collection of all the terms and expressions that are used in the industry.
Pepperstone offers a wide range of third-party copy and social trading tools that help traders make better strategic decisions.
Pepperstone’s customer support team is available on a 24/5 basis, the team is multilingual (English, Russian, Vietnamese and Thai-speaking), and easy to reach. You can reach customer support via email, phone, and live chat.
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Wednesday, January 19, 2022