Today, dozens of financial instruments can be traded for high profits. However, not every trade guarantees a profitable return. Millions of people are entering the world of trading high-quality financial instruments such as CFDs on commodities, indices and foreign exchange pairs. Only a small percentage of them can remain consistently profitable and become successful traders. In most cases, these success stories are driven by the cooperation of online trading brokers. These brokers not only manage their traders' portfolios, but also provide them with investor protection and a competitive advantage.
In the global foreign exchange market, Pepperstone is a broker that does this very well. Pepperstone is one of the best services for traders. There are many aspects of the broker that make it a dream choice for both novice and seasoned traders. Here's an all-encompassing Pepperstone review that not only examines its strengths, but also highlights its weaknesses.
Founded in 2010, Pepperstone Group has grown into one of the world's leading online brokers. It has developed a brokerage ecosystem with highly competitive products and fully functional trading platforms. Often referred to as "Pepper Broker", it is one of the most trusted brokers for CFD trading on Forex pairs, single stocks, commodities, indices and cryptocurrencies.
Like all brokers, this company offers its services with a minimum deposit in the base currency supported by the platform. It mainly helps new traders adopt the rules and techniques of the trading game. It also helps advanced traders by offering high leverage.
Regulation of Pepperstone
As of 2020, Pepperstone Group is a regulated Forex broker under the UK Financial Conduct Authority. The company operates under the Pepperstone Australian entity. As such, it is strictly regulated by the Australian Securities and Investments Commission (ASIC #147055703). Pepperstone does not accept US merchants. Over the years, the company has grown into one of the largest Forex brokers in the world by developing technology-enabled trading systems. It has a growing community of ambitious traders who use Pepperstone to solve complex trading challenges and take advantage of lucrative market opportunities.
Pepperstone's services are designed to provide you with an end-to-end trading solution. Every trade is executed with extreme speed and raw spreads. Low commissions also deliver on the company's promise to help traders achieve their goals.
Pepperstone is also one of Australia's award-winning Forex brokers, recognised by brands such as Deloitte, Investopedia and Investopedia. It has also been recognised by the Governor of Victoria, Australia for its outstanding customer service and good performance in various trading conditions.
This review found Pepperstone to be a viable option for traders. It offers a comprehensive trading experience that is more competitive than other best forex brokers in the online forex trading community. The company excels with its lightning-fast execution system. Forex Broker Review also shows how to trade over 1200 instruments with the broker. While other brokers limit access to opportunities, Pepperstone categorizes them into broad asset classes. These instruments include CFDs on foreign exchange pairs and even CFDs on cryptocurrencies.
Pepperstone Trading Platform
The MetaTrader suite of trading platforms is the core component that drives Pepperstone's success. The company offers licensed use of MetaTrader 4, MetaTrader 5 and TradingView. These Expert Advisors are rich in technical features and sync well with other third-party platforms and plugins. The MetaTrader suite of applications is best suited for supporting trade execution, conducting market research and developing in-depth market analysis.
cTrader Platform
The cTrader platform is also Pepperstone's main product. This trading platform optimizes all the trading tools needed to execute trades on the Internet. It can be used for OS installations, but is primarily used as a web application. The web-based interface of cTrader is very stable and easy to access.
It is compatible with all devices and operating systems. It can easily run Google Chrome, Safari, Mozilla Firefox or Edge/Internet Explorer browsers. The trading platform is also available in a web browser mobile application. It increases the liquidity for traders to monitor and execute trades remotely. cTrader comes with an updated user interface, offering features such as one-click trading, payment gateway integration and real-time data processing. The trading platform also enhances the trading experience for new traders with its easy-to-navigate working app.
These platforms are very easy to use. Their overall user experience is highly rated by merchants. From creating watch lists to analyzing charts, these platforms leave no stone unturned in the world of trading. Not only do they help place traders' orders, but they also monitor orders to inform traders of their market positions.
Through these platforms, traders can assess the depth of financial instruments in the market. Their real-time data assimilation also keeps users informed about market dynamics and trading events. These platforms provide economic market calendars suitable for Pepperstone traders' trading portfolios. Full screen technical analysis charts developed by the platform provide information from more than 70 indicators.
These indicators can be customized to apply them to trading activity in specific ways. Technical analysis of multiple financial instruments can be performed simultaneously on different time frames.
Pepperstone Trading Experience
Pepperstone meets the needs of its traders by offering a wide range of platforms and tools to support their trading activities. Pepperstone offers a suite of technologies to help them trade accurately.
These platforms are third-party providers, but white-labeled by Pepperstone. The company does not have its own software suite; traders can choose between trading platforms such as MetaTrader 4, MetaTrader 5, TradingView and cTrader.
These platforms conduct high-end trades at the prices of direct liquidity providers. They feature advanced technical features that enhance the trading experience of clients. Detachable charts, algorithmic market analysis, and trading backtesting of these platforms help investors execute their personal strategies effectively.
