Pepperstone is among the many specialist forex (foreign exchange) companies that operate online. Based in Melbourne, Australia, they also have offices in Shanghai and Dallas, and give forex-trading services to seventy-two currencies and commodities including CFDs, silver, metals and gold.
Who is behind Pepperstone?
Founded in 2010, two people are behind the company – Joe Davenport, the director, and Owen Kerr, the CEO. Possessing an average of $ 5.8 Billion daily, they are among the largest Forex traders worldwide.
Two legal entities offer services on the platform. These are namely:
Pepperstone Grp. Ltd – established in 2010, this serves clients who live outside the UK and EEA (European Economic Area) countries – mostly in Australia, and AFSL (Australian Financial Services License) regulates it. It keeps the money of the clients in isolated accounts with the National Australia Bank.
Pepperstone Limited – they serve clients who live in the EEA countries and the UK, the FCA (Financial Conduct Authority) regulates them and gives and additional protection of 50,000 pounds per individual. It dates back to 2016.
The company site offers FCA regulation for clients in the UK and EEA, while for clients in Australia they get ASIC regulation.
Conflict of interest is not much, considering that they do not use a market-making model of trade. Market models involve the broker profiting from your losses, so this is not the case for Pepperstone.
Instead, the company is an ECN broker – this means that they do not transfer the trading you make to third parties, for instance banks. This means that they do not gain from your losses, therefore eliminating the problem of interest conflicts.
What trading do they offer?
The main service that the platform offers is in forex trade, though there are a few complaints about this service. However, there are more than 70 pairs of currencies on the platform, as well as a very good rate of maximum advantage of 1:500.
The site offers users 13 CFDs, and a majority of these will cover the most vital details and aspects of the world economy. There is very good trade execution, though the whole site is optimal for institutional clients as opposed to retail and individual clients.
The energy section on the site deals with gas and oil. This is among the most attractive prospects on the site due to the offers – the spreads begin from 0.04, you can use an advantage of 1:500, and the trade size minimum margin requirements are about 0.81-1 AUD.
Metals will cover certain assets, for instance platinum, gold, palladium and silver. You can get the minimal trading size on these assets from $0.10 per pip, while the advantage you can get at the most is a good ratio of 1:500. The best aspect is there is no commission on the commodities, so the overall price is lower.
There is a cryptocurrency section as well. It covers the most common currencies, including Litecoin-based CFDs, Ethereum, Bitcoin and Dash. The trading conditions regarding this section are not as attractive as others are, such as the maximum advantage being 1:5. In addition, this could be due to the volatility that is characteristic of cryptocurrency in general, as well as the semi-regulated nature of the market. Another thing is that you cannot purchase actual cryptocurrency coins on the platform itself, only trading in the price-swing of the currency itself.
The good thing about the site is the information that they provide on their main website regarding all these asset classes and swap rates. It is clear that EDGE technology is useful on the platform in allowing inter-bank trade and faster transaction. Other benefits include:
Smart trade – the site maps out market hot-spots and gives you optimal prices
The spreads of trade are tighter and give you cost-saving benefits in trades
What trading platforms do they support?
The site offers at least eleven platforms, majority that are industry staples like MT5 and MT4, and others being web and mobile traders.
The site uses MT4-solutions for the most part, and this means it carries many features and benefits of the complete version. You can access and download it on Mac and Windows platforms.
For money managers, there is a specific platform, the MAM/PAMM accounts. These can allow for many trading accounts and block orders, all done through a master account. It also supports various types of orders, in addition to client reports and EAs. Through this, it will allow for monitor of accounts in real time.
What account types can you get on the site?
You can get four types of accounts on the site:
1. The Edge Standard Account
This gives traders the tight inter-bank trade spreads and deep liquidity, all at no commission charge. These accounts also have spreads that start from 1.0 pips, and they also get STP (Straight-through processing) and a minimal trade size of 0.01 lots.
To get an account, you need a minimum deposit requirement of AU $200.
Edge Razor accounts
This is the main reason for the low spread reputation of the site. They offer users Electronic Crossing Networks (ECN) spreads that range from 22 banks and ECNs. This leads to low forex spread with deep liquidity, and low commissions that you need to pay for full lots (AU $3.50 for 100,000 lots).
Raw inter-bank pricing has a minimal trade size of 0.01 lots and 100 lots maximum size.
cTrader razor trading account commissions
The above two account types both use EDGE technology through the MT4 trading platform. However, for cTrader platform, it is different from MT4 accounts, though also accessible to FX traders.
Commission calculations depend on the currency pairs you trade in, instead of the base currency of your account.
Forex demo account
This gives traders several benefits. Among them is replicating the trading conditions that a live trading account uses. Both popular platforms, the cTrader and MT4 are available, and you have the option of selecting the one you want.
These accounts last for 30 days before expiry, and you can use them to stimulate your trade strategy and platform.
Multi-Account Manager (MAM) and Percent Allocation Management Module (PAMM)
These are best for money managers who use MT4 platforms. They can execute block orders to multiple accounts quickly. In addition, they can also automate collections from trading using different criteria like percentages and ratios.
Edge Swap free accounts
These are Islamic trading accounts that comply with Sharia law. They do not have overnight positions or rollover interest. When a trade runs for two days, you get charges for administration fees to the account and the balance of the traders’ account deducted automatically.
Edge Active trader accounts
If you are a forex trader dealing with high trading volumes, this is the best account for you. The minimum deposit is $25,000, and the benefit is receiving an account manager as well as custom solutions to meet all your trade needs. You also get advanced reporting options and trade execution benefits.
Deposit and withdrawal
When you start with the most basic account, you can deposit at least 200AUD or equivalent amounts. This will also depend on the specific broker you are dealing with.
Deposits can occur through credit and debit cards, as well as bank transfers. Some payment facilities include Neteller, Skrill and WebMoney.
Withdrawal options include:
Bank transfers – these can take up to 3-5 working days
Commissions have a strong emphasis on the site, with different account types attracting different benefits. As for spreads, there are raw institution spreads through the ECN Razor accounts. Standard account spreads are one pip wider than Razor accounts, though there is no commission charge on them.
They offer very competitive spreads and fees
You can choose many fund options for your account
The site has a good design
There is very good customer support
The site mainly deals in forex trade, so there are no futures, stocks, or other options
It lacks its own research team
The mobile platform has a confusing design
The Pepperstone site is very good for forex traders, especially those who deal with high-volume trading. It is worth checking for its simplicity in design and ease of use.