Pepperstone Vs Capital.Com

Category: Broker Guides | Author: Trading Brokers | Date: July 24, 2023

Ready to explore the world of forex or crypto trading with an online broker? You may have stumbled upon two well-known names in the industry: Pepperstone and Capital.com. These reputable brokers offer distinct features and services to their clients, but the question remains: which one is the right fit for you? In this article, we will compare Pepperstone and Capital.com based on their regulation, trading platform, pricing and fees, leverage, asset selection, social trading, minimum deposit, withdrawal, and deposit methods. We will also help you decide which broker suits your trading style and goals better.

Overview of Pepperstone

Pepperstone

Pepperstone

Pepperstone is a global forex broker that was founded in 2010 and has offices in Australia, the UK, Germany, Cyprus and Kenya. Pepperstone is regulated by several authorities, including the Australian Securities and Investments Commission (ASIC), the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Dubai Financial Services Authority (DFSA), the Capital Markets Authority of Kenya (CMA) and the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). These regulatory entities ensure compliance with industry standards and enhance investor protection.

Offering a vast selection of over 1200 instruments, Pepperstone enables traders to access various markets, including forex, indices, commodities, shares, cryptocurrencies, and more. The broker provides traders with multiple platforms, including their proprietary web-based trading platform, as well as the highly popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. These platforms are renowned for their advanced features, technical analysis tools, and automated trading capabilities. Pepperstone understands the significance of comprehensive tools and research for traders and provides a range of features to enhance the trading experience. These features include market data packages, customizable watchlists, real-time alerts, powerful screeners, comprehensive news feeds, and insightful reports.

Pros of Pepperstone

  • Regulated by multiple authorities in different jurisdictions
  • Razor-sharp spreads on over 1200 instruments
  • No minimum deposit requirement
  • Access to TradingView’s advanced charting tools
  • Variety of analysis tools and educational resources

Cons of Pepperstone

  • High costs for holding positions overnight
  • Minimum $200 deposit
  • No USA clients
  • No crypto funding options
Pepperstone Logo

Pepperstone are one of the largest brokers providing traders worldwide access to trade across all of the major global markets with cutting edge technology, modern platforms, low costs, high speed execution, convenient funding options and award-winning customer service.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Overview of Capital.com

Capital.Com

Capital.Com

Capital.com is a UK-based fintech company that was founded in 2016 and is headquartered in London. Capital.com is regulated by the FCA in the UK and the CySEC in Cyprus. Capital.com offers commission-free trading on over 3000 instruments, including forex, indices, commodities, shares, crypto and more. Capital.com stands out with its user-friendly web-based trading platform, aptly named the Capital.com Platform, which provides traders with a seamless and intuitive trading experience.

For added convenience, Capital.com also offers a mobile app that enables traders to access the markets and manage their portfolios while on the go. Understanding the importance of comprehensive tools and research, Capital.com equips traders with various features to enhance their trading activities. These include access to market data packages, customizable watchlists, real-time alerts, powerful screeners, comprehensive news feeds, and insightful reports. By providing these resources, Capital.com empowers traders with the information they need to make informed decisions. By providing these resources, Capital.com empowers traders with the information they need to make informed decisions.

Pros of Capital.com

  • Regulated by the FCA in the UK and the CySEC in Cyprus
  • Commission-free trading on over 3000 instruments
  • Access to a wide range of trading products and services
  • User-friendly and customizable trading platform
  • Excellent customer service and support

Cons of Capital.com

  • High spreads on forex pairs
  • No leverage for forex trading
  • High minimum deposit requirement of £100

Comparison between Pepperstone and Capital.com

In this section, we will compare Pepperstone and Capital.com based on the following features:

Regulation

Both brokers are regulated by multiple top-tier authorities, which means they are trustworthy and reliable. Pepperstone is regulated by the FCA in the UK, ASIC in Australia, BaFin in Germany, and several other jurisdictions. Capital.com is regulated by the FCA in the UK, CySEC in Cyprus, ASIC in Australia, and FSA in Seychelles.

Trading Platform

Pepperstone provides four trading platforms: TradingView, MetaTrader 5, MetaTrader 4, and cTrader. These platforms cater to traders of different levels and preferences, offering features such as advanced charting tools, indicators, expert advisors, social trading, and fast execution. On the other hand, Capital offers a single online trading platform available on both mobile and web apps. This award-winning platform grants access to over 3,700 markets with tight spreads, zero commission, and no hidden fees. It includes 75+ indicators, price alerts, hedging mode, and free trading education.

