Pepperstone Strengths + Weaknesses
- Strength 1 – ECN Spreads And Low Fees
- Strength 2 – Leading Forex Trading Platforms
- Strength 3 – Award Winning Customer Service
- Weakness 1 – Lack Of Integrated Trading
- Weakness 2 – No Joining Bonus Options
- Weakness 3 – Risk Management Features
View the complete Pepperstone review where each element above is discussed in detail below.
Pepperstone Has Market Leading Spreads And Fees
There are two types of accounts offered by Pepperstone:
- Standard account – High spreads and no commissions (designed for beginner traders)
- Razor account – Low Spread + AU$3.50 commission (designed for advanced traders)
Spreads Are Even Lower Due To Price Improvement Technology
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:
- The trader makes a forex or CFD trade through the MT4 or cTrader platform.
- The trade is executed and a more favourable price movement with is detected.
- The price improvement technology aims to fill the price at the improved level.
There Are No Pepperstone Fees On Deposits And Withdraws
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.
- Visa – Instant funding through Verified By Visa is available with zero fees.
- MasterCard – MasterCard SecureCode allows fast funds which like Visa don’t have fees applied.
- Paypal – No charges are applied from Paypal funding of an account
- POLi & BPay – Bank transfers can be made at any time from eligible bank accounts through POLi. BPay is similar for Australian bank accounts.
- China Union Pay – There are no fees or charges from Union Pay which offers funding at any time.
- Bank Transfer (Domestic & International) – Bank transfers are available but they can take time and fees may be charged.
- Skrill (Moneybookers), Qiwi & Neteller – Fast deposit method that is available 24 hours, 7 days a week with no charges.
- Fastapay – Instant deposit method with no fees.
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 for the account.
Bank wire transfers take between three to five working days while International Telegraphic Transfers have a fee of approximately $20 Australian dollars.
Conclusion On Pepperstone Spreads And Fee
Our Pepperstone review found the Australian forex broker has the lowest trading costs due to:
- Institutional market leading spreads
- Low commissions of AUD $3.50
- No fees on deposits and withdrawals
- Price improvement technology
Pepperstone Offers The Best Forex Trading Platforms
The two most popular forex trading platforms globally are offered by Pepperstone:
- 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||Depth Of Market Functionality||Historical Data Access||Enhanced EA Trading||Detachable Charts|
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.
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.
Both Platforms Are Enhanced By Market Leading Infrustrature
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!
Platforms Are Further Enhanced Through The Maximum Leverage Offering
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.
Conclusion On Pepperstone Trading Platform offering
Our Pepperstone review found the forex broker had the best trading platform offering with:
- The two most popular forex trading platforms
- Equinix trading servers
- Optic fibre network
- The maximum leverage of 500:1
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 Broker Reviews
Forex brokers review sites generally have provided positive Pepperstone reviews since their launch in 2010. The score was<8.6 from 268 reviews as of the 15/01/2017.
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.
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.
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.
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.
National Australia Bank
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.
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.