Forex broker Pepperstone of Australia offer low STP + ECN broker spreads from 0.0 pips EUR/USD and MetaTrader 4, 5 and cTrader trading platforms. IG Group (IG) offers market maker spreads from 0.6 pips, 16,000 trading CFDs and spread betting in the UK. Let’s dive in.
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Our full comparison covers the 10 most important trading factors. Here are five noticeable differences between Pepperstone and IG Group:
Finding a broker with tight spreads and low trading costs is a main consideration when trading forex. There are two key pricing structures and account types that both brokers offer to retail traders:
No Commission Spreads
The tables below compare Pepperstone’s Razor Account and IG’s Standard Account spreads to other top CFD providers. Both Pepperstone and IG are the most competitive for all major currency pairs shown. When it comes to the most commonly traded forex pair, being the EUR/USD, Pepperstone’s spreads are the tightest. If you are new to trading and focused on building confidence and forex knowledge, no-commission account types are ideal as it eliminates complex fee calculations.
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1.10 | 1.20 | 1.40 | 2.00 | 1.50 |
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1.13 | 1.01 | 1.71 | 2.27 | 1.98 |
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0.70 | 2.20 | 1.10 | 1.60 | 1.60 |
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1.90 | 2.00 | 2.40 | 2.30 | 2.50 |
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1.40 | 2.50 | 2.50 | 2.60 | 2.60 |
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1.20 | 1.80 | 1.90 | 2.30 | 2.30 |
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1.32 | 1.95 | 1.37 | 1.87 | 1.73 |
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1.30 | 1.70 | 2.10 | 1.70 | 2.10 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
Compare Standard Account Spreads
Commission Spreads
Both IG (formerly IG Markets) and Pepperstone offer a commission account type suited to more experienced traders. With spreads as low as 0.0 pips at times, Pepperstone is significantly more competitive than IG.
Commission fees equate to AUD $3.50 per side per 100k traded when trading with Pepperstone, while IG charges USD $6 per 100k traded.
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Raw Spread comparison
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0.10 | 0.20 | 0.40 | 1.00 | 0.60 |
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0.17 | 0.30 | 0.54 | 0.68 | N/A |
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0.44 | 0.42 | 0.40 | 0.30 | 0.83 |
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0.10 | 0.20 | 0.30 | 0.50 | 0.30 |
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0.20 | 0.20 | 0.40 | N/A | 0.30 |
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0.20 | 0.40 | 0.50 | 0.70 | 0.70 |
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0.10 | 0.50 | 0.60 | 0.80 | 1.10 |
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n/a | 0.50 | 0.60 | 0.40 | 0.30 |
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0.44 | 1.23 | 1.13 | 1.23 | 1.41 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
Pepperstone offers 80+ currency pairs, including all the majors, such as EUR/USD, USD/JPY and GBP/USD. Along with a wide selection of minors and exotics such as AUD/USD, EUR/GBP and EUR/JPY. IG offers 90 Forex pairs.
Pepperstone Trading Platform
Pepperstone offers MetaTrader 4 (MT4), MetaTrader 5 (MT5), Web Trader and cTrader trading platforms.
MetaTrader 4
MetaTrader 4 – is the platform that most brokers and both beginners and experienced traders prefer. Its popularity is a reflection of the reliability and quality that MT4 delivers for traders. MT4 offers excellent charting packages, an excellent range of technical indicators, the ability for back-testing and Expert Advisors. MT4 is best for trading in decentralised markets such as forex and when you want a simple interface.
MetaTrader 5
MetaTrader 5 – This MetaQuotes’ follow-up to MT4 is built to handle trading through an exchange. This makes MT5 ideal for trading assets such as shares in addition to assets that don’t require an exchange. One of the key benefits of MT5 is that with a single sign-in account, you can trade all different types of derivatives (i.e. shares, cryptocurrency, commodities). MT5 offers many of the same features as MT4 but more variety of options.
