Pepperstone Is The Best 2018 Australian Forex Broker
In March 2018 a comparison was made of the top Australian forex brokers and found that Pepperstone’s Razor Account was the best based on:
- The choice of the two most popular forex platforms worldwide
- The fastest execution rate of any forex broker Australia
- The best customer service & satisfaction based on 15,000 Australian forex traders
- Market leading spreads/commissions
- Solid leverage up to 500:1 for advanced traders
- The ability to earn Qantas frequent flyer points from trades
- The ability to trade cryptocurrencies including Bitcoin on the same trading platform
What Forex Trading Platforms Does Pepperstone Offer?
Pepperstone offers Australians the choice of the two most popular fx trading platforms globally.
This forex trading platform platform is the most popular worldwide due to it’s ease of use, charting and the ability to execute trades easily.
- Navigator & Market Watch Windows with 85 indicators
- Unlimited chart configurations and analysis tools
- The ability for automated trading (Expert Advisor’s)
Used by mainly advanced Australian forex traders, this fx trading platform is commonly used by day-traders and for those using expert strategies.
- Detachable next generation charting with level II pricing
- Automated options through the cTrader dedicated platform
- The ability to back-test and strategies or programs
How Does Pepperstone Achieve Superior Execution Speeds?
Pepperstone achieves up to 10x latency reduction and 12x improvements in Australia execution speeds when trading forex online due to:
1) Optic Fibre From Sydney To Wall Street
One of the key issues for Australian traders is the distance between the country and the trading hubs either in New York or London. Slow internet connections between continents means that latency can be experienced when fx trading leading to ‘slippage’ which is the difference between the order made and the actual order received.
Pepperstone has overcome this issue by adopting infrastructure that offers a direct fibre optic cable from their Sydney data-centre to New York.
This has minimised the latency for Australian forex traders which is why advanced traders who make split second decisions choose their ECN platform. This makes the platform perfect for traders that adopt both technical and fundamental analysis.
2) Edge Technology Including The Leading Servers
Optic fibre isn’t enough to ensure the fastest trades for an Australian forex trader as the server it connects to is just as important. To maximise server speeds Pepperstone partnered with Equinix which not only has one of the world’s best high-performance data-centre but at also less than 18 kilometres from Wall Street.
Edge technology also has created new tools for existing platforms such as MetaTrader such as ‘one-click-trading’ which ensures that as soon as a trade is made it goes straight to the market with no dealer or other external interference which may delay the trade.
Pepperstone Achieves Low Spreads Through ECN Forex Trading
Pepperstone’s popularity is not solely due to their technology but their ECN currency trading environment. This is matched by IC and IG which also offer ecn currency trading environments. The results are razor thin spreads for all these fx brokers.
It should be noted there are two accounts. The standard account is a larger spreads determined by the forex broker and the market and is normally selected by beginner forex traders. The Razor is a market maker account with market level spreads and a flat commission of $3.50. This Pepperstone review focused on this Razor ECN forex broker account.
Razor Is A Market Maker Account With No Dealer Intervention
It’s important to understand that Razor is a true ECN forex trading account. This is because Pepperstone allows traders to directly trade with liquidity pools making it a market maker with prices set by the market. The deep liquidity pools the account has access to are in New York for MetaTrader or London for cTrader. Overall, quotes come from up to 22 major banks and ECNs which allow during liquid periods spreads to be as low as 0.1 pips for USD/EUR.
2) Their Price Improvement Technology (PPI)
PPI technology intelligently routes currency trading orders to detect liquidity hot-spots to ensure optimal pricing for Australian traders. In simple terms, when you place a trade and in the scenario where the market moves in your favour (between placing the trade and it’s execution) the PPI technology detects the movement and when possible, fills the order at the improved level. This does not involve re-quoting but rather the traders just receives the improved price.
So to recap, the Razor market maker account (ECN forex broker account) is recommended due to the lower spreads and standard commission.You can learn more about these accounts on the Pepperstone account type page. There is also the option for CFD trading across 13 stock indices. There are no commissions on CFD trading and no dealing desk.
Pepperstone Offers High Leverage When Trading Forex
Pepperstone offers the maximum Australian forex broker leverage of 500:1.
What Does Leverage Mean?
