Interactive Brokers vs Pepperstone: Comparison and Analysis

Interactive Brokers vs Pepperstone: A Comparison Summary

Interactive Brokers and Pepperstone are both popular online brokers for trading in the financial markets. This comparison summary aims to help traders choose the best broker for their trading needs by providing an overview of the features and services offered by each broker.

Security

Both Interactive Brokers and Pepperstone are regulated by multiple financial authorities, including the FCA and ASIC. Interactive Brokers has a higher security rating, with a score of 95, compared to Pepperstone 94.

Demo Account

Interactive Brokers offers an unlimited demo account with virtual funds of $1,000,000 that can be restored by contacting customer support. In contrast, Pepperstone offers a 30-day demo account for MT4 and MT5 accounts and an unlimited demo account for cTrader accounts with virtual funds of $50,000.

Account Opening

Interactive Brokers has no minimum deposit requirement, but traders need at least $2,000 to trade with margin. Pepperstone does not have a minimum deposit requirement, but suggests a minimum deposit of $200. Both brokers offer a wide range of payment methods, including wire transfers, credit/debit cards, and eWallets.

Social-Copy Trading

Interactive Brokers does not offer copy-social trading, while Pepperstone allows traders to engage in copy trading through third-party platforms such as Duplitrade and Myfxbook.

Markets

Interactive Brokers offers a wider range of trading assets, including forex, commodities, crypto assets, stocks, ETFs, futures, and options. Pepperstone offers a smaller selection of markets, including forex, commodities, indices, crypto assets, and stocks.

Trading Fees

Both brokers offer variable spreads, but Interactive Brokers has lower spreads, starting from 0.1 pip on forex, compared to Pepperstone’s 0 pip on forex. Both brokers charge commissions per lot traded, with Interactive Brokers charging up to $7 per lot and Pepperstone charging up to $7 per lot as well. Interactive Brokers has lower fees on stocks and ETFs, while Pepperstone is better for scalping due to its low spreads.

Platforms

Interactive Brokers offers a proprietary trading platform available as desktop, webtrader, and mobile, while Pepperstone does not offer any proprietary platforms. Both brokers offer the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, as well as cTrader. All platforms offered by both brokers allow traders to engage in algo trading, and both offer VPS services.

Education/Customer Care

Both brokers offer a range of educational materials, but Interactive Brokers has a wider range for both beginner and advanced traders. Pepperstone’s education materials are mainly geared towards beginner traders. Both brokers have excellent customer support and can be easily contacted via email, telephone, and live chat in multiple languages.

Conclusion

In conclusion, Interactive Brokers and Pepperstone are both reputable brokers with their unique strengths and weaknesses. Interactive Brokers offers a wider range of markets, lower fees on stocks and ETFs, and a more extensive range of educational materials. In contrast, Pepperstone is better for scalping due to its low spreads, offers copy trading through third-party platforms, and has won awards for customer service. Ultimately, traders should choose a broker based on their trading needs, preferences, and objectives.