Comparing foreign exchange (forex) brokers can be challenging, especially for traders just starting out. Traders should look for several characteristics. Many wish to find the cheapest fees or an easy-to-use platform, while others prefer a broker to guide them through the trading process.
The process of finding the best broker can be stressful and time-consuming. But Forex.com and Pepperstone are two brokers that could be perfect for retail traders. So how do they compare?
What is FOREX.com?
Founded in 2001, Forex.com is a reputable online broker that serves customers looking to trade forex and contract for differences (CFD) markets. Forex.com offers CFDs, spread betting and futures on various asset classes to meet every individual's demands.
The broker appeals to all types of traders. Although its product selection differs by location, it strives for quick execution across several platforms while guaranteeing your money's security.
Best for: Forex.com is best for its safety and trust with customers. The group is part of StoneX Group Inc., a Nasdaq Stock Exchange-listed company, and is authorized by four tier-1 regulators and one tier-3 regulator.
The brokerage is fully regulated in the United States by the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC), meaning it has to adhere to certain standards and requirements that make it significantly safer than unregulated entities.
Mobile app: Yes, Forex.com has a mobile app that can be accessed once you sign up for an account. It is available on both iPhone and Android.
Accepts U.S clients: Yes, U.S. customers of Forex.com have leveraged access to more than 80 currency pairs.
MetaTrader 4 (MT4) compatibility: Yes, you can access MT4. Be aware that Apple removed the app from the iPhone platform.
MetaTrader 5 (MT5) compatibility: You can access MT5, but again, Apple removed the app from its iPhone platform.
Year founded: Forex.com was founded in 2001.
Headquarters: Forex.com’s headquarters is in Bedminster, New Jersey.
Instruments: Forex.com offers numerous trade instruments, including forex, indices, stocks and commodities.
Total currency pairs: Forex.com offers trading in over 50 currency pairs.
Minimum initial deposit: If you sign up for Forex.com, a minimum initial deposit of 100 of your selected base currency is required.
Minimum trade amount: The minimum trade amount varies based on the asset or market you trade. In addition, the qualifying trade amount will be based on the units traded.
Regulators: Forex.com is regulated by four tier-1 regulators, one tier-2 regulator and one tier-3 regulator.
Active-trader or VIP discount: Yes, Forex.com offers an active-trader service designed to benefit high-volume currency traders and their experience.
- The broker is extremely safe, with its parent company StoneX publicly listed. Forex.com is regulated across four tier-1 jurisdictions.
- Forex.com offers a wide range of asset classes and caters to all traders. Traders can switch from forex to stocks and so much more.
- The easy and accessible TradingView advanced charting is a feature of the Forex.com web trader.
- Forex.com’s education section is free for all to learn.
- Forex.com is less active in producing video content than some competitors. Its education program is more active across the written platform.
- Another disadvantage is that Forex.com does not offer phone support to its clients.
What is Pepperstone?
Pepperstone is a Melbourne-based brokerage firm that offers trading of several instruments such as forex, indices, equities and commodities. The business provides solutions that aim to help everyone in their trading journeys.
Best for: Pepperstone is best for algorithmic traders and copytraders because of its MetaTrader and cTrader platforms.
Accepts U.S. clients: Pepperstone does not accept U.S. clients.
Mobile app: Yes, Pepperstone is available as a mobile app on both iOS and Android.
MetaTrader 4 (MT4) compatibility: Yes, MT4 is compatible with Pepperstone.
MetaTrader 5 (MT5) compatibility: Yes, MT5 is a compatible option.
Note: MT4 and MT5 on mobile have been removed from Apple’s App Store.
Year founded: Pepperstone was founded in 2010.
Headquarters: Pepperstone headquarters is in Melbourne, Australia.
Instruments: Trading instruments across Pepperstone include forex, stocks, indices, commodities and crypto CFDs.
Total currency pairs: The company offers over 60 currency pairs across major markets.
Minimum initial deposit: Pepperstone recommends a minimum deposit of £500 ($572.88). However, there is no minimum deposit required.
