Pepperstone is based in Melbourne, Australia and was founded in 2010 by Owen Kerr and Joe Davenport. Notably, both founders received the 2014 EY Australia Entrepreneurs of the Year Awards.
Pepperstone doesn’t offer much in the way of features that you can’t find in other broker platforms, and they don’t have proprietary applications for traders to manage their trades. Instead, they white label other applications used in the mass market.
|💼 Provider Type:||Broker|
|💸 Minimum Deposit:||$200|
|💰 Trading Fees:||Varied|
|💰 Deposit Fees:||None|
|💰 Withdrawal Fees:||Varied|
|💰 Management Fees:||None|
|🔀 Minimum trade order||0.01 lots|
|⌛ Withdrawal Timeframe:||2 - 4 business days|
|#️⃣ Number of Cryptocurrencies Supported:||20|
|#️⃣ Number of Crypto Pairs Supported:||0|
|💱 Top supported Cryptocurrencies:||BTC, LINK, XRP, DOGE, ETH|
|📱 Native Mobile App:||Yes|
|🖥️ Free Demo Account:||Yes|
|🎧 Customer Support:||Customer support chat|
|✅ Verification required:||KYC|
|📈 CFD Available||Yes|
|📊 Software:||MT4, MT5, CTrader, Mobile app|
|⚽ Social Trading:||Yes|
|✂️ Copy Trading:||Yes|
|👮♂️ Regulators||The FCA in the UK, ASIC in Australia, CySEC in Cyprus, DFSA in Dubai, CMA in Kenya, BaFin in Germany, SCB in Bahamas|
Pros and Cons of Using Pepperstone
Pepperstone Cryptocurrencies and Trading Options
What cryptocurrencies can you trade on Pepperstone?
You can buy CFDs based on 20 cryptocurrencies offered on the platform such as:
Different Trading Options Offered by Pepperstone
Pepperstone is primarily for CFD trading, with some forex functionality.
When you purchase a CFD, you don’t own the underlying asset or have an option to buy it at a future date; instead, you just have a contract with the broker for the difference in price from when you purchased it.
If you take a buy position, it means you believe the price will go up. If you take a sell position, you expect the price to go down. You either get the difference in the price minus the fees if the price moves in your favour, or you have to pay the difference in price plus the fees if the price moves against your favour.
Besides cryptocurrency CFDs, on Pepperstone, you can also trade:
More than 60 forex pairs
3 currency index CFDs
More than 800 stock share CFDs
More than 20 index CFDs
More than 12 commodity CFDs
Forex pairs are similar to CFDs in that you don’t take ownership of the currencies, just bet on the change in the price of one currency versus the other.
Can I Trade With Leverage on Pepperstone?
One of the main advantages (or disadvantages, depending on your skill level) of CFDs to traders is the ability to take leverage against them.
Different regulators set different limits on margins. For example, in the EU, you have to hold a 3% margin, meaning you can only take 30:1 leverage. Retail investors in countries without broker regulation (like in much of Africa) may be able to take up to 400:1 leverage on some instruments, according to the Pepperstone site.
However, SCB-licensed investors can take up to 200:1 retail and 500:1 Pro leverage, meaning they only have to hold a 0.2% margin.
Leverage also depends on the instrument. Generally, instruments based on less volatile assets allow you to take more leverage.
According to Pepperstone support, for European customers, they offer:
30:1 for major currency pairs
20:1 for minor currency pairs, gold and major indices
10:1 for commodities other than gold and minor indices
5:1 for individual equities
2:1 for cryptocurrencies
Leverage increases the risk by the amount you take. For example, if you take 5:1 leverage, your gains or losses will be multiplied by five. Also, consider that CFDs carry more risk than the assets they represent, and more than 70% of investors lose money after fees.
What Are the Spreads?
On CFD broker platforms, spreads are the difference between the market price of an asset and the buy or sell price of its corresponding CFD. These are measured in pips.
The average spread on Pepperstone is 0.69 pips, but some CFDs offer 0 spreads. While many reviews say Pepperstone consistently ranks among top brokers for tight spreads, these are roughly average. However, Razor accounts have tighter spreads for high volume traders.
Spreads vary from instrument to instrument and especially among cryptocurrencies. Bitcoin has a spread of 30 pips, Ripple of 0.0081 pips. Conversely, forex typically has tighter spreads, less than one pip, because of the small day to day changes in prices.
Because of the high volatility of crypto, crypto CFD spreads are more variable than other kinds of instruments. There is very little info on the Pepperstone website about crypto CFD spreads for this reason.
When evaluating these spreads, you should also consider other fees on the platform — like commissions (more on this later).
Fees, Limits, and Payment Options on Pepperstone
What Are the Deposit and Withdrawal Fees, Limits, and Speeds?
It is hard to say how many payment methods Pepperstone offers because there is no information on their site about payment methods until you create an account, and then you can view which payment methods are supported locally.
