CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of Pepperstone Limited’s retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Risk Warning.

Live Support Centre

Client Resources

Frequently Asked Questions

Questions about Pepperstone

Pepperstone aggregates liquidity from 22 tier-1 banks to provide some of the best quotes from the interbank market for you to trade on.

All client funds are deposited into segregated client accounts held with Barclays Bank, one of the United Kingdom’s leading banking institutions.

Pepperstone Limited is registered in England & Wales (under Company Number 08965105) and is regulated by the Financial Conduct Authority (FCA).

The FCA requires financial services firms to meet strict capital requirements and to implement and comply with internal procedures including risk management, staff training, accounting, and audits.

Pepperstone is an international forex trading firm dealing in over-the-counter forex contracts. Pepperstone gives our clients access to the forex markets including major and minor world currencies, gold and silver.

We offer a unique combination of Straight Through Processing (STP) online currency trading using the MetaTrader 4 Platform.

Pepperstone is an online Forex and CFD Broker providing traders across the globe with cutting edge technology to trade the world’s markets. If you would like to see a brief history of Pepperstone as well as our regulatory and licensing information, please visit the About Us page.

Opening account is simple. Click the "Open a Live Account" button on the main site and fill in the registration form.

Your Account login (number), trading/investor passwords, PIN code and the server for Meta Trader 4 Platform will be emailed to you. Please, save them for future reference.

Pepperstone needs 100 points of ID identity documents to verify your account. Full details are available here:

100 Point ID Check

  • Wire Transfer
  • Credit Card 
  • Skrill
  • Neteller
  • China Union Pay
  • Poli
  • Qiwi
  • Fasapay
  • Webmoney
  • PayPal

 

Submit the online Withdrawal form found in the Secure Client Area. Withdrawals are processed within 24 hours (1 business day or less). However, withdrawals may take longer if there are unforeseen circumstances,

No. Pepperstone prides itself on being an International fx trading firm welcoming clients from across the globe. Sadly US Commodity Futures Trading Commission (CFTC) regulation prevents US clients trading with non US brokers. Pepperstone strictly complies with all International and Australian regulations and thus at present Pepperstone is unable to accept US clients.

 

 

Important Regulatory Update (ESMA FAQs)

General

European regulators (ESMA) have announced new rules for Contracts for Difference (CFDs) and Margin FX trading in the European Union (EU) that will affect how you can trade.

The restrictions that will impact your trading include:

1. A maximum leverage limit on opening positions

  • 30:1 for major currency pairs
  • 20:1 for non-major currency pairs, gold and major indices
  • 10:1 for commodities other than gold and non-major equity indices;
  • 5:1 for individual equities
  • 2:1 for cryptocurrencies

2. A margin close out rule on a per account basis, at 50% of minimum required margin;

3. Negative balance protection on a per account basis, providing a guaranteed limit that your balance will not drop below zero.

The ESMA restrictions only apply to Retail Clients.

ESMA has concluded that there is a significant investor protection concern for CFDs (including rolling spot FX) and Binary Options. ESMA believes that the current leverage available to Retail Clients is excessive due to the complexity and low level of transparency of these instruments.

All brokers regulated by the FCA were required to implement ESMA's changes on 1 August 2018 in order to be compliant.

Yes, if you are classified a Retail Client.

Pepperstone notifies you of your client classification in the email you receive with your account login details. The majority of Pepperstone's clients are Retail Clients.

If you believe you may qualify as a Professional Client under the FCA's rules, these rules will not apply to you. Please contact your Pepperstone Account Manager.

The ESMA rules took effect from the 1st of August, 2018.

 

Retail vs Professional

You can qualify as a Professional Client if you have adequate experience and knowledge in CFDs, and you meet 2 out of the 3 FCA criteria listed below:

a) you have carried out at least 10 transactions of significant size ($50k notional) per quarter on average for the last year
b) your investment portfolio exceeds EUR 500,000
c) you have worked as a professional in the financial sector for at least one year

Note: If you trade under an investment firm or company of adequate size, you may also qualify. Speak to your Pepperstone Account Manager if you think this applies to you.

