Pepperstone's difference is less about the ECN label and more about choice: two pricing models, five platforms and an AUD account from $10, all under its Melbourne firm, Pepperstone Group Limited (AFSL 414530). Its own PDS also makes clear that it is the issuer and counterparty to every trade you place.
Short answer: Pepperstone combines raw spreads, a wide platform choice and published Australian fees, but it is a principal dealer, not an exchange.
Pepperstone Group Limited, ACN 147 055 703, AFSL 414530, Level 16, Tower One, 727 Collins Street, Melbourne; founded in Melbourne in 2010.
Its August 2026 PDS says it issues every contract, is the counterparty to each trade and acts as principal; it hedges internally and with external liquidity providers.
Razor: raw spreads from 0.0 plus AUD 3.50 per lot per side on MetaTrader. Standard: no commission, a 1-pip mark-up on forex.
Retail leverage follows ASIC's caps, from 30:1 on major currency pairs down to 2:1 on crypto; Pro clients can reach 500:1.
No inactivity, deposit or market-data fees, but no guaranteed stop-loss orders either.
ECN label versus what the PDS says
Many brokers call themselves ECN because they stream prices from banks with a raw spread and a commission. Pepperstone's Razor account works that way, but its Australian PDS is explicit that Pepperstone, not an exchange or another trader, is the other side of your CFD. Its support pages add that it hedges some exposure internally and passes the rest to external providers when risk passes set limits.
That model is normal for Australian CFD issuers. What it means for you is counterparty risk: your money depends on Pepperstone's own financial strength, which ASIC addresses through capital requirements and client money rules.
Raw pricing, five platforms
Choose Razor for raw spreads plus commission or Standard for spread-only pricing, on MT4, MT5, cTrader, TradingView or Pepperstone's own platform and app.
Pepperstone's Australian site does not publish a retail-loss percentage. Its AU risk warning: "Trading CFDs and margin FX is risky. It isn't suitable for everyone."
If you want guaranteed stops
Capital.com's Australian firm offers guaranteed stop-loss orders, which Pepperstone doesn't, with no commission and a 20 AUD minimum.
Capital.com's Australian site does not publish a retail-loss percentage. Its AU risk line: "Most traders lose money."
Pepperstone, Capital.com and XS are our partners. We may earn a commission if you open an account through our links. That does not change the facts on this page.
Your questions, answered
What are the hidden costs of trading with Pepperstone?
Pepperstone publishes its costs, but a few catch people out. A Standard account carries a 1-pip mark-up on forex, and share CFDs attract commission on both accounts. Positions held past 5pm New York time pay swap, and on Wednesdays you pay three days of it on most currency pairs. Razor trades of 0.01 lots round commission up to $0.030, and withdrawals to international banks may incur fees. There is no inactivity, deposit or market-data fee.
How much does Pepperstone charge in overnight swap fees?
It depends on the market. Forex swaps follow the tom-next rate from tier-1 banks. Index CFDs are charged at Pepperstone's 2.5% above the benchmark rate on longs (shorts receive the benchmark minus 2.5%), divided by 360. Commodity swaps use the futures basis plus or minus 2.5% a year. Daily rates appear on the platform, and the AU costs page has a swap calculator for an estimate before you trade.
Is Pepperstone good for high-volume traders?
Yes, but the volume rewards sit with Pro clients. The active-trader programme refunds 10%, 20% or 30% of spread or commission once you trade 200, 500 or 1,500 forex lots in a month, with separate index and commodity thresholds, and it is open only to Pepperstone Pro clients. Pro clients trading at least USD 1,000,000 notional in 60 days also qualify for a free VPS. Retail accounts pay the standard rates.
How does Pepperstone handle slippage during news?
Orders are filled as market orders at the best available price, so in fast news you can be filled better or worse than you asked for. Stop-losses and take-profits are triggers, not guaranteed exits, and Pepperstone offers no guaranteed stop-loss orders. Its PDS gives an example of a US30 stop set to cap a loss at $200 that closed at a $203 loss. Reduce position size into big releases, or stay flat.
is pepperstone a market maker
In the strict sense, it is the dealer on every trade. Its Australian PDS says Pepperstone is the issuer of each contract and the counterparty to every trade, acting as principal, and that this creates a conflict of interest it manages through policies. It sources prices from independent liquidity providers, states no dealer intervention, and hedges client exposure internally or externally. It does not route your order to an exchange.
what leverage does pepperstone offer
For Australian retail clients, the maximum is ASIC's cap for each asset class: 30:1 on major currency pairs, 20:1 on minor pairs, gold and major indices, 10:1 on other commodities and minor indices, 5:1 on shares and ETFs, and 2:1 on crypto. Professional clients can go higher, up to 500:1 on major forex and gold and 400:1 on major indices, but they give up retail protections.
does pepperstone support mt5
Yes. MT5 works with both the Standard and Razor accounts in Australia, on desktop, web and mobile. Pepperstone adds its Smart Trader Tools pack of extra apps and indicators, and MT5 is one of the platforms that carries its perpetual CFDs. Demo MT5 accounts are free, though you need to ask support to top up virtual funds.
Is Pepperstone better for MT4, MT5, or TradingView users?
Pick by account and habit. MT5 is the safest default because it runs on both accounts and carries perpetual CFDs. MT4 and TradingView are offered only on Razor, and TradingView commission is USD 7 per round turn on forex against AUD 7 on MetaTrader for an AUD account. TradingView suits chart-led traders and comes with a free TradingView subscription for eligible clients; MT4 suits those with existing Expert Advisors.
How do I change leverage on a Pepperstone Australia account?
As a retail client you cannot go above ASIC's caps, so the most you can change is downward or by moving to Pro. Pepperstone lets you pick leverage when you add a new trading account, but only for what it calls flexible leverage accounts, and its Australian site does not publish steps for changing leverage on an existing account. Contact support on 1300 033 375. To go above retail limits, apply for Pro through the client area.
Published 2026-10-21. Informational only, not investment advice. CFDs are leveraged products and most retail accounts lose money.
Raw pricing, five platforms
If you want guaranteed stops