Pepperstone Fees – Overview

Traders should consider Pepperstone’s fees before opening a trading account with Pepperstone. Trading fees directly impact profitability and can reveal which strategies a broker supports, and which remain discouraged, making them the most defining aspects when evaluating a broker.

Our in-depth Pepperstone fees review offers a breakdown of trading and non-trading costs. Does Pepperstone maintain a competitive pricing environment that ensures clients have a competitive edge? Find out all you need to know about Pepperstone fees. For additional up-to-date information in Pepperstone, read our full broker review.

Overview of Pepperstone Fees and Charges

Pepperstone maintains competitively priced cost structures in its commission-free and commission-based accounts. The former commences with minimum Forex markups of 0.70 pips and average costs of 0.84 pips or $7.00 and $8.40 per 1.0 standard round lot, respectively. The latter features minimum spreads of 0.1 pips and an average one of 0.24 pips for a commission of $6.00 per 1.0 round lot or trading fees of $7.00 and $8.40 in cTrader accounts, while MT4/MT5 traders pay $7.00 in commissions, increasing trading fees to $8.00 and $9.40, respectively.

Therefore, Pepperstone fees for Forex traders are identical for commission-free MT4/MT5 accounts and commission-based cTrader accounts and more expensive for commission-based MT4/MT5 traders. It is an unusual pricing environment, as many brokers offer cheaper costs in commission-based trading accounts. High-volume traders can lower Pepperstone fees via a three-tier rebate program that reduces costs between $1.00 and $3.00 per 1.0 standard round lot, which Pepperstone pays daily.

Index traders get competitive spreads as low as 0.04 pips, and commodity markups start from 0.05 pips, but average commodity costs are 1.40 pips. The rebate program lowers trading fees by between 10% and 30%. Equity CFD commissions depend on the stock exchange. They are between 0.07% and 0.20% with a minimum of A$10.00, €14.00, £14.00, or HKD90 per round trade. US equity CFD commissions are $0.04 per share. Average cryptocurrency fees for Bitcoin and Ethereum are $31.01 and $4.04 per coin, respectively.

Swap rates on leveraged overnight trades are highly competitive, and Pepperstone features positive ones where applicable, meaning it sometimes pays traders to hold positions. A currency conversion fee may apply if the asset currency differs from the account base currency.

The overall Pepperstone fees are competitive, especially for high-volume Forex, index, and commodity traders. Low-volume equity traders must accept above-average commissions but rank competitively with high-volume traders. The Pepperstone infrastructure supports demanding short-term strategies like scalping and high-frequency trading or algorithmic trading.

Here is a snapshot of Pepperstone’s fees:

Pepperstone’s Fees, Spreads, and Commission Explained

Multi-asset online brokers like Pepperstone experienced tremendous growth over the past fifteen years. They have disrupted full-commissioned brick-and-mortar brokers by eliminating the need for broker-assisted trade placements, decreasing trading fees, and increasing access to financial markets for retail traders.

Technology and scalability continue to drive the ongoing trading revolution, where algorithmic trading accounts for 80%+ of daily Forex trades and 60%+ of equity trading. Pepperstone maintains an innovative trading environment for algorithmic traders, including VPS hosting and API trading. With daily turnover approaching $7 trillion, the Forex market remains at the center of the global financial system, where Pepperstone offers 60+ currency pairs, achieving broad-based sector coverage.

While online brokers lowered trading costs, traders must understand the Pepperstone fees to help them comprehend what they must pay, why they must pay, and how those costs compare to other brokers. Trading costs at brokers fall into two categories: trading and non-trading fees.

Trading fees are:

• Spreads (the difference between the bid and the ask price of an asset, where Pepperstone maintains competitive commission-free and commission-based fees for Forex, index, and commodity traders and an average one for equity traders)
• Commissions (Pepperstone offers a reasonable commission-based pricing environment)
• Swap rates (charged on leveraged overnight positions, where Pepperstone ranks among the cheapest, dependent on the asset, making it ideal for traders keeping positions open overnight)
• Currency conversion fees (applicable each time the currency of the asset differs from the account base currency)

Non-trading fees are:

• Deposit fees (not applicable at Pepperstone)
• Withdrawal fees (not applicable at Pepperstone)
• Inactivity fees (not applicable at Pepperstone)
• Currency conversion fees (for deposits and withdrawals in currencies that differ from the account base currency, levied by third parties)

Pepperstone Trading Fees

Pepperstone trading fees apply to each transaction and are asset dependent. Traders may choose between commission-free and commission-based Pepperstone fees. Please note that MT4/MT5 traders pay higher commissions at Pepperstone versus cTrader portfolios and that cTrader costs are identical to commission-free MT4/MT5 Pepperstone fees.

Here is an overview of minimum commission-free trading fees at Pepperstone:

Overnight Fees (Swap rates)

One of the most ignored trading costs is swap rates on leveraged overnight positions. Depending on the trading strategy, it may become the most significant fee per trade. Traders should check them before evaluating the total trading costs.

Traders must pay swap rates on leveraged overnight positions, which triple on Wednesday to account for trades kept open over the weekend. Closing positions before 5 p.m. EST allows traders to avoid swap rates if it suits their trading strategy.