It essentially means you will need a larger deposit (margin) in your account for a given trade size. Please see the examples below.

Pepperstone offers a calculator to help you work out the new required margins for your trades here: https://secure.pepperstone.com/calculators please be sure to select the Retail Client check box

Example 1: If you were trading 1 lot of EURUSD on EUR account at 500:1 leverage you would need at least:

  • 1 lot = 100,000 units of currency
  • EURUSD margin is denominated in EUR
  • 1 lot EURUSD = 100,000 EUR
  • 500:1 leverage means for every $500 worth of position you need at least $1 in deposit
  • Therefore a 100,000 EUR position at 500:1 leverage requires ( 100,000 EUR / 500 ) = 200 EUR or equivalent in deposit to open the trade
  • Furthermore, with a margin stop out level of 50% you would need 50% of the initial value – 100 EUR or equivalent – to maintain the trade

Example 2: If you were trading 1 lot of EURUSD on EUR account at the new 30:1 leverage you would need at least:

  • 1 lot = 100,000 units of currency
  • EURUSD margin is denominated in EUR
  • 1 lot EURUSD = 100,000 EUR
  • 30:1 leverage means for every $30 worth of position you need at least $1 in deposit
  • Therefore a 100,000 EUR position at 30:1 leverage requires ( 100,000 EUR / 30 ) = 3333.33 EUR or equivalent in deposit to open the trade
  • Furthermore, with a margin stop out level of 50% you would need 50% of the initial value – 1666.67 EUR or equivalent – to maintain the trade

Example 3: If you were trading 1 lot of XAUUSD on USD account at 500:1 leverage you would need at least:

  • 1 lot = 100 ounces of gold
  • XAUUSD margin is denominated in USD
  • 1 lot XAUUSD = 100 ounces * 1300 USD per ounce (for example) = 130,000 USD
  • 500:1 leverage means for every $500 worth of position you need at least $1 in deposit
  • Therefore a 130,000 USD position at 500:1 leverage requires ( 130,000 USD / 500 ) = 260 USD or equivalent in deposit to open the trade
  • Furthermore, with a margin stop out level of 50% you would need 50% of the initial value – 130 USD or equivalent – to maintain the trade

Example 4: If you were trading 1 lot of XAUUSD on USD account at the new 20:1 leverage you would need at least:

  • 1 lot = 100 ounces of gold
  • XAUUSD margin is denominated in USD
  • 1 lot XAUUSD = 100 ounces * 1300 USD per ounce (for example) = 130,000 USD
  • 20:1 leverage means for every $20 worth of position you need at least $1 in deposit
  • Therefore a 130,000 USD position at 20:1 leverage requires ( 130,000 USD / 20 ) = 6,500 USD or equivalent in deposit to open the trade
  • Furthermore, with a margin stop out level of 50% you would need 50% of the initial value – 3,250 USD or equivalent – to maintain the trade

 

 Retail ClientsProfessional Clients
Maximum leverageBetween 2:1 and 30:1 depending on the instrumentUp to 500:1 depending on the instrument
Margin Close Out Rule50% of required margin (MT4)
50% of required margin (cTrader)
20% of required margin (MT4)
50% of required margin (cTrader)
Negative Balance Protection
Continued eligibility to the Financial Services Compensation Scheme*
Continued access to the Financial Ombudsman Service (as a ‘consumer’)
Continued segregation of your client funds
Will future mandatory changes to product features which protect Retail Clients apply?
We will assume you have relevant knowledge and experience to understand the risks in trading
We may use sophisticated language when talking to you

*Some exceptions apply.

FCA rules specify that we may treat you differently to Retail Clients with regards to execution of your orders and client communications, however in practice our execution will remain unchanged as we owe all of our clients a duty of the best possible execution. The main benefit you will forego is Negative Balance Protection.

Compare Retail Clients and Professional Client accounts .

From the 1st of August, your current positions will remain open but you will only have the option to close.

If you do not qualify as Professional Client, you will not be able to open any new positions at your previous leverage levels.

