Pepperstone, however, stand out as they have no inactivity charges which several other brokers charge for:Ĭredit Card (If AUD then Visa 1%, MasterCard 0.5%, Non AUD then 1.5% ), PayPal 1%), Min AUD$450 deposit with Credit Card These fees are competitive compared to many other brokers. If you use bank wire, then the following fees and minimum withdrawals will apply: Currency The sole exception is if you withdraw using an international bank wire. Pepperstone has no charges for deposits and most withdrawals. This swap rate can be found when you log in to your Pepperstone account. Pepperstone release swap charges for each currency pair every week using standard lots (100,000 base units) as the standard size for measurement. This rollover interest can either be earned or paid, depending on currency movements and market volatility. Pepperstone, like all forex brokers, applies swap rates when you hold your position after 5 pm American eastern time (New York time). We like to recommend the Pepperstone Razor MetaTrader account as this offers the lowest fees when spreads and commission are taken into account.
When choosing a broker, you need to consider what type of fee and pricing structure suits your need. That means for the EUR/USD, you pay €3.50 per 100,000 units to both open and close a position. Commission equals 0.0035% of the base currency being traded.Razor (cTrader) – This account works the same as Razor (MetaTrader) account, however, for those using the cTrader platform commission is calculated slightly differently: Standard lots (100,000 units) = AUD$7.00 round turn,.The low spreads are determined by external liquidity providers, with Pepperstone charging a commission instead of adding to the spread. Razor (MetaTrader 4 and 5) – This account is for traders using MetaTrader 4 and 5 trading platform. Pepperstone’s no commission spreads can be as low as 0.6 pips which is very competitive compared to other no dealing desk brokers. Instead of commission pricing, your cost is in the spread. Standard Account – This is a commission-free account. Pip cost will be converted to your account currency at the spot forex rate. Standard-lots (100,000 base currency) = USD$10.00 per pip.Mini-lots (10,000 lots base currency) = USD$1.00 per pip.Micro-lots (1000 lots base currency) = USD$0.10c per pip.Total cost = (Spread) x (Pip Cost) x (Number of Lots Traded) Pepperstone charge in AUD which provides them with a competitive advantage over other brokers for Australian traders. When choosing a broker based on commission, you will want to check what currency the broker charges their commission in as some use USD. Of the brokers that offer commission style accounts, Pepperstone offers among the most competitive commissions in the industry. This is why we recommend ‘ECN’ and/or ‘STP’ style accounts if you want the lowest fees. Market-makers such as Plus500, IG Markets and CMC will incorporate their fees into your spreads which is why they are wider. This is why ‘ECN’ or ‘STP’ style trading can offer the best spreads. To iterate what Pepperstone explains: ‘ECN’ and/or ‘STP’ brokers spreads or fees are set by external liquidity providers and these fees are passed onto you without interference from a dealing desk. Pepperstone explains ‘Electronic Communication Network ‘(ECN) and ‘Straight Through Processing’ trading with the following statement: Pepperstone uses ECN ‘style’ trading and no dealing desk. If you want to calculate your spread, then apply the formula: A wider spread will mean greater cost, so a narrow spread presents greater potential savings.
A variable spreads continuously changes value. There are different types of spreads, including fixed spreads and variable spreads. Your spreads are the difference between the ask and bidding price for your currency pairs.