Pepperstone Review 2021
Pepperstone is our #9 ranked forex and CFD broker in Nigeria. It is well regulated and offers low spreads on various currency pairs. It does not have local office in Nigeria and no local phone support. Read our detailed review of Pepperstone for the traders in Nigeria.
Pepperstone is a well-regulated forex and CFD broker based in the Bahamas but has various offices around the globe. It is an STP broker that offers to trade on a wide variety of trading instruments at low spreads and commission.
Pepperstone was launched in 2010 and has acquired regulatory licenses from FCA, ASIC, and CySEC. We liked the quick execution of trades and transactions through local banks in Nigeria. However, it does not have a local office in Nigeria and does not have a local phone number for customer support.
Read our comprehensive and analytical review of Pepperstone for the forex and CFD traders in Nigeria. We have covered each component of the broker along with various pros and cons of choosing Pepperstone in Nigeria.
Pepperstone Nigeria Pros
- Pepperstone is regulated by top-tier regulatory authorities like FCA, ASIC, and CySEC.
- It charges lower spreads than most of the brokers in Nigeria.
- Traders can trade with more than 180 trading instruments.
- Pepperstone accepts deposits and withdrawals through local banks in Nigeria.
- It does not charge any non-trading fees.
- All the available trading instruments can be traded with any of the account types.
Pepperstone Nigeria Cons
- Pepperstone does not have a local office in Nigeria.
- The minimum deposit is 200$ for both the available account types.
- Nigerian traders cannot open a Naira (NGN) based account.
- It does not have a local Nigerian phone number for customer support.
- Transactions through local Nigerian bank transfers can incur additional charges.
- It does not any bonus to traders in Nigeria.
Pepperstone Nigeria – A quick look
|👌 Our verdict on Pepperstone||#9 Forex Broker in Nigeria|
|🏦 Broker Name||Pepperstone Nigeria|
|💵 Typical EURUSD Spread||0.7 pips (with Standard Account)|
|📅 Year Founded||2010|
|💰 Hotforex Minimum Deposit||200$|
|⚙️ Maximum Leverage||1:500|
|⚖️ Pepperstone Regulation||ASIC, FCA, CySEC|
|🛍️ Trading Instruments||61 currency pairs, 100+ CFDs on Indices, Cryptos, Metals, etc|
|📱 Trading Platforms||MT4, MT5 & cTrader for desktop, web & mobile|
Is Pepperstone Safe?
Pepperstone can be considered safe for traders in Nigeria due to multiple regulatory licenses from top-tier regulators. It is regulated by the following financial authorities:
- FCA: Pepperstone is regulated by the Financial Conduct Authority (UK) as an investment firm with the name Pepperstone Limited under the license (FRN) number 684312. FCA is a top-tier regulatory authority in the jurisdiction of the United Kingdom.
- ASIC: Pepperstone is regulated by the Australian Securities and Investment Commission as an investment firm with the name of Pepperstone Group Limited under license number 414530. ASIC is also a top-tier regulator based in the Australian jurisdiction.
- CySEC: Pepperstone is regulated by the Cyprus Securities and Exchange Commission (CySEC) with the name of Pepperstone EU Limited under the license number 388/20. CySEC is a tier 2 regulatory authority that grants financial services offerings in the European Union.
Apart from the above-mentioned top regulators, Pepperstone is also regulated by various other financial regulatory authorities including DFSA, SCB, CMA, and BaFin.
Multiple regulatory licenses ensure the safety of traders as the activities of the broker are overlooked by renowned authorities. The broker was launched in 2010 and has received decent ratings and reviews from existing clients. It has offices in Melbourne, London, Dubai, Nairobi, Cyprus, and Dusseldorf. Although it does not have a local office in Nigeria.
Pepperstone uses an STP model for market execution and does not take part in any of the trades. The funds of the clients and the broker’s funds are kept in a separate AAA+ rated Australian bank, hence considered safe.
Compared to most of the available forex and CFD brokers in Nigeria, we found Pepperstone to be among the safest due to multiple top-tier regulatory licenses.
Pepperstone offers an attractive fee structure allowing traders to book better profits at little or no commission. The fees of every forex and CFD broker in Nigeria are comprised of trading and non-trading fees.