You will continue to be treated as a Retail Client and the ESMA rules will apply to your trading account(s).

To qualify as a Professional Client, you need to meet at least two out of three industry-standard eligibility criteria below:

  • Placed at least 10 CFD or Forex trades of a significant size on average per quarter in the last year.
  • Have an investment portfolio of cash and financial instruments that exceed EUR 500,000.
  • Have worked in the financial sector for at least one year in a professional capacity.

Professional Client applications will be reviewed as quickly as possible, and you should expect to hear from us within a few hours. If you’d like to follow up on your status directly, please email compliance.uk@pepperstone.com.

 

International Queries

No, under FCA regulations, if you reside in the EEA you can only be serviced by Pepperstone UK (Pepperstone Limited).

No, Pepperstone UK (Pepperstone Limited) services all EEA clients, whether national or residents of EEA countries. If you are dual-citizen of Australia and have an address in Australia, you are required to reside at that address and provide proof of that address.The same applies to any other country or jurisdiction globally.

Yes, although only if your other broker is FCA regulated. Please speak to your account manager about submitting a Broker to Broker Transfer Form.

 

Account Types

When you qualify as a Professional Client, you voluntarily elect to be a Professional Client. If you subsequently open a Corporate Account with Pepperstone, your classification will not change.

Yes, but you will need to request this via email to support@pepperstone.com. Once received we will process this for you.

 

Qualifying

Professional Client applications will be reviewed as quickly as possible, and you should expect to hear from us within a few hours.

No, unfortunately ESMA's rules require that at least 2 of the 3 criteria are satisfied.

It is worth having a conversation with your account manager about your individual situation, so please do contact us if you have any questions.

Unfortunately no. The only option traders have is to trade this level of volume prior to the Due Date.

 

Supporting Documents

Examples include:

  • A trading statement from your broker
  • A portfolio statement

If you haven't been trading with Pepperstone, we'll need to see your trading statements as evidence that you meet the criteria.

Most brokers can unarchive an account for you (we provide this service to Pepperstone clients), so it's best to ask them if they'll do this for you.

An investment portfolio is defined as cash deposits and financial instruments (such as shares, options, futures, CFDs, spread-betting, etc.) and does not include property, non-tradeable assets, cars, or jewellery. For the FCA's definition of 'financial instruments', please see the FCA website: www.handbook.fca.org.uk/handbook/glossary/G1519.html.

Examples include:

  • A bank statement
  • A portfolio statement/ financial statement eg shares/bonds statements
  • A letter from your accountant

Yes, but we will need evidence of this. If you do not have evidence, it is best to submit your relevant experience on your application and our team will be in touch with any questions.

This requires you to have relevant experience in a professional capacity in the financial sector. You may also qualify if you have been working in a financial role in a non-finance firm.

If you're unsure whether you qualify, submit your relevant experience on your application and our team will be in touch if we have any questions.

Examples include:

  • A payslip
  • An employment contract
  • Confirmation from a manager in your firm
  • Tax certficates such as P45/P60 or equivalent
  • Company pension statements

If you have any other documentation that you feel can support your professional experience, please provide it to us as we will review these on a case-by-case basis.

No, Pepperstone will never contact your employer without your direct consent.

If you request for our team to confirm your professional experience by contacting your employer, we are able to do so however, we will require your consent.

Unfortunately, ESMA's rules do not take this into consideration, and as an FCA regulated firm we are obliged to follow the rules of FCA and ESMA.

We understand this leaves some traders in a difficult position, however as always your account manager is available to help you in managing this change.

We can accept documents in the following languages:

  • Arabic
  • Chinese
  • Czech
  • English
  • French
  • German
  • Italian
  • Lao
  • Polish
  • Serbian
  • Slovak
  • Spanish
  • Thai
  • Vietnamese

If your documents are in another language, please submit and we'll request translations if required.

Supporting documents cannot be more than three months old. If you are unsure, it's best to upload the document and our team will contact you if further evidence is required.

Yes, but please ensure you do not block any information we are verifying. The document must show your name to identify that it belongs to you.

