Written by ForexBrokers.com
In this head to head comparison of Interactive Brokers vs Pepperstone, we will compare the trading platforms, mobile apps, range of investments, costs, market research, and more. Let's dive in.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Interactive Brokers, established in 1977, and Pepperstone, founded in 2010, are popular online brokers in the financial industry, each with its own set of regulatory licenses and trust scores. Interactive Brokers boasts a perfect Trust Score of 99, indicating a high level of trustworthiness. It holds 9 Tier-1 licenses, the gold standard of safety as per ForexBrokers.com, and 2 Tier-2 licenses. This strong regulatory backing contributes to its reputation as a reliable choice for investors. Interactive Brokers is also publicly traded, adding another layer of transparency for its users.
Pepperstone, though a newer entrant to the market, has been able to secure a solid Trust Score of 95, reflecting its strong standing. It holds 3 Tier-1 licenses and 2 Tier-2 licenses, indicating a firm commitment to adhering to global regulations, though fewer in number compared to Interactive Brokers. While Pepperstone is not publicly traded, its dedication to maintaining a trusted service is represented by its regulatory approvals. Neither broker operates as a bank, focusing solely on providing brokerage services to their clients.
| Feature |
Interactive Brokers
|
Pepperstone
|
|---|---|---|
| Year Founded | 1977 | 2010 |
| Publicly Traded (Listed) | Yes | No |
| Bank | No | No |
| Tier-1 Licenses | 9 | 3 |
| Tier-2 Licenses | 2 | 2 |
| Tier-3 Licenses | 0 | 0 |
| Tier-4 Licenses | 0 | 2 |
Interactive Brokers and Pepperstone both offer a range of commission and fee structures tailored for forex traders, but they cater to different trading needs. Interactive Brokers receives a full 5-star rating and ranks #2 out of 62 brokers for its competitive pricing, although it doesn't publish average spreads, which can make direct comparisons challenging. For the EUR/USD pair, they offer an average all-in spread of 0.59 pips in Q3 2024, including a commission-based structure that starts at 0.00002 (0.2 basis points) of the trade value per side. Active traders can benefit from tiered discounts, with commissions as low as $1 per order for high monthly volumes.
On the other hand, Pepperstone holds a 4.5-star rating and is ranked #10 for commissions and fees. It provides solid pricing through its Razor account, ideal for those utilizing cTrader or MetaTrader platforms, with an average spread of 0.10 pips on the EUR/USD and a total all-in cost of 0.80 pips. The Standard account offers commission-free trading with a higher average spread of 1.1 pips. Pepperstone's Active Trader program offers rebates on spreads based on trading volume, facilitating cost reductions for high-volume traders across different regions, including the UK and Australia.
| Feature |
Interactive Brokers
|
Pepperstone
|
|---|---|---|
| Minimum Deposit | $0 | $0 |
| Average Spread EUR/USD - Standard | 0.59 | 1.00 |
| All-in Cost EUR/USD - Active | 0.59 | 0.70 |
| Active Trader or VIP Discounts | Yes | Yes |
| ACH or SEPA Transfers | Yes | Yes |
| PayPal (Deposit/Withdraw) | No | Yes |
| Skrill (Deposit/Withdraw) | No | Yes |
| Visa/Mastercard (Credit/Debit) | No | Yes |
| Bank Wire (Deposit/Withdraw) | Yes | Yes |
Dive deeper: Best Low Spread Forex Brokers.
Interactive Brokers and Pepperstone both offer forex trading through CFDs or spot contracts, catering to those interested in currency pairs. However, when it comes to the range of investments, Interactive Brokers significantly outshines Pepperstone, offering a comprehensive selection of 8,500 tradeable symbols compared to Pepperstone's 1,726. For forex enthusiasts, Interactive Brokers provides 90 forex pairs, in contrast to Pepperstone's 65. Interactive Brokers also allows clients to directly invest in exchange-traded securities on both U.S. and international exchanges, providing access to popular shares like Apple and Vodafone, which Pepperstone does not offer.
While both brokers allow trading in cryptocurrency derivatives, only Interactive Brokers provides the option to purchase actual cryptocurrencies. Another distinction lies in copy trading, available with Pepperstone but not Interactive Brokers. As a result of this diverse range, Interactive Brokers earns a five-star rating and ranks #1 among 62 brokers on ForexBrokers.com in the Range of Investments category, whereas Pepperstone receives four stars and is ranked #26. These differences showcase Interactive Brokers as the more versatile platform for investors seeking a wide array of trading options.
| Feature |
Interactive Brokers
|
Pepperstone
|
|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes |
| Tradeable Symbols (Total) | 8500 | 1726 |
| Forex Pairs (Total) | 90 | 65 |
| U.S. Stock Trading (Non CFD) | Yes | No |
| Int'l Stock Trading (Non CFD) | Yes | No |
| Social Trading / Copy Trading | No | Yes |
| Cryptocurrency (Physical) | Yes | No |
| Cryptocurrency (Derivative) | Yes | Yes |
| Disclaimers | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). |
Dive deeper: Best Copy Trading Platforms.