Trading Fees at Pepperstone
Spreads and commission are the major components of trading fees as they are charged whenever a trade order is successfully executed. Pepperstone offers two types of live trading account and the trading fees differ for both the account type.
- Standard Account: It is a commission-free account type and no additional cost is incurred for trades apart from spreads. The spreads for all the available currency pairs are variable and start from 0.6 pips per lot. For EUR/USD as a benchmark, we found the average typical spread to be 0.69 pips per lot with the standard account.
- Razor Account: It is a commission-based account type that charges very low spreads along with commission. The average Typical spread for EUR/USD for the Razor account is 0.09 pips per lot. The amount for the commission is different for the trading platform and base currency chosen by the trader with a razor account. Commission for all the base currencies with the cTrader trading platform is 7$ or 0.007% per standard lot. For MetaTrader 4 and MetaTrader 5 trading platforms, the commission is different for the base currency chosen by the trader. For USD as a base currency, it is 7.53$ and 7$ respectively for MT4 and MT5 trading platforms per standard lot.
MT4 Razor Account Commission
MT5 Razor Account Commission
It must be noted that the commission is only charged for trading forex currency pairs. The CFD spreads are the same for both the account type and is the only trading fee that is applicable on CFDs.
For a detailed analysis of the fees at Pepperstone, we executed a round trade of 1 standard lot of EUR/USD with standard and razor account types. The order was opened and closed instantly to check the actual spreads and commission.
With the standard account, we were charged 6.9$ for the round trade with no commission. With the Razor account type, we were charged 0.9$ as a spread for a standard lot and a commission of 7$ totaling 7.9$.
Non Trading Fees
The non-trading fees at Pepperstone are much attractive than many of the forex and CFD brokers in Nigeria. The broker does not charge any account opening or inactivity fees from the traders. The deposits and withdrawals for some of the methods are free of additional charges but bank transfers through local banks can incur additional charges.
The trading and non-trading fees at Pepperstone are quite attractive and cost-effective compared to many of the regulated forex and CFD brokers in Nigeria.
Pepperstone offers the most popular Metatrader as well as cTrader trading platform for various devices. Traders can choose the customizable MT4 and analytical MT5 trading platform for Android, iOS, Windows, and macOS devices. The cTrader trading platform is not available for macOS devices.
Any of the available trading platforms can be chosen with both the available account types at Pepperstone. Traders can choose a suitable trading platform for their respective devices which is a major advantage of choosing Pepperstone.
The customer support service is average at Pepperstone for the traders in Nigeria. We tried reaching the support executives through all the available methods and the following was our experience:
- Live Chat: The live chat window available at the official website of Pepperstone is helpful and the queries are generally resolved within a minute. We raised different queries at different times of the day and our experience was decent. We received quick and relevant replies most of the time but during peak trading hours, we had to wait 5-10 minutes and replies weren’t very helpful.
- Email Support: Queries can also be resolved at Pepperstone through email at [email protected] and the contact form available at their official website. They generally revert on the same day but can also take more than 24 hours on a working day.
- No Local Phone Support: Pepperstone does not have a local Nigerian phone number for customer support. Although, traders in Nigeria can contact the support executives at the London office through an international toll-free number on +44 (800) 0465473.
The customer support services at Pepperstone are decent as many of the forex and CFD brokers in Nigeria provide better support service and also have a local phone number for customer support.
Pepperstone offers two types of live trading account namely razor and a standard account. Traders can also open multiple demo accounts where they can trade with virtual currencies to gain experience and learn basic trading strategies. Following is the detailed description of both the account types at Pepperstone.
- Standard: It is the ideal account type for new traders as the spreads are low and no commissions are involved.
- Razor: This account type involves a commission for forex trading along with very low spreads on the currency pairs. It is considered ideal for high volume and algorithmic traders.
The two account types at Pepperstone only differ based on trading fees for currency pairs. The spreads on CFDs are the same for both account types.
The minimum deposit as per margin requirement is 200$ for both account types. Each account gives access to all the available trading instruments and can be opened with 10 different base currencies including USD, EUR, and GBP. Traders in Nigeria who wish to trade with NGN as base currency cannot be entertained at Pepperstone as it does not offer NGN-based trading accounts.