In the past, we always recommended MQL4 as MQL5 did not offer the ability to hedge. Recent upgrades have seen MQL5 introduce a hedging system. In the past, only a netting system was available. With a netting system, only one common position for a symbol can be used at a time. When trading in America, you must use this system. With a hedging system, you can have multiple open positions of the same symbol.
Smart Trader Tools
Regardless if you use MT4 or MT5, Pepperstone gives you access to their add tools which provide even more functionality. Smart trader tools is a suite of tools or apps that help you get more out of your trading. Tools include
IG Trading Platforms
This broker offers a wide selection of trading platforms, including:
Below are the key features of each platform:
The IG proprietary platform is known for being good for traders without high experience, thanks to its simple and user-friendly interface.
IG Platform Takeaways
Observations about ProRealTime
MetaTrader 4
Verdict
This is a difficult one to decide on a winner. Both brokers offer MetaTrader 4, which is the platform we like the most. IG offers more platform choices, and these are popular with beginner traders due to their clean interface. Pepperstone, on the other hand, offers MetaTrader 5, which does everything MT4 does, and while not yet as popular as MT4, MetaTrader is trying to encourage users to move over to this platform. MT5 essentially offers everything MT4 offers, and more so, MT5 may be the platform to choose if you are looking to trade into the far future.
Pepperstone Trading Accounts
Pepperstone Razor Account
This account has the lowest spreads among Pepperstone and IG accounts as it uses electronic communication network (ECN) style execution. The spreads you see here are set by the market without manipulation from dealing desks. When using MT4 and MT5, ECN style execution means you pay a commission fee of $7 (round-trip) for each standard lot you trade rather than pay through a wider spread.
If you are using cTrader, you pay a commission fee equal to 0.0035% of the base currency you are trading. For instance, if you are trading 100,000 units of the EUR/USD, you will pay €7 round turn. Even with a commission, trading costs will still be lower than all other account types.
Pepperstone Standard Account
The standard account is similar to the Pepperstone razor account, but there is no commission charge. Instead, your cost is absorbed into the spread. A standard 0.6 pips (point in percentage) is added to your spread. This is why all spreads on the Pepperstone Standard account are 1.0 pips higher than the Razor account.
You can compare the two Pepperstone accounts on the Razor vs Standard table page.
IG Trading Accounts
DMA account does not apply to the USA
IG Forex Direct
This account uses ‘Direct Market Access’ (DMA) technology. DMA is relatively similar to ECN but with some minor differences. Like with Pepperstone’s Razor account, there is a commission fee for each trade you execute. The thing to understand with the Forex Direct account is that it is only available to ‘professional’ traders. To qualify as a professional trader, you must have consistently been trading leveraged derivatives over the past year and have net assets of $2.5 million or gross income of over AUD$250,000 for each of the past 2 financial years.
Our review will not focus on this account as it is unlikely to apply to most of our clients due to high barriers to entry.
IG Standard Account
Lastly, we have the IG Standard account. With this account, IG acts as a market maker or a dealing desk. In this case, IG takes the other side of your trade, meaning they profit when you make a loss and lose when you make a profit. As you can see, the spreads they offer are relatively competitive. The spreads they offer are higher than ECN/DMA account spreads, but they don’t have commission charges.
