Pepperstone Review

Pepperstone is a popular Australian forex and CFD broker that is on a mission to enable ambitious traders to embrace the challenges and opportunities available in the global financial markets through technology. The brokerage was founded in Australia in 2010 by a group of experienced traders who were frustrated by high trading fees, inefficient client support, sluggish trade executions, and other anomalies. Today, its head office is in Melbourne but it has other offices in London, Dubai, Nairobi, Limassol, Düsseldorf and still expanding to other territories.

Pepperstone provides multiple platforms allowing its clients to speculate on the price movement of over 800 instruments. The broker claims that it has over 57,000 traders from all over the world and processes about $9.2 billion worth of trades every day. It has been repeatedly recognized with awards for its outstanding services.

Pros

• Regulated by the FCA, ASIC, CySEC, SCB, DFSA, BaFin and CMA
• Clients can choose from 3 powerful platforms; MT4, MT5 and cTrader.
• Social trading is supported via DupliTrade and AutoTrade.
• No internal deposit, withdrawal or inactivity fees.
• Market analysis, Smart trading tools as well as Autochartist are provided.
• Free VPS is available to frequent high volume traders.

Cons

• Demo accounts expire after 30 days.
• No service to clients from USA, Canada, Japan, etc.
• Withdrawal fees charged on international bank transfers are transferred to clients.

Pepperstone Security and Regulation

Pepperstone is the trading name of Pepperstone Group; which is made up of several companies registered in different countries. The brand is regulated as follows:

• Pepperstone Group Ltd is authorized and regulated by the Australian Securities and Investments Commission (ASIC). It operates the website; www.pepperstone.com/en-au/

• Pepperstone EU Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC). The website it operates is “www.pepperstone.com/en-eu/”

• Pepperstone Ltd is authorized and regulated in the UK by the Financial Conduct Authority (FCA). It operates the website; www.pepperstone.com/en-gb/

• Pepperstone Markets Ltd is regulated by the Securities Commission of the Bahamas (SCB)

• Pepperstone Financial Services (DIFC) Ltd is regulated by the Dubai Financial services Authority (DFSA). The website is www.pepperstone.com/en-ae/

• Pepperstone GmbH is regulated by the Federal Financial Supervisory Authority of Germany (BaFin). It operates the website www.pepperstone.com/de-de

• Pepperstone Markets Kenya Ltd is regulated by the Capital Markets Authority (CMA). It operates the website; www.pepperstone.com/en-af/

Pepperstone asserts that funds received from clients are kept in segregated bank accounts which have been opened with the top-rated banks. This is to ensure that client’s funds are safe. Besides, it also maintains the best security practices and latest technologies to provide a secured trading environment.

The Financial Services Compensation Scheme (FSCS) is available to British clients. This scheme ensures clients’ deposits of up to £85,000. Similarly, the Deposit Insurance of German banks (Edw) and the Investor Compensation Fund (ICF) for Cyprus Investment Firms (CIF) are available to clients within the applicable regulatory jurisdictions. Both schemes are capped at €20,000.

Pepperstone Trading instruments

Pepperstone only offers CFDs which allows its clients to speculate on the prices of instruments below:

• 62 currency pairs
• 14 stock Indices
• 32 commodities
• Over 100 ETFs
• Over 800 stocks
• 9 cryptocurrencies

Account opening

Click on the ‘Join now’ button found on every page on the Pepperstone website. If you already have Google or Facebook account, you can click on the appropriate button to receive your profile info and create the account. But, if not, just fill in your email address and click on ‘get started’.

Next, fill in your account type, country of residence, choose a password and click ‘Register’. Immediately, you are logged into the secure client area where you will complete the registrations, create new accounts, download platforms, make deposits, download platforms, and start trading.

Pepperstone Deposits and Withdrawals

The payment options available to you depend on your country of residence. Pepperstone clients can choose from any of the following payment options:

Credit/Debit card:

Visa and MasterCard are the popular cards allowed. This method is fast and the deposits are instant and trading can commence immediately.

Bank Wire transfers:

This method has no limitations and can be used by all traders for deposits and withdrawals. Its only snag is that it takes more time; typically 3-5 working days. For international withdrawals; International telegraphic transfer fees charged by banks are transferred to clients’ accounts. It is usually $20.

