CMC Markets vs Pepperstone: Comparison and Analysis

CMC Markets vs Pepperstone: Which Broker Should You Choose?

Choosing a broker is a crucial step in your trading journey, as it affects your trading experience, trading costs, and security. In this comparison summary, we will be comparing CMC Markets and Pepperstone based on their security, demo account, account opening, social-copy trading, markets, trading fees, platforms, education/customer care, and other relevant factors to help you decide which broker is best for you.

Security: CMC Markets (95) vs Pepperstone (94)

Both CMC Markets and Pepperstone are well-regulated brokers, with CMC Markets being regulated by ASIC, FCA, MAS, FMA, and IIROC, while Pepperstone is regulated by FCA, ASIC, DFSA, CySEC, SCB, and CMA. CMC Markets has a higher security rating than Pepperstone, but both brokers are considered safe and reliable.

Demo Account

CMC Markets offers an unlimited demo account with virtual funds of $10,000, and you can open multiple CMC Markets demo accounts with the same email. In contrast, Pepperstone offers a 30-day demo account for MT4 and MT5 accounts and an unlimited demo account for cTrader accounts. The virtual funds for Pepperstone’s demo account are $50,000, and they can be restored by contacting customer support.

Account Opening

CMC Markets has no minimum deposit, and they offer account currencies in GBP, EUR, USD, AUD, CAD, NOK, NZD, PLN, SEK, SGD. Payment methods include wire transfers, credit/debit cards, and eWallets. CMC Markets offers various account types, including CFD account, Stockbroking account, Spread betting account, FX active account, Corporate account, and Professional account for advanced traders. On the other hand, Pepperstone does not have a minimum deposit requirement, and they offer account currencies in over 10 base currencies, including USD, EUR, AUD, and GBP. Payment methods include wire transfers, credit/debit cards, eWallets, and several local payment methods. Pepperstone offers different account types, including Standard account, Razor account, Spread Betting account, MAM/PAMM account, and Professional account for advanced traders.

Social-Copy Trading

CMC Markets offers copy-social trading on their CFD proprietary platform called Next Generation. Pepperstone, on the other hand, does not offer copy-social trading directly, but they do allow traders to engage in copy trading through third-party platforms such as Duplitrade and Myfxbook.

Markets

CMC Markets offers a vast range of markets, including 338 forex pairs, 110+ commodities, 82 indices, 124 crypto assets, 55 bonds, 12,500+ CFD shares and ETFs, and 35,000+ real stocks, ETFs, warrants, and options. This makes CMC Markets a suitable broker for both short-term and long-term investments. Pepperstone, on the other hand, offers CFD trading only and has a limited range of markets, including 70 forex pairs, 15 commodities, 14 indices, 70 crypto assets, 60+ stocks, and 0 ETFs, futures, and options. This makes Pepperstone a better option for short-term investing than long-term investing.

Trading Fees

Both brokers have variable spreads, but CMC Markets has slightly higher spreads compared to Pepperstone. CMC Markets’ spreads start from 0.7 pips on forex and 0.3 pips on indices, while Pepperstone’s spreads start from 0 pip on forex (lower than the market average). CMC Markets does not charge any brokerage commission on US, UK, Canada, and Japan markets, and they do not charge any commission on Aussie shares up to $1,000 per stock per trading day. Pepperstone charges commissions per lot traded, up to $7 per lot, and variable spreads on stocks. These low spreads and commissions make Pepperstone a good broker for scalping.

Platforms

CMC Markets offers a proprietary platform for both CFD and real stocks trading, available via web and mobile, as well as MT4 available via desktop and mobile. In contrast, Pepperstone does not offer proprietary platforms, but they do offer MetaTrader 4 (MT4) available via webtrader, desktop, and mobile, MetaTrader 5 (MT5) available via webtrader, desktop, and mobile, and cTrader available via webtrader, desktop, and mobile. All the platforms offered by Pepperstone allow traders to engage in algo trading, and Pepperstone also offers VPS services.

Education/Customer Care

Both brokers offer educational material, but CMC Markets provides more comprehensive educational material, including webinars, ebooks, podcasts, video trading, and trading guides. Pepperstone offers a good range of educational material, but it is mostly for beginner traders, so professional/advanced traders may not find the content useful other than Pepperstone webinars. Both brokers offer easy access to customer care via email, phone, and live chat, and they provide customer support in multiple languages. Pepperstone won the “Best Customer Service in Europe” award in 2019.

Conclusion

In summary, both CMC Markets and Pepperstone are well-regulated brokers with good security ratings, and they offer various trading instruments, account types, and payment methods. CMC Markets has more markets, a higher security rating, and a more comprehensive educational material. In contrast, Pepperstone has lower spreads, no minimum deposit requirement, and allows traders to engage in algo trading. Therefore, if you are looking for a broker with more markets, a more comprehensive educational material, and a higher security rating, CMC Markets may be the better option for you. On the other hand, if you are looking for a broker with lower spreads, no minimum deposit requirement, and allows algo trading, Pepperstone may be the better option for you. Ultimately, the choice between these two brokers depends on your trading style, preferences, and needs.