Comparing The

Pepperstone Razor Vs Standard Account

Pepperstone standard vs razor account brokerage is the key point of difference with the standard account attracting higher spreads but a $0 commission vs the razor account that has lowest spreads offered by Pepperstone from 0.0 pips with the addition of a $3.50 commission per 100k traded.

View the complete review of Pepperstone or the Pepperstone Standard vs Pepperstone razor account comparison table below.

Strengths

1. No Commission
2. Choice of cTrader or MT4 and MT5 Trading Platforms
3. Fast Execution Speeds
4. Highest Leverage
5. Award-Winning Customer Service

1. ECN Spreads and Low Fees
2. Choice of cTrader or MT4 and MT5 Trading Platforms
3. Fast Execution Speeds
4. Highest Leverage
5. Award-Winning Customer Service

Weaknesses

1. No Guaranteed Negative Balance Protection
2. Wider Spreads (when compared to ECN accounts)
3. Minimum deposit of $200.

1. No Guaranteed Negative Balance Protection
2. Some CFDs Not Offered (ie Shares)
3. Minimum deposit of $200.

Spreads + Commissions

Spread Value

8.5
Commission Value

8.8
Spread Value

9.2
Commission Value

9.9

Forex Trading Platform

1. MetaTrader 4 with Smart Trader Tools
2. cTrader with cAlgo for trading with robots.

1. MetaTrader 4 with Smart Trader Tools
2. cTrader with cAlgo for trading with robots.

Execution Speeds

Trading Speed

10
Trading Speed

10

Leverage

500:1

500:1

Risk Management

1. Margin Stop Loss Order
2. Automated Negative Balance Protection (Not Guaranteed)
3. Regulated by Australia Securities & Investments Commission (ASIC)
4. Segregated accounts with National Australia Bank

1. Margin Stop Loss Order
2. Automated But Not Guaranteed Negative Balance Protection
3. Regulated by Australia Securities & Investments Commission (ASIC)
4. Segregated accounts with National Australia Bank

Other CFDs (eg Crypto)

1. Index CFDs
2. Precious Metals
3. Energy
4. Soft Commodities
5. Bitcoin / Bitcoin Cash
6. Ethereum
7. Dash
8. Litecoin

1. Index CFDs
2. Precious Metals
3. Energy
4. Soft Commodities
5. Bitcoin / Bitcoin Cash
6. Ethereum
7. Dash
8. Litecoin

Customer Support

Award winning customer support based (Investment Trends.)
1. Live Chat (24/5 hour support.
2. Telephone (24/5 hour support)
3. Call Back request
4. Email Support

Award winning customer support based (Investment Trends.)
1. Live Chat (24/5 hour support.
2. Telephone (24/5 hour support)
3. Call Back request
4. Email Support

Joining Bonus

Bonus Qantas Frequent Flyer Points

Bonus Qantas Frequent Flyer Points

Funding Methods

1. Credit Card/Debit Cards (Visa and Master Card)
2. PayPal
3. Neteller
4. QIWI
6. Skrill
7. UnionPay
8. Bank Wire Transfer
9. Bpay
10. FasaPay
11. Broker to Broker
12. Poli

1. Credit Card/Debit Cards (Visa and Master Card)
2. PayPal
3. Neteller
4. QIWI
6. Skrill
7. UnionPay
8. Bank Wire Transfer
9. Bpay
10. FasaPay
11. Broker to Broker
12. Poli

Reviews

Trustpilot
4 out of 5 stars- ‎351 reviews

Trustpilot
4 out of 5 stars- ‎351 reviews

Recommended For

1. Beginner traders
2. Low volume traders
3. Forex traders who value competent customer support

1. Experienced high volume traders (Active Traders)
2. Traders utilising automated trading and scalping
3. Forex traders who value competent customer support

  • MetaTrader
  • cTrader
  • ECN Trading Account
  • Deal Cancellation
  • Guaranteed Stops
  • Guaranteed No Minimum Balance
  • No Fees On Deposits + Withdrawals
  • Share Trading

1. Beginner traders
2. Low volume traders
3. Forex traders who value competent customer support

1. Experienced high volume traders (Active Traders)
2. Traders utilising automated trading and scalping
3. Forex traders who value competent customer support

