Pepperstone is an FCA regulated CFD broker. The spreads at Pepperstone are among the best in the UK. Check our comprehensive Pepperstone review with multiple pros and cons.
Pepperstone is a CFD broker with top-tier FCA regulations in UK. 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 the UK. We have considered several factors to provide honest reviews for every aspect of the broker. All the pros and cons of Pepperstone in the UK have been discussed in this review.
Table of Content
|Broker Name||Pepperstone Limited|
|Regulation||FCA, ASIC, CySEC|
|Year of Establishment||2010|
|Trading Platforms||MT4, MT5, cTrader|
|Trading Instruments||CFDs on forex pairs, commodities, indices, shares, ETFs|
Pepperstone Safety Pros
Pepperstone Safety Cons
In online trading, the safety of traders’ money is the most important factor. UK clients at Pepperstone are registered under regulatory compliance of the Financial Conduct Authority (FCA) of the UK.
Following are the regulation details of major regulatory licenses held by Pepperstone globally.
Apart from these major regulatory authorities, Pepperstone also holds a regulatory license from SCB (Bahamas), CMA (Kenya), DFSA (Dubai), and BaFIN (Germany).
The clients’ money is kept in a segregated bank account of a top-tier bank in the UK. In case of liquidation of the responsible bank, clients have the protection of up to GBP 85,000. Pepperstone was launched in 2010.
The top-tier FCA and ASIC regulation makes Pepperstone safe for trading online. It is one of the safest options to trade financial instruments as CFDs in the UK.
Pepperstone Fees Pros
Pepperstone Fees Cons
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.
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|
|US Tech 100 Index||1||1|
The average spread at Pepperstone is lower when compared with the majority of FCA-regulated brokers in the UK. We compared the average spreads on most traded forex pairs charged by various brokers in the UK. The following table compares the spread on some of the most chosen forex pairs in the UK. It must be noted that these are the spreads with no commission account at the following brokers.
|Trading Instrument||IC Markets||FXTM||eToro||CMC Markets||Pepperstone|
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.
The swap rates at Pepperstone are slightly higher than average when compared with other regulated brokers in the UK. For EUR/USD as a benchmark, the swap rates are -11.49 and 7.42 for long and short positions respectively.
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 the UK.
Pepperstone offers 2 types of accounts to suit different types of traders in the UK. Both the accounts can only be opened with GBP, USD, EUR, and CHF other currencies as a base currency.
The minimum recommended deposit amount for both account types is $200 for margin requirements. However, clients in the UK 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.
As per the FCA regulations, the maximum leverage for the retail accounts is capped at 1:30 for forex pairs. An upgrade to a professional account can allow traders to use maximum leverage of up to 1:500. There are three criteria for retail clients to upgrade to a Professional account at Pepperstone in the UK.
To upgrade to a Professional account, clients need to have an investment portfolio (any asset) of €500,000.
They must have placed 10 significantly sized trades per quarter in the last year.
The client also must have worked in the financial sector for at least one year.
Any two of the three criteria must be fulfilled to become eligible for an upgrade to the Professional account.
The choice of account types is good to suit different types of traders in the UK.
The account opening process at Pepperstone is simple and can be completed within 24 hours. There are 4 steps involved in setting up a live trading account in the UK.
Step 1: Create Login
Once you click on ‘Join now’ on the 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 to 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 UK National ID or passport can be used to verify the address and identity.
The Pepperstone staff will complete this process. 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 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 to 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.
There are multiple methods to deposit and withdraw at Pepperstone in the UK. Withdrawals can only be done through the methods used for the deposit.
There is no lower limit on the minimum deposit amount at Pepperstone. UK clients can also deposit as low as $1 through any available methods.
Following are the methods that can be used to transact at Pepperstone in the UK:
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 offers a very useful demo account where traders can learn about trading and gain experience without depositing any money to the broker.
The demo account at Pepperstone is available for everyone free of cost. Compared to other brokers, we found Pepperstone to be better than most other brokers as it allows traders to customize the demo account on multiple trading platforms.
To open a demo account at Pepperstone, traders need to complete the first step of account opening by providing the basic details like name, phone number, and email address.
