Today’s comparison puts Cypriot Forex broker Fondex against one of the most prominent Australian Forex brokers, Pepperstone. The former has been operational since 2011, while the latter was founded in 2010. Both brokers support automated trading solutions and provide their traders with an excellent trading environment. Due to CySEC regulation, Fondex, which features over 1,000 assets, is limited in certain areas. Pepperstone provides fewer assets, but a more competitive trading environment, thanks to the trader-friendly ASIC regulatory environment. This is further enhanced through the scale of a fintech company and the agility of a startup.
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
- Fondex vs Pepperstone - Verdict
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Headquarters | Australia | Cyprus |
Regulators | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | Unregulated |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2010 | 2010 |
Execution Type(s) | No Dealing Desk, NDD | ECN/STP |
Minimum Deposit | $0 | $0 |
Trading Platform(s) | Other, MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Trading View+ | cTrader |
Average Trading Cost EUR/USD | 1.1 pips | 0.5 pips ($5.00) |
Average Trading Cost GBP/USD | 1.4 pips | 0.8 pips ($8.00) |
Average Trading Cost WTI Crude Oil | $2.50 | $0.03 |
Average Trading Cost Gold | $0.15 | $0.22 |
Retail Loss Rate | 74-89% | N/A |
Minimum Raw Spreads | 0.0 pips | N/A |
Minimum Standard Spreads | 1.0 pips | N/A |
Minimum Commission for Forex | 6.00 per round lot (cTrader) / $7.00 per round lot (MT4/MT5) | N/A |
Islamic Account | ||
Signals | ||
US Persons Accepted? | ||
Managed Accounts | ||
| Visit Website 75-95% of traders on margin lose | Visit Website |
Features and Platforms
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MT4 | ||
MT5 | ||
cTrader | ||
Proprietary Platform | ||
Automated Trading | ||
DOM? | ||
Guaranteed Stop Loss | ||
Scalping | ||
Hedging | ||
One-Click Trading | ||
OCO Orders | ||
Interest on Margin | ||
| Visit Website 75-95% of traders on margin lose | Visit Website |
Fondex
Traders have access to over 1,000 assets across six sectors from the cTrader platform. Cross-asset diversification can easily be achieved, and spreads are very competitive. Fondex allows commission-free trading except for Forex and commodity trading. The cTrader platform provides a professional trading experience, fully supports automated trading solutions, while additionally enabling social trading via a copy feature. Manual traders have a full technical analysis suite at their disposal. Trading signals are provided inside the platform through a partnership with Trading Central.
Regrettably, Fondex fails to provide an educational section to new traders. This is the most significant oversight by company’s management. According to the minimum deposit size, the retail sector is the primary client base. Auxiliary trading services should be implemented, either in-house or through a partnership. The lack of an in-house research team places this broker out-of-competition with prime brokers. Despite the absence of two critical divisions, the overall core trading environment remains exceptional.
Pepperstone
With a choice of the MT4, MT5, and cTrader trading platforms, Peppersone traders have access to the most popular trading platforms available. Over 150 assets across five categories are available together with tight spreads and competitive leverage makes Pepperstone a prime destination for committed traders. Since its inception, this broker has strived to become a market leader for automated trading solutions. Professional trading and risk management tools are granted to all traders via the Smart Trader Tools upgrade, consisting of 28 plugins for the MT4/MT5 trading platforms. Social trading is enabled through partnerships with Myfxbook, ZuluTrade, Mirror Trader, MetaTrader Signals, and DupliTrade.
An in-house research duo generates research for manual traders. Third-party research from K Forex, FX Evolution, and Autochartist further supports manual trading. New traders are greeted with an attractive entry into financial markets with a sound educational course. The premium client service and Active Trader Program, both based on trading volume, complement one of the most attractive trading environments in today’s ultra-competitive brokerage industry.
Available Markets
| | |
Currency Pairs | ||
Commodities | ||
Crude Oil | ||
Gold | ||
Metals | ||
Equity Indices | ||
Stocks (non-CFDs) | N/A | |
ETFs | ||
Futures | ||
Synthetics | ||
| Visit Website 75-95% of traders on margin lose | Visit Website |
With over 1,000 assets available at Fondex, this broker certainly allows for greater cross-asset diversification as compared to Pepperstone, where just over 150 assets are listed. Over 80 currency pairs and 900 equity CFDs are provided by Fondex. This compares to 61 and 64 at Pepperstone, respectively. On the plus side, Pepperstone has better coverage of the commodity market and is on par in the index CFD sector. It lacks an ETF offering, which is where Fondex opens an additional market to its traders. The cryptocurrency selection is outstanding at Fondex, but it is fairly limited at Pepperstone, giving Fondex an edge in this category.
