Pepperstone is Australia’s fastest growing and largest forex broker due to their:
– Low spreads and commissions
– Market leading trade execution speeds
– High Leverage Levels
What Is Pepperstone’s Most Popular Feature?
The feature that has driven Pepperstone’s growth has been the execution speed the broker offers. The broker partnered with Equinix (listed on the NASDAQ) to install Pepperstone’s ECN grid just 17.7km from Wall Street (where the words currency pool is traded).
Within this ECN grid facility in New York there are bank trading servers and sell/buy side firms providing the broker with a range of fast networks allowing directly exchangeable data with customers/partners in close proximity. Optical Fibre is used within the Equinix New York facility to maximise speeds and minimise latency of the network and as shown below, their is a Sub Oceanic Optical Fibre from Sydney to provide Australian traders with the fastest speeds available.
The overall impact of Pepperstone’s server and Optical Fiber setup is up to 10x latency reduction and 12x execution speed improvement making Pepperstone the Australian leader in this area.
What Forex Platform Is Offered By Pepperstone?
Unlike more other other Australian forex brokers, Pepperstone forex trading platform options are numerous. This includes offering the two most popular platforms which are MetaTrader and cTrader.
MetaTrader is the most used platform worldwide and key strengths are an easy to use interface showing real-time charts, analytics and live quotes. The charting functionality is considered one of the best in currency markets and the platform uses MQL language which allows traders to implement automated trading strategies.
cTrader works well with Pepperstone ECN trading platform to provide fast trades within currency markets. The platform has detachable charts to tailor the needs of individual forex traders combined with with enhanced order management systems to improve the efficiency of traders positions in volatile markets. This is viewed as the best platform for algorithmic based trading systems and complicated automated trading strategies with extensive back-testing facilities.
Spreads Offered By Pepperstone
As a market maker without a dealing desk, Pepperstone is able to provide low spreads through ‘economies of scale’ related to its high trading volume.
There are two account types offered by Pepperstone:
1) Standard Account
This is the ideal account for beginner/intermediate Australian forex traders with no commission of all trades. Spreads start from 0.5pips and you can use their MetaTrader 4 platform (explained earlier). A great feature of this standard account is negative balance protection which means that if you lose your deposit your traders are automatically ended ensuring you can’t go into negative balance. In extreme volatility where this may happen Pepperstone will pay for any negative balance encountered.
2) Razor Account
This is the account that built Pepperstone’s reputation and is designed for experienced traders with market leading spreads. The graphs below show just how low spreads can be for those using a Razor account but there are commissions of $3.50 per lot (100,000 base currency). Traders using this account have direct access to deep liquidity, transparent trading costs, flexible leverage and the fastest execution speeds offered by the broker.
Leverage Pepperstone Forex Trading Review
Pepperstone offers leverage levels of 500:1, the highest level available from the mainstream forex brokers in Australia as shown below.
Leverage of 500:1 effectively means that if you can trade 500x the amount you deposit on currency markets. So for example a $1,000 deposit means you can trade $500,000 worth of currency leading to great gains or losses when price fluctuations occur. As discussed earlier, Australian forex traders may prefer the standard account if they are not an expert broker as it offers negative balance protection ensuring that no more than a deposit is lost.
It should be noted that internationally 500:1 leverage is extremely high. In many countries the limit local authorities allow broker to offer is substantially lower and is 50:1 in some countries. This is due to the high level risk that leverage provides so it’s worth considering when you open a Pepperstone forex trading account if you want to lower the level of leverage provided.
Customer Service Levels
Pepperstone provides excellent service to high volume forex traders with an ‘active traders’ account. This includes a dedicated relationship manager providing tailored solutions and advanced reporting to monitor daily profit and loses. There is also access to SSI data with aggregated trading data.
For those who trade less frequently (or with more modest liquidity) a customer service individual is assigned who is located in Australia and has years of experience in currency markets. This level of service should be sufficient unless your new to trading and need training on how to trade for which another broker may be more ideal.
Pepperstone Bonus Offers
In mid 2016 Pepperstone introduced a world first promotion. The company partnered with Qantas and can now offer traders frequent flyer points every time they trade FX currency pairs with the broker. Once a trader links their Qantas frequent flyer account with Pepperstone, they have the ability to earn 10 points per 1 lot FX trade. Please be aware that a maximum cap of 10,000 points per month is applied. This bonus offer is fantastic for those who already trade frequently as they are essentially earning ‘points for jam.’ Visit the Pepperstone website for more information about this deal. As of the 13th of March 2017, the promotion was still live.
Pepperstone hold the Australian Financial Services Licence 414530 and is fully regulated in Australia providing traders with peace of mind.
Having an AFSL licence means that client funds are segregated with Australian banks and that staff must be trained to set levels.
Professional Indemnity Insurance is held with Lloyds of London.
Pepperstone Forex Trading Review Conclusion
Overall, Pepperstone offers the best value forex solutions for intermediate/advanced forex traders who want low spreads & fees, medium levels of leverage and the best forex platform options in the market. Beginner traders should consider another forex broker that offers more hands on training while traders who want the highest level of leverage to suit their currency traders may also want to consider their options as shown on our forex trading Australia comparison table.
This forex broker comparison and Pepperstone forex trading Australia review was completed on the 13/03/2017 based on information shown on the forex brokers websites and through direct dealings with their interface. Feel free to contact the authors through the contact form box on the site if you have any suggestions or changes for this page or any broker comparison page.
Pepperstone is the recommended forex broker for advanced Australian forex traders who find medium risk levels acceptable when currency trading.
Reviewed by Noam Korbl