Pepperstone Safety and Regulation
Based in Melbourne, Pepperstone is a broker platform that specializes in providing market access to financial instruments, including Forex, shares, indices, commodities, and cryptocurrencies CFDs. Although it has been in existence since 2010, some still have questions regarding the general legitimacy of the platform. Luckily, by doing some minor research online, you can find out more about this platform and how safe and regulated it is. The following is an overview of just that.
Is Pepperstone Legit?
This Australian-based platform is considered legitimate. This is because it’s regulated by the Australian Securities and Investment Commission (ASIC) under ACN 147055703 and AFSL 414530, as well as the United Kingdom's Financial Conduct Authority (FCA) under Company Number 08965105 and FRN 684312. In particular, ASIC requires companies to comply with strict requirements in terms of capital. It also requires them to employ and comply with various internal measures such as staff training, risk management, accounting, and audits.
Additionally, under the Financial Services Compensation Scheme Protection (FSCS)., U.K. residents receive protection of up to £85,000. Moreover, client funds are kept in a segregated account at the National Australia Bank to prevent mismanagement. They are also independently audited by Ernst & Young. Pepperstone also offers automatic stop-out systems to help eliminate negative balances; it offers negative balance protection under ESMA rules. However, in volatile market situations, the company admits that losses can exceed the amount of your deposit.
Is Pepperstone Legit in My Country?
If you want to know which countries Pepperstone is available in, they are as follows:
Australia
China
Germany
Hong Kong
India
Ireland
Malaysia
Netherlands
Singapore
South Africa
United Arab Emirates
United Kingdom
However, so far, it is not available in the United States, Canada, and Japan.
Is Pepperstone Regulated by Governments?
When it comes to regulations, Pepperstone is not regulated by governments. Rather, the platform is regulated by two independent agencies, the Australian Securities and Investment Commission (ASIC) and the United Kingdom's Financial Conduct Authority (FCA). Although they maintain compliance in accordance with government regulations, these two agencies function as independent agencies.
Is Pepperstone a Scam or Safe?
Many people question whether Pepperstone is a scam or if it’s safe. Generally speaking, Pepperstone is considered to be safe. It is well-regulated and has many safeguards to help protect clients from fraud as well as from excessive losses that may exceed the amount of money that was originally invested. It is protected by the Australian Securities and Investment Commission (ASIC) under ACN 147055703 and AFSL 414530, as well as the United Kingdom's Financial Conduct Authority (FCA) under Company Number 08965105 and FRN 684312.
Pepperstone Pros and Cons
If you are wondering about the pros and cons of using the Pepperstone platform, they are as follows:
👍 Pepperstone Pros:
• Outstanding customer service: The Pepperstone platform was created with the goal of providing its customers with outstanding customer service. Therefore, they provide their clients with 24/7 access to well-trained customer service professionals.
• Great place for Forex and CFDs: Additionally, the platform provides the user with access to over 60 stock CFDs and over 61 forex pairs.
• Leverage: Pepperstone also offers leverage for both cryptocurrency and forex trading.
• Educational tools: Pepperstone also offers a vast array of educational tools and courses. This makes the platform a great option for everyone, from beginners to trading experts.
👎 Pepperstone Cons:
• Lack of Availability: Although it is available in around a dozen countries, it is still not yet widely available. However, it is not yet available for U.S. traders.
• Lack of variety: Pepperstone includes a selection of CFDs and forex pairs. However, there are presently no options to purchase stocks, mutual funds, or bonds.
Pepperstone Background
Founded with the goal of providing an easy-to-use trading platform with outstanding customer service, Pepperstone was founded in 2010 by Owen Kerr and Joe Davenport. Thanks to rapid growth, the company had made $60 million by 2014. By 2015, the company began focusing on international growth and entered the European markets in 2015 by opening an office in London. In 2016, the company sold most of its business to Champ Private Equity. Then by 2018, the firm sold its stake in Pepperstone to the broker’s founders.
They continued their expansion by venturing into Germany in 2020 and Kenya in 2021. In 2023, the company Pepperstone opted to partner with the highly revered social charting platform TradingView. Making this move made it possible for the platform to provide its users with access to enhanced analysis, charts, robust trading tools, as well as the planet's biggest social network of traders.
FAQs
How many trading accounts can you have on Pepperstone?
When using the Pepperstone platforms, users can create up to 100 live accounts. However, you are required to have over ten units of currency in all 10 of those live accounts.
What are the options for funding and making withdrawals from a trade account?
Your options for funding or making withdrawals from your account depends on where you are located. However, we offer an array of funding options that are free of fees for traders in certain countries. In order to find out your options, you will need to check the website for the options in your area.
Is Pepperstone for beginners or experts?
Pepperstone is great for traders on all skill levels. It is considered to be highly accessible and simple to learn.
Why was Pepperstone created?
Pepperstone was created as an answer to trading platforms with excessive spreads, poor customer service, and more. The company was created with the goal of leveraging technology to provide low-cost spreads, outstanding customer service, as well as low-latency execution.
Related Articles
Team that worked on the article
Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
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.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.