Online payments:

M-PESA mobile money, Neteller, Skrill, Poli, and PayPal are the online payment methods accepted. Withdrawals fees may apply depending on the method used.

Pepperstone offers same-day withdrawal for withdrawal requests received early in the day; before 7 am AEST. Third-party deposits or withdrawals are prohibited.

Pepperstone does not charge deposit fees, withdrawal fees, or inactivity fees. But, any fees incurred through processing a client’s withdrawal will be transferred to the client.

Pepperstone Fees and account types

For all account types, Pepperstone offers maximum leverage of 1:400. Up to 10 account currencies are available which depends on the client’s area of residence. Swap fees are applicable when you leave a position open till the next day. A minimum of $200 is recommended for account opening but actually, there is no minimum deposit.

Two major account types are available:

Standard account

Pepperstone asserts that this account is designed for new traders. No commissions are charged rather, the broker marks up the spread. The average spread on the EURUSD; which is used as a benchmark is 1.0 – 1.3 pips.

Razor account

This account is perfect for scalpers, algorithmic traders, and experienced professionals. The average spread ranges from 0.0 to 0.3 pips while commissions starting from $7 are charged on every round lot traded.

Swap free accounts

In some regions, swap-free accounts are available. But, admin fees are charged from accounts that maintain an open position for 10 consecutive days. It is charged every 10 days.

Pepperstone Pro account

Depending on your country of residence, you may apply and be registered as a Pro client. For Australians, you may either have a net asset of at least AUD 2.5 million, worked in the financial section for a year, or traded 20 times per quarter in the last year. For Europeans, the conditions are similar except that the total minimum asset is €500,000. Pro clients trade with max leverage of 1:500 and are assigned a dedicated relationship manager.

Demo account

This is a practice account available on all the trading platforms; MT4, MT5, and cTrader. It simulates the trading environment enabling the trader to practice with virtual funds up to $50,000. However, it is only available for 30 days.

Pepperstone Trading platforms

Pepperstone offers 3 third-party trading platforms which are sophisticated and suitable for most trading styles and levels. They are as follows:

MetaTrader 4

The MetaTrader 4 is the world’s most popular trading platform. It is available in multiple languages and is suitable for both new and experienced forex and CFD traders. Traders can easily analyze the markets, subscribe for services, and even automate their strategies by scripting and customizing expert advisors (EAs) using the MetaQuotes Language 4 (MQL4) coding language. The chart of every trading instrument can be viewed on 9 timeframes. Up to 30 technical indicators and 24 analytical tools are available for analysis. MT4 is available as a desktop application, online WebTrader as well as android and iOS apps.

MetaTrader 5

Launched by the same MetaQuotes Software Corp. that built the MT4, the MT5 was designed to be more powerful than the MT4. But, it has not replaced the MT4; perhaps due to compatibility issues because apps and EAs built for the MT4 do not run on the MT5. To build apps for MT5, you will use the MQL5 programming language.

Generally, both the MT4 and MT5 look-alike like all ramifications, except for performance and features where the MT5 wins. They have the same physical interface, marketplace, and forum. But the MT5 has 6 pending orders, 21 timeframes, up to 38 inbuilt technical indicators, and 44 analytical tools which are higher than that of the MT4. Pepperstone clients can trade on the MT5 desktop, WebTrader, android, and iOS apps.

cTrader

This is a trading platform designed for both newbies and expert traders. It has many features to help a trader to analyze the markets, place multiple orders, manage risks and carry out multiple tasks. It comes with over 70 technical indicators and about 26 timeframes. cTrader Automate is an algorithmic trading solution that is used to automate trading strategies within the cTrader. Just like the MetaTrader platforms; cTrader is available as WebTrader, windows desktop application, and also as mobile apps for android and iOS devices. It also has a video library that teaches how to use the platform.

AutoTrade

Pepperstone offers its clients the AutoTrade social trading system powered by Myfxbook; a renowned online website that supports the analysis, sharing, and comparison of trading account performances. To start using AutoTrade, Pepperstone clients are required to visit Myfxbook website and link their Pepperstone trading account with AutoTrade; since Myfxbook does not act as a broker. Then, they can mirror the trades of other expert traders and make profits when they do.

