Pepperstone vs FXTM - 2022 Comparison | FX Scouts
AuthorBy Björn Michels
Updated: August 29, 2022

Trading with a reputable online broker is a crucial factor for success in the international markets. At FX Scouts, we help you find the broker that suits your trading needs.

Each year we spend thousands of hours testing brokers by opening accounts, testing their platforms, and rating them according to a set of over 200 metrics. We deposit real money with the brokers to ensure that the products and user experience they advertise are consistent with reality.

We have found that the best way for traders to choose a broker is to compare brokers side-by-side. The comparison tool below allows you to compare two brokers based on their ratings and features.

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Overall Rating
Min. Deposit
Regulation
Trading Desk Type
Trading Instruments
Forex Pairs
Crypto Pairs
Pros
Cons
Regulation
Trading Conditions
Trading Platforms
Deposit & Withdrawal
Education & Research
Assets Available
Customer Service
% Lose with this broker
Leverage
Spread
Hedging
Scalping
Account Types
Islamic Account
Trading Platforms
Funding Methods
Trading Commission
11110.54.61/ 5 USD 0FCA Regulated BrokersASIC Regulated Forex BrokersCySEC Regulated BrokersDubai Financial Services AuthorityBundesanstalt für FinanzdienstleistungsaufsichtSecurities Commission of the BahamasCapital Markets AuthorityNDDCommodities, Cryptocurrencies, Stock CFDs, ETFs, Forex, Indices, Metals7019
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
  • Limited market analysis
Read Review 11110.54.5/ 5 111115/ 5 111115/ 5 111104/ 5 11110.54.5/ 5 11110.54.5/ 5 11110.54.5/ 5 75.8%400:10 pips cTrader Razor, MT5 Razor, MT4 Razor, Standard, Swap-free MT4, MT5, cTraderBank Transfer, Visa, Mastercard, POLi, BPay, Paypal, Neteller, Skrill, UnionpayFrom 7 USD / lot - Razor Account
11110.54.27/ 5 USD 10CySEC Regulated BrokersFCA Regulated BrokersFSCA Regulated Forex BrokersFinancial Services CommissionCapital Markets AuthorityECN/DMA, Market MakerCommodities, Stock CFDs, Forex, Indices, Metals620
  • Good for beginners
  • Excellent education
  • Well regulated
  • Low minimum deposit
  • Copy trading accounts
  • Expensive withdrawals
Read Review 111104/ 5 11110.54.5/ 5 11110.54.5/ 5 111003/ 5 111115/ 5 111104/ 5 111115/ 5 81%2000:10 pips Advantage, Advantage Plus, Micro Account MT4, MT5Mastercard, Visa, Bank Transfer, Neteller, Skrill, Fasapay, PerfectMoneyFrom 4 USD / ECN Accounts

How do Pepperstone and FXTM stack up against each other?

The Radar Chart below highlights how the brokers stack up against each other across various metrics. The highest score a broker can receive in each area is 5.

FXTM

Pepperstone

At FX Scouts, we help traders find the broker that suits their trading needs. In many cases, the best way to achieve this is to compare brokers side-by-side.

To compare Pepperstone and FXTM, we used the same factors we use when reviewing brokers: The trust and regulation of the broker, the trading platform, the costs and trading conditions, and the level of education and market analysis available at the broker.

Does Pepperstone or FXTM have a better trust and regulation rating?

Trust and regulation are some of the most important factors to consider when choosing a Forex broker. Trust in the Forex trading business is almost entirely founded upon regulation. We spend many hours evaluating the safety of each broker by delving into their fine print and confirming each one of their regulatory licences on the online registers. The more top-tier authorities a broker is regulated by, the higher its trust rating.

In our comparison, we found that Pepperstone holds two Tier 1 and three Tier 2 licences, and FXTM holds one Tier 1 and one Tier 2 licences.

 

Can I trust Pepperstone?

Yes as Pepperstone was founded in 2010 and is regulated by ASIC, BaFin, CMA, CySEC, DFSA, FCA and SCB.

 

Can I trust FXTM?

Yes as FXTM was founded in 2011 and is regulated by CMA, CySEC, FCA, FSC and FSCA.

 

Based on these findings, Pepperstone earned a higher trust rating than FXTM.

Does Pepperstone or FXTM have lower costs?

Another important aspect we consider when comparing brokers is the cost of trading. When evaluating trading costs, we always consider the minimum deposit required to open an account and the ongoing trading costs, including the spreads and commissions. When calculating trading costs, we measure the cost to trade one lot of EUR/USD using the broker’s account with the lowest minimum deposit. The cost includes both the spread and any commission charged. 

Not all brokers publish their trading costs, so we often open accounts and trade on their platforms to verify the spreads and commissions. Based on our reviews, we found that Pepperstone has overall lower trading costs than FXTM. 

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Broker
Trading Conditions
Base Currencies
EURUSD (Standard)
Trading Cost (Standard)
EURUSD (Best)
GBPUSD (Best)
USDJPY (Best)
Commission
Pepperstone
111115/ 5
AUD, USD, JPY, GBP, EUR, CAD, CHF, NZD, SGD, HKD
0.60 pips
USD 6
0.17 pips
0.59 pips
0.26 pips
USD 0
FXTM
11110.54.5/ 5
USD, GBP, EUR, NGN
1.50 pips
USD 15
0.00 pips
0.20 pips
0.00 pips
USD 0

 

Does Pepperstone or FXTM offer a better choice of trading platforms?

