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Two heavily regulated and multi-asset trading brokers XM and Pepperstone attract the attention of millions of Forex traders worldwide. Both of these brokers came into existence almost at the same time and account for more than a decade of experience. We have Belize-based XM Group on the one hand and Australian-based Pepperstone on the other hand. Comparing these two brokers to identify the best is not easy, however, our XM Group vs Peppersone review will reveal which broker has more flexible trading conditions, better fees, convenient platforms, and generous promotional programs.
Even though these brokers share many similarities they still differ according to several features. First of all, since they are regulated by various authorities they offer different leverage levels. Pepperstone offers its clients maximum leverage of 1:200 on some assets. But what is XM leverage? XM can be way more flexible with a 1:888 maximum leverage limit. The reason for this huge difference is the fact that Pepperstone is strictly regulated by numerous authorities, whereas XM holds more flexible licenses.
Both brokers provide diversified trading portfolios that include much more than just Forex currency pairs. With Pepperstone you can trade indices, commodities, shares, cryptos, and currency indices. Whereas XM broker offers Stock CFDs, commodities, equity indices, precious metals, energies, and shares. Our XM vs Pepperstone comparison review will cover the fees of these companies, trading platforms, security measures, and promotional programs in greater detail.
XM | Pepperstone | |
Rating | ||
Min. Deposit | 5 USD | 151 USD |
Max. Leverage | 1:888 | 1:200 |
Regulations | IFSC, ASIC, CySEC | SCB |
Trading Platforms | MT4, MT5 | MT4, MT5, cTrader |
Bonuses | 30 USD no deposit | - |
First of all, we shall examine the required starting capital with each of these Forex brokers. Let’s have a look at what is the minimum deposit for Pepperstone? Pepperstone minimum deposit is 200 Australian dollars, which is roughly over 150 USD. While with XM, traders can register real trading accounts with just 5 US dollars. Moreover, Pepperstone offers only two account types – Razor and Standard, while XM broker provides four different trading account types: Micro, Standard, XM Ultra-low, and Shares accounts.
Get your $5 Standard account with XM
The biggest difference between XM and Pepperstone is how they determine spreads. The only account with tight spreads with Pepperstone broker is actually the commissionable account – Razor. The Razor account type offers spreads starting from 0.0 pips and averaging up to 0.3 pips. On the Standard account, the traders can access Forex assets with 0.6 pips spread. In XM’s case, we have 0.6 pips on the XM Ultra-low trading account type. The Standard and Micro account types of XM Forex broker come with average spreads of 1 pip.
XM | Pepperstone | |
CFD | ✓ | - |
Commodities | ✓ | ✓ |
Precious Metals | ✓ | ✓ |
Energies | ✓ | ✓ |
Stocks | ✓ | ✓ |
Indices | ✓ | ✓ |
Cryptocurrencies | - | ✓ |
Bonds | - | - |
MetaTrader platforms are extremely common among Forex brokers due to a number of reasons. First of all, they are tested by time and widely accepted amount the best Forex traders. Secondly, these platforms come with complex features that include various indicators, charting systems, and advanced analysis functions. Finally, despite the fact that they originally come as downloadable Desktop version platforms, recent modifications allowed brokers to support web and mobile versions of these terminals. Therefore, both XM and Pepperstone feature WebTrader and mobile trading apps for their clients.
XM broker, on the other hand, holds licenses from several market regulators. Below is the complete list of all the financial authorities that license and regulate XM broker:
XM offers two bonus program types: no deposit and deposit bonuses. The new clients of XM broker can claim a 30 USD no deposit bonus whenever they complete the registration process with the broker. This 30 USD bonus is non-withdrawable. It means that only the profits generated with trading the bonus can be withdrawn after satisfying the trading volume requirements. Another program, deposit bonus grants a 50% bonus of the initial deposit. The 50% bonus can be applied to the deposit until the cumulative amount of the bonus reaches 500 USD. However, afterward, XM 20% deposit bonus will be activated on the remaining amount of the investment.
Register for free $30 bonus at XM
XM | Pepperstone | |
Pros | - low deposit | - offers cryptos |
- multi-regulated | - diverse portfolio | |
- offers bonuses | - tight spreads | |
Cons | - no cryptocurrencies | - higher min. deposit |
- average spreads | - no bonuses | |
- geographic restrictions | - limited account types |
Depending on your trading profile you might prefer one broker over another. However, overall we conclude that XM has a slight edge over Pepperstone broker. First, XM broker holds several licenses from different regulatory authorities which leaves us with the impression of extra security in contrast to single regulation for Pepperstone broker. Furthermore, we like the variety of trading account types with XM broker, where clients can choose from four different trading accounts compared to only two account type options with Pepperstone. Last but not least we appreciate that XM runs extensive promotional campaigns ranging from bonuses to referral and loyalty programs. We believe that the promotions, rewards, and similar treats play a huge role in encouraging beginner traders to get a lowered-risk kickstart in their trading careers.
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