DupliTrade

This is a social trading platform that allows traders to copy the trades of expert strategy providers who are professionals that have been screened and approved by DupliTrade. Pepperstone clients can link their accounts with DupliTrade, select strategy providers, and copy their trades in real-time. They can also track, analyze and manage their accounts in real-time. $5,000 is the minimum deposit required before access to DupliTrade is allowed.

Research and Tools

Smart Trader tools

This is a package of MetaTrader plugin apps that are designed to enhance the trader’s experience, analysis, and overall performance. It basically comprises about 12 EAs and 15 technical indicators. Some of the apps are:

• Alarm manager
• Correlation Matrix
• Market Manager
• Mini Terminal
• Sentiment Trader
• Session Map
• Trade Simulator
• Trade Terminal
• Keltner
• Mini Char
• Renko

Virtual Private Server (VPS)

VPS services are available for traders who use robots, social trading, or other trading systems that need uninterrupted and reliable access to the trading services. For this purpose, Pepperstone has partnered with the following VPS providing experts;

ForexVPS.net:

Pepperstone clients are given access to free VPS if they can trade 15 lots every month. The package is basic with 1.5GB RAM, 1 CPU, and a 40 GB SSD. If you want a more powerful VPS, a discount of 20% is available.

New York City Servers:

Pepperstone clients are offered a 25% discount when they purchase VPS from NYC Servers. But, Pepperstone Pro clients get the basic VPS plan free if they trade 15 lots or more every month.

Market analysis

This section of the website is produced by in-house analysts working with Pepperstone. It is made up of:

• Pepperstone videos: These are YouTube videos that focus on technical analysis of selected trading instruments.
• Navigating Markets: The articles in this section give clients some trading ideas and instruments to watch out for.  
• The daily fix: usually contains articles reflecting expert opinions and fundamental analysis.

Autochartist

This is a third-party tool that can be customized to scan the markets and alert the trader when it identifies a trading opportunity. It also gives daily market reports and volatility analyses. Pepperstone states that Autochartist is directly installed into their MT4 and MT5 platforms.

Economic Calendar

This is a fundamental analysis tool that shows the dates of important economic events and their previous and forecasted impact on a defined financial instrument. Later, when the event happens, its actual impact is updated. Clicking on each event shows its details, charts, news, etc. It can be customized to display only the dates or other parameters that are of interest to the trader.

Education

Learn to trade forex

The section comprises articles on pip value, risk management, technical analysis, fundamental analysis, technical indicators, etc.

Also, there are other articles on learning how to trade shares and other CFDs

Trading guides

There are over 25 articles that teach topics covering several trading strategies, trading psychology, gapping, slippage, swaps, developing a trading plan, etc.

MT4 course

There are about 10 video lessons teaching newbies how to use the essential features of the MT4.  It explains the installation of the MT4, EAs, customizations, VPS, MT4 mobile, etc.

Webinars

Pepperstone always presents webinars on its website. On this page, clients can watch past webinars and learn from previous topics treated.

Customer Support

The award-winning client support desk is available round the clock (24/5) to attend to customer issues via various channels. On the support page, clients can access various ‘Frequently asked questions (FAQs) and answers bothering on account creation, funding, and withdrawals, trading platforms, security, etc.

The support team can be reached through online web chat, email, and phone calls. On social media, Pepperstone is on Facebook, Twitter, LinkedIn, and YouTube.

Summary

Pepperstone is a well-regulated forex and CFD broker that has won multiple awards for excellent services. Though it has no proprietary platform, its choice of third-party platforms is excellent; catering to the needs of all traders and their trading strategies or styles. Multiple instruments including CFDs on ETFs are available for trading on its platforms. There is no minimum deposit and clients can choose to pay spread charges or commissions through the available account types. Traders are supported by in-house analysis and trading tools like free VPS, Smart trader tools, Autochartist alerts, MT4 signals, and social trading.

But, the swap fees are high when compared to other brokers. Also, the demo account is not unlimited as it expires after 30 days.

Conclusively, Pepperstone is a genuine and regulated broker but can still improve on its services to rank better among its competitors.