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Trading Conditions

Posted on: 26 May 2016 , by: Marlon Peiris , category: About Trading

What are your trading conditions? 

Pepperstone’s trading conditions are widely regarded as well above the industry standard. We place a very strong emphasis on competitive spreads and commission charges. For example on our Razor ECN account, clients will often see a 0.0 pip spread on EURUSD. Our trading commissions are a competitive $7 AUD per one lot traded, round trip.

We offer clients the option of multiple trading platforms (cTrader, MT4 and WebTrader) on multiple devices (such as PC, Mac and mobile devices) to make trading easier and more accessible. Clients can chose between our EDGE Razor Account and EDGE Standard Account. 

What are your spreads?

Pepperstone provides clients access to raw institutional spreads via our ECN Razor accounts. It is not uncommon to see major currency pairs such as EURUSD at a 0.0 pip spread. Our Standard Account spreads are approximately 1 pip wider than the Razor account, but there are no commission charges on Standard Accounts – this is factored into the spread. 

What is your commission charge?

Our commission charges are $7 AUD per one lot traded, round trip. 

What is the difference between Standard and Razor accounts

Our EDGE Razor and EDGE Standard accounts are ECN/STP and they are connected to some of the world’s big liquidity providers to fill orders. The Razor account offers tighter spreads with a commission charge on based on your trade size. This account is popular with scalpers. Our standard has a slightly wider spread and no other charges meaning it is popular for those wanting a more simple account and beginners.

Is Pepperstone an ECN / STP broker?

Pepperstone is broker that uses Electronic Communications Networks (ECN) to connect you directly with 22 liquidity providers. All orders are sent to these liquidity providers with Straight Through Processing (STP). Pepperstone does not have a dealing desk or ‘B Book’.

Who is Pepperstone regulated by?

Pepperstone is regulated by the Australian Securities and Investments Commission (ASIC) and holds an Australian Financial Services Licence (AFSL).

What is the pip value of….?

To find the pip value of a particular currency pair or asset you wish to trade, information can be found here: https://pepperstone.com/en/support/about-trading/pip-value

To calculate these values for yourself, you can use the below guide:

  1. Determine your contract size by multiplying your volume in lots by the standard FX contract size of 100,000 units. For example, 0.1 (mini lot trade) x 100,000 = 10,000
  2. Multiply 10,000 by .0001 since 1/10,000th is a pip for all pairs (except JPY pairs). 10,000 x 0.0001 = 1.
  3. The value obtained is the value per pip you will receive in the quote currency of the currency pair (second currency)
  4. Convert the pip value to your account currency by using the available exchange rate.

What are your trading hours?

Most FX pair trading hours are 24 hours per day during the week, with a five minute break from 23:59 server time until 00:01 server time; on Friday MT4 trading ceases five minutes early at 23:55 server time, rather than 23:59, to prevent wide spreads as liquidity providers go offline at the end of the week. Trading hours are subject to change due to seasonal and market factors.

Server time is set to GMT + 3 while US daylight savings is in place, and GMT+2 when the US is not under daylight savings; this allows for the daily candle to close at the end of trading in New York each day. The New York close is widely considered the end of the trading day.