When comparing the trading platforms and tools of Interactive Brokers and Pepperstone, both brokers offer a wide array of features catering to different trading preferences. Both brokers provide paper trading accounts, allowing users to practice trading without risk. They also each offer their own proprietary platforms, as well as options for Windows-based desktop and web-based trading. However, while Interactive Brokers does not support MetaTrader 4 or MetaTrader 5, Pepperstone offers both, along with copy trading options and compatibility with the DupliTrade platform. Neither broker supports ZuluTrade.
In terms of charting capabilities, Interactive Brokers shines with 85 drawing tools, while Pepperstone offers 30. Both allow users to trade directly from stock charts, enhancing the trading experience. An impressive difference lies in their watch list capabilities: Interactive Brokers offers an extensive 659 fields, whereas Pepperstone provides 7. Rated at five stars for its trading platforms and tools, Interactive Brokers ranks #3 out of 62 brokers on ForexBrokers.com. While Pepperstone is rated four stars, it stands at #22, making both brokers strong contenders, each with its unique strengths.
| Feature |
Interactive Brokers
|
Pepperstone
|
|---|---|---|
| Virtual Trading (Demo) | Yes | Yes |
| Proprietary Platform | Yes | Yes |
| Desktop Platform (Windows) | Yes | Yes |
| Web Platform | Yes | Yes |
| Social Trading / Copy Trading | No | Yes |
| MetaTrader 4 (MT4) | No | Yes |
| MetaTrader 5 (MT5) | No | Yes |
| DupliTrade | No | Yes |
| ZuluTrade | No | No |
| Charting - Indicators / Studies (Total) | 155 | 15 |
| Charting - Drawing Tools (Total) | 85 | 30 |
| Charting - Trade From Chart | Yes | Yes |
| Watchlists - Total Fields | 659 | 7 |
Dive deeper: Best MetaTrader 4 Brokers, Best MetaTrader 5 Brokers.
Both Interactive Brokers and Pepperstone offer intuitive mobile trading apps suitable for iPhone and Android users. Each platform supports stock and forex price alerts, alongside the ability to sync watchlists between the mobile app and the user's online account. This feature ensures that any updates made on one platform automatically appear on the other. Users of both apps can draw trendlines and access charts providing various time frames, such as daily, weekly, or intraday views. However, while Interactive Brokers doesn't automatically save these chart drawings, Pepperstone's app does, providing a slight edge for users who regularly update their charts.
Interactive Brokers offers a significantly richer charting experience with 97 technical studies available, compared to Pepperstone’s 30. Both apps allow the creation of watchlists featuring real-time quotes. In terms of user satisfaction, Interactive Brokers receives a top rating of 5 stars for its mobile trading app, whereas Pepperstone is rated at 4 stars. In a ranking by ForexBrokers.com, Interactive Brokers holds a commendable 4th place out of 62 brokers, leaving Pepperstone at 21st. This suggests that while both platforms offer robust features, Interactive Brokers may provide a more comprehensive mobile trading experience for users seeking in-depth charting tools and higher ratings.
| Feature |
Interactive Brokers
|
Pepperstone
|
|---|---|---|
| Android App | Yes | Yes |
| Apple iOS App | Yes | Yes |
| Mobile Alerts - Basic Fields | Yes | Yes |
| Watchlist Syncing | Yes | Yes |
| Mobile Charting - Indicators / Studies | 97 | 30 |
| Mobile Charting - Draw Trendlines | Yes | Yes |
| Mobile Charting - Multiple Time Frames | Yes | Yes |
| Mobile Charting - Drawings Autosave | No | Yes |
| Mobile Watchlist | Yes | Yes |
Dive deeper: Best Forex Trading Apps.
When it comes to market research offerings, both Interactive Brokers and Pepperstone provide a strong foundation for traders by delivering daily market commentary and top-tier forex news from sources like Bloomberg, Reuters, and Dow Jones. However, their research tools diverge quite significantly. Interactive Brokers boasts a rich collection of tools, including resources from Trading Central and TipRanks, as well as sentiment-based trading tools and offerings from Acuity Trading, such as Signal Centre. Meanwhile, Pepperstone stands out with its inclusion of Autochartist tools, although it does not provide resources from Trading Central, TipRanks, or Acuity Trading.