However, they do support major payment methods for most countries. These include:
Debit and credit card
SWIFT Bank Transfer (both local in Australia and international)
Neteller and Skrill
And depending on the jurisdiction, they also offer:
It is free to deposit with any payment method, except international bank transfer, which includes a $20 fee.
Pepperstone doesn’t limit deposits, except for Paypal, Neteller, and Skrill which have a max deposit limit of 50,000 of your base currency (USD, GBP, EUR). The minimum deposit is 200 of your base currency.
The minimum deposit is $200 — which is more than many brokers that offer no minimum limit, $50, or $100 minimum deposit.
Your bank may take additional fees or set its own limits.
All payment methods are almost instantaneous, except for wire transfer, which usually takes up to three business days for local transfers and up to five days for international transfers.
You have to KYC verify with the standard broker procedures before you can make your first trade. These include proof of residence, proof of identity, and filling out a questionnaire.
All of the same terms apply to withdrawals as deposits, and you can use the same methods to withdraw as to deposit.
The only difference is Neteller, Skrill, and Paypal incur a $1 withdrawal fee. These payment methods also have a 50,000 base currency withdrawal limit. International wire transfer withdrawals will also incur a $20 fee. Credit, debit, and local wire transfers are free, and there are no limits.
It can take a few days longer to withdraw money than deposit.
You can only withdraw up to 90% of your free margin.
How Much Are Pepperstone’s Fees and Commissions?
Most of the fees in Pepperstone trading are daily rollover swaps. If you hold your position overnight, they lend you the money to maintain your position and take a fee for making the market. You get charged these every night you hold the position.
Most brokers take a percentage or a fixed price for daily rollover swaps. Pepperstone uses complicated equations like:
Daily swap charge / credit = (One point / exchange rate) x (Trade size [or notional amount] x tom next)
There are different equations for different instruments, making it even more complicated.
Islamic persons who cannot take loans can get a swap-free account.
The commissions also depend on the account type. You can either choose a Razor account with lower spreads but commissions or a standard account with higher spreads but no commissions. They charge $3.5 per trade ($7 in and out) for Razor accounts.
When you add up the typical spreads, daily rollover swaps, and these commissions, the total fees are higher than many other platforms, but only by a margin. However, if you hold the position long enough, the daily rollover fees can eat considerably into your profits.
Pepperstone Trade Sizes and Limits
The minimum order is 0.01 lots, and the maximum order is 100 lots. However, these vary from instrument to instrument. With crypto, the minimum lot size is .01, and the maximum lot size is 50.
Pepperstone Trading Platform
What Devices Can I Use Pepperstone On?
You can use all of Pepperstone’s apps on any device, desktop, mobile, or tablet. They do not have their own apps, but rather white-label other applications for trading functionality. The options are:
MT4 – simplest functionality without many of the tools in MT5 and cTrader
MT5 – similar to MT4 but with more complex tools and indicators
cTrader – all of the tools of MT5 with a more modern-looking layout
Their platform integrates seamlessly, and anybody familiar with these apps will find switching to Pepperstone easy.
You have to manage your profile, payment methods, and platforms in the secure client area of their website. The bonus features like their library of educational tools and the social trading platform are not available except on the desktop website.
Can I Use Pepperstone in Any Country?
Pepperstone has clients in over 160 countries. However, you can’t use Pepperstone if you are a resident of Afghanistan, American Samoa, Antarctica, Argentina, Armenia, Azerbaijan, Belarus, Belgium, Belize, Bhutan, Bosnia and Herzegovina, Burundi, Cameroon, Canada, Central African Republic, Chad, Congo, Congo, Democratic Republic of the, Côte d'Ivoire, Eritrea, French Guiana, French Polynesia, Guadeloupe, Guam, Guinea, Guinea-Bissau, Guyana, Haiti, Holy See, Iran, Iraq, Japan, Kazakhstan, Lebanon, Liberia, Libya, Mali, Martinique, Mayotte, Mozambique, Myanmar (Burma), New Zealand, Nicaragua, North Korea, Palestine, State of, Puerto Rico, Réunion, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, Somalia, South Georgia and the South Sandwich Islands, South Korea, South Sudan, Sudan (North), Suriname, Syrian Arab Republic, Tajikistan, Tunisia, Turkmenistan, Turks and Caicos Islands, United States of America, Uruguay, Vanuatu, Venezuela (Bolivarian Republic of), Virgin Islands (U.S.), Western Sahara, Yemen, Zimbabwe because these countries outlaw either CFDs or forex brokerage.
Their major markets are in Australia, Thailand, Vietnam, and the UK.
You should check your local regulations about CFDs, forex, and cryptocurrency before you try to sign up.
Is Pepperstone Available in My Language?
Currently, they support English, Chinese, Arabic, French, German, Italian, Polish, Portuguese, Russian, Spanish, Vietnamese, and Thai.
How Easy Is It to Use Pepperstone?
