Is Pepperstone regulated by FCA?
In this article we will be discussing whether Pepperstone is an FCA regulated broker.
If you wish to view our Pepperstone review, please follow the link.
Is Pepperstone an FCA Broker?
Pepperstone is a forex broker that was founded in 2010 by a group of experienced traders who agreed to improve the world of online trading. Pepperstone is a fully FCA regulated broker with the registration number 684312, which you can look up. FCA which standard for Financial Conduct Authority is the official regulation body of the British financial markets awarded Pepperstone with its FCA regulatory status on 05/08/2015.
| Is Pepperstone FCA Regulated? | Yes |
| Number of registration | 684312 |
| Year of registration | 05/08/2015 |
| Broker’s Business Name | Pepperstone Limited |
| Address | 70 Gracechurch Street, London, EC3V 0HR |
For more information on the broker’s regulatory environment and the protections, as well as its limitations in place for UK customers, please visit the Pepperstone website. (74-89% of retail investor accounts lose money when trading CFDs)
Pepperstone FCA: Leverage, Protections and Limitations in place
With Pepperstone being an FCA regulated broker, it must follow certain rules and regulations. One of which includes the maximum leverage they can offer to retail investors. Take forex for example, Pepperstone is limited to offering 1:30 leverage for all retail investors. However when it comes to leveraged derivatives on cryptocurrencies, FCA regulated brokers like Pepperstone are unable to offer such products.
There are further restrictions that Pepperstone face as they are legally unable to offer deposit bonuses for new customers that sign up. Those were the limitations that Pepperstone have to enforce due to FCA regulation. However there are some benefits that include spread betting. Unlike many other countries, spread betting services are legal under FCA regulation, and this is something that Pepperstone actively offers to its customers.
Previously we mentioned the limitations that Pepperstone faces due to FCA regulation, but one of the great things about FCA regulated brokers is that they are legally required to offer Negative Balance Protection, which means you as a retail investor cannot lose more than you invested. If you invest with Pepperstone you should know that your funds are held in segregated bank accounts, making them safe and secure, with insurance placed on them valued up to £85,000. If you wish to verify all of this yourself, you can do so by opening a demo account with Pepperstone. (74-89% of retail investor accounts lose money when trading CFDs)
| Features | Pepperstone Limited | Pepperstone Markets Limited |
|---|---|---|
| Regulated by: | FCA | SCB |
| FCA Protections | Yes | No |
| Segregated Bank Accounts | Yes | Yes |
| Maximum Leverage on Forex | 1:30 (retail) | 1:200 (retail) |
| Leverage on BTC & Cryptocurrencies | 1:2 (retail) | 1:10 (retail) |
| Fund insurance | Yes | No |
| Negative Balance Protection | Yes | Yes |
| Forex Bonuses | No | No |
Here’s how to double-check the Pepperstone FCA License
Pepperstone operates within the UK under the business name of Pepperstone Limited (you can actually find it on the footer of the brokers web page). If you copy the business name and go to the FCA webpage, then find the FCA Companies Register. There you can select the right business name and view the regulatory information for yourself. If the process was done correctly, you should have found the Pepperstone FCA regulation page.
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