Both brokers offer an economic calendar highlighting global news events. But when it comes to overall research rankings, Interactive Brokers leads with a perfect five-star rating and holds the #3 spot out of 62 brokers according to ForexBrokers.com, while Pepperstone earns a respectable 4.5-star rating and ranks at #12. For traders recognizing the importance of comprehensive market insights and analytical tools, Interactive Brokers appears to offer a wider range of resources to meet those needs.
| Feature |
Interactive Brokers
|
Pepperstone
|
|---|---|---|
| Daily Market Commentary | Yes | Yes |
| Forex News (Top-Tier Sources) | Yes | Yes |
| Autochartist | No | Yes |
| Trading Central (Recognia) | Yes | No |
| Social Sentiment - Currency Pairs | Yes | Yes |
| TipRanks | Yes | No |
| Signal Centre (Acuity Trading) | Yes | No |
| Economic Calendar | Yes | Yes |
Dive deeper: Best Brokers for Forex Research.
Interactive Brokers and Pepperstone both offer a solid range of educational resources geared towards new traders. Both brokers provide more than ten educational pieces, including articles, videos, and archived webinars that focus on forex or CFDs, ensuring a comprehensive introduction for newcomers. Each platform hosts monthly webinars, which are subsequently made available in searchable archives, allowing traders to revisit past sessions at their convenience. For those just starting, both brokers deliver more than ten beginner-specific trading videos. Alongside these offerings, there's also an investor dictionary with over 50 defined terms available from each broker, aiding in familiarizing traders with essential investing language.
While both Interactive Brokers and Pepperstone equip beginners with valuable educational content, there are differences in their rankings and overall educational quality. Interactive Brokers excels with a 5-star rating for its educational content and is ranked third by ForexBrokers.com out of 62 brokers. In comparison, Pepperstone, holding a 4.5-star rating, is ranked 18th in the same category. These rankings suggest that Interactive Brokers might have a slight edge in terms of the breadth and depth of its educational offerings, making it a highly reputable choice for those eager to deepen their understanding of trading and investment strategies.
| Feature |
Interactive Brokers
|
Pepperstone
|
|---|---|---|
| Education (Forex or CFDs) | Yes | Yes |
| Client Webinars | Yes | Yes |
| Client Webinars (Archived) | Yes | Yes |
| Videos - Beginner Trading Videos | Yes | Yes |
| Videos - Advanced Trading Videos | Yes | Yes |
| Investor Dictionary (Glossary) | Yes | Yes |
Dive deeper: Best Forex Brokers for Beginners.
After testing 62 of the best forex brokers, our research and account testing finds that Interactive Brokers is better than Pepperstone. Interactive Brokers finished with an overall rank of #2, while Pepperstone finished with an overall rank of #16.
Interactive Brokers is a highly trusted multi-asset broker with an extensive offering of tradeable global markets. It delivers competitive fees and high-quality research and education, as well as a modern, institutional-grade trading platform suite.
| Feature |
Interactive Brokers
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Pepperstone
|
|---|---|---|
| Overall Rating |
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| Trust Score | 99 | 95 |
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Interactive Brokers and Pepperstone both offer cryptocurrency derivatives, but only Interactive Brokers provides the ability to purchase actual delivered cryptocurrency.
Interactive Brokers and Pepperstone both facilitate ACH or SEPA transfers and bank wire transactions for depositing or withdrawing funds, but unlike Interactive Brokers, Pepperstone also supports PayPal, Skrill, and Visa or Mastercard payments, providing more diverse funding options for its users.
Please note:
We review each broker’s overall global offering – a “Yes” checkmark in our Compare Tool does not guarantee the availability of any specific features in your country of residence. To verify the availability of any features within your country of residence, please contact the broker directly.