| Account Type | Pepperstone Standard | Pepperstone Razor | IG Markets Standard |
|---|---|---|---|
| Spreads From | 1.0 pips |
0.0 pips | 0.6 pips |
| Commission | $0 | MT4 USD $7.76 / AUD 7.00 AUD per lot MT5 USD/AUD $7.00 Round Turn per lots cTrader 7 unit per lot in base currency |
$0 |
| Minimum Trade Size | 0.01 Lot (micro lots) | 0.01 Lot (micro lots) | 0.01 Lot (micro lots) |
| Leverage | ASIC 301 Maximum FCA Retail Traders: 30:1 Professional Traders 500:1 |
ASIC 30:1 Maximum FCA Retails trader: 30:1 Professional traders: 500:1 |
ASIC 30:1 Maximum FCA Retail traders: 30:1 Professional traders 222:1 |
| Expert Traders Allowed | Yes | Yes | Only on MT4 platform (for personal traders) |
| Hedging Allowed | Yes | Yes | Only on MT4 platform (for personal traders) |
| Scalping Allowed | Yes | Yes | Only on MT4 (for personal traders) |
| Minimum Deposit | $200 | $200 | $0 |
| Support | 24/7 | 24/7 | 24/5 |
| Currency Pairs | 60 | 60 | 90 |
| Tradeable Instruments | 70+ | 70+ | N/A |
| Execution | STP | ECN Style Pricing | Market Maker |
| Comments | Clients in UK and Europe under FCA regulation can choose retail account with leverage of 30:1 and Negative Balance Protection or Profession account with leverage of 500:1 and no negative balance protection | Clients in UK and Europe under FCA regulation can choose retail account with leverage of 30:1 and Negative Balance Protection or Profession account with leverage of 500:1 and no negative balance protection | Clients in UK and Europe under FCA regulation can choose retail account can choose leverage of 30:1 and negative balance protection. Professional trader can access leverage of 222:1 with no negative balance protection |
Pepperstone And IG Islamic Swap-Free Accounts
Both brokers offer a Swap Free trading account. These accounts are designed for Muslim traders who are not permitted to accept swaps. In place of swaps or rollover/holding interest, Pepperstone charges an admin fee every 10th day you hold your position open.
Key Differences To Note With Each Broker:
Minimum Initial Deposit – IG don’t require any funds to open an account. This allows you to take advantage of IG’s free demo accounts. To start trading, your account will need to meet margin requirements.
Automatic Trading – IG standard doesn’t allow expert advisors, scalping, or hedging on their proprietary platforms. If you want automatic trading, then you must trade using the MT4 platform. IG only allow MT4 on PC, not via the website. Pepperstone allows trading automation on all its platforms.
Verdict
We recommend Pepperstone Razor Account. ECN technology is great as it allows retail traders like yourself to link with liquidity providers and achieve the best possible spreads set by the market. ECN spreads are typically much tighter than you will find with the other accounts and methods of trade execution. Another benefit is this technology is all done electronically, which means you can use EAs (expert advisors) for automated trading and trade during “after hours”.
View Pepperstone ReviewVisit Pepperstone
As a Pepperstone Razor account trader, you can achieve further savings by joining Pepperstone’s ‘Active’ trader program. This is a rebate program which can save you up to 43% in trading commissions. Depending on how many lots you trade each month, you will receive a monthly rebate.
The Active trader program not only has rebates but also other benefits such as:
When it comes to the best trading experience and ease, both Pepperstone and IG Markets have their unique strengths. From our in-depth analysis and our own testing, we’ve found that Pepperstone stands out in certain areas while IG Markets shines in others. Here’s a breakdown of what we discovered:
Now, from a personal standpoint, I’ve always appreciated the flexibility and range of tools both brokers offer. Whether you’re a beginner or a seasoned trader, both platforms cater to your needs, ensuring a seamless trading experience. It’s all about finding which broker aligns best with your trading style and preferences.
Pepperstone Trust Score
IG Group Trust Score
Both Pepperstone and IG Markets are multi-regulated brokers. This means there is a fair chance the broker has a subsidiary with the necessary regulations to offer financial trading services in your country.
Pepperstone Regulation
In recent years, Pepperstone have expanded the number of countries they are regulated in. Since 2020, Pepperstone has added Kenya (CIMA), Germany & Austria (BaFIN), Cyprus (CySEC) and the United Arab Emirates (DFSA) to the portfolio of countries they are regulated in.
Traders in Europe mainland will join Pepperstone’s Cyprus subsidiary, except traders in Germany and Austria who will join Pepperstone’s German subsidiary.
Traders outside Australia, Europe, Kenya, the UK and the UAE will join Pepperstone’s Bahamas subsidiary.