After completing this, traders will be redirected to the dashboard where other detail and account verification is to be completed. However, traders can directly go to the ‘Trading Accounts’ section without filling in any detail on the dashboard.
Under the demo account section, traders can open multiple demo accounts with different configurations with different trading platforms. The trading platform for the demo account can be chosen between MT4, MT5, cTrader, and TradingView. Those who are new to trading can try 4 different types of trading platforms to find the most suitable platform.
Traders can also open a demo account for spread betting. Razor, Standard, and Spread betting accounts can be chosen for suitable pricing structures. The Standard account will incur only spread as a trading fee while the Razor account includes a commission with a narrower spread. The demo account can also help to choose the best-suited account type for the traders.
The base currency of the demo account can be chosen between USD, EUR, GBP, and CHF. The initial deposit amount can be chosen from 200 to 50,000 units of the base account currency.
Once configured, the details of the demo accounts will be visible on the dashboard. These details can be used login into the trading platform chosen. The demo account can be funded anytime with any amount of virtual currency.
According to our review and analysis, Pepperstone offers a very useful demo account for all types of traders. New as well as experienced traders can use the demo account at Pepperstone to enhance their trading strategies. The availability of TradingView trading platform with the demo account is a major advantage for traders.
Pepperstone offers multiple trading platforms to suit different types of traders in the UK. Pepperstone does not have its own trading platform. All the available trading platforms at Pepperstone are developed by third-party software companies.
To assist the traders in making a better decision, we have separately reviewed the web, mobile, and desktop trading platforms available at Pepperstone in the UK.
Web Trading Platform
The web trading platform at Pepperstone is provided by MetaTrader and cTrader trading platforms. The MT4 and MT5 web trading platforms are available in 40+ languages and can be customised easily. MT4 has a basic interface with 28 indicators. It can be connected to other online tools and plug-ins on the web browser.
MT5 is an upgraded version of MT4 with 38 in-built indicators and 21 time frames. MT5 supports the MQL5 language for algorithmic trading which can be easily learned. MT4 supports MQL4 language and cTrader supports #C language.
cTrader web trading platform has a better interface that makes it ideal for beginners. It cannot be customised and offers lesser indicators and time frames compared to MetaTrader web platforms.
All three web trading platforms at Pepperstone have a one-step login and offer market, limit, and stop orders. Trailing stop loss orders are not available on web trading platforms at Pepperstone.
Mobile Trading Platform
MT4, MT5, and cTrader are also available as android and iOS applications. These can be downloaded separately and linked to the Pepperstone account to trade on the go from anywhere.
The mobile trading platforms at Pepperstone offer limited features and accessibility for research and analysis purposes when compared to web and desktop platforms. The MT4 and MT5 mobile trading platforms are available in 21 languages and have 2 step login. All mobile platforms can be accessed through fingerprint and facial recognition.
cTrader offers similar features as web and desktop platforms for mobile devices. Mobile trading devices cannot be customised and are slightly slower than desktop platforms for trading forex and CFDs.
Mobile trading can also be done through Trading View at Pepperstone. Trading View is among the best software for the analysis of capital markets.
Desktop Trading Platform
Pepperstone offers 4 options for trading on desktop devices. MetaTrader 4, MetaTrader 5, cTrader, and Trading View. All these platforms can be downloaded on Windows and macOS devices and can be connected with external software and plugins. You can also set price alerts and notifications on the desktop trading platforms at Pepperstone.
MT4 has the most simple interface that looks like Windows 98. It is highly customisable and works well on all types of desktop devices. MT4 is the most chosen trading platform globally for trading forex and CFDs.
MT5 is also chosen largely over the globe for trading forex and CFDs but it is banned in some countries like the USA, UAE, etc. MT5 is legal and available at Pepperstone in the UK. It has a better interface compared to MT4 and more indicators, time frames, and features. Mt5 has easier backtesting of algorithms and is ideal for experienced and algorithmic traders.
cTrader has a much better interface compared to MT4 and MT5 desktop trading platforms. It is less customisable and has lesser tools compared to MT5 but the modern-looking interface makes it a good choice for beginners.
Trading View is also available as a desktop trading platform at Pepperstone. Trading View is a very useful software for all types of traders for the analysis of financial instruments. Only a few FCA-regulated forex brokers in the UK support trading on Trading View including Pepperstone.
