Pepperstone Nigeria Review 2022

Pepperstone is a top tier regulated CFD broker. It offers low cost trading on various trading instruments and accepts local bank transfer in Nigeria. Read our honest review before opening an account at Pepperstone.

Pepperstone is a CFD broker with top-tier regulations and tight spreads on various instruments. It offers spread as well as commission-based trading on forex, indices, commodities, shares, etc.

Read our comprehensive and fact-based review of Pepperstone in Nigeria. We have considered several factors to provide honest reviews for every aspect of the broker. All the pros and cons of Pepperstone in Nigeria have been discussed in this review.

Pepperstone Nigeria Summary

Broker Name	Pepperstone Markets Limited
Website	www.pepperstone.com
Regulation	FCA, ASIC, CySEC
Year of Establishment	2010
Minimum Deposit	$1
Maximum Leverage	1:500
Trading Platforms	MT4, MT5, cTrader
Trading Instruments	CFDs on forex pairs, commodities, indices, shares, ETFs

Safety and Regulation

In online trading, the safety of traders’ money is the most important factor. Regulations from top-tier regulatory authorities like FCA, FSCA, and ASIC increase the safety ratings of a financial service provider.

The Nigerian clients at Pepperstone are registered under the regulation of the Capital Markets Authority (CMA) of Kenya. Following are the regulation details of major regulatory licenses held by Pepperstone globally.

1. FCA of UK
   Financial Conduct Authority (FCA) is a top-tier financial regulatory authority based in the jurisdiction of the United Kingdom. Pepperstone Limited is regulated by FCA in the UK under the name of Pepperstone Limited and FRM number 684312.



2. ASIC of Australia
   The Australian Securities and Exchange Commission (ASIC) is a top-tier financial regulatory authority based in the Australian jurisdiction. Pepperstone holds the ASIC regulatory license by the name Pepperstone Group Limited with ACN number 147 055 703 and AFSL number 414530.



3. CySEC of EU
   CySEC is not a top-tier regulatory authority but is an important regulator as its license allows brokers to operate in the European Union. Pepperstone holds the CySEC license by the name Pepperstone EU Limited under license number 388/20.



4. CMA of Kenya
   Pepperstone holds the CMA regulatory license with the registered name Pepperstone Markets Kenya Limited. The license is registered as a non-dealing broker with company number PVT-PJU7Q8K and CMA license number 128.
   

Apart from these major regulatory authorities, Pepperstone also holds a regulatory license from SCB (Bahamas), DFSA (Dubai), and BaFIN (Germany).

The clients’ money is kept in a segregated bank account of a top-tier bank. Pepperstone was launched in 2010. Pepperstone Markets Limited is a subsidiary of Pepperstone Group.

The top-tier FCA and ASIC regulation makes Pepperstone safe for trading online. Compared to other regulated forex and CFD brokers in Nigeria, Pepperstone has a low third-party risk factor.

Peppestone Fees

The Fees can greatly affect the trading experience in leveraged forex and CFD trading. It includes all the charges paid to the broker and liquidity providers. Higher fees mean lower profits for the traders and higher revenue for the broker.

We have separately reviewed every component of the fees that are commonly incurred by online forex brokers.

1. Spread: Spread is the difference between bid and ask price of any underlying CFD instrument.

   Pepperstone offers traders to choose between two account types. One account is commission-based (Razor) while the other is commission-free (Standard). The spreads with the commission-based razor account are low starting from 0 pips while the same with the Standard account starts from 1 pip.

   

   For EUR/USD as a benchmark, the average typical spread with the Razor account is 0.17 pips and 0.77 pips with the Standard account type. The following table compares the average typical spread in pips for the most traded financial instruments during peak trading hours.

   Trading Instrument	Standard Account	Razor Account Account
   EUR/USD	0.77	0.17
   GBP/USD	1.19	0.59
   EUR/GBP	1.4	0.4
   Gold/USD	13.81	13.81
   Crude Oil	2.3	2.3
   US Tech 100 Index	1	1
   UK 100	1	1

   
   

2. Trading Commission: The trading commission at Pepperstone is only incurred on the Razor account while trading Forex and shares. For the Standard account, the trading fee is built only in the spread. Apart from the low spreads, the trader will need to pay a fixed commission for each trade order with the Razor account.
   
   If MT4 or MT5 trading platform is chosen with the Razor account, the single side trading commission will be USD 3.5 or GBP 2.25 depending on the base currency of the account. For a round turn trade of a standard lot, the commission will be USD 7 and GBP 4.5 with MT4 and MT5 Razor accounts.

   If the cTrader trading platform is chosen with the Razor account type, the trading commission will be $6 for a round turn trade of a standard lot.

   The trading commission of shares is different for stock exchanges and also has a minimum limit.
   