IG Markets Regulation
Being regulated in 10 different countries, it is fair to say IG Markets is one of the most regulated brokers of all online brokers. In addition to the UK (FCA) and Australia (ASIC), they are also regulated in the USA (CFTC, NFA), New Zealand (FMA) and even Japan. Traders outside Europe/UK, UAE, Singapore, South Africa, Australia, New Zealand and the United States will join the IG Market Bermuda subsidiary.
| Pepperstone | IG Group | |
|---|---|---|
| Tier 1 Regulation | ASIC (Australia) FCA (UK) BaFin (Germany) CYSEC (Cyprus) |
ASIC (Australia) FCA (UK) BaFin (Germany) FINMA (Switzerland) NFA/CFTC (USA) CYSEC (Cyprus) MAS (Singapore) FMA (New Zealand) |
| Tier 2 Regulation | DFSA (Dubai) | JFSA (Japan) DFSA (Dubai) |
| Tier 3 Regulation | SCB (Bahamas) CMA (Kenya) |
BMA (Bermuda) FSCA (South Africa) |
Pepperstone CFDs
Pepperstone has a decent range of derivatives when it comes to trading contracts for difference (CFDs). CFDs available include:
If you are in the UK, Spread Betting is an option as an alternative to CFD trading.
IG CFDs
IG is one of the best online brokers if you are seeking an all-in-one broker for CFD trading. With IG, you can choose from the following:
Note: Only Forex is available in the USA
If you are looking for a broker for trading cryptocurrency, then take a look at our Pepperstone vs EightCap. With 250 Cryptocurrencies, Eightcap presents a compelling option for CFD crypto trading.
In addition to CFDs, IG also offers share trading.
Verdict
IG offers a far more extensive range of asset classes and, therefore, should be your choice if you are looking for an all-in-one broker.
In the realm of forex trading, education is paramount. Both Pepperstone and IG Markets understand this and have invested significantly in their educational resources. From our in-depth analysis and our own testing, we’ve discerned some key differences in the educational offerings of these two brokers:
Verdict
Based on our testing, IG Markets slightly edges out Pepperstone in terms of educational resources, offering a more comprehensive and diverse range of learning materials.
Pepperstone Customer Support
Pepperstone offers award-winning customer service. Customer support is 24/7, and you can contact them via any of the following means: live chat, phone and email. You can call Pepperstone toll-free from within Australia.
Pepperstone Customer Service Features
Pepperstone has a wide range of additional features that form part of its superior customer service experience. These include:
IG Customer Support
IG has a good range of contact tools for customer support. These include Email, live chat, phone and even Twitter. Customer support is not quite 24/7 as it is from Saturday 1 pm to Saturday at 9 am.
IG Customer Service
They also provide you with all the essential tools you need for support services you may need. These include forums, glossaries, FAQs and user guides. The shining feature in their customer service tool-set, however, is their education. This academy is known as the “IG Academy”, and it is relatively comprehensive. The academy consists of nine different trading courses in forex and derivatives trading. The learning tools include webinars, booklets, videos and even mobile apps.
Verdict
Both brokers offer excellent customer support and services; however, we found it hard to go past the features that Pepperstone offer. It is very comprehensive and provides just about any information you may need to not only use their products but trade successfully.
Except for bank wire withdrawals, Pepperstone does not charge users when making deposits or withdrawals. Pepperstone provides a large range of options for funding, including Skrill, Neteller, and PayPal, in addition to Visa and MasterCard for debit cards and credit cards.
IG will charge you 1% for Visa and 0.5% for MasterCard. You will also incur a 1% charge when using PayPal, BPay, and Bank Transfer are free. It is important to note that when using debit, credit or PayPal for deposits, there is a minimum of $500
Verdict
Pepperstone is an easy choice when it comes to funding. Not only are there more options, but there are no charges.
