Pepperstone vs IC Markets
Two elite ECN brokers compared. Both offer raw spreads from 0.0 pips — which one edges ahead for serious traders?
Both Are Excellent
This is one of the closest broker comparisons we've done. The differences are marginal — you'll trade well with either.
Pepperstone Advantages:
- $0 minimum deposit (vs $200)
- Faster average execution (30ms)
- More server locations globally
- Stronger regulation (BaFin, FCA)
- Better educational resources
IC Markets Advantages:
- More instruments (2,250+ vs 1,200+)
- More liquidity providers (25+)
- Highest monthly volume ($1T+)
- Slightly tighter average spreads
- Longer track record (since 2007)
Deep Dive Why This Comparison Is Different Most broker comparisons have a clear winner. This isn't one of them. Pepperstone and IC Markets are both top-tier ECN brokers used by professional traders, hedge fund managers, and algorithmic trading firms. We're splitting hairs here.
Both offer raw spreads from 0.0 pips, identical commission rates ($3.50/lot), the same platforms (MT4, MT5, cTrader, TradingView), free VPS hosting, and excellent execution. Both are ASIC-regulated with segregated client funds. If you closed your eyes and picked one, you'd be fine.
Pepperstone edges ahead on accessibility (no minimum deposit), regulatory breadth (BaFin, FCA), and slightly faster execution. Better for: new traders, European traders, and those prioritizing regulatory protection.
IC Markets edges ahead on liquidity depth ($1T+ monthly volume), instrument range, and slightly tighter spreads on average. Better for: high-volume traders, EA developers, and those trading beyond forex.
The real decision factor? Pick based on where you're located (regulation matters), minimum deposit requirements, or which interface you prefer after testing demos. Performance differences are measurable but unlikely to significantly impact your bottom line.
Feature Comparison
Key features and capabilities side-by-side.
Comparison Table
Compare features, pricing, or specifications
| Feature | Pepperstone | IC Markets | Winner |
|---|---|---|---|
| Founded | 2010 | 2007 | IC Markets |
| Minimum Deposit | $0 | $200 | Pepperstone |
| Raw Spreads From | 0.0 pips | 0.0 pips | Tie |
| Commission (per lot) | $3.50 | $3.50 | Tie |
| Instruments | 1,200+ | 2,250+ | IC Markets |
| Monthly Volume | $12.5B+ | $1T+ | IC Markets |
| TradingView Integration | Yes | Yes | Tie |
| Our Rating | 4.5/5 | 4.6/5 | IC Markets |
Execution & Infrastructure
For scalpers and algorithmic traders, execution quality is everything.
Comparison Table
Compare features, pricing, or specifications
| Metric | Pepperstone | IC Markets | Winner |
|---|---|---|---|
| Execution Type | ECN/STP | True ECN | Tie |
| Avg. Execution Speed | 30ms | 40ms | Pepperstone |
| Liquidity Providers | 20+ | 25+ | IC Markets |
| Server Locations | NY4, LD5, TY3 | NY4, LD5 | Pepperstone |
| Free VPS | Yes (conditions) | Yes (conditions) | Tie |
| Slippage Control | Excellent | Excellent | Tie |
Deep Dive Understanding ECN Execution Both brokers route orders directly to liquidity providers - no dealing desk. But the infrastructure behind this matters for serious traders.
Pepperstone averages 30ms execution, IC Markets around 40ms. Is 10ms significant? For most traders, no. For high-frequency EAs executing hundreds of trades daily, potentially yes. For discretionary traders, you'll never notice the difference.
IC Markets aggregates from 25+ liquidity providers, Pepperstone from 20+. More LPs generally means tighter spreads during volatile periods and better fill rates on large orders. For standard retail sizes (under 10 lots), both provide identical fills.
Pepperstone operates from NY4, LD5, and TY3 (New York, London, Tokyo). IC Markets from NY4 and LD5. If you're trading Asian sessions heavily and want minimal latency, Pepperstone's Tokyo server is an advantage.
Both offer free VPS when you meet volume requirements (typically 15+ lots/month). The VPS is co-located near their servers, giving EAs sub-5ms execution. Essential for latency-sensitive strategies.
