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 other brokers do charge for, or they only charge a small amount. This means that you can use Pepperstone even in case you trade frequently like multiple times a week or daily.
Here's a high level overview of Pepperstone's fees
|Assets||Fee level||Fee terms|
|S&P 500 CFD||Low||The fees are built into the spread, 0.4 points is the average spread cost during peak trading hours.|
|Europe 50 CFD||Low||The fees are built into the spread, 1.5 points is the average spread cost during peak trading hours.|
|EURUSD||Low||MT4/MT5 Razor account: $3.50 commission per lot per trade plus spread cost. 0.8 pips is the average spread cost during peak trading hours.|
|Inactivity fee||Low||No inactivity fee|
Disclaimer: 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Pepperstone fees explained
Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely due to the fact that 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 5000 clients.
This is not to say however that they don't have any fees at all. They make money by charging you at various events for various rates. Usually you need to keep an eye on these 3 types of fees:
- Trading fees - these are brokerage fees that you pay when you actually do a trade. What you pay is either a commission, a spread or financing rate. Some brokers apply all of these.
- A commission is either based on the traded volume or it is fixed.
- A spread is the difference between the buy price and the sell price
- Financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
- Non-trading fees. These occur related to some operations you make in your account, i.e. depositing money to your account, withdrawing money from it or not trading for an extended amount of time.
We compare Pepperstone fees with its closest competitors, IC Markets and Axi.
Pepperstone trading fees
Pepperstone's trading fees are low which makes it suitable for you even if you trade often (i.e. multiple times a week).
Let's break down the trading fees into the different asset classes available at Pepperstone.
Pepperstone's trading fees are low.
It is super hard to compare trading fees for CFD brokers. What we did at BrokerChooser? Instead of quoting long fee tables, we compare brokers by calculating all fees of an example trade for three assets.
For the assets we chose cleverly and arbitrarily:
- Apple, a large US stock
- Vodafone, a large European stock
- EURUSD, a popular currency pair
The example in this context would mean buying a position, holding for one week, and selling it. For the volume we chose a $2,000 position for the stocks and $20,000 for the EURUSD.
This super catch-all benchmark includes spreads, commissions and financing costs for all brokers.
Here is the verdict.
|Apple benchmark fee||$1.8||$2.0||$5.2|
|Vodafone benchmark fee||$21.7||-||$8.6|
|EURUSD benchmark fee||$7.3||$5.8||$8.3|
Pepperstone financing rates are low.
If you want to trade on margin and prefer to hold your positions long, financing costs can be significant.
|Apple CFD financing rate||2.6%||3.1%||3.1%|
|Vodafone CFD financing rate||2.6%||-||3.4%|
|EURUSD financing rate||1.2%||1.2%||1.7%|
|EURGBP financing rate||1.6%||1.5%||2.2%|
Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange/CFDs with any level of leverage may not be suitable for all investors.
Currency conversion fee
Pepperstone will charge a Currency Conversion Fee for all trades on instruments denominated in a currency different to the currency of your account. The fee is charged as the following: Exchange rate received from liquidity providers plus a mark-up. We used the EURUSD trading fees for the calculation..
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Pepperstone non-trading fees
When it comes to looking at all the non-trading fees Pepperstone is a cheap broker. This means that they don't charge you a lot for non-trading related activities on your trading account, like withdrawal fee.
Non-trading fees include various brokerage fees and charges at Pepperstone that you pay not related to buying and selling assets. Among some others, typical non trading fees are withdrawal fee, deposit fee, inactivity fee and account fee.
Pepperstone deposit fee
Deposit fees are applied when you send money to your trading account from your bank account. Usually brokers don't charge money for that and Pepperstone is not different: you will see the exact same amount on your brokerage account that you sent by any of the deposit methods Pepperstone offers.
Pepperstone withdrawal fee
Unlike some online brokers we have reviewed Pepperstone does not charge a withdrawal fee. This means that you'll see the same amount of money on your bank account that you transferred from your brokerage account.
|Withdrawal fee with bank transfer||$0||$0||$0|
Pepperstone inactivity fee
Pepperstone does not apply an inactivity fee which is great because your account will not be charged even if you do not trade for a longer time period (months or years).