Brief Overview of Pepperstone
Pepperstone was founded by owners Owen Kerr and Joe Davenport in Melbourne in 2010 and in just a short space of time the company has not only become one of the most popular Australian Forex brokers, they are also one of the largest. In just 5 short years the company has grown from a small office in Melbourne, Australia to 3 with offices in Dallas, Texas and Shanghai in China.
The company was instrumental in the move to online Forex trading and now offers Forex services in 65 countries around the world.
Why Has Pepperstone Become So Popular?
Online Forex trading has truly revolutionised the Forex industry as it has allowed the trading of currencies and other financial instruments to become more mainstream and accessible to retail investors. The company’s rapid growth has come on the back of superior customer service and supplying clients with improved trading conditions such as faster trade execution and low spreads. Furthermore, the company is committed to providing customers with the latest in trading technology. In fact each of the Pepperstone accounts features industry leading, low- latency trading software. Providing retail traders with similar technology to that seen at banks and large financial companies has definitely evened the playing field and helped Pepperstone rapidly grow their client base.
What Services Does Pepperstone Offer?
Pepperstone is widely considered to be an execution-only CFDs and Forex broker. The company provides highly sophisticated trading solutions to experienced traders. Pepperstone accounts also are simple enough for beginner traders. Appealing to both experienced and beginner traders is what sets the company apart from peers such as Plus500 or Easy Forex that target only veteran traders. The company mainly offers Forex and CFDs trading services but have recently added precious metals and energy to their list of instruments that can be traded.
How Many Pepperstone Accounts Are There?
There are approximately 4 Pepperstone accounts available to clients. Each Pepperstone account comes with slightly different services and fee/commission structures. We break down the Pepperstone accounts into more detail below:
The Edge Standard Account
The Edge Pepperstone account boasts $0 commissions and provides traders with interbank spreads and liquidity from 0.5 pips. This Pepperstone account is considered their entry-level service and users popular software including MetaTrader 4 (MT4) and cTrader among others. This account also features negative balance protection, a risk offset system that stops your account balance from going into negative territory. It is important to note that this doesn’t provide traders with an absolute guarantee so always trade with caution.
The Edge Razor Account
This is one of the most popular Pepperstone accounts and offers users spreads from as low as 0.1 pips and commissions of $3.50 per 100,000 units traded. Execution speeds on this account are lightning fast with features such as 500:1 leverage, Expert Advisor, hedging and scalping all supported. More details of the spreads and commissions charged with this account can be seen in the trading commission table below.
The Edge Swap Free Account (Islamic Account)
Until recently most Pepperstone accounts were not appropriate for traders of Muslim heritage as according to Sharia Law Muslims cannot receive or pay swaps. The rise of retail Forex trading has also taken the Islamic world by storm and Pepperstone released this account to allow clients to trade within the confines of Muslim law. Key features or this account include straight through processing and average spreads of 1.0-1.2 pips.
The Edge Active Traders Account
This Pepperstone account is geared towards active traders and institutions. This account provides the highest level of service available with Pepperstone and includes Electronic Communication Network access and execution. With this account, clients are also afforded a dedicated relationship manager, segregated accounts set up with Australian banks and advanced reporting and hosting benefits. Institutional traders are used to using high-end technology such as API and FX GUI. Pepperstone understands this and as such offers experienced traders with customised solutions keeping them accustomed to the platforms they’re used to. You won’t find much information regarding Pepperstone’s customised packages on their website. Instead contact them directly and a specialist will be in touch with you.
Are Pepperstone Accounts Suited To A Certain Type of Trader?
As mentioned earlier, Pepperstone are one of the best brokers for identifying the needs and experience levels of traders. Some brokers have been set up to target a very specific type of trader. For example Easy Forex was set up to target beginner traders mainly. This is not the case with Pepperstone and there are Pepperstone accounts tailored to traders of all experience level. Even Islamic traders are catered for with Pepperstone. No matter your trading circumstances, Pepperstone will probably have a trading account suited to you.
Is Pepperstone A Good Broker?
At Compare Forex Brokers we understand that customers just want a simple answer, yes or no. We can’t answer this question for you that simply. However, here is what we know and love about the company:
Pepperstone offers market-leading leverage of up to 500:1. Always be very careful when trading with high leverage as you can lose all your money extremely quickly. Currency trading does require trading with leverage as currency prices fluctuate by small fractions of a percent.
Pepperstone have been well reviewed right around the web with many customers citing their customer service and support as one of the best features of trading with the company. If customer service is important to you, Pepperstone accounts are all well regarded by existing traders.
Australian Financial Service Licence Holder
This is an important factor we have not touched on in this article yet. Before trading Forex it is important you not only find a broker with plenty of top tier services. You also need to ensure the company is adequately regulated and meets capital and risk management requirements. You can rest assured Pepperstone accounts meet these criteria. The company is Australian regulated holding AFSL 414530.
Pepperstone have some of the lowest spreads available in the world of currency trading. The table below shows how when measured against 7 other brokers they come out on top.
Negative Balance Protection
The team at Pepperstone regard this as the ‘cost of doing business.’ Negative balance protection, while not entirely perfect at offsetting risk when market forces move against you, can save you a lot of money and heartache. All traders no matter their level of expertise utilise risk reduction strategies or hedging. Negative balance protection is one more tool a trader with Pepperstone has in their back pocket if things go wrong.