Is there a broker that offers both low spreads and strong FCA regulation?
Verdict
- Yes. Pepperstone combines FCA authorisation (Pepperstone Limited, firm reference 684312) with a Razor account whose EUR/USD spread it publishes at 0.1 pips on average, plus commission from £2.25 per lot per side on a GBP account.
- UK retail clients also get negative balance protection, segregated client money and FSCS cover for eligible clients up to £85,000, according to Pepperstone's UK site.
- Capital.com (FCA 793714) is the alternative if you want guaranteed stop-losses, which Pepperstone does not offer; we hold no published EUR/USD spread figure for it.
- IG, CMC Markets, Spreadex and StoneX are also FCA-authorised but publish 'from' spreads rather than averages, which limits a like-for-like comparison.
You don't have to trade cost off against oversight in the UK. Pepperstone's raw-spread account sits inside an FCA-authorised company; below is what that costs per trade, what the regulation actually covers, and where a rival is the better fit.
Pepperstone: raw spreads inside an FCA-authorised firm
Pepperstone Limited (company 08965105, 27 Old Jewry, London) is authorised and regulated by the FCA under reference 684312 and runs three UK account types: spread betting, Standard CFD and Razor CFD. On Razor, Pepperstone publishes a minimum EUR/USD spread of 0.0 pips and an average of 0.1 pips, and charges commission separately, from £2.25 per lot per side on a GBP account. Standard builds its cost into the spread instead: EUR/USD averages 1.1 pips with no commission. You can start with £10 by card, Apple Pay or Google Pay.
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What the FCA licence gives you at Pepperstone
These are the retail protections Pepperstone lists for UK clients. You give several of them up if you opt into professional status, so stay retail unless you meet Pepperstone's two-out-of-three test and genuinely need more leverage.
- Leverage caps: 1:30 on major FX, 1:20 on major indices and gold, 1:10 on other commodities, 1:5 on shares.
- Negative balance protection: Pepperstone says it will return a negative retail balance to zero as soon as possible. It does not apply to professional clients.
- Client money held in segregated accounts at top-tier banks.
- FSCS compensation for eligible clients up to £85,000.
- A published loss figure: 73.6% of retail accounts lose money on spread bets and CFDs with Pepperstone Limited.
How other FCA-authorised brokers publish EUR/USD pricing
A 'from' figure is the tightest the spread gets; an average is closer to what you usually pay. Pepperstone publishes both; none of the others below publishes an average in our data.
| Broker (FCA reference) | EUR/USD figure | Type of figure |
|---|---|---|
| Pepperstone (684312) | Razor 0.0 min / 0.1 avg + £2.25 per side; Standard 1.1 avg | Minimum and average |
| IG (195355 CFDs; 114059 spread bets) | From 0.6 points, no commission | Minimum |
| CMC Markets (173730) | From 0.5 pips; FX Active from 0.0 + 0.0025% per transaction | Minimum |
| Spreadex (190941) | From 0.6 points | Minimum |
| StoneX Trading, ex-City Index (446717) | From 0.7 pips | Minimum |
| Capital.com (793714) | Live spreads only, no static figure | Not published |
Where Pepperstone falls short
Pepperstone offers no guaranteed stop-loss orders: its UK terms say it cannot guarantee that stop-loss orders fill at your level. IG, CMC Markets, Spreadex, StoneX and Capital.com all offer guaranteed stops. There is also no retail crypto, because the FCA has banned crypto derivatives for retail clients since 6 January 2021; Pepperstone shows crypto only to professional clients. One fee needs checking too: the withdrawals table lists bank transfers as free, while the costs FAQ mentions £15 for an international wire.
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Checks before you deposit
- Search the FCA register for the company named in your client agreement.
- Compare average spreads, not only 'from' spreads, for the markets you trade most.
- Add commission to the spread: Razor's £2.25 per side becomes £4.50 per round-turn lot.
Sources
Figures as published by each broker on its own website.
Is Pepperstone regulated by the FCA?
Yes. Pepperstone Limited is authorised and regulated by the Financial Conduct Authority under firm reference 684312, and is registered in England and Wales as company 08965105.
Is a raw-spread account always the cheaper choice?
Usually for regular FX traders, not always. Razor charges a tight spread plus commission; Standard charges a wider spread and no commission. At Pepperstone's published averages, a round-turn EUR/USD lot costs 0.1 pips plus £4.50 on Razor, against 1.1 pips on Standard.
Does FCA regulation protect me from trading losses?
No. It governs how the firm treats you and your money, through leverage caps, negative balance protection, segregation and FSCS eligibility. Losses from your trades remain yours.
Spread bets and CFDs are complex instruments and carry a high risk of losing money rapidly because of leverage. 73.6% of retail investor accounts lose money when trading spread bets and CFDs with Pepperstone Limited. Consider whether you understand how these products work and whether you can afford to lose your money. This page is general information, not investment advice.