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In this head to head comparison of Pepperstone vs IC Markets, we will compare the trading platforms, mobile apps, range of investments, costs, market research, and more. Let’s dive in.
5.0 Overall
- Minimum Deposit: $0
- Trust Score: 95
- Tradeable Symbols (Total): 1726
Regulated in 7 jurisdictions
(81.8% of retail CFD accounts lose money)
5.0 Overall
- Minimum Deposit: $200
- Trust Score: 84
- Tradeable Symbols (Total): 3583
True ECN Forex Spreads From 0.0 pips
(74-89% of retail CFD accounts lose money)
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51% and 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. of losing your money.
Regulation
When comparing Pepperstone and IC Markets, both established online brokers, it’s important to consider their regulatory status and Trust Scores. Pepperstone, founded in 2010, holds three Tier-1 and two Tier-2 licenses. These licenses contribute to its impressive Trust Score of 95 out of 99, categorizing it as highly trusted according to ForexBrokers.com. This strong regulatory foundation reflects Pepperstone’s commitment to providing a secure trading environment, even though it is neither a publicly traded company nor a bank.
Meanwhile, IC Markets was founded in 2007 and also operates as a private entity without banking status. It holds two Tier-1 licenses but lacks Tier-2 licenses, resulting in a ForexBrokers.com Trust Score of 84. This score still places IC Markets in the trusted category, though it signifies a slightly higher risk than Pepperstone. Both brokers offer reliable services, but Pepperstone’s higher Trust Score and greater number of licenses make it the more preferred choice in terms of regulatory standing.
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| |
|---|---|---|
| Year Founded | 2010 | 1974 |
| Bank | NO | NO |
| Publicly Traded (Listed) | NO | NO |
| Tier-1 Licenses | 0 | 1 |
| Tier-2 Licenses | 3 | 0 |
| Tier-3 Licenses | 2 | 4 |
Fees
Pepperstone and IC Markets are both popular online brokers recognized for their competitive pricing structures, yet they cater differently to traders based on their fee models. Pepperstone, earning a 4.5-star rating in the Commissions and Fees category, is ranked #10 out of 62 brokers by ForexBrokers.com. It offers a noteworthy Razor account with commission-based pricing tailored for active traders. This account features an average spread of 0.10 pips on the EUR/USD, which, after including the commission, brings the all-in cost to around 0.80 pips. Their Standard account is commission-free but has a higher average spread of 1.1 pips, making it less cost-effective for high-frequency traders. Pepperstone is particularly appealing to professional clients in the UK, EU, and Australia who can benefit from rebates on spreads through its Active Trader program, depending on their trading volume.
IC Markets, on the other hand, stands out by securing a 5-star rating and the #5 ranking by ForexBrokers.com in the same category. Known for its low-cost trading, IC Markets offers a choice between the commission-free Standard account and two Raw Spread accounts, which cater to MetaTrader and cTrader platforms. Their effective spreads are competitive, exemplified by the EUR/USD spread averaging just 0.02 pips. When commissions are considered, the cTrader account’s all-in cost is approximately 0.62 pips, while the MetaTrader account costs about 0.72 pips. Moreover, IC Markets provides advantages for active traders, such as cost reductions for trading volumes exceeding 100 standard lots per month, making it a cost-efficient choice for volume traders.
Choosing between Pepperstone and IC Markets depends on individual trading needs and preferences. Pepperstone excels with its Razor account and Active Trader program, ideal for professional clients seeking rebates and reduced trading costs. Conversely, IC Markets is highly attractive for those looking for ultra-low spreads and competitive costs across different trading platforms, especially for high-frequency traders aiming to minimize expenses. Both brokers offer substantial value, but IC Markets leads slightly in terms of overall fee competitiveness and awards recognition.
Range of investments
Pepperstone and IC Markets both stand out in offering a wide array of financial products, especially for forex traders. Pepperstone provides access to forex trading through both CFDs and spot contracts, with a total of 65 available forex pairs out of 1726 tradeable symbols. IC Markets, on the other hand, also offers forex trading via CFDs and spot contracts with 61 forex pairs, but impresses with a broader selection of 3583 tradeable symbols overall. Both brokers cater to modern traders’ needs by supporting copy trading and cryptocurrency derivatives, although neither grants access to actual cryptocurrency ownership. It’s important to note that neither broker facilitates buying U.S. exchange-traded securities.
Despite the similarities, IC Markets edges slightly ahead regarding international exchange-traded securities, enabling investors to trade shares like Vodafone on international platforms, a feature not offered by Pepperstone. Consequently, IC Markets receives a 4.5-star rating for its range of investments compared to Pepperstone’s 4 stars. The difference is minimal, as reflected by their close rankings from ForexBrokers.com, where IC Markets takes the 25th spot and Pepperstone follows at 26th among 62 brokers. Ultimately, both platforms exhibit versatility and quality, yet the choice might hinge on individual trading interests and requirements.