How do Pepperstone and AvaTrade stack up against each other?
The Radar Chart below highlights how the brokers stack up against each other across various metrics. The highest score a broker can receive in each area is 5.
At FxScouts, we help traders find the broker that suits their trading needs. In many cases, the best way to achieve this is to compare brokers side-by-side.
To compare Pepperstone and AvaTrade, we used the same factors we use when reviewing brokers: The trust and regulation of the broker, the trading platform, the costs and trading conditions, and the level of education and market analysis available at the broker.
Does Pepperstone or AvaTrade have a better trust and regulation rating?
Trust and regulation are some of the most important factors to consider when choosing a Forex broker. Trust in the Forex trading business is almost entirely founded upon regulation. We spend many hours evaluating the safety of each broker by delving into their fine print and confirming each one of their regulatory licences on the online registers. The more top-tier authorities a broker is regulated by, the higher its trust rating.
In our comparison, we found that Pepperstone holds three Tier 1 and two Tier 2 licences, and AvaTrade holds three Tier 1 and two Tier 2 licences.
Is Pepperstone financially regulated?
Yes Pepperstone was founded in 2010 and is regulated by ASIC, BaFin, CMA, CySEC, DFSA, FCA and SCB.
Is AvaTrade financially regulated?
Yes AvaTrade was founded in 2006 and is regulated by ASIC, CBI, CySEC, FRSA, FSA-Japan and FSCA.
Based on these findings, Pepperstone earned a higher trust rating than AvaTrade.
Does Pepperstone or AvaTrade have lower costs?
Another important aspect we consider when comparing brokers is the cost of trading. When evaluating trading costs, we always consider the minimum deposit required to open an account and the ongoing trading costs, including the spreads and commissions. When calculating trading costs, we measure the cost to trade one lot of EUR/USD using the broker’s account with the lowest minimum deposit. The cost includes both the spread and any commission charged.
Not all brokers publish their trading costs, so we often open accounts and trade on their platforms to verify the spreads and commissions. Based on our reviews, we found that AvaTrade has overall lower trading costs than Pepperstone.
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Does Pepperstone or AvaTrade offer a better choice of trading platforms?
Traders want Forex brokers to offer them a choice of trading platforms, so we give brokers who offer multiple platforms higher ratings. Trading platforms we consider include MetaTrader4, MetaTrader5, cTrader and proprietary mobile and web-based platforms.
In this case, Pepperstone offers support for cTrader, MT4, MT5 and TradingView and AvaTrade offers support for AvaOptions, Avatrade Social, MT4 and MT5.
Do the brokers offer copy trading?
Copy trading is a great option for beginner traders who can’t trade full-time or lack experience with Forex trading. In this case both AvaTrade and Pepperstone offer copy trading.
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Which broker offers a better choice of trading instruments?
A variety of CFD instruments – and a large range of CFDs for each instrument category allow traders more opportunities for profitable trading. The best brokers will have thousands of CFDs to trade, covering all these instrument categories. We found that Pepperstone offers a greater range and depth of instruments to trade than AvaTrade. Pepperstone offers 100 Forex pairs to trade and AvaTrade offers 63 Forex pairs to trade.
And what about Cryptocurrencies?
In this case, AvaTrade offers 30 cryptocurrencies while Pepperstone offers 19 cryptocurrencies. So if you want to trade cryptocurrencies, we advise trading with AvaTrade.
Which broker offers better deposit and withdrawal processes?
Although brokers may have reasonable trading fees, many traders are caught out by the high non-trading fees charged by some brokers, including deposits and withdrawals. Traders want to be able to deposit and withdraw funds quickly and cheaply. Most brokers have multiple funding methods with zero fees for making deposits, but some brokers make it more expensive and take longer to process withdrawals.
We rate brokers more highly that process withdrawals within 24 hours by multiple withdrawal methods and without charging processing fees. We found that neither AvaTrade nor Pepperstone charges a withdrawal fee. Overall, AvaTrade has better deposit and withdrawal processes than Pepperstone.
Which broker offers better educational support?
We often find that brokers offer very little in the way of educational materials, forcing traders to use other third-party sites or self-educate elsewhere. Beginner traders need well-structured, well-presented materials in multiple formats to get a good start at trading. More experienced traders also benefit from webinars led by experts in the field and advanced trading strategy sections with new trading ideas.
AvaTrade has better educational support than Pepperstone. Both AvaTrade and Pepperstone offer educational support for more experienced traders.
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Which broker offers better market analysis materials?
To successfully predict the price movements of an instrument, traders will need access to frequent market research and analysis. We find that research and market analysis are always better when they are produced in-house and updated frequently. Third-party resources don’t show the same expertise in trading ideas, so we place a strong emphasis on frequent in-house updates. Some brokers also often offer interactive webinars where traders can learn from experts in the field.
We found that Pepperstone offers better research analysis than AvaTrade and that both AvaTrade and Pepperstone offer frequent webinars.
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Our overall Verdict on Pepperstone
With low trading costs, regulation from the world’s top authorities, fast ECN trade execution, and three of the best trading platforms, we recommend Pepperstone to traders of all experience levels and for all trading strategies.
Pepperstone’s low trading costs provide the foundation for our recommendation, including some of the tightest spreads in the industry (0.10 pips EUR/USD average on the Razor Account), low commissions, and no minimum deposit requirements.
The beginner and professional trading communities also appreciate this Australian broker for its wide trading platform selection, including cTrader, MT4, and MT5. These three platforms are considered the best in the industry and all three are further improved by Pepperstone’s range of free trading tools, such as Autochartist and the Smart Trader Toolset.
And while it isn’t the most complete, Pepperstone’s education section is well-structured, making it a good choice for beginner traders. Overall, as our highest-rated ECN broker, if you want to pay a small commission for tight spreads, you won't find much better than Pepperstone.
Our overall Verdict on AvaTrade
In our review, we found that Avatrade has low trading fees, a wide range of trading instruments, and a choice of four different trading platforms. Avatrade offers some of the best trading tools in the industry, alongside a world-class selection of educational and market analysis materials. As one of the best all-around Forex brokers, Avatrade will be an attractive choice for most traders.
Avatrade is also popular for its award-winning mobile app, AvatradeGO, which has great risk management tools and a direct connection to AvaSocial, AvaTrade’s popular social trading system.
One issue Ugandan traders may have with Avatrade is that they will be onboarded through Avatrade’s British Virgin Islands-based entity. This means that Ugandan traders have no recourse in the event of a dispute with the company.
Which broker has the highest overall rating?
Pepperstone has an overall rating of 4.61 and AvaTrade has an overall rating of 4.59. For more detail please read our reviews of
Pepperstone and
AvaTrade.