Minimum trade: The company has a minimum lot size of 0.01 units.
Regulators: The Financial Conduct Authority regulates Pepperstone in the U.K., the Australian Securities and Investments Commission in Australia and the Dubai Financial Services Authority in the United Arab Emirates.
Active-trader or VIP discount: The broker offers an active-trader program where you can earn cash rebates and save on commissions.
- The broker is extremely safe, with regulations in the U.K., Australia and Dubai so people from these nations can safely trade forex, CFDs and more.
- Pepperstone offers a range of add-ons to its platform across a variety of markets. Investors are given a range of tools to enhance their trading experience.
- The process of opening an account is quick and easy for everyone. No minimum deposit is required, and it is free to withdraw funds.
- The broker offers an education program similar to the industry average. It still trails behind industry leaders and could be improved.
- Traders can only use a free demo account for 30 days. After this, it will expire unless you have a live-funded account you log into once a month.
***Between 74-89 % of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Fees and Commissions
The following table examines the percentage in point (PIP) rate for Forex.com and Pepperstone across several forex pairs.
|PIP rate USD/EURO
|PIP rate USD/GBP
|PIP rate USD/JPY
FOREX.com Research Offerings
- Forex.com market research includes several news channels and blog updates from its research teams that are available on its trading platform. The broker also integrates a stream from Reuters to its platform.
- Elsewhere, the broker offers expert market news and analysis. This includes daily written content, weekly posts and various insights into a range of markets.
- However, the firm offers virtually zero video content, which may limit Forex.com’s audience.
Pepperstone Research Offerings
- Pepperstone offers an unstructured news feed that makes it difficult to find relevant news. But the company offers a telegram channel with its own market commentary. This comes in Chinese, Spanish, Italian and German across its YouTube channels.
- Pepperstone’s daily newsletter covers a recap of current events, market movements and technical analysis.
- Pepperstone offers an economic calendar to help track markets.
Forex.com and Pepperston Head-to-Head
Both brokerages are great options for traders. They both have clear strengths with just a few weaknesses. It’s difficult to compare them to each other, so the choice comes down to the individual trader’s specific requirements.
Frequently Asked Questions
Is Pepperstone a trusted broker?
Pepperstone is a low-risk broker with regulations across several countries. The broker is authorized by two tier-1 regulators, two tier-2 regulators and one tier-3 regulator.
Does FOREX.com or Pepperstone offer lower pricing?
Comparing the costs and commissions of brokers is not easy. Forex.com and Pepperstone offer relatively impressive spreads compared to other brokers.
Which trading platform is better: FOREX.com or Pepperstone?
Only the user’s experience can only decide the best platform for them. Both platforms have strengths and weaknesses.
Get a Forex Pro on Your Side
FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets with low pricing and fast, quality execution on every trade.
You can also tap into:
- EUR/USD as low as 0.2 with fixed $5 commissions per 100,000
- Powerful, purpose-built currency trading platforms
- Monthly cash rebates of up to $9 per million dollars traded with FOREX.com’s Active Trader Program
Learn more about FOREX.com’s low pricing and how you can get started trading with FOREX.com.
About Jay and Julie Hawk
During her financial career, Julie developed world-class expertise in technical analysis, including Elliott Wave Theory, and was deeply involved in initiating research into automated trading and trading signal systems. As a member of the San Francisco Writers’ Guild, Julie regularly wrote trade strategies, educational material, market commentary, foreign exchange newsletters, reports, articles and press releases. In addition, Julie was interviewed for various financial markets magazines and news wires in her professional capacity as a forex and derivatives expert. Since retiring from working at banks, Julie has been writing and editing books and articles about financial markets for companies like Benzinga, as well as trading forex online and mentoring other traders as part of TheFXperts’ financial team.
In addition to trading stock index, forex and commodity futures and options professionally on exchange floors, Jay also has experience trading stocks and options for private investors and trading forex online for his own account. He has also developed extensive experience in performing and using fundamental economic and corporate analysis to inform his trading and investment activities. Jay is also an expert financial writer with particular expertise in reviewing online brokers and investor services.