MT4/MT5 traders can easily access swap rates from their platform by following these steps:

1. Right-click on the desired symbol in the Market Watch window and select Specification.

2. Scroll down until you see Swap Long and Swap Short.

cTrader traders can easily access swap rates from their platform by following these steps:

1. Click on the desired symbol in the left-hand section of the trading platform.

2. Swap rates are available on the right-hand section under “Symbol info.”

Noteworthy:

• Pepperstone ranks among the cheapest brokers for leveraged overnight trading due to low swap rates.

Currency Conversion Fees

Currency conversion fees apply each time the quote currency of an asset does not match the account base currency.. Forex traders may face frequent currency conversion fees as currency pairs consist of two currencies. Trading in a US Dollar base account can lower them, as the US Dollar is part of 80%+ of the daily Forex trading volume, but it depends on their strategy. Equity traders who primarily trade UK or EU shares should opt for a British Pound or Euro account.

Pepperstone Non-Trading Fees H2

Non-trading fees refer to account transactions other than trading, like deposits, withdrawals, and inactivity. While they are notably less frequent than trading fees, traders should know about them to avoid confusion.

Pepperstone does not have any non-trading fees, but third-party fees may apply, which Pepperstone does not control. Traders should know about them to avoid confusion and understand potential charges.

Pepperstone Deposit Fee

Pepperstone has no internal deposit fee, meaning a trader making a $1,000 deposit will receive $1,000 in their Pepperstone trading account. A currency conversion fee applies if traders deposit in an unsupported Pepperstone account base currency. Pepperstone accepts deposits in AUD, USD, JPY, GBP, EUR, CAD, CHF, NZD, SGD, and HKD. Therefore, if a trader has a Mexican Peso account, they must convert it to any of the support account base currencies, for which their payment processor levies a currency conversion fee.

Pepperstone Withdrawal Fee

There is no internal withdrawal fee at Pepperstone, except for a bank wire fee, which averages A$20, levied by the bank Pepperstone uses. Third-party payment processor costs and currency conversion fees may apply. Follow-on costs may apply for traders who use their Pepperstone withdrawal for follow-on transactions like bill payments, consumption, or other purposes, to the destination of funds.

Pepperstone Inactivity Fee

Pepperstone does not levy an inactivity fee. It neither penalizes traders for taking a break nor forces trading activity, offering clients complete flexibility in how traders manage their Pepperstone accounts.

Pepperstone Safety and Security

Founded in 2010 in Australia, Pepperstone became one of the most trusted brokers industry wide. Pepperstone also segregates client deposits from corporate funds held at Tier 1 banks, and negative balance protection is available. It complies with regulators in Australia, the Bahamas, Cyprus, Dubai, Germany, Kenya, and the UK, where it maintains a spotless operational record. The regulatory environments offer a choice of tighter regulation or a more business-friendly trading environment.

The UK and the Cyprus units additionally offer investor protection funds, where the former secures 100% of deposits up to £85,000 and the latter 90% up to €20,000. Traders must accept less favorable trading conditions for additional protection, but since Pepperstone maintains an excellent corporate image, the absence of an investor compensation fund does not increase trading risk. Pepperstone may restrict some clients from opening offshore accounts, like EU-based traders who must trade with the CySEC subsidiary. Overall, Pepperstone is one of the safest and most secure brokers.

Pepperstone Fees Bottom Line

Pepperstone fees remain competitive, especially for high-volume Forex, index, and commodity traders who benefit from the three-tier Active Trader Program. The commission-free MT4/MT5 accounts and the commission-based cTrader option have identical costs, while the commission-based MT4/MT5 accounts are the most expensive. Low-volume equity CFD traders pay above-average Pepperstone fees, but high-volume traders benefit from a competitive pricing environment.

Swap rates on leveraged overnight positions rank among the cheapest industry-wide, making overall Pepperstone fees highly competitive for all strategies, from demanding algorithmic traders and scalpers to traders keeping leveraged overnight positions. The trading environment remains superb, the cutting-edge trading tools are industry-leading, and the Pepperstone fees support all types of traders while benefiting high-volume strategies the most.

FAQs

Does Pepperstone charge raw account commissions?

Commissions for raw spreads are $6.00 per 1.0 standard lot in the cTrader account and $7.00 in MT4/MT5 accounts.

Does Pepperstone charge inactivity fees?

Pepperstone does not charge inactivity fees and grants clients complete freedom in their portfolio management.

When does Pepperstone charge fees?

It depends on the fee. For example, spreads apply the instant a trader opens a position, commissions when traders open and close trades, swap rates on leveraged positions after the cut-off time, and currency conversion costs if the quote currency of the asset differs from the account base currency.

How much does Pepperstone charge for withdrawal?

Pepperstone withdrawals are free of charge, but potential third-party payment processor costs and currency conversion fees may apply, which Pepperstone does not control.

What trading fees does Pepperstone charge?

Pepperstone charges spreads, commissions, and swap rates on leveraged overnight positions if traders keep trades open past 5:00 p.m. EST.

Does Pepperstone charge a monthly fee?

Pepperstone does not charge a monthly fee except for Australian CFD traders who must pay market data fees.

Does Pepperstone have commissions?

Pepperstone has a commission-based Forex account, where traders pay $6.00 per 1.0 standard lot in the cTrader account and $7.00 in MT4/MT5. Equity CFDs have a commission between 0.07% and 0.20% with a minimum of A$10.00, €14.00, £14.00, or HKD90 per round trade. US equity CFD commissions are $0.04 per share.

By DailyForex.com Team

The DailyForex.com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.