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Pepperstone vs Interactive Brokers for US stocks

Interactive Brokers gives you the actual share; Pepperstone gives leveraged exposure to the price without ownership. That is not a preference — it is a different product, with different tax, dividend and risk treatment.

Pick Pepperstone if non-US residents trading US shares as CFDs. Pick Interactive Brokers if real share ownership from almost any country.

PepperstoneCFD — no ownership

A CFD and spread-betting broker, not a US stockbroker. It is on this site because for most non-US traders it is one of the few regulated routes to US-share exposure with leverage.

Visit Pepperstone
Interactive BrokersOwns the share

The default answer for a non-US investor who wants to actually own US shares rather than a derivative of them.

Visit Interactive Brokers

Side by side

PepperstoneInteractive Brokers
What you holdA CFD on the priceThe share
US stock access1,000+ US share CFDsFull US listed market (NYSE, Nasdaq, AMEX) plus 150+ global markets
Minimum depositNoneNone
Fractional sharesn/aYes
Published pricingUS share CFDs are commission-based on the Razor account and spread-based on Standard; overnight financing applies to positions held past the close.IBKR Lite offers $0 commission on US listed stocks and ETFs for eligible clients; IBKR Pro is tiered/fixed per-share pricing.
PlatformsMetaTrader 4, MetaTrader 5, cTrader, TradingViewTrader Workstation, IBKR Desktop, IBKR Mobile, Client Portal, API
Extended hoursSelected US share CFDs only — check the instrument schedulePre-market and after-hours routing available
RegulationFCA 684312, ASIC 414530, CySEC 388/20, DFSA F004356, BaFin 151148SEC SIPC member, FCA 208159, CBI C423427
Founded20101978

Where each one wins

Pepperstone

  • Non-US residents trading US shares as CFDs
  • Leveraged short-term positions
  • MetaTrader and TradingView users
  • CFDs are leveraged: you do not own the share, get no shareholder rights, and can lose more than you expect
  • Not available to US residents

Interactive Brokers

  • Real share ownership from almost any country
  • Multi-currency accounts
  • Options, futures and international listings in one account
  • The desktop platform is dense and unforgiving for first-timers
  • Data subscriptions are billed separately

Frequently asked questions

Pepperstone or Interactive Brokers — which is better for US stocks?

Interactive Brokers gives you the actual share; Pepperstone gives leveraged exposure to the price without ownership. That is not a preference — it is a different product, with different tax, dividend and risk treatment. Pepperstone: non-US residents trading US shares as CFDs. Interactive Brokers: real share ownership from almost any country.

Which is cheaper?

Pepperstone: US share CFDs are commission-based on the Razor account and spread-based on Standard; overnight financing applies to positions held past the close. Interactive Brokers: IBKR Lite offers $0 commission on US listed stocks and ETFs for eligible clients; IBKR Pro is tiered/fixed per-share pricing. Both figures are restated from each broker's own pricing page; for small non-USD accounts, currency conversion usually costs more than commission does.

Which is better regulated?

Pepperstone is authorised by FCA, ASIC, CySEC, DFSA, BaFin; Interactive Brokers by SEC, FCA, CBI. What matters is which entity holds your account, since that determines your compensation scheme and leverage limits.

Reviewed August 2026. Figures restated from each broker's published pages.