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.
Pepperstone UK Pros
Pepperstone UK Cons
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|
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.
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|
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 the 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 the 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 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’ 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 UK 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.
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 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.
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.
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.
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. The trading fees 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.
According to our review, Pepperstone is one of the most cost-effective CFD brokers in the UK with the lowest third-party risk.
Yes, Pepperstone Limited is regulated by the Financial Conduct Authority (FCA) of UK. Clients in UK are registered under the regulatory compliance of FCA.
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.