In this Broker Review, ForexInfoBook team presents factual information about PepperStone broker and its trading conditions.
PepperStone is regulated by the following regulatory agencies:
- Australian Securities and Investment Commission (ASIC) and operates with AFSL 414530
- Financial Conduct Authority (FCA) in UK : Reference number: 684312
ASIC is one of the most stringent regulatory agencies requiring financial services firms to meet strict capital requirements and to implement and comply with internal procedures including risk management, staff training, accounting and audits. ASIC does not impose restrictions on trading conditions like regulatory agencies in EU or US.
FCA in the UK is a stringent regulatory agencies working in the interest of the traders. Traders with PepperStone’s UK accounts receive protection up to £50,000 under the Financial Services Compensation Scheme Protection (FSCS)
As per regulations, PepperStone segregates client funds with tier 1 banks.
Negative Balance Protection
UK retail clients get the greatest protection with rules and regulations imposed by the Financial Conduct Authority (FCA) and the European Securities and Markets Authority (ESMA). Retail Client have Negative Balance Protection (NBP) meaning they cannot lose more than they have deposited with a broker.
Pepperstone Australia does not offer guaranteed stop loss order on any trades. Accounts could go negative and traders may be liable to pay more than their original deposited.
Account with PepperStone Australia can get a maximum leverage of 1:500 on Forex pairs.
Leverage on PepperStone UK accounts will be restricted to a max of 1:30 as per ESMA regulations.
ECN Broker with very Low Spreads
PepperStone’s Razor account type offers ultra low spreads with a commission charged on every transaction. Typical spreads seen on Razor accounts are between 0 pips to 0.3 pips making it one best price feed to trade on.
The commission charged on Razor account is AUD 3.5 per lot on each transaction (AUD 7 per round turn 100k traded).
PepperStone also offers Standard accounts without commissions where the typical spreads are between 1.0 to 1.3 pips.
Click here for complete list of typical spreads seen on PepperStone accounts.
Ease of Operations
- Simple account opening process
- Minimum deposits : $200
- Wide range of payment options : Visa, Mastercard, POLi, , Bank Transfer, BPay, PayPal, Neteller, Skrill, Union Pay
- PepperStone offers Swap-free ( Islamic) accounts
- PepperStone provides traders with MT4, MT5 and CTrader options. All the trading platforms are available on Windows and Mac OS for desktop, iOS and Android for mobile/tablets. WebTrader option is also available.
- PepperStone support operating 24 hours via live chat, email and phone.
- PepperStone also has excellent support for social trading and provides excellent educational material for Forex traders to improve their trading skills.
Limitations to be expected
- Demo accounts are valid for 30 days
- 75% of retail investors lose money trading CFDs with PepperStone.
- PepperStone does not serve clients from United States, Canada, Japan, Israel, Iran, Belgium.
PepperStone is one of the best ECN brokers with excellent trading conditions suitable for all retail Forex traders.
It is highly recommended to trade with PepperStone as they are regulated by both ASIC and FCA which ensures the trader interests are protected at all times.
We verify the brokers regulatory credentials regular and update the review if any warnings, change of status and other issues are issued by the regulatory agencies.