Pepperstone Fees Review
Founded in 2010, Pepperstone Group Limited is an Australian-based company that has quickly grown into one of the largest forex and CFD providers worldwide.
Founded in 2015, Pepperstone Limited has expanded its services to cover the needs of UK and European clients through local access. The group has offices in Melbourne, Dubai, and London, among other major financial centers.
When evaluating different forex and CFD brokers, there’s one such factor to look at: their fees. Is Pepperstone a cheap broker? Or are there much better choices out there that offer more affordable trading fees? Read on to find out.
Is Pepperstone Cheap?
Among all CFDs providers, Pepperstone has one of the lowest spreads, starting at 0.0 pips, ensuring its suitability for any investor.
Below are the two types of fees Pepperstone charges its users.
Spreads: Spreads refer to the difference between the ask and bidding prices for a currency pair. Spreads come in two forms: fixed and variable. Variable spreads are constantly changing in value. It’s more cost-effective to have a narrow spread rather than a wider spread because a wider spread will mean higher costs. Spreads and/or fees for ECN and/or STP brokers are set by external liquidity providers and are passed along to you without dealing desk interference. Spreads are best when trading in an ECN or STP model.
Comissions: Pepperstone's commissions are among the most competitive among brokers offering commission style accounts. As some brokers charge their commissions in USD, you should check what currency the broker uses when choosing a broker based on commissions. In comparison with other brokers, Pepperstone charges in Australian dollars, which gives them a competitive advantage over the competition.
Pepperstone prices are either based on spreads or commissions, provided by multiple liquidity providers. Consequently, you get very competitive pricing, as their spreads are among the lowest in the industry.
Pepperstone offers two main types of trading accounts, including their Razor Account and Standard Account.
Razor Account: The lowest spreads are available from Pepperstone with its Razor Account, which can be as low as 0.0 pips. In contrast to widening spreads, Razor account holders trade low spreads while paying Pepperstone a commission for their brokerage services. Compared to other brokers, Pepperstone offers ultra-tight forex spreads. There is a $7 commission fee per round turn when you trade Pepperstone's tight spreads.
Standard Account: Traders will find Pepperstone's standard spreads to be among the best on the market. Retail traders can keep trading costs low while enjoying the convenience of standard accounts starting at 0.6 pips commission free.
Spread on Standard or Razor accounts, where e.g. EUR/USD spreads start at 0 pips, and most often overages range from 0.17 to 0.77 pips.
In Pepperstone Razor Accounts, commission charges are added as a trading fee since you will trade with interbank spread quotes starting from 0 pips. There is quite a competitive offering from Pepperstone of $3.5 per lot per 100,000 USD traded under transparent conditions.
Pepperstone - Forex Spread and Fees
The difference between the bid and ask price is known as the spread. The spread can vary depending on a wide range of market conditions. The costs of trading on Pepperstone depends on the type of trading account you hold with the broker. Both Standard and Razor account types will have minimum spread.
Pepperstone will usually charge its spread in addition to the market spread, which is the fee for trading shown on its trading platform as a total spread. Most of their products, including forex, indices, metals, cryptocurrencies, and soft commodities, will be subject to spread charges. A commission is charged instead of a spread for trades in share CFDs.
The cost of trading forex and CFDs can be difficult to compare among different brokers. Spreads are not always published by brokers, and pricing structures differ. We determined that IC Markets generally offers better pricing for traders based on our comprehensive annual assessment.
However, it’s important to note that Pepperstone’s fees are cheaper than FxPro’s spreads, especially for EURUSD.
Pepperstone Spread Compared
| Pepperstone | FxPro | IC Markets | |
|---|---|---|---|
| EURUSD | 0.77 | 1.61 | 0.62 |
| GBPUSD | 1.19 | 1.76 | 0.83 |
| USDJPY | 0.86 | 1.67 | 0.74 |
Pepperstone CFD Spreads and Fees
CFD and forex trading are available through Pepperstone's two main accounts. Beginner traders can open a Standard Account with no commissions but higher spreads. There are no commissions or spreads associated with the Razor Account, which is the lowest ECN broker account.