   The trading commission is only applicable on CFDs of forex pairs and shares. For all the other instruments, only spreads will be incurred as a trading fee regardless of the account type.

3. Swap Fee: This is also known as rollover interest rate or overnight charges. The swap fee is the fee incurred on each position if it is kept open overnight. For every night the position is kept open, this will keep on adding. Hence, clients must check the swap fee before keeping any position overnight. This is very important for those traders who trade for the tenure of more than a day.

   The swap rates at Pepperstone are slightly higher than average when compared with other regulated brokers in Nigeria. For EUR/USD as a benchmark, the swap rates are -11.49 and 7.42 for long and short positions respectively.

4. Non-Trading Commission: Most CFD brokers charge inactivity fees if no trade orders are placed for a prolonged period. No such inactivity is charged at Pepperstone. There is no account opening or maintenance fee at Pepperstone in Nigeria. The deposits and withdrawals are also free of additional commission.

   Overall, there are no non-trading fees at Pepperstone while the trading fees are lower than the majority of the regulated CFD brokers. We found Pepperstone to be among the most cost-effective CFD brokers in Nigeria.

Pepperstone Account Types

Pepperstone offers 2 types of accounts to suit different types of traders in Nigeria. Both the accounts can be opened with USD and 9 other currencies as a base currency. Nigerian Naira (NGN) cannot be chosen as the base currency of any account type.

The minimum recommended deposit amount for both account types is $200 for margin requirements. However, Nigerian clients can deposit as low as $1 to start trading at Pepperstone.

The major difference between the two types of live trading accounts is based on trading fees. The Razor account is a commission-based account while the trading fees with the Standard account are built into spreads only.

All the other features offered by Pepperstone are the same for both account types. The number of available instruments, maximum leverage, and trading conditions is the same for both account types.

1. The Razor account is ideal for scalpers and algorithmic traders. Due to lower spreads, the advantage of a small movement in pips can be taken with the Razor account. High-volume traders may also find the Razor account type more useful.
2. The Standard account is ideal for beginners and small volume traders as there is no commission involved with this account.

The choice of account types is good to suit different types of traders in Nigeria.

How to Open an Account at Pepperstone?

The account opening process at Pepperstone is simple can be completed within 24 hours. There are 4 steps involved in setting up a live trading account in Nigeria.

Step 1: Create Login
Once you click on ‘Join now’ at Pepperstone website and app, you will be redirected to the account opening form. The first step is to enter the email and choose a password. A confirmation link on the entered e-mail address will be sent to confirm the email.

Clients can also choose to log in with Google or Facebook accounts.

Step 2: Complete Account Opening Form
The next step requires clients to enter their personal details. This includes the address, phone number, date of birth, income, and employment details. Clients also need to select the account type and base account currency in this step.

After filling in the personal details, Pepperstone will take a quick survey of your trading experience and expertise.
Step 3: Verification of Identity

The details that you entered in step 2 need to be verified by Pepperstone before you start trading. For this, you need to submit the address and identity proof with supporting documents. The Nigerian National ID or passport can be used to verify the address and identity.
This process will be completed by the Pepperstone staff. Hence, it can take up to 3 business days to complete but is generally completed within 24 hours.

Once the details are verified, a confirmation mail will be sent to you with login details of the trading platform. These credentials can be used to login into selected trading platforms.

Step 4: Fund your Account
The last step is to deposit funds in order to start trading. Pepperstone recommends clients to make an initial deposit of $200 to start trading. However, the minimum deposit amount is $1. Any of the available methods including local bank transfer or m-Pesa can be used to deposit funds at Pepperstone.

Once the funds are deposited, you can place orders trade with any of the available trading instruments.

It is always advisable for beginners in forex trading to start with demo accounts. Trading with virtual currencies will provide experience and will make the newcomers get comfortable with the features and terminologies. CFD trading involves high risk and is not suitable for all types of traders.

Pepperstone Deposits and Withdrawals

There are multiple methods to deposit and withdraw at Pepperstone in Nigeria. Withdrawals can only be done through the methods used for the deposit.

There is no lower limit on the minimum deposit amount at Pepperstone. Nigerian clients can also deposit as low as $1 through m-Pesa.
Following are the methods that can be used to transact at Pepperstone in Nigeria:

1. Bank Transfer: Pepperstone accepts deposits and withdrawals through local bank transfers in Nigeria. The deposits are reflected into trading accounts within a day while the withdrawals through this method can take up to 3 business days to process.
   Clients can also deposit through international wire transfer but a commission of $20 is charged for each transaction through wire transfer. Local bank transfer is completely free in Nigeria.
2. M-Pesa: This is the most preferred method to deposit and withdraw at Pepperstone in Nigeria. The recommended deposit while account opening is $200 but minimum deposits can be lower. Deposits made in NGN will be automatically converted to USD or base account currency according to prevailing conversion rates.
3. Paypal: Paypal is the only accepted e-wallet accepted for deposits and withdrawals at Pepperstone in Nigeria. No other e-wallets can be used to deposit and withdraw.
4. VISA/MasterCard: The debit and credit cards can also be used to deposit at Pepperstone. The card must be registered with the same name as the trading account.