Both the account types at Pepperstone offer similar features and differ only on the basis of trading fees. We liked both the account types but many brokers in Nigeria offer NGN-based trading accounts and zero spread accounts which are not available at Pepperstone.
Pepperstone offers a broad variety of trading instruments and each instrument is available for both account types. Following is the description of all the available trading instruments at Pepperstone:
- Forex: A total of 61 currency pairs are available at Pepperstone which includes 6 major, 9 minor, and 46 exotic currency pairs.
- Index CFDs: Pepperstone offers CFDs on 14 major indices around the world. Each index CFD has different active trading hours.
- Stock CFDs: Pepperstone allows traders to trade with top American stocks through CFDs. A total of 62 stock CFDs are available at Pepperstone.
- Commodity CFDs: An impressive number of CFDs are available on various commodities at Pepperstone. The metal CFDs include 6 gold crosses, 3 silver crosses, and 1 each for platinum and palladium. The commodity CFDs also include energy with 3 oil and gas crosses and 9 soft commodities including Cocoa, Coffee, cotton, sugar, etc.
- Cryptocurrency CFDs: Pepperstone offers 9 CFDs on major cryptocurrencies of the world with a maximum leverage of up to 1:20.
Overall, we appreciate the number of available instruments at Pepperstone and the availability of all the instruments with any of the account type chosen. This allows traders to have more options to make fruitful trades. Compared to most of the regulated brokers in Nigeria, Pepperstone has impressive offerings in terms of available trading instruments.
Deposit and Withdrawals
Pepperstone offers a wide range of available methods for deposits and withdrawals. Most of the deposit methods are free of any additional charges and are executed instantly. However, some transaction methods may include commission and can take a longer time to process.
Payments made before 21:00 GMT or 07:00 AEST are reflected on the account on the same day. Any transaction made after this time is processed on the next working day. Transaction through some of the banks can also take up to 5 working days to process.
Pepperstone does not charge any additional cost for deposit and withdrawals through any of the methods but international bank transfers through local banks in Nigeria will be charged by nearly AUD$ 20 as International Telegraphic Transfer Fees.
Pepperstone accepts convenient payment gateways but when compared to forex and CFD brokers in Nigeria, it deserves decent ratings. Most of the regulated brokers in Nigeria accept free deposits and withdrawals through local banks in Nigeria instantly.
At the time of this review, Pepperstone does not have any bonus offerings for traders in Nigeria. However, they do offer a referral bonus in which the existing client, as well as the newly-referred client, can get up to $250 if the referred client makes a successful deposit of $10,000. The new client needs to enter the email id of the person who has referred Pepperstone in the account application under ‘How did you hear of us?’.
Many brokers in Nigeria offer attractive bonuses like deposit bonus, demo trading competitions, etc. None of such offerings was found at Pepperstone for traders in Nigeria.
Do we Recommend Pepperstone?
Yes, Pepperstone is regulated by 3 major regulatory authorities and offers low spreads and commissions on a variety of trading instruments.
Traders who wish to trade with NGN as a base currency will not find Pepperstone useful as they do not offer Naira-based accounts. The unavailability of a local office, local Nigerian phone number, and additional charges on local bank transfers could be major obstacles for traders in Nigeria.
The cost-effective spreads, a number of trading instruments, multiple trading platforms, and regulatory licenses from top tier financial regulators is the reason why many traders choose Pepperstone around the world.
Frequently asked questions: PepperStone Nigeria
Is Pepperstone a good broker?
Pepperstone is regulated by top-tier regulatory authorities and charges a much lower spread than many of the regulated brokers in Nigeria. All this along with free deposit and withdrawal through Nigerian banks make it a good choice for trading forex and CFDs.
Is Pepperstone good for beginners in forex?
Reliable regulations with low spreads make it ideal for every trader. However, the minimum deposit requirement is high (200$) and local phone support is not available in Nigeria. Hence, it may not be ideal for those seeking to start trading with a small initial amount of less than 200$.
How much does Pepperstone charge for withdrawal?
Pepperstone does not charge any amount for deposits and withdrawals through credit/debit cards. International bank transfer will cost the client equivalent to AUD$20. The third-party commission for e-wallets will depend on the method chosen by the trader.