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0 of 5| Overall Rating | Interactive Brokers | Pepperstone | |
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| Trust Score | 99 | 95 | |
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| Review | Interactive Brokers Review | Pepperstone Review |
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| Regulation | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Trust Score | 99 | 95 | |
| Year Founded | 1977 | 2010 | |
| Publicly Traded (Listed) | Yes | No | |
| Bank | No | No | |
| Regulated in one or more EU or EEA countries (MiFID). | Yes | Yes | |
| Tier-1 Licenses | 9 | 3 | |
| Tier-2 Licenses | 2 | 2 | |
| Tier-3 Licenses | 0 | 0 | |
| Tier-4 Licenses | 0 | 2 |
| Tier-1 Licenses (Highly Trusted) | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Australia (ASIC Authorised) | Yes | Yes | |
| Canada (CIRO Authorised) | Yes | No | |
| Hong Kong (SFC Authorised) | Yes | No | |
| Japan (SFC Authorised) | Yes | No | |
| Singapore (MAS Authorised) | Yes | No | |
| Switzerland (FINMA Authorised) | Yes | No | |
| United Kingdom (U.K.) (FCA Authorised) | Yes | Yes | |
| USA (CFTC Authorized) | Yes | No | |
| New Zealand (FMA Authorised) | No | No | |
| Regulated in one or more EU or EEA countries (MiFID). | Yes | Yes |
| Tier-2 Licenses (Trusted) | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Kenya (CMA Authorised) | No | Yes | |
| Israel (ISA Authorised) | No | No | |
| South Africa (FSCA Authorised) | No | No | |
| UAE (DFSA/Central Bank Authorised) | Yes | Yes | |
| India (SEBI Authorised) | Yes | No | |
| Jordan (JSC Authorised) | No | No |
| Investments | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes | |
| Tradeable Symbols (Total) | 8500 | 1726 | |
| Forex Pairs (Total) | 90 | 65 | |
| U.S. Stock Trading (Non CFD) | Yes | No | |
| Int'l Stock Trading (Non CFD) | Yes | No | |
| Social Trading / Copy Trading | No | Yes | |
| Cryptocurrency (Physical) | Yes | No | |
| Cryptocurrency (Derivative) | Yes | Yes | |
| Disclaimers | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). |
| Cost | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Average Spread EUR/USD - Standard | 0.59 | 1.00 | |
| All-in Cost EUR/USD - Active | 0.59 | 0.70 | |
| Active Trader or VIP Discounts | Yes | Yes | |
| Inactivity Fee | No | No | |
| Execution: Agency Broker | Yes | Yes | |
| Execution: Market Maker | No | Yes |
| Funding | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Minimum Deposit | $0 | $0 | |
| PayPal (Deposit/Withdraw) | No | Yes | |
| Skrill (Deposit/Withdraw) | No | Yes | |
| Visa/Mastercard (Credit/Debit) | No | Yes | |
| Bank Wire (Deposit/Withdraw) | Yes | Yes | |
| ACH or SEPA Transfers | Yes | Yes |
| Trading Platforms | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Proprietary Platform | Yes | Yes | |
| Desktop Platform (Windows) | Yes | Yes | |
| Web Platform | Yes | Yes | |
| Social Trading / Copy Trading | No | Yes | |
| MetaTrader 4 (MT4) | No | Yes | |
| MetaTrader 5 (MT5) | No | Yes | |
| cTrader | No | Yes | |
| DupliTrade | No | Yes | |
| ZuluTrade | No | No |
| Trading Tools | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Virtual Trading (Demo) | Yes | Yes | |
| Alerts - Basic Fields | Yes | Yes | |
| Watchlists - Total Fields | 659 | 7 | |
| Charting - Indicators / Studies (Total) | 155 | 15 | |
| Charting - Drawing Tools (Total) | 85 | 30 | |
| Charting - Trade From Chart | Yes | Yes | |
| Charts can be saved | Yes | Yes |
| Mobile Trading | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Android App | Yes | Yes | |
| Apple iOS App | Yes | Yes | |
| Mobile Alerts - Basic Fields | Yes | Yes | |
| Mobile Watchlist | Yes | Yes | |
| Watchlist Syncing | Yes | Yes | |
| Mobile Charting - Indicators / Studies | 97 | 30 | |
| Mobile Charting - Draw Trendlines | Yes | Yes | |
| Mobile Charting - Multiple Time Frames | Yes | Yes | |
| Mobile Charting - Drawings Autosave | No | Yes | |
| Mobile Economic Calendar | Yes | Yes |
| Research | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Daily Market Commentary | Yes | Yes | |
| Forex News (Top-Tier Sources) | Yes | Yes | |
| Autochartist | No | Yes | |
| Trading Central (Recognia) | Yes | No | |
| TipRanks | Yes | No | |
| Social Sentiment - Currency Pairs | Yes | Yes | |
| Economic Calendar | Yes | Yes |
| Education | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| Education (Forex or CFDs) | Yes | Yes | |
| Client Webinars | Yes | Yes | |
| Client Webinars (Archived) | Yes | Yes | |
| Videos - Beginner Trading Videos | Yes | Yes | |
| Videos - Advanced Trading Videos | Yes | Yes | |
| Investor Dictionary (Glossary) | Yes | Yes |
| Major Forex Pairs | Interactive Brokers | Pepperstone | |
|---|---|---|---|
| GBP/USD | Yes | Yes | |
| USD/JPY | Yes | Yes | |
| EUR/USD | Yes | Yes | |
| USD/CHF | Yes | Yes | |
| USD/CAD | Yes | Yes | |
| NZD/USD | Yes | Yes | |
| AUD/USD | Yes | Yes | |
| Review | Interactive Brokers Review | Pepperstone Review |
| Overall | Interactive Brokers | Pepperstone | |
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| Trust Score | 99 | 95 | |
| Winner | check_circle | ||
| Review | Interactive Brokers Review | Pepperstone Review |
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