Typical Spreads and Fees
| | |
Average Trading Cost EUR/USD | 1.1 pips | 0.5 pips ($5.00) |
Average Trading Cost GBP/USD | 1.4 pips | 0.8 pips ($8.00) |
Average Trading Cost WTI Crude Oil | $2.50 | $0.03 |
Average Trading Cost Gold | $0.15 | $0.22 |
Average Trading Cost Bitcoin | 25 | N/A |
Minimum Raw Spreads | 0.0 pips | N/A |
Minimum Standard Spreads | 1.0 pips | N/A |
Minimum Commission for Forex | 6.00 per round lot (cTrader) / $7.00 per round lot (MT4/MT5) | N/A |
Deposit Fee | N/A | |
Withdrawal Fee | N/A | |
Inactivity Fee | $0 | N/A |
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Spreads and Commission
Fondex allows commission-free trading on all assets except for Forex and commodity trading, per its trading account specifications. The commission is listed as $2.50 per 1.0 standard lot (100,000 units) per side or $5 for a buy-sell transaction. In another section, an equity CFD and ETF commission of $1 per 100 shares is noted, making index CFDs the sole commission-free asset class. The lack of clarity needs to be addressed by this market maker. The commission-free account at Pepperstone carries a spread of 1.13 pips for the EUR/USD, which is reduced to 0.13 pips in the Razor Account for a commission of seven units of the base currency. The Fondex spread for the same currency pair is listed at 0.28 pips. Pepperstone implements an ECN execution model and created one of the most competitive trading environments in the Forex market.
Swap rates on overnight leveraged positions apply at both brokers. The precise amount may be obtained directly from inside the trading platforms. Islamic accounts are available on request at Fondex and Pepperstone alike. Equity and index CFDs, as well as ETFs, are exposed to corporate actions like dividends, stock splits, and mergers, which are passed onto traders. Fondex waives all deposit and withdrawal fees, including on bank wires above $1,000. Withdrawal fees pertain to bank wires at Pepperstone, and third-party charges are levied at both brokers. The Active Trader Program at Pepperstone further reduces overall trading costs, creating a more favorable trading environment.
Security and Trust
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Country of the Regulator | United Arab Emirates, Australia, The Bahamas, Cyprus, Germany, Kenya, United Kingdom | |
Name of the Regulator | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | |
Regulatory License Number | 414530, 91279, 128, 388/20, F004356, 684312, F217 | |
| Visit Website 75-95% of traders on margin lose |
TopFX LTD, the owner of Fondex, is a Cyprus Investment Firm (CIF), licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 138/11. It operates under the Financial Instruments Directive 2014/65/EU or MiFID II, the EU’s 4th Anti-Money Laundering Directive, and the Cyprus Investment Services and Activities and Regulated Markets Law of 2017. Per EU Directive 2014/49/EU, traders are protected by the Investor Compensation Fund (CIF) with maximum coverage of €20,000. Client funds remain fully segregated, while Fondex publishes all relevant documents on its website for transparency. Fondex deploys a competitive pricing structure across its portfolio.
Pepperstone is primarily regulated by the Australian Securities and Investments Commission (ASIC). It is protected by the Act of Grace mechanism under section 65 of the Public Governance, Performance and Accountability Act 2013. Traders may rely on Scheme for Compensation for Detriment caused by Defective Administration (CDDA Scheme) in the event of unforeseen financial issues by this broker. The UK subsidiary is authorized and regulated by the Financial Conduct Authority (FCA), where the Financial Services Compensation Scheme (FSCS) shields traders from losses up to £85,000.
Fondex vs Pepperstone – Verdict
Fondex is a great overall broker but lacks an educational section for new traders. The asset selection is outstanding, and the fee structure is competitive. CySEC limitations are preventing it to fully compete with Pepperstone, where traders have far fewer assets to choose from. This is countered by one of the best trading environments available with a broker that shines across the board. Education, research, education, and trading tools are provided in a high-quality trading environment. Advanced traders may prefer Fondex due to the massive asset selection, but most retail traders will find a superior service at Pepperstone. In this Fondex vs Pepperstone comparison, both brokers offer some advantages, but Pepperstone’s stronger regulation, spotless record, and excellent trading conditions provide a more competitive advantage.
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FAQs
Does Fondex or Pepperstone offer lower pricing?
While the Pepperstone Razor account provides traders with average raw spreads for the EUR/USD at 0.13 pips for a commission of $7.00 per round lot, or a currency equivalent, Fondex manages to top the offer. The mark-up is, on average, 0.28 pips, but the commission cost of just $5.00 creates an overall lower pricing structure. High-frequency traders may reduce the fee to $3.50, which together with the spreads represents one of the most competitive offers in today’s online Forex brokerage market.
How many Forex pairs and CFDs are available to trade?
Fondex extends its lead in the core trading environment with a more in-depth asset selection. While it advertises more than 80 currency pairs, only 66 are available on the website. It remains above the 61 at Pepperstone, which adds 111 CFDs versus more than 1,000 at Fondex. Therefore, traders have significantly more trading opportunities at Fondex.
Which trading platform is better: Fondex or Pepperstone?
Fondex maintains cTrader, which is the best out-of-the-box trading platform, with full support for automated trading solutions and copy trading. Pepperstone also provides clients with cTrader, together with the MT4 and MT5 trading platforms. They are enhanced via the Smart Trader Tools package, featuring 28 add-ons, that create a superior trading experience. Autochartist is equally available at Pepperstone, which provides traders with a competitive edge in this category.
What are the minimum deposits for these brokers?
Both brokers waive minimum deposit requirements, but Pepperstone recommends $200. Fondex maintained a $250 but opted to reduce it to $0. Traders at both brokers have the freedom to transact without restrictions.