Is Pepperstone really free?
Pepperstone does not provide access to real stock trading on US markets. If you are looking for a zero-commission broker to trade on US stock exchanges, you can check our article detailing the best apps offered in this category of brokers. If you wish to stick with Pepperstone though, then you will find the fees they charge below.
Overview of Pepperstone fees and charges
It's safe to say that Pepperstone's fees are low in general. They either don't charge a brokerage fee for things that other brokers do, or they only charge a small amount.
Here's a high-level overview of Pepperstone's fees
|Assets||Fee level||Fee terms|
|US stock fee||-||Not available|
|EURUSD fee||Low||MT4 ECN Razor pricing: $3.76 commission per lot per trade plus spread cost. 0.1 pips is the average spread cost during peak trading hours.|
|US mutual fund fees||-||Not available|
|Inactivity fee||Low||No inactivity fee|
Pepperstone fees explained
Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely because online brokerages' businesses can be much better scaled: from a purely technical standpoint, it doesn't make that much of a difference for them if they have 100 or 5,000 clients.
This is not to say, however, that they don't charge any fees at all. They make money by charging you various rates for various actions or events. Usually you need to keep an eye on the following three types of fees:
- Trading fees - these are brokerage fees that you pay when you actually carry out a trade, like buying an Apple share or an ETF. What you pay is either a commission, a spread or a financing rate. Some brokers apply all of these.
- A commission is either fixed or based on the traded volume.
- A spread is the difference between the buy price and the sell price.
- A financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
- Non-trading fees. These are usually related to some operations you carry out in your account, such as depositing money, withdrawing money, or not trading for an extended period.
We compare Pepperstone fees with its closest competitors, IC Markets and Axi.
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Pepperstone trading fees
Pepperstone's trading fees are low, which makes it suitable for you even if you trade often (i.e. several times a week).
Let's break down trading fees according to the different asset classes available at Pepperstone.
Pepperstone's trading fees are low.
Pepperstone's forex fees are low.
|EURUSD benchmark fee||$6.9||$6.9||$5.6|
|EURGBP benchmark fee||$8.5||$7.5||$4.4|
Pepperstone has low CFD trading fees.
Pepperstone non-trading fees
When it comes to non-trading fees, Pepperstone is a rather cheap broker.
Non-trading fees include various brokerage fees and charges at Pepperstone that are not related to buying or selling assets. This can be a withdrawal fee, deposit fee, inactivity fee or account fee.
Pepperstone deposit fee
Usually, brokers don't charge anything for deposits, and Pepperstone is no different.
Pepperstone withdrawal fee
Pepperstone generally doesn't charge a withdrawal fee.
|Withdrawal fee for bank transfer||$0||$0||$0|
Pepperstone inactivity fee
Pepperstone does not apply an inactivity fee, which is great because your account won't be charged even if you do not trade for an extended period (like several months or years).