MetaTrader 4
The MetaTrader 4 and MetaTrader 5 platforms have their respective mobile trading applications for Android and iOS devices. MetaTrader 4 WebTrader is also available to Pepperstone clients. It is a platform web application designed for iPad and tablet devices.
MetaTrader 5
The MetaTrader 5 platform cannot be used as a web application. The mobile versions of these trading platforms are very useful, but their technical limitations when using high-end trading features can disappoint experienced traders. To provide low-latency access for interbank transactions, Pepperstone has partnered with the Equinix platform. It caters to high-end clients who trade millions of dollars with high-speed execution, near-zero price lag, and VPS hosting.
Other add-ons and add-ons
Traders can also access the Autochartist plugin as an add-on to the MetaTrader platform. Autochartist is an artificial intelligence-driven tool that generates trade ideas by analyzing technical patterns, market trends, and historical data of popular trades.
With Autochartist, traders can gain additional leverage to perform copy trading or social trading. It can also automate users' trading strategies to minimize hassle. However, this plugin can only be accessed correctly from the desktop version of the trading platform.
More about platform facilities
Pepperstone allows its clients to use these platforms to place basic orders, including market, stop, limit, and stop-limit orders. Additionally, brokers allow traders to execute stop-loss orders on trades that have lagged losses. However, the company lacks a guaranteed stop-loss order.
However, stop-loss orders can be executed at the bid price. The mobile apps for these platforms are also impressive. While cTrader is best used as a web application, it is also available as a mobile application for the iOS and Android platforms.
Account
Pepperstone provides services through Standard and Razor accounts. Both accounts provide access to the aforementioned trading platforms, tools and features. However, clients who subscribe to the Pepperstone Premium Trading Community receive additional benefits associated with these accounts. In terms of functionality, both accounts have some differences.
For Razor accounts, users receive institutional quality differentials, but no markups. Standard account holders get the same spread with a markup. The average EUR/USD currency pair spread for Razor account holders is between 0.0 and 0.3 pips. The same applies to standard account holders in the 0.6 to 1.3 pip range; however, no commission is charged.
Razor accounts charge a minimum of $7 (AUD) for round-trip trades of 100,000 lots, based on commissions. Both account rollover swaps are based on trading platforms and market rates. Pepperstone's Razor account is perfect for algorithmic traders and scalpers. Standard accounts are designed for new traders.
After selecting these accounts, customers can place bets on various financial instruments.
This includes over 60 foreign exchange pairs, 20 index CFDs and over 1000 stock CFDs. The company also supports more than a dozen commodity CFDs, five cryptocurrency CFDs and three currency index CFDs.
Both account holders have equal access to all these tools. The MetaTrader 5 forex trading platform allows US traders to share CFDs with an exception. It has over 800 US stocks listed and traded as CFDs. Pepperstone offers commissions as low as $0.02 per share, allowing traders to go long or short these CFDs without significant risk. However, Pepperstone has few records of cryptocurrency fees.
The high volatility of this instrument, coupled with its relatively wide spreads, makes Pepperstone somewhat risky for crypto investors and needs to be traded with caution.
Pepperstone Review - Pros and Cons
Pepperstone's credibility in providing highly accurate support to its traders can be verified by weighing the broker's strengths against its weaknesses. Pepperstone has to go through a complex process to successfully process every transaction from its clients. In the process, it prioritizes certain performance parameters, but also only some other aspects of the transaction.
It is important to know that Pepperstone is not a perfect broker, but it still offers clients more advantages than disadvantages. Here is an overview of the pros and cons of trading Pepperstone:
Pros
- Yes It offers relatively low spreads for foreign exchange trading.
- It is regulated by the Regional Investment Commission (ASIC), Global Markets Authority (FCA), CySec, BaFIN, DFSA, CMA and SCB.
- Yes It provides investor protection for UK resident customers.
- It offers multiple platforms and social trading tools.
- There are two different account types, one for beginners (Standard) and one for professional traders (Razor).
- Entitlement Financial Conduct Authority regulation makes it legal under all EU governments.
- True investor funds can only be safely stored in Tier 1 banks.
- It offers maximum leverage based on geography, with a maximum retail of 400:1 and a maximum pro of 500:1.
Cons
- It does not provide a guaranteed stop loss order for every trade.
- It offers limited protection to non-EU customers.
- US customers are not accepted.
Training with Pepperstones
Pepperstone also shares information that helps its clients improve their skills. One of the financial services the company provides is providing quality education to its clients. Pepperstone has developed dozens of comprehensive training courses to educate its users on the next level of trading proficiency.
The company collects data from multiple real sources and creates a knowledge base that acts as a training portal for traders. Each trading platform offered by Pepperstone has its own section to educate its users on Forex trading.
This section contains basic user guides and tutorials for beginners. This section also provides access to an extensive archive of advanced educational content. Pepperston hosts a number of live webinars to discuss these topics and help their clients become familiar with the fundamentals and emerging trends of Forex and CFD trading.