Spreads + Commissions

Spread Value

8.5
Commission Value

8.8
Spread Value

9.2
Commission Value

9.9

Execution Speeds

Trading Speed

10
Trading Speed

10

 

  • MetaTrader
  • cTrader
  • ECN Trading Account
  • Deal Cancellation
  • Guaranteed Stops
  • Guaranteed No Minimum Balance
  • No Fees On Deposits + Withdrawals
  • Share Trading
  • MetaTrader
  • cTrader
  • ECN Trading Account
  • Deal Cancellation
  • Guaranteed Stops
  • Guaranteed No Minimum Balance
  • No Fees On Deposits + Withdrawals
  • Share Trading

Pepperstone Razor vs Standard Account

As part of your research into Pepperstone Group Limited updated on the 16th of April 2019 it was noted there are two main account types. This is the Pepperstone Razor Vs Standard account. Both these foreign exchange account types offer the same features including the same:

  • Forex Trading Platform (MT4 and cTrader)
  • 80+ Currency Pairings
  • CFD Leveraged Products
  • Customer Service
  • Minimum Deposits
  • Leverage of 500 to 1
  • Trading Lots
  • Fast Trade Execution (as low as 0.05 of a second)

The key difference is that each Pepperstone account type charge traders like yourself differently. There is a full Pepperstone spread comparison page where more is reviewed about the fees associated with Pepperstone accounts.

Each of the Pepperstone online fx accounts use a different technology and charges differently. To help you choose the right account for your needs we explain the differences in technology and costs between each account. When you open a Pepperstone account you select your base currency. In the examples below apply AUD as our base currency. Our calculations will also assume you are using the MT4 platform (cTrader uses different calculation).

Pepperstone Standard Account – No Commission

In our comparison of Pepperstone spreads you will see the Pepperstone Standard Account has a wider spread when we compare with the Razor Account. In the table you will notice the Pepperstone spread difference between the two accounts is 1 PIP. This is added by Pepperstone to the raw market price is how Pepperstone make a profit for each online forex trade you make.

Pepperstone Razor vs Standard Spread Comparision

Pepperstone Razor vs Standard Spreads

Pepperstone Standard Account Technology

Pepperstone use Straight through Processing (STP) to determine your spreads for the Standard Account. What this means is they send your buy and sell position to a liquidity fx broker and add 1 PIPS to the Pepperstone spreads set by the market. This might sound slightly like a Market Maker but it is quite different. A traditional Market Maker fx broker sets their own buy and sell price and deal with their own liquidity. An STP online forex broker on the other-hand does not set their own buy or sell price or hold any liquidity. Rather they forward a trader’s position to financial merchants who will buy or sell the online forex. There is no dealing desk intervention. Pepperstone then add the PIP to the price.

Benefits of Standard (no commission) Accounts

Adding a PIP to the spread and not applying commission charges fees is similar to service provider that provides a flat fee for their service. The cost is up front and transparent. You know what your costs will be with little calculations required on your part. No commission accounts are therefore more convenient to manage and thus, great for beginner traders.

Pepperstone Razor Account

A commission account like the Pepperstone Razor account requires lengthy calculations to determine trading costs. This is due to Pepperstone spreads being tighter while there is a commission charged on top. This complicated combination is why beginner forex traders often avoid the Razor account.

The Pepperstone Razor account offers tighter spreads because they use Electronic Communication Network (ECN) to determine the buy and sell price. ECN technology allows for the tightest spreads because Pepperstone does not interfere or manipulate the spread in any shape or form. Pepperstone spreads are set completely set by liquidity providers and Pepperstone do not add any PIPs to the spreads.

Peperstone Razor Account commission charges

Understanding the role of lots.

When you trade forex online you trade with Lots. Lots represents the trading volume. There are three types of lots a micro lot is 1000 units, a mini lot is 10,000 units and a standard lot is 100,000 units. The table below shows the value of a selection of lots with Pepperstone. You will notice AUD USD is 10 USD for 1 Standard Lot.

Pepperstone Lots

Comparing calculations of Standard and Razor Account

For our examples we have taken the average spread for AUS USD from the Pepperstone website. AUS is the base currency and USD is the quote currency.