Pricing and Fees

Both Pepperstone and Capital.com have competitive pricing and fees for forex trading. Pepperstone charges razor-sharp spreads on forex pairs, starting from 0.0 pips for EUR/USD. Capital.com charges variable spreads on forex pairs, starting from 0.9 pips for EUR/USD. However, Capital.com also charges a commission of $0.0003 per unit traded on top of the spread. Therefore, Pepperstone has an edge over Capital.com in terms of forex fees. For CFD and crypto trading, however, Capital.com has lower fees than Pepperstone. Pepperstone charges high spreads on CFDs and crypto, starting from 0.5 pips for the US 500 index and 0.25% for Bitcoin. Capital.com charges lower spreads on CFDs and crypto, starting from 0.5 pips for the US 500 index and 0.5% for Bitcoin. Capital.com also charges a commission of $0.0003 per unit traded on CFDs and $1 per unit traded on crypto. Therefore, Capital.com has an edge over Pepperstone in terms of CFD and crypto fees.

Broker Type

Both brokers are non-dealing desk (NDD) brokers, which means they do not take the opposite side of your trades. Instead, they connect you to liquidity providers and charge a commission or spread for their service. Pepperstone is an ECN broker, which means it offers direct access to the interbank market and displays the best available prices from multiple sources. Capital.com is an STP broker, which means it routes your orders to its liquidity providers without any intervention or manipulation.

Leverage

Both brokers offer high leverage ratios for CFD trading, depending on the asset class and the client’s location. Pepperstone offers up to 1:500 leverage for forex CFDs and up to 1:20 leverage for crypto CFDs (not available to UK clients). Capital.com offers up to 1:200 leverage for forex CFDs and up to 1:5 leverage for crypto CFDs (also not available to UK clients).

Asset Selection

Both Pepperstone and Capital.com offer a decent range of assets to trade with. Pepperstone offers over 1200 instruments to trade with, including forex, indices, commodities, shares, crypto, and more. Capital.com offers commission-free trading on over 3000 instruments, including forex, indices, commodities, shares, crypto, and more. However, Capital.com has more asset classes than Pepperstone, such as shares.

Social Trading

Pepperstone stands out with its offering of three social trading tools, including Myfxbook, MetaTrader Signals, and DupliTrade, allowing traders to automatically copy successful strategies based on performance, risk level, and trading style. The integration with TradingView and MetaTrader offers advanced charting tools, indicators, expert advisors, and additional social trading features. On the other hand, Capital does not provide social trading tools but offers free trading education, market analysis, webinars, podcasts, and 75+ indicators on its online trading platform.

Minimum Deposit

Pepperstone has no minimum deposit requirement, which means you can start trading with any amount of money. In contrast, Capital provides an even low minimum deposit of $20 for a CFD or spread betting account. This makes Pepperstone an attractive choice for traders seeking a lower initial investment.

Withdrawal and Deposit Methods

Pepperstone provides a wide range of popular deposit options, including Visa, MasterCard, Bank Transfer, MPesa, and PayPal. Withdrawals are processed promptly if forms are received before specific cutoff times. Additional methods such as Neteller, Skrill, and Union Pay are available for funding and withdrawing from accounts, but may incur fees or longer processing times. In contrast, Capital offers fewer deposit options limited to Visa, MasterCard, Bank Transfer, and Sofort. Withdrawals are also restricted to these methods, except for Sofort, and a $10 withdrawal fee is charged for amounts below $50. Withdrawal processing time typically takes 3-5 business days.

Conclusion

To sum up, Pepperstone and Capital.com are both reputable and regulated brokers that cater to different types of traders. They both offer a variety of markets, platforms, and tools to help you trade effectively and efficiently. However, they also have some distinct features and drawbacks that may affect your trading performance and satisfaction. For instance, Pepperstone has more social trading options, platforms, and deposit methods than Capital.com, but it also has a higher minimum deposit for social trading and may incur fees for some withdrawal methods. Capital.com, on the other hand, has a lower minimum deposit, zero commission, and free trading education, but it also has fewer deposit options, charges a withdrawal fee for small amounts, and does not offer social trading. Therefore, we suggest that you compare the brokers on various aspects, do your own research, and try their demo accounts before opening a live account. We hope this article has helped you to learn more about Pepperstone and Capital.com, and to choose the best broker for your trading needs.


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