These training guides and training content make it easier for you to understand financial instruments. For example, commodity trading is very situational, while CFDs are complex. To understand both, Pepperstone describes the factors that drive both tools. The company also organizes discussions within its exclusive craft community. These discussions cover the inherent issues of hedging, slippage, and margining, three of the most complex aspects of trading.
Pepperstone also provides training and education through its customer service. From platform comparisons to platform guides, traders can contact support and expand their understanding. Over the years, the company has simplified deposit and withdrawal procedures. In 2020, Pepperstone will also offer its technical analysis tutorials and market glossary through its educational content.
Portfolio Development with Pepperstone
There is a special area called the Active Market Panel where Pepperstone provides market data to its users. This panel is available on the cTrader platform interface. It updates in real time and provides the information you need to profit on every trade. This information is filtered by margin, pip value and trade value. As a result, traders have exactly the information they need to make informed decisions.
Pepperstone clients have access to the cTrader FIX API for performing portfolio analysis. This offer serves as a reliable tool for analyzing trading activity and diversifying your portfolio. By using these tools and customizing their filters, every investment a trader makes can be protected. When traders apply this analysis while trading, monthly trading reports can reflect significant gains.
Pepperstone does not limit its analysis of client performance to basic metrics. It goes deeper and identifies data that will help new entrants to online forex trading. However, Pepperstone tax accounting tools are available on these platforms.
Pepperstone Review - Regulatory Security
Pepperstone is regulated by several well-known institutions in the global foreign exchange market. The company has professional indemnity insurance with Lloyd's of London. Pepperstone is an Australian Financial Services Provider regulated by the Australian Securities and Investments Commission. This regulation is registered under AFSL 414530 and ACN 147055703.
Pepperstone's Forex brokerage services are also regulated by the UK Financial Conduct Authority. Company number 08965105 is registered under FRN 684312. These two regulators are responsible for overseeing the services provided by Pepperstone, especially forex brokerage services.
To create a safe and regulated environment, companies have never lived up to the stringent capital requirements of these regulators. It also implements internal procedures recommended by the committee. Pepperstone ensures compliance with risk management measures, employee training rules, accounting policies and auditing activities required by regulators.
More about Pepperstone Regulations
Another factor that makes Pepperstone safe is investor protection of up to £85,000 for UK traders. This protection is subject to the protection of the Financial Services Compensation Scheme, where client funds are held securely with National Australia Bank. Funds are held in separate accounts and are protected from misuse. Pepperstone Group is also independently audited by Ernst & Young.
Regarding the security of the trading platform, the cTrader and MetaTrader platforms have an automatic stop-loss mechanism that eliminates the high risk of hitting negative balances. In volatile market conditions, Pepperstone protects EU traders from balance sheet deficits when losses exceed deposit amounts.
This is mandatory for Pepperstone's EU clients under the 2018 ESMA rules. However, non-EU customers will not receive negative balance protection. In addition, the company does not guarantee every stop loss order. A vulnerability in Pepperstone security is the lack of two-factor authentication in endpoint security. Pepperstone's device management protocol also lacks biometric authentication for its mobile commerce services.
Pepperstone Review – Customer Service
Email support is Pepperstone's primary type of customer service. The broker also offers a live chat option for its traders. However, customer service is limited but available on Saturdays and Sundays. Pepperstone users have access to 24/5 live chat and phone support for information on social trading trends. The company is also more responsive to mobile commerce through social media channels and online forms.
Pepperstone Merchants will be assigned an account manager to assist with account-related matters. However, the company does not have a trading desk. It does not allow customers to contact them in the event of a transaction emergency. Instead, local customers can visit Pepperstone's offices in Melbourne, Australia.
However, online customer service brings quick results. This Pepperstone review has added an FAQ section at the end to answer some frequently asked questions from traders.
Pepperstone Review - Cost
After completing the Pepperstone registration process, users can choose between two accounts. The cost of these accounts is very competitive compared to the trading account fees charged by other online brokers in the industry.
New clients can choose a standard account with a minimum forex spread of 1 pip and no commissions. Seasoned traders can choose a Razor account with the lowest forex spreads but commissions. In addition to Forex, other instruments supported by Pepperstone earn both spreads and commissions.
Leverage and Allocation
A commission is charged when a trader tries to take advantage of the Razor account's average spread of 0.17 on the EUR/USD pair. However, if a standard account holder uses the same currency pair with an average spread of 0.77 pips, no commission will be charged.
For Pepperstone users, the average spread cost for a MetaTrader 5-enabled Razor account is EUR 100,000 with a base currency of EUR. A commission of EUR 5.20 is charged based on a spread of 0.17 pips, making the total spread cost 0.653 pips. The Pepperstone website reserves the right to share information on its competitive spreads. However, some users have noticed differences between the spreads offered between the MetaTrader 4 and MetaTrader 5 platforms, and these differences are not accurately reflected on the website.
Forex spreads offered by Pepperstone are also available at specified times at a split cost of the lowest spreads in the online retail forex market.