Pepperstone Review 2017
Pepperstone Review 2017
|Account Types||Minimum Deposit||Minimum Trade Size||Max Leverage||Spread|
|Edge Razor Account||$200 AUD||0.01 (micro lot)||500:1||0.8 pips + $7 per lot|
|Edge Standard Account||$200 AUD||0.01 (micro lot)||500:1||1.2 pips|
|Edge Swap Free Account||$200 AUD||0.01 (micro lot)||500:1||1.2 pips|
Pepperstone has a number of distinct trading accounts. The Razor account is meant for advanced and EA traders and it provides lower spreads ( but higher trading costs) meanwhile the Edge Standard account is meant for traders who are regular and offers interbank spreads and STP processing on the famous MT4. The Edge Active Traders account is another account which is offered to institutional partners and high volume traders, which provides greater services: a skilled and committed manager who works with the holder of the account and first class ECN EDGE execution. Pepperstone also offers a swap-free account which respects the Sharia law.
Company Country Regulation Pepperstone Group Limited Australia ASIC Pepperstone Limited UKFCA Pepperstone was founded in 2010 and is an ECN forex broker based in Australia. Pepperstone Group Ltd Company which is based in Melbourne is regulated by ASIC and has some offices in Dallas, Bangkok, Shanghai, and London. Clients are offered options by the broker to trade precious metals, energy, forex (greater than 70 currency pairs) and Index CFDs. The Financial Conduct Authority (FCA) has also duly accredited and is regulating its subsidiary in the UK.
Pepperstone, when compared to others, is a new broker, but it became famous for providing very good trading conditions and advanced trading solutions. BRW Magazine gave it an award in 2014 for Australia’s fastest evolving company.
Security of Funds
Pepperstone is supervised by the Australian Securities and Investment Commission (ASIC) and also has a license from the Australian Financial Services. Financial service providers who are licensed are required by ASIC to obey several internal procedures for audits, accounting and risk management and also to match precise capital requirements. With regards to the minimum required capital, forex brokers are required by ASIC to have a minimum of $1 million so as to legitimately offer financial services. Forex brokers are required by FCA, the regulatory authority in the UK, to have at least 730 000 EUR.
Pepperstone also mentioned on its site that it has Professional Indemnity Insurance with Lloyds of London and also controls client separated accounts held with high-class banks.
Regardless of the requirements and regulations which brokers have to comply with, one should be mindful of the dangers of trading CFDs and Margin FX. There is no compensation scheme which covers Australian brokers unlike the brokers based in the EU. However, clients of Pepperstone’s UK subsidiary fall under the protection of the Financial Services Compensation Scheme (FSCS) which covers clients up to £50,000 for each person in each company.
Trading Conditions Minimum depositClients of Pepperstone can begin trading with a minimum of 200 AUD or something similar. For example, ThinkForex, which is a different broker based in Australia, requires a minimum initial deposit of $250 and provides moderate spreads which amount to 1.2 pips, meanwhile, AvaTrade, which is also Australia-based, requires a minimum of $100 to begin with and offers moderate floating spreads which on the EUR/USD amount to 1.8 pips.
Spreads and commissions
With regards to the spreads which Pepperstone offers, the Edge Standard account has average spreads amounting to 1.2 pips on the EUR/USD and the Edge Razor Account has 0.8 pips.
The commission fees which brokers charge are also a part of trading costs. However, Pepperstone only charges commission fees on the Edge Razor Account, which amounts to $3.5 for every 100k traded, whereas the Standard account is free of commissions.
Talking of trading costs, it should also be noted that the Islamic account is subject to admin charges in the event that a trade is held for up to 3 days or more than that. Based on the currency pair, their amount may range from 3-150 points.
The Pepperstone Price Movement (PPI) is another element which this broker offers that is worth looking at. In case prices change to the advantage of traders, the PPI technology will automatically fill your orders at a suitable level.
As concerns leverage, Pepperstone’s maximum leverage is 500:1. This leverage is considered to be high based on the fact that there are leverage limits in many countries which are far below this one. For example, in Japan, the maximum leverage is 25:1 and that in the U.S. is 50:1.
Trading Platforms Clients of Pepperstone are offered with three platforms to choose from cTrader, MetaTrader5, and MetaTrader4. The iPhone, Android, iPad/tablet and Mac all support the industry approved MT4. They also offer WebTrader which is a web version of MT4. They also offer a web-based cTrader version as well as that for mobile devices. Moreover, a cAgo option is present in the cTrader platform, which supports the development of custom indicators in C# and trading with robots.
These three trading platforms which Pepperstone offers are most likely the industry’s most famous ones. The MT5 was created and advertised as an upgrade of the MT4, but several brokers prefer the MT4, due to the fact that MT5 does not support hedging and also, the MT5 platform does not support MT4’s Expert Advisors (EA) and indicators. As concerns the cTrader platform, it provides a plain user-friendly interface and is suited for ECN brokerages.
Pepperstone also offers its clients with some great features which we must examine. The order execution infrastructure is the first we have to look at. Pepperstone has made a partnership with Equinix and the broker takes part in the Equinix Financial Exchange via its NY4 data center. Pepperstone exchanges data openly with customers and strategic partners through this exchange and also has access to several dormant networks.
In addition, the new trading service of the analysis device Auto chartist –“Trade Now” e-mail trading service was first offered by Pepperstone.
Methods of PaymentThere’s a broad range of payment methods offered to clients by Pepperstone: Credit/Debit cards (Visa and MasterCard), Bank Wire, PayPal, Skrill, Neteller, Local Bank Deposit, Bpay, FasaPay, Union Pay, WebMoney, POLI, and QIWI.
ConclusionTo conclude, one of Australia’s leading brokerages is Pepperstone, offering moderate trading costs, honest pricing, very low spreads and fast execution.