Pepperstone is a leading Australian forex broker founded in 2010. The five key strengths found in our Pepperstone review include the:
- Australian based 24/5 Pepperstone support
- Fast execution trading speeds
- MetaTrader and cTrader forex platform options
- Market leading leverage levels of 500:1
- Low spreads through an ECN forex trading environment
Pepperstone Support Levels
Pepperstone is the largest market share mover with a 3% increase thanks partially due to their strong customer support. In fact, Pepperstone support levels were so high they won the Investment Trends overall client satisfaction award. Key elements that have led to superior support levels include:
1) Personalised Customer Service
Pepperstone offers a customer service team that hold years of experience within the forex trading sector. As real traders, they can help educate and answer any forex trading enquiries beginner, intermediate or expert traders may have. In many cases, a dedicated account manager may also be assigned to a trader to gain a stronger understanding of the traders needs.
2) 24 Hour Support
Pepperstone support is always available when the forex markets are open thanks to their five offices which are located in Melbourne, Shanghai, Dallas, Bangkok and London. This also provides local options for those forex traders located outside of Australia.
3) Contact Channels
A key strength found in the Pepperstone review was the ability to use live chat to get high level support. There is also 24 hour phone support (with different national numbers for each office location) and e-mail Pepperstone support available.
How Does Pepperstone Achieve Fast Trade Execution Speeds?
Pepperstone is a true ‘ecn broker’ This allows forex trading without dealer intervention through their Razor account. Termed the ‘edge environment’, forex traders can directly access liquidity currency pools including large financial institutions globally. Latency can be low as 0.05 of a second (50ms) with immediate settlement eliminating delays, requires and rejects.
Execution speeds are further boosted by up to 12x thanks to:
1) Fast Global Trading Servers
Pepperstone has partnered with Equinix, one of NASDAQ’s leading listed firms. There servers are setup in Wall Street and London to access nearby strategic liquidity pools with:
- 60+ Exchanges
- 400+ buy/sell firms
- 150+ Financial Service Providers
2) Optical Fibre From Australia To Wall Street
Pepperstone utilises an optical fibre network from Sydney to their New York equinox servers.
This ensures that Australian forex brokers don’t need to worry about the thousands of kilometres that information needs to travel in order for for a trade to be executed.
Up to 10x latency reductions result from this factor!
Pepperstone Review Of Trading Platform Options
Two two leading forex trading platforms are available including:
– MT4 is the worlds most popular forex platform
– Easy to use interface and order management tools
– Real-time charts, live quotes and in-depth news
– Direct access to inter-bank market depth and the ability to implement algorithmic based fx trading systems.
– An interface that can be personalised with pre-set & detachable charts.
– Extensive back testing facilities (seen in our cTrader review)
|Platform||Accessibility||Adjustable Session Times||Dept Of Market Functionality||Historical Data Access||Enhanced EA Trading||Detachable Charts||Online Community|
Generally, its hard to separate the two forex trading platforms. Generally, those looking to use forex automation (EAs) may prefer MetaTrader 4 (MT4) based on the resources, online community and availability. cTrader on the other hand provide enhanced modification options within the interface combined with advanced order placing options.
Forex traders should understand what needs are the most important to their trading style when choosing a platform. Consider trialling the MT4 and cTrader demo accounts to understand which platform you feels comfortable with and easy it use.
What Leverage Does Pepperstone Offer?
Pepperstone offer a leverage level of 500:1. This is one of the highest levels on forex markets with only a handful of other AFSL forex broker firms offering 500:1 levels (see our high leverage table on the navigation bar at the top of this website).
What Does 500:1 Leverage Actually Mean?
500:1 means that for every dollar deposited into an online Pepperstone account the Australian forex broker will match you with up to $500. So for example if you deposited the minimum ($200) you could trade up to $100,000 on the currency markets ($200 *500).
In the example above, if the currency pairing moved 0.25% in your favour the total profit would be $100,000*0.0025 = $250. This essentially will have meant you have more than doubled your investment of $200 in that trade. On the flip side, if the currency pairing went in the opposite direction you would lose your whole deposit. Overall, high leverage means your increasing your overall risk profile so its critical that you understand the forex markets and gain some experience prior to utilising the maximum leverage available. This Pepperstone review factor should factor in your knowledge and risk factor and if you feel is too high, talk to your account manager to have the level lowered.