Both Pepperstone and IG have a $0 minimum deposit prerequisite for traders. That said, Pepperstone’s minimum is available for GBP, USD, EUR, and AUD via various payment channels, as seen below.
| GBP | USD | EUR | AUD | |
|---|---|---|---|---|
| Credit Card / Debit Card | £0 Minimum Deposit | $0 Minimum Deposit | €0 Minimum Deposit | $0 |
| Paypal | £0 Minimum Deposit | $0 Minimum Deposit | €0 Minimum Deposit | $0 |
| Bank Wire | £0 Minimum Deposit | $0 Minimum Deposit | €0 Minimum Deposit | $0 |
| Skrill | £0 Minimum Deposit | $0 Minimum Deposit | €0 Minimum Deposit | $0 |
Alternatively, IG’s minimum requirement varies by region and payment method, as we lay out in the table below.
| GBP | USD | EUR | AUD | |
|---|---|---|---|---|
| Credit Card / Debit Card | £250 Minimum Deposit | $50 Minimum Deposit | €300 Minimum Deposit | $100 |
| Paypal | £250 Minimum Deposit | $50 Minimum Deposit | €300 Minimum Deposit | $100 |
| Bank Wire | £0 Minimum Deposit | $250 Minimum Deposit | €0 Minimum Deposit | $0 |
| Skrill | N/A | N/A | N/A | N/A |
Verdict
It’s a tie between these two brokers when it comes to minimum deposits. Both are also reputable brokers, so you can go with either, but if you want the $0 minimum for whichever payment method you use, then Pepperstone could be the better choice.
Pepperstone is the winner because of its comprehensive trading platforms, competitive spreads, and robust educational resources. The table below summarises the key information leading to this verdict:
| Criteria | Pepperstone | IG Markets |
|---|---|---|
| Lowest Spreads And Fees | ✅ | ❌ |
| Better Trading Platform | ✅ | ✅ |
| Superior Accounts And Features | ✅ | ❌ |
| Best Trading Experience And Ease | ✅ | ✅ |
| Stronger Trust And Regulation | ✅ | ✅ |
| Top Product Range And CFD Markets | ❌ | ✅ |
| Superior Educational Resources | ❌ | ✅ |
| Superior Customer Service | ✅ | ❌ |
| Better Funding Options | ✅ | ❌ |
| Lower Minimum Deposit | ✅ | ✅ |
For those just starting out in the trading world, IG Group offers a more beginner-friendly environment with its extensive educational resources and intuitive platform.
For seasoned traders looking for advanced tools and competitive spreads, Pepperstone stands out as the preferred choice.
Pepperstone generally offers more competitive spreads and lower costs. On average, traders can expect spreads as low as 0.0 pips on major currency pairs with Pepperstone. IG Markets, while competitive, tends to have slightly wider spreads. For a comprehensive breakdown of broker costs, you can check out this guide on the lowest spread brokers.
Both brokers support MetaTrader 4, but Pepperstone is often highlighted for its enhanced MT4 experience. They offer advanced tools and features tailored for the platform. If you’re keen on diving deeper into the MT4 offerings of various brokers, this list of the best MT4 brokers might be of interest.
IG Group offers a robust social trading platform, allowing traders to follow and copy the strategies of experienced traders. Pepperstone, on the other hand, doesn’t have a dedicated social trading platform but does offer tools that can be integrated with third-party social trading services. For those interested in exploring more about social trading platforms, here’s a comprehensive guide on the best forex social trading platforms.
IG Group offers spread betting services, allowing traders to speculate on price movements without owning the underlying asset. Pepperstone, on the other hand, does not provide spread betting. For those in the UK interested in exploring spread betting further, this comprehensive guide on the best spread betting brokers is a great resource.
In my opinion, Pepperstone stands out as the superior choice for Australian forex traders. Not only is Pepperstone ASIC regulated, but it’s also an Australian-founded company, ensuring a deep understanding of the local market. IG Group, while also ASIC-regulated, is headquartered overseas. Both brokers offer competitive spreads and a range of trading platforms, but there’s a certain comfort in trading with a home-grown broker. For a broader perspective on Australian forex brokers, you can check out this list of top Australian forex brokers.
For UK traders, I personally lean towards IG Group. They are FCA regulated and have a strong presence in the UK market. Pepperstone, while offering competitive services, is based overseas. IG Markets’ deep roots in the UK ensure they have a nuanced understanding of the needs of British traders. If you’re looking for more insights on the best platforms for UK traders, this guide on the best trading platforms in the UK is worth a read.
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