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Pepperstone is a regulated trading platform supporting hundreds of markets, including stocks, forex, and commodities. It offers CFD and spread betting instruments, meaning traders can go long or short with leverage.
But is Pepperstone the best option in the UK market? Read on for our Pepperstone Review. We reveal the most important factors, including safety, fees, asset classes, payments, and customer support.
Ways of Trading at Pepperstone
Pepperstone specializes in derivative products. This enables UK traders to speculate on asset prices without taking ownership. Pepperstone derivatives also come with leverage of up to 30x. The specific limit depends on the asset.
Another benefit is that traders can go long or short. This is ideal for profiting from rising, falling, and sideways markets. This isn’t possible when buying assets in the traditional sense.
Pepperstone has two derivative products: CFDs and spread betting.
Pepperstone CFDs
Contracts-for-differences track asset prices in real time.
For example, suppose the current price of gold is $2,340 (commodities are traded in dollars). Gold CFDs at Pepperstone would also be priced at $2,340.
Similarly, suppose the gold price increases by 2.2%. The same increase would be shown by Pepperstone CFDs.
Pepperstone Spread Betting
Spread betting works similarly to CFDs. This is because spread betting markets track real-time asset prices. What’s more, spread betting supports long and short trading with leverage.
Now for the key difference: spread betting in the UK is tax-free, meaning, unlike CFDs, no capital gains tax will be applied to profits. This makes Pepperstone’s spread betting department highly popular with UK traders.
What Markets Can You Trade on Pepperstone
Next in this Pepperstone review, we reveal its supported trading markets:
- Forex: Trade major currency pairs like EUR/USD and GBP/USD. Minors, crosses, and exotics are also available.
- Stocks: Speculate on stocks from the UK and international markets, including the US, Australia, Germany, and Europe.
- ETFs: Access diversified ETF portfolios, covering emerging market stocks, energies, government bonds, commodities, and more.
- Indices: Diversify into global stock indices like the Dow Jones, S&P 500, and NASDAQ 100. Those targeting UK stocks can also trade the FTSE 100.
- Commodities: A wide range of commodity markets are available, including gold, silver, natural gas, oil, platinum, and corn.
Do note that the above markets are available for CFDs and spread betting.
The main omission at Pepperstone is crypto assets. This is because UK retail clients are prohibited from trading crypto derivatives. Instead, UK traders can explore the best crypto exchanges to access this popular market.
Pepperstone Trading Platforms
Pepperstone doesn’t offer a native trading suite like most platforms. It does, however, support third-party platforms like MT4 and MT5.
MetaTrader
MT4 and MT5 are used by millions of traders. These platforms come with technical indicators, drawing tools, and custom order types, not to mention customizable charting screens and support for automated bots.
Pepperstone offers a Smart Trader Tools package for MetaTrader 4 and 5 to help boost your trading strategies. It includes a backtesting simulator to test your strategies.
TradingView
TradingView is one of the best options for technical traders seeking in-depth market insights.
TradingView offers thousands of custom indicators, advanced analysis tools, and a clean trading interface.
cTrader
cTrader is another advanced trading suite supporting technical indicators and automated tools. It connects with the best stock brokers and trading platforms, including Pepperstone.
cTrader is also popular with traders with bespoke algorithmic trading strategies and systems.
Pepperstone Copy Trading
Pepperstone doesn’t directly provide copy trading tools, considering it hasn’t developed a native platform. Nonetheless, copy trading is still possible via third-party providers.
One of the best options is the MQL5 marketplace, which connects with MT4 and MT5. MQL5 enables traders to copy humans and automated bots, ensuring a flexible and passive experience.
Another option supported by Pepperstone is Signal Start. This enables Pepperstone clients to copy the best forex signals, meaning automated trading.
Pepperstone Trading Fees
Pepperstone is a cost-effective trading platform with some of the lowest fees available. However, our Pepperstone review found that fees vary on the chosen account type.
This is a choice between the Standard or Razor Pepperstone trading accounts, which we explore in the following sections.
Standard Account
The Standard account is aimed at trading beginners. It offers 0% commissions on all supported markets, irrespective of where the chosen assets are listed. The Standard Pepperstone account comes with variable spreads. This means the bid/ask price depends on the asset and broader market conditions.
Nonetheless, EUR/USD spreads start from 1 pip. This is also the case with other major currency pairs, such as USD/JPY and GBP/USD. EUR/GBP – considered a minor pair, offers an even more competitive spread of 0.9 pips. However, these are minimum spreads; they can increase at any time, especially outside of busy trading hours.
Razor Account
The Razor account is aimed at experienced traders, including those who place large amounts. This is because the Razor account focuses on low spreads. For example, major currency pairs can be traded with spreads of 0.0 pips. This means the bid/ask prices often achieve parity.