 

Post-Changes

MetaTrader 4:
After the Due Date, new symbols (under new leverage limits) will appear on the MT4 platform. They will have a suffix next to the symbol name.

For example, EURUSD will be EURUSD.p for Professional Clients and EURUSD.r for Retail Clients.

Simply open a new position using the new symbols available to you.

cTrader:
After the Due Date, the new leverage limits will take effect. Simply open a new position using the symbols available to you. There will be no new symbols on the cTrader platform.

After the Due Date, old symbols on MetaTrader 4 (under old leverage limits) will grey out. These are the symbols which have been switched to close-only.

After the Due Date, the new symbols (under new leverage limits) will appear on the MT4 platform depending on your Client Type. These symbols have settings which apply either the Professional Client rules, or the Retail Client rules.

Professional Clients will see symbols with a .p suffix, for example, EURUSD will be EURUSD.p. Retail Clients will see a .r suffix, e.g. EURUSD.r.

If you see .r symbols and wish to access .p symbols you'll need to qualify as a Professional Client.

You are likely trying to trade on symbols with the old leverage on MT4. We have created new symbols for you to trade at the new leverage levels, regardless of whether you are a Professional or Retail Client.

  1. Please go to your Market Watch section to the left
  2. Right-click any symbol and then select ‘Show all’. 
  3. This will expand the Market Watch section to all instruments available. 
  4. On the mobile platform you will need to add the symbols via + button in the top right of the quotes page.

The new symbols for you to trade will end with the suffix ‘.r’ for retail clients and ‘.p’ for professional clients. For example, retail clients will need to trade ‘EURUSD.r’ rather than ‘EURUSD’. 

Please also note that all trading signals and Expert Advisors will need to be updated to the new signals accordingly. Also, any pending orders that you may have had on the old symbols did have to be deleted. You can reset your pending orders on the new symbols.

 

 

Questions about Trading Conditions

The Pepperstone trading servers are currently set to GMT + 3 Hours.

The Pepperstone rollover occurs at 23:59 - 00:01 MT4 Server Time. Pepperstone bases MT4 Server time on “5pm New York”, the internationally recognised end-of-day in the forex markets and is currently set at GMT +2 Hours.

Monday Market Open = 00:01 MT4 Server Time

Friday Market Close = 23:55 MT4 Server Time

Every day from 23:59 - 00:01 - The Market will be closed for trading - Non-executable prices will still be streamed through the platform at this time. Pepperstone bases MT4 Server time on “5pm New York”, the internationally recognised end-of-day in the forex markets and is currently set at GMT +2 Hours.

Leverage available for Pepperstone trading accounts is from 1:1 to 500:1

The minimum required deposits for a Pepperstone Trading Accounts is $200USD or Equivalent

Trading times for Gold (XAUUSD) during GMT +3 (chart time) are:
Open Monday 01:00 (Chart time) and close Friday 24:00 (chart time)
Daily break time 00:00-01:00 (chart time)

 

 

Common Problems with MetaTrader 4

Close and reload the MetaTrader 4 platform. The error should go away.

On market execution you cannot place your pending orders before execution of the entry order. After placing the trade, you can add your stop/limit orders through the Terminal.

Check the Experts tab in the Terminal. If the EA is trying to place trades without success it will show an error number. Download a PDF of all MetaTrader 4 error codes.

Demo accounts expire after 30 days as standard. To get a new demo account, in the MetaTrader 4 platform go to File>Open an account and you can generate a new login and password. You do not need to download the platform again.

The message invalid account shows when the login or password information is incorrect. Please check your login, password and the server address.

Go to the market watch area, right click and choose symbols. Click on the properties for a trading symbol and it will give you all details including the swap rates.

For positions that are open on Wednesday and held overnight to Thursday, the amount added or subtracted to an account as a result of rolling over a position (swap) is three times the usual amount. Charging or paying 'triple swaps' for Wednesday-to-Thursday roll-over accounts for the settlement of trades through the weekend, as swap rates are not charged during this period due to the market being closed.

To view all currency pairs, right click on the market watch and then choose 'Show All'.

The trading platform time cannot be changed. There are local time indicators available to download from the MetaQuotes community.