Leverage is similar to borrowing where you can ‘borrow’ a multiple from a forex broker to maximise their exposure to the market. For example, Pepperstone’s leverage of 500:1 means you can borrow 500 times the deposit. So for example, a $300 deposit can lead to $150,000 been traded on currency markets.
Understand Your Risk Appetite
Leverage amplifies movements on currency markets which are traditionally modest. For example, leverage of 100:1 will mean a movement in a currency pairing of just 0.1% will lead to a 100% profit or complete loss of funds. It’s critical to understand your risk appetite when determining leverage levels. It should be noted that most brokers like Pepperstone will allow you to select a lower leverage level to begin with.
If you feel forex trading still exceeds your risk appetite you should consider additional features such as:
- Guaranteed Stop Loss Orders
- Negative Balance Protection
Pepperstone doesn’t offer guaranteed negative protection but it’s sophisticated ‘margin stop out’ works to to exist a forex trader before they exceed their balance. For MetaTrader this is triggered when the margin falls below 90%. cTrader has a ‘stop-out’ system that is activated at a 50% percentage (or below). This helps those with a lower risk appetite when it comes to losing more than their deposit.
Pepperstone’s Aubiz.net Australian company search details show the Australian public company has an ABN 12147055703. The site also states that they have an Australian Financial Services licence (AFSL) 389931.
Cryptocurrency Trading With Pepperstone
Pepperstone’s MetaTrader 4 forex trading platform also allows cryptocurrency trading with:
- No commissions
- Low spreads at institutional grades
- Fast execution speeds
- Leverage of up to 5:1
The most popular cryptocurrency in 2018, this blockchain technology allows diversification from traditional financial markets. The market capitalisation in February 2018 is over $112 billion and has become one of the most traded elements on the markets.
Learn more on this Bitcoin website.
Now the third most valuable cryptocurrency (Ripple is 2nd at the start of 2018), this serves more industries and purposes giving it a competitive edge. Key uses of Ethereum include blockchain application platforms through to smart contracts.
Learn more on this Ethereum Project website.
“Digital Cash” (shortened to Dash) focuses on enhancing anonymity and processing speeds of cryptocurrency. Dash is used worldwide as an efficient payment system. This popular use has led to increased liquidity and volatility within the asset class.
Discover more on the official Dash website.
This was launched after Bitcoin in 2011. The aim was to speed up transactions with the use of a simpler algorithm. The result has led to its increase in popularity and market capitalisation. This has made it a great alternative to Bitcoin to trade. More can be found on their P2P site.
Customer Service & Client Satisfaction Of Pepperstone
Pepperstone is a relatively new Australian forex broker compared to some global players but in Australia has quickly gained a dominant market share. They have a strong customer service team in Australia of individuals who actually trade themselves making them an excellent choice of intermediate to expert traders.
This was acknowledged in when Investment trends survey of 15,000 Australian forex traders ranked Pepperstone number 1 in:
- Overall Client Satisfaction
- Customer Service
- Execution Speeds
Pepperstone’s Australia customer service team is based out of Melbourne. There can be the possibility of talking to an overseas customer service team during off-peak periods such as Friday night.
The main forms of customer service including:
1) Live Chat
Pepperstone use the Zendesk live chat interface to communicate with customers. This is available during the same hours as the call centre team. Our team used Pepperstone’s live chat several times and found that we could engage with an agent within 5 minutes and the operator was helpful with in-depth knowledge. Overall, live chat was the fastest was to get the answer and assistance we needed when making this forex broker review.
There is 24 hour support via a 1300 number (or an international number for those outside of Australia). This is available from Monday through to Friday. There is also a telephone number for their Shanghai and Dallas office.
Each Pepperstone call-centre location also has an e-mail contact. This is the slowest way to send enquiries and get a response but it’s useful for long enquiries that require attachments.
As mentioned earlier, their team is highly competent but more towards intermediate and advanced forex trading Australia individuals. Those new to trading forex online in Australia may wish to consider a broker such as Easy Forex (now called Easy Markets). This is reflected in their Australian forex brokers reviews on third party sites.
