Pepperstone Review

Pepperstone is an Sydney based ECN forex broker and regulated by ASIC. The forex trading platforms offered by Pepperstone including MetaTrader 4 and cTrader. Investment Trends made a Pepperstone review and judged the forex broker to have the leading customer service, value for money and satisfaction.

A 2018 Pepperstone review found 5 key strengths:

  • 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

View each of these key strengths combined with some weaknesses for the Australia forex broker below.


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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.

Pepperstone Review Based On Investment Trends Survey

Execution Speeds Offered By Pepperstone

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:

Australian Forex Trading Servers1) 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

Pepperstone Review Of Speed2) 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

MetaTrader FX Broker Australia PlatformTwo two leading forex trading platforms are available including:
1) MetaTrader
– 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

cTrader FX Broker Australia Platform2) cTrader
– 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)

PlatformAccessibilityAdjustable Session TimesDepth Of Market FunctionalityHistorical Data AccessEnhanced EA TradingDetachable Charts
MetaTrader 4Windows
MAC
NoNoYesYesNo
cTraderWindowsYesYesNoNoYes

Generally, its hard to separate the two forex trading platforms for this Pepperstone review. 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.

2017 Australian Forex Broker Comparison Table

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.

Visit The Pepperstone Website

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 was viewed as the ‘best value’.

There are two types of accounts with Pepperstone – Standard & Razor.
Standard Account
Standard accounts have no commission an spreads starting from 1.0pips.
It includes negative balance protection to help reduce Australian forex trader risk.
Razor Account
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 2018 spreads for the Razor ECN forex broker account as published on the Pepperstone site and compares it to other ECN trading accounts.

Average Spreads
(11/01/2018)
EUR/USDUSD/JPYAUD/USDGBP/USD
Standard Account1.161.251.271.49
Razor Account0.16*0.25*0.27*0.49*
IG Account0.263*0.293*0.512*0.992*
AxiTrader Account0.75*0.86*0.75*1.34*
IC Markets0.1*0.3*0.5*0.5*

Price Improvement Technology EdgeAnother 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:

Step 1
You make a currency or CFD trade through the MT4 or cTrader platform
Step 2
When you execute the trade there may be a favourable price movement with is detected
Step 3
The price improvement technology aims to fill the price at the improved level with no re-quote occurring.

Pepperstone Price Improvement Technology

So What Pepperstone Account Should You Choose?

Clients of Pepperstone are spoilt for choice when it comes to selecting a platform that is right for them. From cTrader to MetaTrader 4, 5 and even their proprietary Razor account. If you’re a beginner or veteran trader, trade on the go or at a work station, there is a Pepperstone account that is the right fit for you you your trading style. They even boast an unlimited demo account so you can get used to trading before putting any of your own capital on the line.

Pepperstone Broker Reviews

Forex brokers review sites generally have provided positive Pepperstone reviews since their launch in 2010. The Trust Pilot score was 8.6 from 268 reviews as of 15/01/2017.

Pepperstone Reviews January 2018

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.

Investment trends which also does an annual survey late each year also found the Australian forex broker was the best across several areas. These include customer service, value for money, platform reliability and execution speeds.

Investment Trends Awards 2015 and 2016

Overall, Pepperstone 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.
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Please note the bonus is not available on Pepperstone demo accounts. 

Deposits Methods And Fees

Pepperstone don’t charge fees for deposits but international institutions may charge their own fees and need to be paid by the client. All payments must be first-party with bank accounts in different names to the trading accounts not been accepted.

1) Visa

Instant funding through Verified By Visa is available with zero fees.

2) MasterCard

MasterCard SecureCode allows fast funds which like Visa don’t have fees applied.

3) Paypal

No charges are applied from Paypal funding of an account

4) POLi & BPay

Bank transfers can be made at any time from eligible bank accounts through POLi. BPay is similar for Australian bank accounts.

5) China Union Pay

There are no fees or charges from Union Pay which offers funding at any time.

6) Bank Transfer (Domestic & International)

Bank transfers are available but they can take time and fees may be charged.

7) Skrill (Moneybookers), Qiwi & Neteller

Fast deposit method that is available 24 hours, 7 days a week with no charges.

8) Fastapay

Instant deposit method with no fees.

Withdrawals

A withdrawal received prior to 7:00am AEST is processed the same day. After this time the deposit will be processed the next day.

The bank account linked to the Pepperstone account will receive the funds (this can’t be a third-party as is the case for deposits). If a credit card was used to fund an account it can also be used for withdrawals if the amount matches or is less then the deposited amount. Otherwise an alternative withdrawal method is needed.

Bank wire transfers take between three to five working days while International Telegraphic Transfers have a fee of approximately $20 Australian dollars.

Clients Accounts Are Held At NAB

As an ASIC regulated Australia forex broker, Pepperstone is required to hold client’s funds in a segregated bank account. Our Pepperstone review found this was the National Australia Bank (NAB) which is one of the ‘big 4’. This ensures ‘peace of mind’ when forex trading if the forex broker has any liquidity issues.

 

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.

Wiki Information

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.Online Pepperstone Training

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.

Visit The Pepperstone Website

 

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.

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