Good brokers are hard to come across, which is why it is very important to do your research on them. A very popular choice for Forex traders is Pepperstone, a broker focusing on Forex and CFDs. This review will go into all the advantages and disadvantages of the platform so that you can make a calculated choice. +
What Is Pepperstone?
Pepperstone is a financial trading platform operating all over the globe. Founded in 2010 and with its headquarters in Australia, the company managed to make a name for itself over the past decade.
Who Is Pepperstone For?
Pepperstone is a great option for CFD and Forex brokers that are on a low budget. While the app does require a deposit fee, it barely asks for other fees. Trading fees are low, you do not get charged an inactivity fee, and you also do not have to pay any deposit and withdrawal fees.
It’s also a great choice for beginner Forex traders, as it provides a lot of educational materials. From webinars to articles, tutorials, and news on the market, you have all the information necessary to build your trading skills. Even professional traders can make use of this, as there is always room for improvement.
Pros / Cons
- No deposit fee
- Great customer service
- Low Forex and equity index CFD fees
- Account opening is fast and fully digital
- No investor protection for non-EU clients
- High financing rate for CFDs
- Basic news flow, no fundamental data
Things We Like
We liked the fact that the account was very quick and easy to open. Everything was set up and approved within a day. The customer support also answered promptly within their workdays, and they would always provide useful information.
We also liked the fact that deposits and withdrawals are straightforward. No extra fees were charged, and the funds usually reached their destination account within minutes or hours at most.
Things We Don’t Like
We didn’t particularly like the news flow, as most of the information, there seemed pretty basic. We would have liked it if there were more unique details out there. Also, it would have been great to see other products than Forex and CFDs. This way, it would have appealed to more clients.
Over the past few years that Pepperstone was active, it managed to gather a significant number of awards. It won the “Global Forex Awards Best Global Forex ECN Broker” award in 2019, the “UK Forex Awards Trading Conditions” in 2018, as well as multiple other awards. Other notable mentions were made as well, meaning that this broker is one trusted by the population.
Safety and Regulation
Is Pepperstone Regulated?
Pepperstone is regulated by three top-ranked financial authorities. These are the Financial Conduct Authority (FCA) from the UK, BaFin from Germany, and the Australian Securities and Investments Commission (ASIC). Aside from that, the company is also covered by DFSA, SCB, CMA, and CySEC. Considering these licenses, the company is considered a safe one to trade with.
- Pepperstone Limited – authorized by FCA (UK) registration no. 684312
- Pepperstone Group Limited – authorized by ASIC (Australia) registration no. ACN 147 055 703, AFSL 414530
- Pepperstone Markets Limited – authorized by SCB (Bahamas) License number SIA-F217
- Pepperstone Markets Kenya Limited – authorized by CMA Licence No.128
- Pepperstone EU Limited – authorized by CySEC (Cyprus) registration no. 388/20
Is Pepperstone Safe?
Pepperstone uses SSL encryption to make sure that all the information provided by the clients is protected. This prevents fraudulent logins to a person’s account, as well as other safety issues to the websites. Pepperstone advises that you always look for the SSL sign whenever you log into the website.
How are you protected when trading with Pepperstone?
The abovementioned regulators strictly oblige the broker to follow the required performance, hence Pepperstone has no doubts about their reliability. Both, ASIC and FCA demand financial services firms follow strict capital requirements, fully segregate traders’ accounts from the company funds, comply with internal risk management, training, accounting, audits, and many more.
In addition, the company provides Negative Balance protection and an automated Risk Management System to secure clients’ safe trade.
Countries It Accepts Clients From
Pepperstone is a global company, meaning that it accepts clients from all over the world (188 countries). You can download it from Europe, Oceania, Asia, Africa without any issues. Some countries, however, are not able to access Pepperstone, as they fall under different (stricter) regulations. This includes but is not limited to the U.S., North Korea, and Syria.
Range of Offerings and Products
Pepperstone is a Forex broker, but you can also find a wide number of CFD products. The product selection that you can find on Pepperstone includes:
- Stock (CFDs)
- Stock index (CFDs)
- Currency Pairs
- ETFs (CFDs)
- Commodities (CFDs)
- Bonds (CFDs)
Bear in mind that by the rules of FCA, you cannot trade cryptocurrency as a UK retail consumer. You may also go for social trading (copy trading) that allows you to mirror professional traders. This is a highly convenient option for beginners who do not know how to trade yet. By watching other people trade, users may get better at it themselves.