Traders want Forex brokers to offer them a choice of trading platforms, so we give brokers who offer multiple platforms higher ratings. Trading platforms we consider include MetaTrader4, MetaTrader5, cTrader and proprietary mobile and web-based platforms. 

In this case, Pepperstone offers support for cTrader, MT4 and MT5 and FXTM offers support for MT4 and MT5. 

Do the brokers offer copy trading?

Copy trading is a great option for beginner traders who can’t trade full-time or lack experience with Forex trading. In this case both FXTM and Pepperstone offer copy trading.

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Broker
Platform Choice
Copy Trading
Platforms
FXTM
11110.54.5/ 5

 

Which broker offers a better choice of trading instruments?

A variety of CFD instruments – and a large range of CFDs for each instrument category allow traders more opportunities for profitable trading. The best brokers will have thousands of CFDs to trade, covering all these instrument categories. We found that Pepperstone offers a greater range and depth of instruments to trade than FXTM. Pepperstone offers 70 Forex pairs to trade and FXTM offers 62 Forex pairs to trade.

Toplist Forex Pairs

And what about Cryptocurrencies?

In this case, Pepperstone offers 19 cryptocurrencies while FXTM offers 0 cryptocurrencies. So if you want to trade cryptocurrencies, we advise trading with Pepperstone.

Which broker offers better deposit and withdrawal processes?

Although brokers may have reasonable trading fees, many traders are caught out by the high non-trading fees charged by some brokers, including deposits and withdrawals. Traders want to be able to deposit and withdraw funds quickly and cheaply. Most brokers have multiple funding methods with zero fees for making deposits, but some brokers make it more expensive and take longer to process withdrawals. 

We rate brokers more highly that process withdrawals within 24 hours by multiple withdrawal methods and without charging processing fees. We found that FXTM charges a withdrawal fee and Pepperstone does not. Overall, Pepperstone has better deposit and withdrawal processes than FXTM. 

Which broker offers better educational support?

We often find that brokers offer very little in the way of educational materials, forcing traders to use other third-party sites or self-educate elsewhere. Beginner traders need well-structured, well-presented materials in multiple formats to get a good start at trading. More experienced traders also benefit from webinars led by experts in the field and advanced trading strategy sections with new trading ideas. 

FXTM has better educational support than Pepperstone. Both FXTM and Pepperstone offer educational support for more experienced traders.

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Broker
Beginner Course
Advanced Course
Well Structured Education
Education Quality
Webinars
Pepperstone
Medium
FXTM
High

 

Which broker offers better market analysis materials?

To successfully predict the price movements of an instrument, traders will need access to frequent market research and analysis. We find that research and market analysis are always better when they are produced in-house and updated frequently. Third-party resources don’t show the same expertise in trading ideas, so we place a strong emphasis on frequent in-house updates. Some brokers also often offer interactive webinars where traders can learn from experts in the field. 

We found that Pepperstone offers better research analysis than FXTM and that both FXTM and Pepperstone offer frequent webinars.

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Broker
Economic Calendar
Autochartist
Trading Central
Trading View
Free VPS
Pepperstone
FXTM

 

Our overall Verdict on Pepperstone

Founded in 2010, Pepperstone is a well-regulated, globally renowned ECN broker known for fast trade execution and broad trading platform support.   Its award-winning trading conditions provide the foundation for its exceptional customer satisfaction, including some of the tightest spreads in the industry, low commissions and no required minimum deposit.

Traders can also choose between a number of top trading platforms, including MT4, MT5, and cTrader and a wide selection of trading tools. Furthermore, Pepperstone does not charge any withdrawal or deposit fees and allows hedging, scalping, and copy trading.  Pepperstone provides a good selection of educational and market analysis material and provides negative balance protection for all clients. However, some Nigerians will be disappointed that Pepperstone doesn't offer Islamic swap-free accounts. As our highest-rated pure ECN broker, if you only want to pay a small commission for tight spreads, you won't find much better than Pepperstone.

Our overall Verdict on FXTM

FXTM is an established and award-winning market maker/ECN broker offering trading on Forex, commodities, metals, stocks, and indices. FXTM’s trading costs are higher than average on its two commission-free accounts, with spreads starting at 1.5 pips on the EUR/USD. However, trading conditions improve significantly on its Advantage Account, with spreads starting at 0 pips on the EUR/USD in exchange for a reasonable commission, but a high minimum deposit of 500 USD.  FXTM also charges high non-trading fees, including a commission on most withdrawal methods. 

FXTM offers support for both the MT4 and MT5 platforms in addition to its proprietary FXTM Trading App, and a wide range of trading tools, including a VPS hosting service.  

FXTM excels in its education and market analysis sections, with a good overview of Forex trading in its guides and tutorials. In addition, its daily market analysis will help beginners understand the real-world implications of news events on the Forex market and where trading opportunities lie. Beginner traders will also benefit from FXTM’s unique copy trading platform, which allows traders to copy the trades of strategy providers.

Which broker has the highest overall rating?

Pepperstone has an overall rating of 4.61 and FXTM has an overall rating of 4.27. For more detail please read our reviews of Pepperstone and FXTM.

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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