In the table below, we’ll use information based on spreads and fees of a Standard Account.
| Types of CFD | Typical Spread | Fee |
|---|---|---|
| Forex (EURUSD) | 0.77 pips | Built into the spread |
| Indices (US 500 Index) | 0.4 pips | Built into the spread |
| Commodities (Natural Gas) | 1.46 pips | None |
| Cryptocurrencies (BTCUSD) | 30.50 | None |
Pepperstone Non-Trading Fees
In terms of non-trading fees, Pepperstone is a cheap broker. In other words, you won't have to pay a lot for non-trading related activities on your trading account.
Does Pepperstone Charge Inactivity Fee?
There is no inactivity fee at Pepperstone. The broker believes that traders should be able to trade whenever they choose. Trading accounts without a balance will be archived after 60 days, but you can reinstate them at any time. Whether you haven’t been trading for a month or a year, your account won't be charged.
Does Pepperstone Charge Withdrawal Fee?
In order to open a Pepperstone broker account, you must deposit a minimum of 200 units of base currency. With Pepperstone, clients can easily fund their accounts. A variety of currencies are also available, including AUD, USD, EUR, CAD, GBP, and more.
In simple terms, you can skip exchange fees and trade in your local currency. With most payment methods, withdrawals and deposits are free, but your payment provider may charge you fees in some cases. You can only withdraw funds from the same bank account you used to deposit them.
Follow these steps to withdraw funds from your Pepperstone account.
Make sure you are logged into your account.
Go to the menu tab and select Withdraw Funds.
Enter the amount you’d like to withdraw from your account.
Select a withdrawal method.
Fill out the electronic request with all the necessary information.
Confirm withdrawal information and Submit.
In your Dashboard, you can see the current withdrawal status.
Does Pepperstone Charge Other Fees?
No, Pepperstone doesn’t charge any other fees.
Pepperstone Financing Rates
| Different CFDs | Yearly Financing Rates |
|---|---|
| Apple CFD | 4.9% |
| EUR/USD | 3.4% |
| EUR/GBP | 2.2% |
Pepperstone Swap (pips)
Pepperstone charges fees for overnight funding and swaps. Overnight funding is a charge for holding positions in equities, commodities, cryptocurrency, metal, or index markets over rollover, which is 5pm New York time (23:59 Server Time).
| Pepperstone | FxPro | IC Markets | |
|---|---|---|---|
| GBPUSD short | -0.125 | - 3,547 | -0,1 |
| GBPUSD long | -0.557 | -1,1107 | -0,41 |
| EURUSD short | 0.457 | - 0,9251 | 0,19 |
| EURUSD long | -0.858 | -4,7898 | -0,76 |
| USDJPY short | -1.241 | -3,7634 | -0,8077 |
| USDJPY long | 0.693 | -0,4747 | 0,0214 |
FAQs
Is Pepperstone swap free?
Yes, Pepperstone offers a Swap-Free account for traders who can't receive or pay swaps. With a Swap-Free trading account, traders can access cutting-edge trading technology and deep liquidity while paying no interest.
How much does Pepperstone withdrawal take?
Withdrawals at Pepperstone are free of charge. You will, however, be charged $20 if you withdraw via international wire transfer.
How do I withdraw money from Pepperstone?
You can access your funds by logging into your secure client area and clicking on the 'Funds' tab. To find all withdrawal options, click the 'Withdraw Funds' tab. Within one hour of receiving the withdrawal confirmation email, you must confirm the withdrawal request by clicking the "Accept Withdrawal" link.
What leverage does Pepperstone offer?
The FCA allows Pepperstone to offer leverage to retail customers of 30:1 and to professional customers of 500:1. This means that if you’re a retail trader, you can trade $30 for every $1 in your trading account, while as a professional you can trade $500 for every $1.
Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
The area of responsibility of Mikhail includes covering the news of currency and stock markets, fact checking, updating and editing the content published on the Traders Union website. He successfully analyzes complex financial issues and explains their meaning in simple and understandable language for ordinary people. Mikhail generates content that provides full contact with the readers.
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Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
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