Pepperstone Review 2017
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Pepperstone Review

Account types

Account Types Minimum Deposit Minimum Trade Size Max Leverage Spread
Edge Razor Account $200 AUD 0.01 (micro lot) 500:1 0.8 pips + $7 per lot
Edge Standard Account $200 AUD 0.01 (micro lot) 500:1 1.2 pips
Edge Swap Free Account $200 AUD 0.01 (micro lot) 500:1 1.2 pips

 

Pepperstone offers many peculiar accounts for trade. The account known as the Edge Standard is made to serve normal traders and provides spreads for STP processing and interbank on the widely used MT4, meanwhile the design of the Razor account specifically suits EA and advanced traders offering lower spreads (as well as higher costs of trade). An extra account is provided to support institutional partners, and high volume trade or traders – Benefits of higher service levels accompany the Edge Active account for traders: unrivaled ECN EDGE execution together with a dedicated and experienced manager working with the holder of the account. Moreover, there is an account available at Pepperstone which is swap-free in accordance with the Sharia law.

The Company

 

Founded in 2010, Pepperstone is an ECN forex broker based in Australia. The ASIC-regulated company known as Pepperstone Group Ltd. Is situated in Melbourne with branches in Dallas, London, Bangkok and Shanghai.. The broker gives forex trade options to its clients (over 70 different pairs of currencies), precious metals, Index CFDs, and energy. There is also a duly authorized branch in the UK, which is under the regulation of the FCA (Financial Conduct Authority).

Although a comparatively new broker, Pepperstone picked up popularity for giving refined trading solutions and fantastic conditions for trade. It received an award in 2014 from BRW Magazine for being the most rapidly growing Australia based company.

Security of Funds

Pepperstone possesses an Australian Financial Services License with its regulation done by ASIC (the Australian Securities and Investment Commission). Service providers who are licensed are required by ASIC to fulfill strict capital prerequisites while complying with several internal processes to facilitate accounting, audits and risk management. With regards to the base required capital, forex brokers are required by ASIC to possess a minimum of $ 1 million so as to provide legitimate financial services. The FCA which handle regulation in the UK requires at least 730 000 EUR for forex brokers.

Pepperstone on its website, further expressed its maintenance of client segregated accounts which are held with top-level banks while mentioning the holding of Professional Indemnity Insurance offered by Lloyds of London.
Notwithstanding the requirements and regulations for brokers, there is need to know the risks involved in CFDs and Margin FX trade. Dissimilar to the brokers based in the EU, no compensation scheme covers those in Australia. However, clients of Pepperstone’s UK branch are covered by the FSCS (Financial Sevices Compensation Scheme) fall under the umbrella of the Financial Services Compensation Scheme (FSCS), which provides consumers with protection of up to £50,000 for every individual per organization.

Trading Conditions

Minimum deposit

Clients of pepperstone are allowed to begin trade with a minimum deposit of 200 AUD or its equivalent. For example, ThinkForex, which is another broker based in Australia, requires a minimum amount of $250 as its first deposit and offers spreads which averagely rise to 1.2 pips, whereas AvaTrade, whose headquarters is also based in Australia, demands a minimum of $100 so as to begin while offering on the EUR/USD, floating spreads averagely rising to 1.8 pips.

Spreads and commissions

In relation to spreads Pepperstone offers, the average spreads of the Edge standard account rise to 1.2 pips while the Edge Razor account’s amounts to 0.8 pips on the EUR/USD.
Brokers charge a commission fee which is another cost component for trade. However, the Edge Razor account is the only account type charged by Pepperstone for commissions which rise to $3.5 for every traded 100k. The standard account is free of commissions.
With regards to the costs of trade, it is important to highlight the fact that admin charges also apply to the Islamic type of account, when trade must have been done for at least 3 days. Depending on the pair of currencies, their amounts span 3 to 150 points.
The Pepperstone Price Improvement (PPI), which in fact is positive slippage is another interesting feature this broker offers. The technology of the PPI ensures that your orders are automatically filled at favorable levels in situations when prices are moving to the advantage of traders.

Leverage

Pepperstone provides a maximum leverage of 500:1. This is a relatively high leverage figure especially in comparison with the lower average limits in many other countries. For example, in US, the allowed maximum leverage is 50:1 while it’s limited to 25:1 in Japan.

Trading Platforms

The clients of Pepperstone are being provided with three platforms to choose from: MetaTrader5, cTrader, MetaTrader4. The MT4 which meets industry standards is available for ipad/tablet, Mac iphone and Andriod. A web based version of MT4 called WebTrader is also offered. as such for mobile devices. A cTrader web version platform is provided, as well as a version for mobile devices. We are not done yet, there is a cAgo option with the cTrader platform which allows robot trading together with the generation of customized c# indicators.
Pepperstone’s three platforms for trade are definitely amongst the industry’s most popular trading platforms. Although the MT5 was marketed as an improved development of the MT4, numerous brokers direct their preferences towards the former technology, mostly because hedging isn’t allowed on MT5 and the incompatibility of the MT5 with MT4 EAs (Expert Advisors) and indicators. The cTrader platform is in itself custom designed providing a user-friendly interface which is simple to be used with ECN brokerages.

We also have to site some key features offered by Pepperstone to its clients. Let’s start with the infrastructure for order execution. Pepperstone uses the NY4 data center of Equinix through their partnership to partake in the Equinix Financial eXchange. Pepperstone with the help of this exchange gains access to numerous low-latency networks, while becoming able to directly exchange data with strategic clients and partners.
Moreover, the new functionality of providerAutochartist analysis tools for trade were first offered by Pepperstone – i.e. the e-mail trade service known as “Trade Now”.

Payment Methods

A wide variety of payment methods are available to the clients of Pepperstone: Bank wire, Union Pay, BPay, PayPal, Neteller, Local Bank Deposit, WebMoney, Bpay, Credit/Debit cards (MasterCard and Visa), Skrill, QIWI, POLI and FasaPay.

Conclusion

To conclude, Pepperstone can be considered amongst the most renowned brokerages in Australia, which offers quick executions, spreads which are very low, pricing which is candid and very fair trading costs.

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