Earn Up To 10 Qantas Points For Each Dollar On Your First Deposit
The first deposit placed into a Pepperstone account when trading forex online will lead up to 10,000 Qantas points. To achieve this, link a Qantas frequent flyers membership to the Pepperstone forex trading Australia account and then make the deposit. 10 frequent flyer points are awarded per dollar deposited. This only applies to the first deposit and further conditions apply.
Australian forex traders receive further Qantas frequent flyer points on their ongoing trades. 10 points per lot are available for fx majors, fx minors and fx crosses. At the end of each month a forex traders total volume is calculated and credited as Qantas Points to eligible Qantas frequent flyer members. Up to 10,000 points can be awarded each month. These amounts can be increase during bonus periods communicated by Pepperstone.
While other top Australian forex brokers may offer superior joining offers, the lower spreads of Pepperstone and advanced technology make many conclude that overall they are the best forex broker in the long-term.
How does the forex market work?
With over $5 USD trillion traded daily, the forex market is larger than any other financial market. There is no central trading location when currency trading with forex brokers both as market makers or through ECNs (electronic communication networks) buying and selling currency globally.
What is a forex account?
Forex accounts are offered by brokers to buy, sell and hold foreign currencies. The process for trading currency is to open a forex account, make a deposit and then trade currency pairings. With the use of leverage, currency fluctuations will lead to profits or losses.
What is a forex trader?
A forex trader refers to a retail currency trader who can trade most mainstream currency pairings through a forex broker. There are also institutional currency traders who make fewer but larger trades making huge impacts on currency markets.
What is meant by trade?
A trade on the foreign exchange markets is the action of buying or selling a currency pairing. A trade through a broker can include CFDs including commodities, shares, indices and even bitcoin.
What is a signal in forex?
Forex signals is a trigger to trade a currency pairing at a specific price and often time-frame. A signal can bet forex robot or analyst generated leading a trade alert or an automated trade to be generated.
Australian Forex Brokers
The best Australian forex broker suitable for foreign exchange trading are:
- Pepperstone – Melbourne based ECN Forex broker with award winning customer service offering the MetaTrader 4 (MT4) & cTrader forex trading platform.
- IC Markets – Sydney based ECN forex broker offering MT4, MT5 and cTrader forex trading platform, advanced trading tools and Bitcoin trading.
- AxiTrader – Sydney based ECN online broker offering MT4 combined with advanced EAs for an advanced automated trading environment.
- Easy Markets – International broker with an Australian office offering risk management from guaranteed stops, deal cancellation to negative balance protection.
- Go Markets – Melbourne fx broker offering currency trading, binary options, cryptocurrency and indices trading.
- Plus 500 – Sydney based broker licensed to offer CFDs (not binary options) within Australia, also offering EFTs, Stocks and Cryptocurrency.
- Plus500 CFD – The CFD division of Plus 500 offering leverage of 300:1 across a range of CFDs products including commodities.
- ThinkForex – Melbourne forex broker also know as ThinkMarkets offering it’s own forex trading platform or MT4 and metals trading.
- IG Markets – Australia’s largest retail foreign exchange broker offering traditional share trading, forex trading through to interest rate trading.
- FXCM – Sydney broker with a low minimum deposit of $50 and an all-in-one online trading platform that allows multiple financial produce trades.
- CMC Markets – 10,000 CFDs market products can be traded based in Sydney with tiered accounts match with customer service levels.
About This Forex Brokers Australia Comparison
Most prospective forex traders often find it hard to differentiate the best 2018 Australian forex brokers and know which one is the best broker for their circumstances. This is especially true when it comes to safety and regulation with most Australian’s looking for a currency trading broker that locally regulated. This means they trade out of an Australian subsidiary and hold deposits within the country. To help speed up the process of choosing the best forex broker the key players are compared with the ‘top 5’ placed on the table above. To make the figures relevant to Australian foreign exchange market conditions, other third-party sources were also used to collect data such as spreads and fees. Below shows the complete Australia forex broker list.
