Pepperstone ESMA: What are the benefits and downfalls?

logomark Luca Puddu calendar Last Updated: December 2021 timer 3 min read
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In this article we will be looking at whether Pepperstone is an ESMA broker.

For those of you who don’t know what ESMA is, it stands for European Securities and Markets Authority. ESMA is the EU’s securities markets regulator.

If you wish to read our Pepperstone Review please click the link.

Table of contents

Is Pepperstone an ESMA Broker?

Pepperstone is in fact an ESMA broker and it is regulated by the popular CySEC located in Cyprus and obtained its regulation status on 03/08/2020, which actually follows ESMA laws. Furthermore, in order to become an ESMA broker the company must be an entity that is regulated by a European regulator. In this case it is CySEC. Even though brokers can become an ESMA broker it means they have to follow a rather strict set of rules that are set in place purposefully to protect retail customers.

European Regulation CySEC
Number of registration 388/20
Year of registration 03/08/2020
European Business Name Pepperstone EU Limited

For more information on the broker’s regulatory environment and the protections as well as the limitations in place for EU customers, please visit the Pepperstone website.

Pepperstone ESMA: Leverage Differences and Features

One of the first things you’ll notice on brokers within ESMA countries is the fact that the leverage on the major forex pairs, like EUR/USD, GBP/USD or USD/JPY are limited to 1:30. Whereas in non-ESMA brokers, leverage in forex pairs is much higher, which means retail investors can leverage more money than they originally have, which is good but it can also be bad too. Another feature of ESMA brokers is that by law they are required to have Negative Balance Protection, which means that if you are a retail investor you can’t lose more than you invested.

You’ll see that a lot of brokers tend to offer deposit bonuses, where if you deposit £100’s for instance and make a certain amount of trades you will receive a monetary bonus. However, brokers that reside within the EU like Pepperstone, are unable to offer such bonuses. You can actually verify all of this yourself by opening a demo account with Pepperstone. Pepperstone is also unable to offer spread betting or binary options services as they have been banned by EU regulations. However, Pepperstone do offer those services within the UK.

Features Pepperstone EU Limited Pepperstone Markets Limited
Regulated by: CySEC SCB
ESMA Protections Yes No
Segregated Bank Accounts Yes Yes
Maximum Leverage on Forex 1:30 (retail) 1:200 (retail)
Negative Balance Protection Yes Yes
Forex Bonuses No No

When did Pepperstone become an ESMA broker?

The Pepperstone platform became a registered ESMA broker on 03/08/2020 in Cyprus, under the business name of Pepperstone EU Limited. Its regulatory number is 388/20, which can easily be looked up.

Because Cyprus is in the EU, it means Pepperstone has become an ESMA broker which allows the platform to work in all of the EU upon registration with individual European countries. If you wish to check the regulation, there is a procedure you can follow here:

  1. First go to the list of countries belonging to the ESMA Supervisory Authority, and locate the country in which the broker is regulated.
  2. Next you enter the website.
  3. Then insert the information, and by this we mean select the country you’re interested in and find the broker’s number of registration within the country.
  4. If the process was done correctly, you should have been able to find the Pepperstone CySEC regulation page

Find the details on the Peppestone CySEC regulation

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About the Author

Luca Puddu

Broker Expert

Always full of different interests, Luca started to get interested in the field of personal finance in 2014.

His self-taught studies led him year by year to become increasingly interested in the investment field.

To date, Luca actively invests in the stock market and cryptocurrencies, focusing on rising markets and the industries of the future.

His main role at is to analyze and study in the smallest detail the brokers and their platforms, while checking carefully that the information shown by them is genuine.

In this way, he provides readers with a complete and truthful overview of the broker they might be interested in.

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