 

 

Questions about Forex

The Spread is the difference between the BID and the ASK price in the market quotes.
The ASK price is applicable to a BUY order and the BID price is applicable to a SELL order Pepperstone believes it has some of the tightest spreads in the industry. Pepperstone's normal dealing spreads are between 1 and 3 pips for the major currency pairs.

We Support Micro Lots - A Lot size of 0.01 which is equivalent to 1000 units of base currency.

We generate our revenue from a small markup on the spread we receive from the interbank market on a Standard account, or alternatively a fixed commission rate per-lot on Razor accounts.

Pepperstone clients have the ability to execute trades directly from real time streaming quotes, provided by the largest liquidity providers in the forex market. Quotes are updated in real time as the market changes.

Executing trades via the internet is made easy by Pepperstone. Just download and install the MetaTrader 4 software and log in to your account. To then open a trade, click the "new order" button in the trading terminal, enter the trading volume desired in the New Order window, then click on the BID (sell) or Offer (Buy) Executing a deal with Pepperstone via the Internet is a simple two-step process. Simply enter the number of lots and then click on the BUY or SELL button to open an instant Market Order. Your deal is then automatically executed by the dealing software which will calculate the margin requirement, and if there is sufficient margin funds available on the account, the deal is confirmed online instantly. The open order then appears in your trading terminal and is updated automatically according to market conditions.

Yes you can. Pepperstone's MT4 software accepts pending orders.

Margin the amount of money required in your account in order to open a trade. Margin is a simple calculation based on the current market quote of the base currency vs USD, the volume requested, and the leverage level you have selected when opening your account. The dealing software will not allow you to open a position if you do not have sufficient free margin available. Your free margin is indicated in the MT4 trading terminal. To calculate the margin requirement required to open a trade, please use the following formula: (Market Quote * Volume) / Leverage = $Margin required eg. You want to open 0.1 (10,000 base currency) lots of EUR/USD at the current market quote of 1.4177 and with a leverage level of 1:200. (1.4177 * 10,000) / 200 = $70.89 As you can see from this example, you need at least $70.89 free margin at 1:200 leverage to open the trade. This shows you the power of the leverage offered by Pepperstone. If you choose 1:1 leverage (or no leverage) you would need $14,177 free margin instead of $70.89 just to open this trade!

No. Your free margin can become a negative figure. Your trades will stay open until your available EQUITY level (also indicated in the MT4 terminal) falls to 20% or less of the required margin to open the trades. If you see the previous example in this FAQ, the trade opened with a margin requirement of $70.89 would not be subject to a margin call unless the account equity falls to $14.18 or less.

Deals are confirmed on screen, typically within one second. Full transaction details may be accessed on screen as well, including date, time, rate, notional amount bought and sold, USD value, and reference number.

The Pepperstone MT4 software tracks all trading activity in real time, allowing clients to view current open positions, real-time profit and loss, margin availability, account balances, and all historical transaction details directly on-screen. Just select the history tab in the trading terminal

You may also generate your own reports from the trading terminal by selecting the history tab. Then right click the history shown to be able to choose the period of time to see in the report. By right clicking again, you can also choose to save the report to disk in html format convenient for viewing in your web browser.

Example 1. GBP/USD
Let's say your deposit is $3,000 and your leverage is set at 1:500. Through this leverage, your buying power on the market is actually $1,500,000. From your analyses, you are expecting the US$ to rise against the major currencies. You decide to SELL 0.10 lots ($1 per pip) of the GBP/USD pair at the market price of 1.8000 and since you only want to risk 10% of your account, you set your stop loss order at 1.8300 (300 pips or $300 risk) 12 days later the GBP/USD quote is 1.7540 and you decide to close your SELL position. Your profit in pips is (1.8000 - 1.7450) 550 pips. Since you chose to trade 0.1 lots volume, and the value per pip is $1. You made a profit of $550 on this trade.
Example 2. USD/JPY Let's say your deposit is $2,000 and your leverage is set at 1:200. Through this leverage, your buying power on the market is actually $400,000. From your analyses, you are expecting the US$ to fall against the major currencies. You decide to SELL 0.20 lots ($2 per pip) of the USD/JPY pair at the market price of 111.10 and since you only want to risk 10% of your account, you set your s loss order at 112.10 (100 pips or $200 risk) A week later the USD/JPY quote is 109.15 and you decide to close your SELL position. Your profit in pips is (111.10-109.15) 195 pips. Since you chose to trade 0.1 lots volume, and the value per pip is $2. You made a profit of $390 on this trade.