|Australian Forex broker ||Office Location||Max leverage||Forex Platform(s)||Regulation
|Admiral Markets||Sydney||500:1||MT4, MT5||AFSL 410681
|AETOS||North Sydney||200:1||MT4, Multi-Account Management||AFSL 313016
|AVATrade||Sydney||400:1|| MT4, AvaTradeAct, ||AFSL 406684
|AxiTrader||North Sydney||400:1||MT4||AFSL 318232
|BMFN||Sydney||200:1||MT4, LMAX ||AFSL 379035
|City Index||Sydney||200:1||MT4, AT Pro||AFSL 345646
|Core Liquidity Markets||Sydney||400:1||MT4, Multi-Account Trader|| AFSL 305539
|Direct FX||Sydney||400:1||MT4, Multi0Account Manager , CQG FX||AFSL 305539
|easyMarkets||Sydney||400:1||MT4, easyMarkets ||AFSL 246566
|Forex FS||Sydney||500:1||MT4, JForex, ||AFSL 323193
|FP Markets||Sydney||500:1||MT4, IRESS Suite||AFSL 286354
|FXCM||Sydney||400:1||MT4, NinjaTrader, Trading Station||AFSL 309763
|FXGiants||Sydney||200:1||MT4, Personal Multi-Account Manager||AFSL 417482
|Global Prime||Sydney||200:1||MT4, FIX API, MAM/PAMM||AFSL 385620
|GO Markets||Melbourne||300:1||MT4||AFSL 254963
|Hantec Markets Australia||Sydney||200:1||MT4, Interbank Direct ||AFSL 326907
|IC Markets||Sydney||500:1||MT4, MT5, cTrader || AFSL 335692
|IG||Melbourne||200:1||MT4, L2 Dealer, ProRealTime||AFSL 220440
|Invast||Sydney||100:1||MT4, IRESSTrader, MaxxTrader ||AFSL 438283
|JB Alpha||Melbourne||100:1||MT4||AFSL 327075
|Pepperstone||Melbourne||500:1||MT4, MT5, cTrader||AFSL 414530
|PhillipCapital||Melbourne||100:1||MT4, Phillip CFD Trader||AFSL 246827
|Plus500||Sydney||300:1||Plus500 Platform||AFSL 417727
|Royal Financial Trading ||Sydney||400:1||MT4||AFSL 420268
|Rubix FX||Melbourne||400:1||MT4, Rubix Prime ||AFSL 337985
|Synergy FX||Melbourne||500:1||MT4, Social Trader||AFSL 403863
|ThinkMarkets||Melbourne||400:1||MT4, Trade Interceptor||AFSL 424700
|USGFX||Sydney||500:1||MT4, ZuluTrade||AFSL 302792
|Vantage FX||Sydney||500:1||MT4, MT5, MarketTrader||AFSL 428901
While the forex Australia table above only have Australian regulated foreign exchange brokers, there are a number of other tables that look at online brokers based on key requirements ranging from ‘low fees’ to ‘high leverage’. We also focus on cfd brokers such as Plus500 CFDs and IG Markets for those looking for more then just currency trading. Most of these forex trading platforms are nationally regulated as the authors rated higher brokers that offered Australians the higher level of security. Since this is the case, it’s recommended that individuals view these tables as well to find the best forex broker Australia to suit the foreign exchange market and their trading forex style.
Since the forex broker Australia comparison information on this site was created by real Australians and without assistance from the forex trading brokers the information should only be used as a guide. This is because the information came from reviewing the providers websites and without automation. This means that human error may be present or that elements such as leverage rates or fees may change without warning. If you find any forex Australia elements that require changes please use the contact us form and state where the change(s) need to be made and in most circumstances these will be made promptly. This will ensure the best broker can be found by users of the site.
This review factored in other 2018 Australian Forex brokers reviews including:
- Go Markets
- Plus 500
- IG Markets
- IC Markets
- CMC Markets
- Easy Markets
Trading Forex Glossary
- Forex = A shortened version of the phrase foreign exchange.
- Spread = A gap between the ask and sell price of a currency pairing (often the brokers margin)
- Bid Price = The price that a currency trader can sell a currency
- Margin = The amount required to open a position
- Margin Call = This is an alert that there isn’t sufficient margin to maintain the position(s) that are open and may require extra liquidity or the position to be closed
- Base Currency = When viewing a currency pairing such as AUD/EUR the first currency (in this case AUD) is the base currency.
- Leverage = The ability a forex broker provides to amplify a traders base amount to increase the exposure to the market.
Page updated last on 06/03/2018