However, unlike the Standard account, traders must pay commissions. UK traders pay £2.25 per standard lot, per side. For instance, suppose you trade 2 lots of GBP/USD. You’d pay £4.50 when entering the position. And another £4.50 when closing it.
Naturally, this wouldn’t be viable for small positions, which is why the Razor account requires large order sizes.
Other Fees
Other Pepperstone fees to be aware of include:
- Overnight Funding: Additional fees apply when holding positions overnight, charged at 5 pm New York time. This is because derivative products attract leverage.
- Inactivity: No fees
- Deposits: No fees
- Withdrawals: No fees
Pepperstone Features & Analysis Tools
Next in this Pepperstone review, we explore its key features and analysis tools.
Do note that most analytical tools, such as technical indicators and pricing charts, are offered by connected platforms. This includes MT4, MT5, TradingView, and cTrader.
Long and Short Trading
Pepperstone supports long and short trading, meaning traders can profit from bullish and bearish markets.
For instance, suppose you’re concerned that Apple stock is overvalued. You can place a sell order on Pepperstone and, if the price declines, you’d make a profit.
Leverage
Leverage enables traders to amplify their position sizes. This means you can trade with more than you have in your Pepperstone trading account. As per FCA regulations, UK retail clients are capped to leverage of 1:30. This converts a $100 balance to $3,000 in trading capital.
However, leverage of 1:30 is only offered on major forex trading pairs. Other assets come with lower limits. For example, stocks can be traded at 1:5. Gold and minor forex pairs come with leverage of 1:20. Always employ risk management strategies when trading with leverage as this is a high-risk investment.
Demo Accounts
Pepperstone offers free demo accounts to UK traders. They mirror live market prices but traders place orders with virtual funds. This means you can practice trading without risking real money.
Demo accounts come preloaded with £50,000 and last for 60 days when using MT4/5. That said, time limits can be removed when users have a verified and funded account. No limits are in place when using cTrader.
Automated Bots
Pepperstone supports the MT4 and MT5 platforms, meaning traders can connect automated bots. These can be purchased from the MQL5 marketplace.
Automated trading robots not only scan the markets and place orders autonomously but they operate 24/7.
Market Analysis
Pepperstone offers in-house analysis content, including fully-fledged insights from market experts. This includes anything from upcoming economic events and interest rate hikes to industry predictions.
Pepperstone also hosts weekly debates via podcasts, financial news, and trading guides. The latter explains key trading principles, such as technical analysis and price action strategies.
Banking at Pepperstone
Pepperstone supports a wide selection of convenient payment methods. The best options are debit/credit cards and PayPal. These are processed instantly. The same payment methods can be used when making withdrawals. The time frame is 1-3 working days.
Pepperstone also supports domestic bank transfers. These arrive on a same-day basis. Bank withdrawals take 1-2 working days. Crucially, Pepperstone doesn’t charge deposit or withdrawal fees. Our Pepperstone review also found that no minimum deposit requirements are stipulated. This is particularly appealing to those on a budget.
Interface & User Experience
Pepperstone offers a user-friendly experience, including opening an account, depositing and withdrawing funds, and speaking with customer support. However, the trading experience is determined by the chosen platform. This is because Pepperstone doesn’t have a native trading suite.
Pepperstone Pro users will also have access to a dedicated account manager.
All supported platforms, whether that’s MT4/5, TradingView, or cTrader, are aimed at intermediate-to-advanced traders. They come packed with tools and analysis features that might be alien to beginners. Therefore, novice traders should initially trade with demo funds.
Pepperstone Mobile App
We’ve established that Pepperstone doesn’t have a proprietary trading platform. So by extension, this means it also doesn’t have an app.
However, apps are offered by partnered third parties, including MT4, MT5, TradingView, and cTrader. Simply download the app and enter the Pepperstone login credentials to connect the accounts.
Is Pepperstone Safe?
Pepperstone is one of the best day trading platforms for safety. It’s authorized and regulated by the UK Financial Conduct Authority (FCA), ensuring a secure and credible trading experience. What’s more, Pepperstone is FSCS-protected, even though it only offers derivative products. This means client funds are protected in the unlikely event that Pepperstone goes bankrupt.
Pepperstone also holds licenses in other jurisdictions, including Australia (Australian Securities and Investments Commission), UAE (Dubai Financial Services Authority), and Kenya (Capital Markets Authority). This means Pepperstone has regulatory oversight from multiple licensing bodies. However, traders should also check other Pepperstone reviews. This will provide a more balanced and informed opinion.
Conclusion
Overall, Pepperstone is a top trading platform for UK clients. It supports hundreds of markets, ranging from stocks and indices to ETFs, commodities, and forex. Traders can choose from a commission-free or low-spread account, and no minimum deposit requirements are needed.
Pepperstone also offers a free demo account with £50,000 in paper funds. This is a great way to test Pepperstone before risking money.