What Is Pepperstone’s Forex Trading Spreads & Fees?
When combining spreads, commissions and other fees of Australian forex brokers Pepperstone came was viewed as the ‘best value’.
There are two types of accounts with Pepperstone – Standard & Razor.
Standard accounts has no commission an spreads starting from 1.0pips.
It includes negative balance protection to help reduce Australian forex trader risk.
This true ecn broker account has a AU$3.5 commission on every $100k traded and is the most popular account option.
While commissions exist, the spreads in several cases are the lowest in Australia. Below shows the January 2017 spreads for the Razor ECN forex broker account as published on the Pepperstone site and compares it to other ECN trading accounts.
Another way that Pepperstone reduces brokerage fees is through their Price Improvement Technology. This works in volatile markets when large price movements occur with price improvement technology working in three steps:
You make a currency or CFD trade through the MT4 or cTrader platform
When you execute the trade there may be a favourable price movement with is detected
The price improvement technology aims to fill the price at the improved level with no re-quote occurring.
Pepperstone Broker Reviews
Forex brokers review sites generally have provided positive Pepperstone reviews since their launch in 2010. The Trust Pilot score 8.6 from 172 reviews as of 08/01/2017.
The key issues traders had within their forex broker reviews were in relation to ‘exotic pairings’ (pairing outside of the major currencies), customer service and the difficulty in withdrawing money from accounts. Positive Pepperstone broker reviews related to how fast their VPS is (<5ms), fast deposits, easy to get accounts setup and a stable platform. Overall, Pepperstone broker reviews of customer service were positive, only superseded by OANDA who excel in this one area.
What Bonus Offer Is Available?
Pepperstone in the past has matched 100% of the first deposit up to $600 Australian Dollars in free brokerage.
For this past offer a minimum deposits of $200 Australia dollars must be initially made.
Other conditions include:
– The offer is only for new forex traders to Pepperstone
– The bonus expires after 60 days of opening an account
It’s critical to note that “free brokerage” is considered ‘commission free fx trading’ through a Pepperstone Edge account. We are unsure if this bonus is still available in 2017 so after joining online we recommend you contact customer service to make sure you are eligible for this offer.
Please note the bonus is not available on Pepperstone demo accounts.
More Details About Pepperstone
Unlike most other brokers, Pepperstone forex broker is Australia based (in Collins Street, Melbourne) by a management-team with currency trading experience. In March 2016 at the Pepperstone Melbourne office Champ was announced as a strategic investor of the business. The Melbourne Pepperstone firm was founded in 2010, the company has always has Australian regulation holding the Australian Financial Services Licence 414530. This means that they need to meet capital requirements, staff training, comply with risk management processes, audits and accounting. If you hear of any Pepperstone scam this may be a broker pretending to be fx broker. Having an AFSL also means that Pepperstone financial accounts (client accounts) must be kept with Australian financial institutions which in this case is the National Australia Bank.
Traders can review currency training on forex on the Pepperstone YouTube channel, as well as the online Pepperstone resource centre. From time-to-time the Melbourne Pepperstone office also has on-site training fore selected traders. Minimum deposit size is $200 for either the Razor ecn broker account or the standard Pepperstone account with payment options raging from bpay, credit card to even Paypal.
Final Thoughts On Pepperstone
As an Australia owned and run forex broker, Pepperstone has seen rapid growth over the past decade based on awards and expert Pepperstone reviews. The have been achieved by offering one of the lowest spreads through their Razor ecn broker account, fastest execution spreads through the equinix server and one of the highest leverage rates of 500:1. The key to the Pepperstone forex broker is their size with enough volume to have market power yet smaller then some global players providing it flexibility and the ability to be an innovator in it’s field.
About Compare Forex Brokers
The authors of compare forex brokers have made good broker comparison tables to make finding the right Australian forex broker simple. There are several forex broker comparison tables each features on separate areas including leverage and fx platforms offered. Feel free to view our forex broker comparison options each with separate brokers reviews created by real Australians.
This online Pepperstone review was based on information gained from the Razor fx trading accounts and the Australian forex brokers website. As such a standard Pepperstone reviews should factor in the spreads of this alternative account. If you find any element of this online Pepperstone review that needs to be updated of an inaccurate Pepperstone broker review element please use the ‘contact us’ form and once verified we will make the change promptly.
Pepperstone offers a quality forex service with a worldwide presence.
Reviewed by Justin Grossbard