Pepperstone Account Types Available
Well-known and liked throughout the Forex and CFDs trading community, Pepperstone has risen to become one of the top online trading brokerages. A trader with a Pepperstone account can easily trade not only the currency markets, but also CFDs based around the following asset categories:
- Precious Metals
- Energy Sources
- Soft Commodities
In order to make the most of this diverse trading platform, a new trader must first decide what kind of Pepperstone account he or she wants to open. The following are overviews of the different account types available that we found in our broader Pepperstone review to help traders decide which one is right for them.
Like almost all modern online trading platforms, Pepperstone account levels start with a demo account. This is an account on which no actual money is traded, but on which mock trades can be executed using real-time market data. The purpose of a demo account on a trading platform is to give newcomers a chance to get used to the trading interface and to learn some basic trading techniques. Different traders can take advantage of a demo Pepperstone account in different ways. Brand-new traders may need to use it to grasp basic principles of trend analysis and trade execution. Investors from more traditional securities markets, though they will understand such basic concepts, can still benefit from a direct learning experience of the speed and liquidity that CFDs and Forex markets offer.
Finally, traders with experience in these areas who are coming to Pepperstone from other brokerages can use the demo feature to get the hang of Pepperstone’s platform without having to initiate real trades. The great advantage of a demo account is that it can be used as little or as much as you need. Whether you require a simple run-through of Pepperstone’s system or a complete introduction to online trading, a demo account will provide the experience you need. Once you’ve learned what you needed to, it’s also very easy to create a live trading account using the information you used to open your demo!
The basic live trading Pepperstone account is the Standard. This account gives traders access to all of the basic functions of trading on Pepperstone. Like many online accounts, it is built on the well-known MetaTrader 4 platform, considered by many to be the industry standard for Forex trading. For occasional traders who don’t require advanced features, the Standard Pepperstone account is a solid and user-friendly option.
When trading on a Standard account, users will execute trades with built-in spreads starting at 1.0 pips. Though slightly high, the spread is offset by the no-commission structure of Pepperstone’s basic account. Pepperstone account holders are also protected against losing more than their investment capital by the company’s negative balance protection, which will close out all trades if the funds in a trader’s account reach zero. Given the volatility of CFDs and Forex markets, this is a major concern for traders with little capital in their accounts.
The next level up from the Standard account type is the Razor, an account that offers considerable benefit for higher-level traders. To begin with, the Razor account offers lower spreads than the Standard. To compensate for the spread reduction, the Razor Pepperstone account does place a very modest commission of $3.50 AUD per volume of 100,000 traded. This trade off makes much more sense for traders executing large volume trades, as it keeps the spread cost down to a flat rate.
Another benefit offered by the Razor account is its built-in scalping and hedging features. Though more advanced, these techniques can be used by experienced traders to lower their risks on trades and become more profitable over time. These features are coupled with leverage ratios of up to 500:1, which can allow traders to make more profit off of relatively small fluctuations. For traders who are willing to learn the ins and outs of trading strategy, the combination of high leverage with well thought out hedging or scalping tactics can lead to considerable gains. Best of all, a Razor account can be opened with as little as $200 AUD, making these advanced benefits readily available to practically anyone.
We compare the Razor and Standard Account here.
Active Trader Program
The top-tier Pepperstone account is known as the Active Trader Program. This level is designed to improve on the functions of the Razor account through dedicated services for traders. Using this program, members gain access to:
- A personal account manager to help you realise your trading goals
- Enhanced analytics and reporting function
- Third-party platform access facilitated by Pepperstone
- Hosting for automated trading programs
- Dedicated funds account
These features will have the most benefit for full-time traders. Those who trade on a part-time basis will typically find the Razor account level to be the best option, as its features are still a good value. To open a Pepperstone account under the Active Trader Program, users must directly contact the company’s service team.
Given that it is one of the leading trading platforms in the world, it is unsurprising that Pepperstone has followed the general trend in the online trading industry of creating dedicated Islamic accounts. The Islamic Pepperstone account is fully managed in accordance with Muslim religious beliefs, allowing Muslims to trade effectively without violating their own moral code. In structure, the Islamic trading account is most similar to the Razor account. Its spreads, however, are higher, and no commissions are charged.
With its varied account types, Pepperstone Australian Forex Broker offers traders of all sorts a good place to conduct their online activity. Relatively tight spreads and a broad range of assets available as CFDs make this brokerage a good place for traders to learn, grow and succeed. If you are interested in getting into online trading or finding a new broker, a Pepperstone account may be a good solution for you.
Pepperstone has been compared to other leading ECN forex brokers in comparison tables including IC Markets and AxiTrader. View these page if your trying to decide which fx broker is best to meet your forex trading needs.
The alternate to an ECN Broker is a Market Maker. Spreads are wider but there is no commission and they typically include extra features such as extra risk management tools. You can compare Pepperstone with easyMarkets and Plus500 here.