Pepperstone Forex Broker Review | Superchoice Forex
In the box
Cost of the box
Opening account speed
Deposit & Withdrawal
Speed of execution
Total Score: 10 / 12
Pepperstone Broker Review Summary
Hi traders and welcome to another review! This time we’re looking into the Australian Pepperstone, and seeing if their products are as spicy as their name! Bad jokes aside, Pepperstone was established in 2010 and regulated by both ASIC in Australia and the FCA in the UK, however we found that their ASF license was issued in 2013, a three year gap. I wonder what the story is there?
Pepperstones key selling points are their spreads, boasting spreads from 0.0, their 24/5 customer service, fee-free funding and 150+ tradable products. Before we get into assessing the value of these, let’s just examine these claims at surface level.
Spreads from 0.0 are competitive if they are delivered on, but many brokers say spreads FROM 0.0, but you never see the spread at 0.0. Customer service 24/5 is a nice touch however it is the standard in the industry, as is having fee free funding. Their 150+ range of products does seem somewhat on the small side as well, especially when compared to powerhouses like FP markets who offer over 10,000+.
As always, we will be examining their key selling points and seeing if Pepperstone deliver on their promises. So without further ado, let’s jump into it!
Unboxing – Opening an account with Pepperstone
Opening an account with Pepperstone is seamless, their website is simple and pushes you through the steps quickly. Clients are offered leverage up to 500:1, the maximum leverage available in Australia and the industry standard. Once I opened my account with Pepperstone, I was verified within two hours and ready to start trading. This is quite quick verification, as some same-day verification takes 12+ hours. Pepperstone have no deposit requirement to open an account, however they do have a $200 minimum deposit size per transaction, which could be reduced to make the account more accessible and good for testing strategies. As you may know by now, I’m not a big fan of minimum deposits, so Pepperstone is docked a point here.
Pepperstone make it fast to open an account and be verified, and offer traders a great range of leverage choices. They do have a $200 minimum deposit, losing a point there.
What’s in the box? – Pepperstone Broker Review
For starters, let’s look at Pepperstone’s customer service. When I first opened my account, a customer service agent rang me to discuss my trading experience and if there was anything he could do to help me get started trading with them, which I thought was a very nice touch. He then emailed me relevant educational material from what we had discussed. I haven’t had customer service this personalised with any other broker, so that is definitely a big plus by Pepperstone. They boast 24/5 support, so I put this to the test on their live chat. I was matched with an agent straight away who answered my question immediately. I asked quite specific questions. The agent wasn’t able to answer them in great detail, however did give me relevant information. Overall a great delivery on their customer service selling point, with responsive and efficient customer service. Great work Pepperstone!
As mentioned, I was emailed educational content tailored to me right away, leading me to their educational offerings. I was impressed with this, as they have some educational articles catering to beginner/intermediate level traders. Their webinars webinars were impressive, however as they provide more in-depth, high level knowledge of trading strategies, tailored to certain trading sessions and currency pairs. I think these webinars are great for more advanced traders, and so Pepperstone has content to improve their clients trading edges, regardless of experience. Again, really nice work Pepperstone!
Another of Pepperstone’s key selling points is their 150+ tradable instruments, with CFD’s across Forex, equity CFDs, stock market index’s commodities, and currency indexes. Whilst 150+ tradable instruments isn’t a great range, it is a solid offering. Pepperstone only offer share CFDs from the American market, so they could be more competitive and offer access to HK, AUS, UK and EUR share markets, as many other brokers do this, it would make Pepperstone more competitive. They also only offer share CFDs on MT5; a mild drawback.
Speaking of platforms, Pepperstone offer clients the choice between MT4, MT5 and cTrader – a nice selection! As you may know by now, cTrader is my personal favourite, so brownie points won by Pepperstone. They also offer a selection of trading tools to integrate with these platforms, with a Metatrader tools package including a session map, stealth trader and alerts manager to name a few. cTrader has many of these tools inbuilt to the platform, but Pepperstone also integrate Autochartist, a pattern recognition software into the platform. They also provide web terminals for MT4, MT5 and cTrader, making life easier for all the Mac users out there!
So far so good! Now let’s get to their funding. Pepperstone offer over 11 funding methods, with popular choices being bank transfer, credit card, POLi, paypal and skrill. I chose POLi to fund the account, and the funds were immediately available in my account, with no fees. They delivered their fee-free funding promise, offering a good range of funding methods for deposits and withdrawals. I had 10 base currency options to fund my account, including AUD,USD, CAD, GBP and more.
So what about Pepperstone’s trading conditions? Pepperstone advertise ~30ms execution speed, offering a good environment for scalpers and EA’s. While trading my execution speed was good, I experienced a decent amount of slippage. As I use limit orders to enter the market, slippage is typically in my favour, however when using buy stops and market execution I did experience unfavourable slippage. I also noticed that from time to time, prices would drop or rise to levels that weren’t reached by other brokers on the same symbol. The slippage amount docks Pepperstone a point here.
In terms of Market Analysis and research, Pepperstone have some decent offerings. Pepperstone have in-house analysts and release weekly videos on market analysis. They also feature market news and trading charts analysis sections on their website, keeping traders updated with technical and fundamental information in the markets. Nice work here by Pepperstone again.
Score = 5/6
Pepperstone have delivered on their customer service selling point, have a decent range of tradable products, a solid choice of funding options and currencies, and some nice educational and analytical content. They were deducted a point for the slippage I experienced whilst trading with them.
Cost of the box – Pepperstone Spreads, Fees and Commissions
After a glimmering review so far, you might be wondering what the catch is! Well, their commission is $3.50 a side per lot, so not cheap, but still the industry standard. This considered, they do keep spreads low, with 0.0 popping up across the majors quite frequently. Pepperstone also have no commissions on stock market indexes, making their pricing quite competitive. Pepperstone have no additional fees and non-trading costs.
Score = 3/3
With an industry standard commission, low spreads, no commissions on stock market indexes and no non-trading costs – Pepperstone scoops all three points on their pricing.
My experience trading forex with Pepperstone
I’ve had quite a positive experience with Pepperstone. I think that you really get what you pay for with them. $3.5o in commissions isn’t the lowest on the market but you get high quality support with them, and some great spreads. The trading conditions are quite good and the slippage generally benefits my trading style, however the slippage could be a negative for those that use stop-orders to enter the market. In my opinion, Pepperstone could improve their product range and also work to reduce slippage.
Total Score = 10/12