Looking for a Forex broker based in Australia? There are many options, and this article will compare the merits of two of the country’s titans, Pepperstone and AxiTrader. Pepperstone was founded in 2010 and quickly grew into a market leader with a razor focus on automated trading solutions. This broker continues to grow through a noted scale of a fintech company and the agility of a startup. AxiTrader has been operational since 2007, and while it has some minor regulatory issues and discrepancies, it provides traders with a solid overall trading environment. This broker shines with auxiliary services like Autochartist MT4 Plugin, VPS hosting, and PsyQuation Premium.
This comparison will focus on the following four aspects plus an ultimate verdict:
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- Pepperstone vs AxiTrader - Verdict
Australia Australia ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB N/A 2010 2007 No Dealing Desk, NDD ECN/STP, Market Maker $0 0$ Other, MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Trading View+ MetaTrader 4, MetaTrader 5, Web-based, ATpro platforms 1.1 pips 1.2 pips 1.4 pips 1.3 pips $2.50 $0.03 $0.15 $0.16 74-89% N/A 0.0 pips N/A 1.0 pips N/A 6.00 per round lot (cTrader) / $7.00 per round lot (MT4/MT5) N/A Visit Website 75-95% of traders on margin lose Visit Website
Features and Platforms
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Pepperstone
Pepperstone traders have access to over 150 assets across five categories from the MT4, MT5, and cTrader trading platforms. Pepperstone has established itself as a premier choice for automated trading solutions. Retail traders are treated to professionals trading and risk management tools through the Smart Trader Tools upgrade, which consists of 28 plugins for the MT4/MT5 trading platforms. cTrader Automate allows for the development of automated trading solutions. Pepperstone additionally supports social trading through partnerships with Myfxbook, ZuluTrade, Mirror Trader, MetaTrader Signals, and DupliTrade.
Manual trading is not forgotten, and an in-house duo of professional traders provides research to clients. This service is further enhanced through partnerships with BK Forex, FX Evolution, and Autochartist. A sound educational course provides new traders with an attractive entry into financial markets. Complementing a great trading environment is the premium client service and an Active Trader Program, which are both based on trading volume.
AxiTrader
As compared to Pepperstone which offers an impressive suite of platform options and MetaTrader plugins, AxiTrader only provides the MT4 trading platform, without any of the required third-party plugins necessary to unlock the full potential of the most popular trading platform in the retail sector. AxiTrader does support the MT4 Multi-Account Manager (MAM). While the bare minimum is provided when it comes to market access, PsyQuation Premium is free of charge for all AxiTrader clients who maintain a minimum balance of $500 and trade one standard lot per month. One of the prime features is the AI-guided analysis of a trader’s daily performance.
Trading signals, comprehensive forecasting, and quantitative analytics are provided via PsyQuation Premium. In-house commentary is provided in the market analysis section, while educational content is acceptable. Autochartist is a market scanner that can identify chart patterns and trading opportunities in real-time while delivering market reports three times per day. Automated traders will find the offer of four VPS providers appealing, which can be obtained free of charge of twenty standard lots are trader per month.
Available Markets
N/A N/A Visit Website 75-95% of traders on margin lose Visit Website
Forex traders have sixty-one currency pairs to choose from at Pepperstone. This is supplemented with fifteen commodity CFDs, fifteen index CFDs, and sixty-four equity CFDs. Unfortunately, only five cryptocurrency pairs are offered. The asset selection is sufficient for retail traders, but more advanced portfolios will likely want a wider choice. AxiTrader offers more currency pairs with eighty and features a more comprehensive commodity selection. Equity CFDs remain limited with only thirty-one names, while the cryptocurrency offering is scarce with just six.
Typical Spreads and Fees
1.1 pips 1.2 pips 1.4 pips 1.3 pips $2.50 $0.03 $0.15 $0.16 25 $18 0.0 pips N/A 1.0 pips N/A 6.00 per round lot (cTrader) / $7.00 per round lot (MT4/MT5) N/A N/A N/A $0 N/A Visit Website 75-95% of traders on margin lose Visit Website
Pepperstone deploys an ECN execution model, which is evident in its Razor Account, where the average spread clocks in at 0.13 pips for a commission of seven units of the base currency. This produces one of the most competitive trading environments in the Forex market. The Standard Account carries an average spread of 1.13 pips but remains commission-free. AxiTrader sustains an equally competitive trading environment in its MT4 Pro Account, where the average spread is 0.10 pips for a $7 commission. The MT4 Standard Account is listed with a spread of 1.0 pips with no commission charges. AxiTrader is a market maker and profits directly from client losses.
Both brokers apply swap rates on leveraged overnight positions, but clients may request a swap-free Islamic account at Pepperstone. Traders may obtain the exact swap rates from inside the trading platforms. Corporate actions like dividends, stock splits, and mergers apply to equity and index CFDs and are passed onto traders. Pepperstone applies withdrawal fees solely to bank wires, and third-party fees are levied at both brokers. Pepperstone and AxiTrader have both created an excellent, cost-effective trading environment. Due to the Active Trader Program at Pepperstone, the net costs are slightly more competitive as compared to AxiTrader.
Security and Trust
United Arab Emirates, Australia, The Bahamas, Cyprus, Germany, Kenya, United Kingdom ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB 414530, 91279, 128, 388/20, F004356, 684312, F217 Visit Website 75-95% of traders on margin lose
The primary regulator for Pepperstone and AxiTrader is the Australian Securities and Investments Commission (ASIC). As an ASI- regulated entities, both are protected by the Act of Grace mechanism under section 65 of the Public Governance, Performance and Accountability Act 2013. Traders are shielded from potential damages via the Scheme for Compensation for Detriment caused by Defective Administration (CDDA Scheme). Pepperstone services UK and EEA traders through its subsidiary, Pepperstone LTD, authorized and regulated by the Financial Conduct Authority (FCA). Traders are covered under the Financial Services Compensation Scheme (FSCS) up to £85,000.
AxiCorp Financial Services Pty LTD, the owner of AxiTrader, maintains a subsidiary it claims is regulated by the St. Vincent and the Grenadines by the Financial Services Authority (FSA) under number 25417 BC 2019. This couldn’t be confirmed as neither the regulator nor companies house showed a record of it. The UK subsidiary is fully authorized and regulated by the FCA, and AxiTrader is additionally a member of The Financial Commission. This is the first independent self-regulatory organization and external dispute resolution (EDR) body for the forex market, based in Hong Kong. Traders enjoy protection from the Compensation Fund up to €20,000 or on par with many EU regulated brokerages.
Pepperstone vs AxiTrader – Verdict
While both brokers present traders with an excellent trading environment that can benefit from an increase in the overall asset selection, Pepperstone is the superior choice. It provides a 28-plugin upgrade package for the MT4 trading platform, and the trading costs are marginally lower. The spotless regulatory record sets a shining example for other brokers to follow, and the ECN execution model grants traders conflict-of-interest-free brokerage services. AxiTrader is a market maker, has minor regulatory discrepancies, and provides traders merely with the basic MT4 trading platform. It attempts to rectify this via PsyQuation Premium, but it falls short of Pepperstone’s offering while representing a sound option as a secondary brokerage.
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