To open a Standard Demo account, please, take these steps:

  • Download the Pepperstone MT4 Trading Terminal;
  • Start Pepperstone MT4 Trading Terminal on your PC;
  • Go to menu File/Open an Account, fill in the form and press Next;
  • Choose Pepperstone-Demo server and press Next.

 

No. You may have up to 200 trades open at the same time. There are no other limits.

Accounts are never permanently closed down due to inactivity, however after 3 months of no activity on the accounts they will be temporarily archived. If you need to access your account again, simply contact support@pepperstone.com and we can reactivate it for you.

Forex is said to be "the fairest market on earth" by some because of its sheer size, and number of participants. No one player, not even the central bank of a particular country can completely control the market direction of a currency.

The forex market is not controlled by a centralised exchange as with stock and futures markets. The forex market is an Over the Counter (OTC) market as transactions are made via the internet from many different locations 24 hours a day, 5 days a week.

The forex market is called an 'Interbank' market due to the fact that historically it has been dominated by banks, including central banks, commercial banks, and investment banks. However, the percentage of other market participants is rapidly growing due to the popularity and availability afforded by internet trading, and now includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators.

A true 24-hour market, forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night. The market is open 24/5.

The most often traded or 'liquid' currencies are those of countries with stable governments, respected central banks, and low inflation. Today, over 85% of all daily transactions involve trading of the major currencies, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and the Australian Dollar.

Margin is essentially collateral for a position. If the market moves against a customer's position, additional funds will be requested through a "margin call." If there are insufficient available funds, immediately the customer's open positions will be closed out.

Yes - 20% for MetaTrader 4 based accounts and 50% for cTrader accounts. If your Equity (Balance - Open Profit/Loss) falls below 20% of the margin required to maintain an open position then your positions will be automatically closed. This is calculated as follows:

Equity / Margin = < 20%

If you're buying some currency, you're opening a 'long' position, if selling - 'short'. For example, if you buy 1 lot of EUR/USD, it means you open long position for 100,000 of EUR against USD. And if you sell 10 lots of USD/CAD that means you open short position for 1 mln of USD versus CAD.

Currency prices (exchange rates) are affected by a variety of economic and political conditions, most importantly interest rates, inflation and political stability. Moreover, governments sometimes participate in the forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower price, or conversely buying in order to raise the price. This is known as Central Bank intervention. Any of these factors, as well as large market orders, can cause high volatility in currency prices. However, the size and volume of the forex market makes it impossible for any one entity to "drive" the market for any length of time.

The most common risk management tools in forex trading are the limit order and the stop loss order. A limit order places restriction on the maximum price to be paid or the minimum price to be received. A stop loss order sets a particular position to be automatically liquidated at a predetermined price in order to limit potential losses should the market move against an investor's position.

Currency traders make decisions using both technical factors and economic fundamentals. Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analyses to identify trading opportunities, whereas fundamentalists predict price movements by interpreting a wide variety of economic information, including news, government-issued indicators and reports, and even rumor. The most dramatic price movements however, occur when unexpected events happen. The event can range from a Central Bank raising domestic interest rates to the outcome of a political election or even an act of war. Nonetheless, more often it is the expectation of an event that drives the market rather than the event itself.

As a general rule, a position is kept open until one of the following occurs: 1) realization of sufficient profits from a position; 2) the specified stop loss is triggered; 3) another position that has a better potential appears and you need these funds.

In order to gain a practical understanding of foreign exchange trading, there is no better way than to open a forex demo account, where you can experience what it's like to trade the forex market without risking any capital + take a good forex educational course.