Calculating The Pepperstone commission with micro lots Standard vs Razor

Standard
Trading with 0.01 lot (ie. 0.10 USD) with 1.27 pip value and no commission is 0.10 x 1.27 = 0.127
Razor
Trading with 0.01 lot (ie. 0.10 USD) with 0.27 pipe value plus 0.07 commission is 0.10 x 0.27 = 0.027 + 0.07 = 0.097

0.03 cents for each standard lot can be saved using the Razor account.

Calculating The Pepperstone commission with mini lots Standard vs Razor AUS USD

Standard
Trading with 0.10 lot (ie. 1 USD) with 1.27 pip value and no commission is 1 x 1.27 = 1.27
Razor
Trading with 0.10 lot (ie. 1 USD) with 0.27 pip value plus 0.70 commission is 1 x 0.27 = 0.27 + 0.70 = 0.97

0.30 cents for each standard lot can be saved using the Razor account.

Calculating The Pepperstone commission with standard lots Standard vs Razor AUS USD

Standard
Trading with 1 lot (ie. 10 USD) with 1.27 pip value and no commission is 10 x 1.27 = 12.70
Razor
Trading with 1 lot (ie. 10 USD) with 0.27 pip value plus 0.70 commission is 10 x 0.27 = 2.7 + 7 = 9.7

$3 for each standard lot can be saved using the Razor account.

Discount For High Volume Forex Traders

Frequent high-volume traders can received a discount due to the Pepperstone Active Trader program. Pepperstone is one of the only Australian forex brokers to offer such a discount where a discount of up to 43% can be made on commissions for the Razor account. This means that each month the higher the volume, the higher the cash rebate based on the tier system below. These rebates are paid daily back into the forex traders account. This is another feature unique to Pepperstone compared to other Australian forex brokers.

Pepperstone High Volume Rebates

The remain eligible for the high-volume rebates above, the Australian forex broker requires a trader to meet volume requires over a three month period. Rebates are also only made Forex majors, minors, crosses and exotics including:

  • Foreign Exchange Majors – AUD/USD, EUR/USD, GBP/USD, USD/CAD, USD/CHF, USD/JPY
  • Foreign Exchange Minors – AUD/CAD, AUD/CHF, AUD/NZD, AUD/SGD, EUR/AUD, EUR/CHF, EUR/GBP, GBP/AUD, GBPCHF, NZD/USD
  • Foreign Exchange Crosses – AUD/JPY, CAD/CHF, CAD/JPY, CHF/JPY, EUR/CAD, EUR/JPY, EUR/NZD, GBP/CAD, GBP/JPY, GBP/NZD, NZD/JPY

Conclusion of the Pepperstone Razor vs Standard – Which Is Better?

Pepperstone ECN Razor account outperforms its Standard Account when it comes to trading costs regardless of the number of lots you trade with.  This is why we recommend Pepperstone’s ECN account for high volume of expert traders. View our full review of Pepperstone if you want to learn more about this Australian forex broker.

Why Should Beginner/Intermediate Traders Choose standard?

Our Pepperstone review found 3 reason why you might choose Standard over Razor:

  1. Pepperstone currently applies $0.07 round-trip commission for micro lots, $0.70 round-trip for mini lots and $7 round-trip commission for standard lot. If the lot commission was to increase in future then Standard Account might be more cost effective.
  2. Pepperstone currently apply 1 pip to the spread on Standard accounts. This is very low but it is possible Pepperstone could reduce the pip amount added to the spread in future.
  3. You are trading with micro lots. If you are a beginner trader then it is wise to trade with micro lots until you gain confidence in your forex trading. This is because the difference trading with micro lots between standard and razor account is minor then choosing to trade with micro lots can reduce the risks of losses while you learn how to master forex trading can be.
  4. Removing the need to calculate commission when trading keeps things simple thus allowing you to focus on understanding you trading strategies.

Pepperstone Offers

Our Pepperstone review found it was one of the only forex brokers in Australia that offer a frequent flyer points promotion. This is based on 100,000 units traded with 10 points per lot. This is irrespective of the account balance. You can also compare Pepperstone to GO Markets or IG Markets in our head-to-head comparison tables.