Trading View offers the widest range of indicators and patterns and has one of the largest social trading networks. Automation on Trading View is done through Pine Script language which is much simpler for beginners.
According to our analysis, Pepperstone offers a great variety of trading platforms for all devices. Each platform is ideal for different types of traders. The availability of Trading View is a major advantage of choosing Pepperstone in the UK.
Peppertstone offers a decent variety of research and education tools for UK clients. Most of these tools are quite helpful for beginners while some are much more useful for experienced traders.
The market analysis reports are published on a regular basis which keeps the traders updated with the market activities. These reports are prepared by the experienced analyst team at Pepperstone on regular basis. They also broadcast a weekly debate program called ‘The Trade-Off’ that covers the traders’ latest events and common queries.
Capitalise.ai is an automation tool that allows clients to automate their trading strategies without coding. It is available for free and is very useful for traders who prefer algorithmic trading but cannot code efficiently.
The Autochartist market scanner helps traders to identify trading opportunities in the market. API Trader grants access to live liquidity feed concerning financial markets. Pepperstone also offers an account monitoring service that also allows traders to copy the trade orders of other traders.
The education section contains articles, guides, webinars, and videos of all the available asset classes at Pepperstone. Apart from these, there are no other tools that can improvise the skillset of advanced traders. Beginners will find the available education tools very helpful.
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.
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 the UK.
|Asset Class||Number of Instrument||Maximum Leverage|
|Currency Pairs||63||1:30 Majors, 1:20 Minors|
Overall, the number of available trading instruments is higher than most of the regulated online CFD brokers in the UK. Trading on cryptocurrencies as CFD is not available at Pepperstone.
Pepperstone operates as an STP (Straight Through Processing) broker. This means that client orders are directly forwarded to liquidity providers without any interference or dealing desk intervention from the broker. As a trader, when you place an order with Pepperstone, it is transmitted straight through to the interbank market or liquidity providers with whom Pepperstone has partnerships.
The STP model ensures that there is no conflict of interest between the broker and the trader. Pepperstone generates revenue through spreads or commissions on trades rather than taking the opposite side of the trade.
The STP execution model can provide advantages such as fast trade execution, transparency, and potentially tighter spreads.
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.
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.
Yes, Pepperstone is a well-regulated CFD broker that is also regulated by top-tier ASIC and FCA. It uses a 100% STP/ECN method for order execution. They do not take the opposite side on traders’ positions.
The trading fees at Pepperstone are low and there is no minimum deposit requirement. Transactions can be done via local bank transfer and m-Pesa without any additional commission.
Multiple trading platforms are supported with different account types with GBP as the base currency. The customer support service is excellent and local phone support is also available. A trading account can be configured in multiple ways according to the suitability of trader.
According to our review, Pepperstone is one of the most cost-effective CFD brokers in the UK with the lowest third-party risk. It is among the best forex and CFD brokers in the UK.
There is no lower limit on the minimum deposit at Pepperstone. Clients can deposit as low as $1 but the suggested minimum deposit amount is $200 for margin requirement.
1:30, for the retail clients, the maximum leverage on major currency pair CFD is 1:30. For CFD on indices and gold, it is 1:20. The maximum leverage can be increased up to 1:500 by upgrading the retail trading account to professional according to the FCA regulatory compliance.
No. Pepperstone is an FCA-regulated forex and CFD broker that uses a 100% STP/ECN method for order execution. They take no part in orders placed by clients and use segregated bank accounts for clients’ funds. Moreover, Pepperstone is one of the best forex and CFD brokers in the UK.
Yes, Pepperstone is an FCA-regulated broker that allows clients to configure their accounts with multiple trading platforms, fee structures, and base currencies. Traders can open multiple demo accounts with different configurations to check which platform and fee pattern are best suited for them.
The standard account with MT4 and MT5 trading platforms and GBP as base currency is an ideal configuration for beginners at Pepperstone. Pepperstone also offers a good variety of learning tools to assist beginners in improving their trading skills.
Pepperstone allows deposit and withdrawal through multiple methods including local bank transfer, VISA, PayPal, and several other e-wallets. The methods for withdrawal should be the same as the method used for deposits.