For pure scalping, Pepperstone's faster execution gives a theoretical edge. For high-volume trading during news, IC Markets' deeper liquidity helps. In practice, top scalpers succeed with both brokers. Your strategy matters more than the 10ms difference.
Spreads & Costs Analysis
Breaking down the real cost per trade.
Pepperstone Razor Account
+ $3.50 commission per lot
IC Markets Raw Spread
+ $3.50 commission per lot
Deep Dive The Real Cost Per Trade Both brokers advertise 0.0 spreads, but let's calculate what you actually pay.
Standard Lot EUR/USD Trade: Pepperstone: 0.09 pip spread = $0.90 + $7 commission = $7.90 per round turn. IC Markets: 0.02 pip spread = $0.20 + $7 commission = $7.20 per round turn. IC Markets saves you $0.70 per standard lot on EUR/USD on average.
Annual Cost Comparison (Active Trader): Assume you trade 10 standard lots per day, 250 trading days/year. Pepperstone: 10 × 250 × $7.90 = $19,750/year. IC Markets: 10 × 250 × $7.20 = $18,000/year. For an active trader, IC Markets saves roughly $1,750/year on EUR/USD alone.
Spread differences shrink during volatile periods when both widen. Pepperstone's faster execution might get you better entry prices, offsetting spread advantage. And if you're trading other pairs or indices, the comparison changes. These are average figures - actual results vary.
IC Markets has marginally tighter spreads on major pairs. For high-volume forex traders, this compounds into real savings. For occasional traders, the difference is negligible. Both are far cheaper than market maker brokers.
Trading Platforms
Both brokers offer identical platform options.
MetaTrader 4/5
Industry standard for forex. Full EA support, custom indicators, and mobile trading. Both brokers offer identical MT4/MT5 functionality.
cTrader
Advanced ECN platform with Level II pricing, superior charting, and cAlgo for algorithmic trading. Preferred by many professional scalpers.
TradingView
Direct integration allows trading from TradingView charts. Combines TradingView's superior charting with ECN execution from either broker.
Deep Dive Platform Recommendation by Trading Style Since both brokers offer identical platforms, here's guidance on which to use regardless of broker choice.
For EA/Algorithmic Traders: Use MT4 or MT5. The MQL ecosystem is unmatched for automated trading. MT5 if you need more timeframes and better backtesting; MT4 if your EA was built for it (most are).
For Scalpers: Use cTrader. Superior order execution interface, one-click trading, and Level II depth of market. cTrader was literally designed for high-frequency discretionary trading.
For Technical Analysts: Use TradingView. Best charting in the industry, excellent indicator library, and now you can execute directly. Analyze on TradingView's superior charts, execute via Pepperstone or IC Markets.
Since both brokers offer identical platforms, performance depends on your internet connection and their server proximity, not the broker itself. Both have optimized their infrastructure for each platform.
Regulation Comparison
Regulatory oversight and client fund protection compared.
Pepperstone Regulation
6 Regulatory Licenses
- ASIC (Australia) - #414530
- FCA (UK) - #684312
- BaFin (Germany) - #151148
- CySEC (Cyprus) - #388/20
- DFSA (UAE) - #F004356
- SCB (Bahamas) - #SIA-F217
IC Markets Regulation
3 Regulatory Licenses
- ASIC (Australia) - #335692
- CySEC (Cyprus) - #362/18
- FSA (Seychelles) - #SD018
Deep Dive Regulation: Why Pepperstone Has an Edge Both brokers are legitimately regulated, but Pepperstone's regulatory portfolio is stronger. Here's why it matters.
Pepperstone holds three tier-1 licenses (ASIC, FCA, BaFin). IC Markets holds one (ASIC). Tier-1 regulators provide the strongest investor protection, segregation requirements, and compensation schemes.
For UK Traders: Pepperstone's FCA license means UK traders get FSCS protection up to £85,000. IC Markets doesn't have FCA authorization - UK traders would be served by their CySEC or offshore entity with less protection.