As easy as most broker platforms. The complex trading desks in MT4, MT5, and cTrader are the industry standard. CFD trading is just generally complicated.
However, their customer support responds within a few seconds in the chat. It is as easy to create and fund an account as any other broker site. The library of tutorials helps those who aren’t experts get started.
Because Pepperstone white-labels other applications, there isn’t much in the way of features that make them stand out. However, their site does offer a few interesting bonuses.
Social trader function
There is a simple social platform built into the website. You can find traders and mirror their trading strategies. But this function isn’t as developed as on eToro or Naga, and the social platform doesn’t allow traders to market themselves effectively with posts or interaction.
The library of video webinars, guides, and tutorials help less advanced traders get started and understand the ins and outs of CFD and forex trading.
The most impressive feature of the Pepperstone website is the chat support. After answering a few questions, the chatbot reliably puts you in contact with a support agent within seconds, which was very helpful in writing this article.
Security and Regulation
Is Pepperstone Safe?
Pepperstone doesn’t have as high of a trust score like some other platforms, ranking only 92 out of 100. Because they white label other apps, they are only as safe as those apps. In the past, there was a data breach of these third-party apps and user information was stolen, but not user funds.
They do use basic IT security measures like 2FA, but there is little info on the internet about their IT security.
Am I and My Funds Protected?
Pepperstone has indemnity insurance and is regulated, but there is limited protection for users. UK residents are protected up to £85,000 under the FSCS Protection.
However, unlike many other broker companies, they do not guarantee stop loss or stop-outs. Their terms admit that losses may exceed your deposit amount. Only UK and EU clients are guaranteed negative balance protection.
Is Pepperstone Regulated?
They are regulated by many different regulatory authorities, including:
The FCA in the UK
ASIC in Australia
CySEC in Cyprus
DFSA in Dubai
CMA in Kenya
BaFin in Germany
SCB in Bahamas
Do I Have to Verify My Account With Pepperstone?
You have to go through the standard verification procedures regulated CFD brokers must comply with for KYC and anti-money laundering purposes.
You must provide one of each of the following: Primary ID such as passport, drivers license, or government-issued ID; secondary ID such as utility bill, bank statement, government-issued tax document, birth certificate, or citizen certificate.
These documents can be in most European languages, Arabic, Chinese, Japanese, Malay, Russian or Thai.
You can ask the chat any question, and they usually respond within a minute.
The website lacks basic maintenance, and many of the links are broken. Much of the information there is incomplete or incorrect, and you won’t find out until you create an account.
Many customers are impressed by the tutorials, videos, and guides. These are both beginner and intermediate trader friendly.
Tools and Charting
Because you trade in MT4, MT5, or cTrader, you have access to all the standard tools, indices, and charts provided by those platforms.
From experience, the chat customer support is very helpful. They are available 24 hours a day, Monday through Friday.
How to Open an Account With Pepperstone
Setting up an account is slightly more complicated than with other brokers.
Step 1 - Visit Pepperstone's official site & Sign up
Visit the official Pepperstone website and click “Join Now”. You can use email, Facebook or Google SOS. You can create an individual, joint, trust, trust corporate, introducing broker, or demo (test) account. If you don’t see your country of residence on the list, Pepperstone isn’t available in your country. When you create your account, you will be taken directly to the secure client area.
Step 2 - Verify your identity
Create an application. By industry standards, their onboarding form is very invasive. They ask for more information in order to comply with the many regulatory authorities which govern them.
Step 3 - Create an account
Create an account with a trading app. You can choose MT4, MT5, or cTrader. If you don’t know where to start, MT 4 provides the simplest functionality. You have to do this on their website — not in Pepperstone.
Step 4 - Set preferences
Create your trading preferences. Select the trading app you want. You should also pick your account type – Standard or Razor. Razor is best for high volumes because the spreads are tighter; standard has no commissions for low volume traders.
Step 5 - Complete application
Finish the application and verify your account. They will ask you several other questions about your income and employment. You have to upload two legible scans of applicable documents. After this, you have to wait a few hours to days for a confirmation email.
Step 6 - Fund your account
Use a debit card if your bank won’t charge you a fee. It is instantaneous and free. Make at least the minimum deposit of 200 of your base currency.
Step 7 - Start trading
Make your first trade. If you don’t know where to start, watch the tutorials in the secure client portal of their website.
Is there an alternative to crypto brokers?
Yes, there are many more ways to trade cryptocurrencies such as using cryptocurrency robots. Check out some of our reviews for the best trading robots:
Is there an alternative to Pepperstone?
Even though Pepperstone is known for low fees and no holding fee, it is suggested that for retail investors, there are better platforms to use than Pepperstone. Look for a lower commission, spreads, and uncomplicated rollovers swaps. Also, look for a platform that offers more instruments and features. Those taking their first steps into forex or CFD trading should look for more user-friendly interfaces.
For the average retail investor, eToro is a better choice across the board. That’s why they have 17+ million users, compared with Pepperstone’s 1million.