While Pepperstone does not have its own proprietary platform, it is still based on two other popular ones: MT4 and MT5. These platforms are intuitive and easy to use, making them the perfect choice for beginner traders.
With that in mind, traders may access their accounts via web browser, desktop app, and mobile app. Where mobile trading is concerned, you may choose the MT4 or MT5 apps, or even the cTrader app. All options are very easy to use and perfect for when you are trading on the go.
Pepperstone offers three types of accounts.
First, you have the standard account, which was designed with beginner traders in mind and requires no commission.
Secondly, you have the Islamic Account, which was designed specifically for Islamic traders.
Thirdly, you have the Razor Account. Unlike the standard account, this one asks for a commission. However, it features raw spreads, making it much easier for you to place a successful trade. This account is a popular choice among advanced traders.
Pepperstone offers its users the option to set up a demo account, with a validity of 30 days. This type of account allows you to conduct trades and try out the platform, without having to put in the $200 deposit or add in your money. It’s great for beginners and professional traders alike, as it gives them a chance to become accustomed to the platform.
What is Pepperstone’s Leverage?
When it comes to traders from Europe or the UK, as the European ESMA regulation recently lowered the maximum allowed leverage with a security purpose the maximum leverage level is 1:30 on Forex instruments.
Pepperstone still offers leverage of 1:500 for the approved professional clients or that reside outside of the EU zone, which you can benefit from.
When it comes to deposit options, there are also multiple choices that you may go for. These methods include:
- Bank transfer (online and local bank)
- Credit and debit card
- Union Pay
- Broker-to-broker transfer
Some countries may not have these methods available. This is why it is worth doing a check beforehand, to make sure that it meets your requirements.
What is Pepperstone’s Minimum Deposit?
Pepperstone requires you to deposit a minimum of $200 upon opening an account.
This applies to any type of account that you use, whether you are going with a standard account, Islamic, or Razor. The fee may seem high for some people, but bear in mind that for this minimum deposit, you also receive a fair number of premium benefits.
With that in mind, unlike other brokers, it charges no fees for deposits. You may add money as often as you like. So, the second time is not necessary to be $200. As long as you always have $200 in your account, it does not matter how much you add afterward.
While Pepperstone requires you to add a minimum deposit, it charges no fees for withdrawal. That being said, the bank or financial institution where you draw your money might collect a fee. Check with their terms and conditions and see how much you will be charged.
How fast the money ends up in your account will also depend on the withdrawal method that you use. Debit cards and e-wallets often receive the money instantly. However, if you choose to make the transfer via bank wire, it may take 1-2 days until the money reaches your account.
Depending on your area, you may have access to a referral promotion, where both you and a friend may receive a bonus upon referring them. The amount of the bonus may depend on the country you are using the app from, but usually, it is around $100. There are no signup or deposit bonuses, but loyal customers may receive trading bonuses instead.
Client Support and Education
In terms of education, Pepperstone is also quite superior. You have the Education and Analysis corner created by Pepperstone, where you can view webinars and trading videos. You can also make use of a wide array of research tools, all of which can significantly improve your trading experience.
Pepperstone also provides Forex news and commentaries on the daily market. This way, you can place better trades each day as you keep yourself up to date. You also have access to the Trading Central and the Autochartist feature of the broker, allowing you to get an even deeper understanding of the trading market.
As for customer service, they can be contacted 24 hours a day, going from Sunday until Friday. It may not be 24/7 customer support, but you may still leave a message via live chat or email. Phone support is also provided, and you may select from several languages when contacting the staff.
Verdict – Overall Rating
Pepperstone is a very reliable CFD and Forex broker. It has all the regulations necessary to prove that it is safe to use, and it has all the products that a Forex trader might need. Since there are barely any fees involved, Pepperstone is a good option for beginner and professional brokers alike.
All brokers listed on our website are regulated by at least one financial regulator and have never been reported as a scam. Our reviews and overall scores are based on the key areas above, in a combination with our opinion and commentary.
The reviews are shared and discussed with the brokers, but the authors of our website always have the final word. Furthermore, we always strive to keep the information on our website updated and relevant for our readers.
What helps us stand out is that we always test our brokers with an anonymous live account, to ensure we deliver the most accurate information and experience to our readers. Finally, our reviews and evaluation are always independent of any financial compensation we may receive from the brokers.
There is a very high degree of risk involved in trading securities.
With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection, and market volatility that may substantially affect the price or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more at Wikipedia.
All investments involve risks and are not suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment. The past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against the loss, in a down market.
There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. More details here.
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Thanks for your article