Withdrawal requests made before 07:00 (AEST) will be processed the same day. All other withdrawal requests executed before 21:00 (GMT) will be processed the next day.

Pepperstone Trading Platforms

Trade orders can only be executed through trading platforms. Pepperstone offers a complete suite of MT4, MT5, as well as cTrader trading platforms. All three trading platforms can be chosen with any of the account types. The commission with the Razor account is different for the cTrader and MetaTrader trading platforms.

MetaTrader 4 and 5 are the most widely used trading platforms for CFDs. Some traders prefer cTrader due to its user interface and other features. Only a few regulated brokers offer all the 3 most popular trading platforms.

Available Instruments

Pepperstone offers CFD trading on various financial instruments. Contract for Deposits (CFDs) is derivative instruments of financial markets in which there is no actual buying or selling of underlying assets. Only the price difference is speculated by the traders to book profits and losses.

As per the regulatory compliance of the Capital Markets Authority of Kenya, the maximum leverage on forex pairs is 1:400 in Nigeria.

High leverage can allow traders to open bigger positions with a small deposit but it will also increase the risk factor. Following are the trading instruments that can be traded at Pepperstone in Nigeria.

1. 63 Currency Pairs: A total of 63 currency pairs including major, minor, exotics, and other crosses can be traded at Pepperstone with any of the account types. The maximum leverage for the Nigerian clients is 1:400 for CFDs on forex pairs.
2. 26 Indices: Indices of North American, African, UK, and European stock markets can be traded as CFDs. The maximum leverage is 1:200 for indices with professional accounts. For retail clients, the maximum leverage is 1:20. 3 currency indices can also be traded with max leverage of 1:10 for retail clients.
3. 32 Commodities: Precious metals, energy, and soft commodities can also be traded as CFD. The maximum leverage for retail clients is 1:20 for this asset class.
4. 1000+ Shares: More than 1000 stocks of the US, UK, Germany, and Australian stock exchange can be traded as a CFD. The commission is different for the US, European, and Australian stocks. The leverage ratio ranges from 1:20 to 1:5 for CFDs on stocks.
5. 100+ ETFs: Nigerian clients can go long and short on various exchange-traded funds from 35 countries worldwide. These ETFs are traded as CFDs with a maximum leverage of 1:20. The CFDs on ETFs are subject to spreads, overnight charges, and a fixed trading commission on each order.

Overall, the number of available trading instruments is higher than most of the regulated online CFD brokers in Nigeria. Trading on cryptocurrencies as CFD is not available at Pepperstone.

Pepperstone Customer Support

The customer support services can be utilized to solve any query faced at any stage. The support executives at Pepperstone can be reached out through multiple methods.

1. Live Chat: The live chat window on the website and app is a great option to clear most of the queries faced. The live chat gets connected to a chatbot at first but can be connected to an agent upon request. The live chat support is also available through WhatsApp.
   
   We tried to connect with them multiple times. The connectivity with the live agent can take up to 5-10 minutes. The support staff is helpful and can clear most of your queries.
2. E-mail: The support staff at Pepperstone can also be reached out through [email protected] This is a slower method as the executives can take up to 24 hours to revert back to the email.



3. Local Phone Support: Pepperstone does not offer local phone support for Nigerian clients. This is a major drawback for Nigerian clients. However, an international helpline number can be used to connect with the support staff.

According to our review, the customer support service is excellent with the live chat. The support service is also available on WhatsApp which is quite user-friendly.

Pepperstone Bonus

At the time of this review in 2022, there is no bonus offering of any type for Nigerian clients at Pepperstone. We also confirmed this by asking the support executives.

Other top-tier regulated brokers in Nigeria offer better bonuses compared to Pepperstone.

Do We Recommend Pepperstone?

Yes, Pepperstone is a top-regulated non-dealing CFD broker that is also regulated by top-tier ASIC and FCA. The trading fees are low and there is no minimum deposit requirement. Transactions can be done via local bank transfers and e-wallets without any additional commission.

Multiple trading platforms are supported with different account types. The customer support service is excellent. Nigerian Naira (NGN) cannot be chosen as a base currency and there is no bonus offering for Nigerian clients.

According to our review, Pepperstone is one of the most cost-effective CFD brokers in Nigeria with the lowest third-party risk.

Pepperstone FAQs