For European Traders: Pepperstone's BaFin (German) license is significant. German regulation is notoriously strict. This provides an additional layer of credibility and protection for EU traders.
Let's be clear: both brokers segregate client funds, offer negative balance protection, and have been operating for 10+ years without major incidents. The regulatory difference is about degree of protection, not whether your funds are safe.
If regulatory protection is a priority (especially for larger accounts), Pepperstone's broader licensing is an advantage. For most retail traders with moderate account sizes, both provide adequate protection.
Frequently Asked Questions
Which is better for scalping, Pepperstone or IC Markets?
Both are excellent for scalping with 0.0 pip raw spreads and fast execution. Pepperstone has slightly faster average execution (30ms vs 40ms), while IC Markets has more liquidity providers (25+ vs 20+). For most scalpers, the difference is negligible - both are top-tier choices.
What are the commission rates at Pepperstone and IC Markets?
Both charge $3.50 per lot per side ($7 round turn) on their raw spread accounts. Standard accounts at both brokers have no commission but wider spreads. The commission structure is identical, making spread comparison the key differentiator.
Which broker has better regulation?
Pepperstone has stronger regulatory coverage with ASIC, FCA, CySEC, BaFin (Germany), and DFSA licenses. IC Markets has ASIC and CySEC plus an offshore FSA (Seychelles) license. For European and UK traders especially, Pepperstone's BaFin and FCA licenses offer more protection.
Can I use TradingView with both brokers?
Yes, both Pepperstone and IC Markets offer direct TradingView integration, allowing you to trade directly from TradingView charts. This is in addition to MT4, MT5, and cTrader platforms available at both brokers.
Which is better for Expert Advisors (EAs)?
Both excel for EA trading with MT4/MT5 support, free VPS hosting (with qualifying volume), and fast execution. IC Markets has slightly more liquidity providers which can help during news events. Pepperstone has more server locations. Either works well for automated strategies.
What is the minimum deposit difference?
Pepperstone has no minimum deposit requirement, while IC Markets requires $200. This makes Pepperstone more accessible for traders starting with smaller capital or testing the platform.
Which broker has more instruments?
IC Markets offers 2,250+ instruments compared to Pepperstone's 1,200+. IC Markets has broader CFD coverage including more stocks and indices. For forex-focused traders, both offer comprehensive major, minor, and exotic pairs.
Are spreads really 0.0 pips?
Yes, both regularly show 0.0 pip spreads on EUR/USD during liquid sessions. However, remember you also pay commission ($3.50/lot). The effective cost on a standard lot at 0.0 spread is $7 round turn. During news or low liquidity, spreads widen at both brokers.
Final Verdict
Our Rating: IC Markets 4.6/5 | Pepperstone 4.5/5
Choose Pepperstone If:
- You're starting with small capital (no minimum)
- You're in the UK or Germany (better regulation)
- Execution speed is your top priority
- You want more educational resources
- Regulatory protection matters most
Choose IC Markets If:
- Tightest possible spreads matter most
- You trade high volume (liquidity depth)
- You want more instruments (2,250+)
- You run multiple EAs simultaneously
- You can meet the $200 minimum
Our Recommendation What We Actually Recommend Open demo accounts with both. Test for a week. See which interface feels better. The performance difference is so small that personal preference should be the deciding factor.
For New Traders: Start with Pepperstone. No minimum deposit means you can begin with whatever capital you have. Better educational resources help you learn. Stronger regulation protects you while you're finding your feet.
For Experienced High-Volume Traders: IC Markets' tighter spreads and deeper liquidity start to matter when you're trading significant volume. The $1,750/year potential savings on a 10-lot-per-day account is meaningful.
For EA Developers: Test your EA on both. Different liquidity pools can produce different results. Some EAs perform better with Pepperstone's execution speed; others benefit from IC Markets' liquidity depth. Real testing beats theoretical comparison.
We've used both brokers. We recommend both brokers. If someone forced us to pick one, we'd say IC Markets for pure trading cost efficiency, Pepperstone for overall package including regulation and accessibility. But truly, flip a coin - you'll be well-served either way.
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