Pepperstone or IC Markets, which has lower spreads?
Verdict
- IC Markets has the lower published spreads, 0.01 pips average on EUR/USD on its Raw Spread account against 0.1 on Pepperstone Razor; with commission added the gap is about $0.90 a lot on MT5 and close to nothing on cTrader, and Pepperstone stays our pick for UAE residents because of its AED accounts and local bank funding.
- IC Markets also leads on GBP/USD (0.04 vs 0.2), USD/JPY (0.03 vs 0.3) and gold (0.09 vs 0.12), all as published averages.
- Both charge $3.50 per side on their raw accounts; Pepperstone drops to $3.00 per side on cTrader for forex.
- IC Markets lists companies in Seychelles, Cyprus and Australia, and publishes no AED account and no Gulf funding method.
If spread is your only criterion, IC Markets wins on paper. But spread is only part of what you pay, and for a trader in the UAE the account currency and funding route carry costs too. Here is the pair-by-pair comparison and the all-in arithmetic.
The answer in one line
IC Markets publishes lower raw spreads; Pepperstone is the better UAE package. On EUR/USD the difference between them is smaller than a single pip of slippage, while Pepperstone adds an AED base currency, Mashreq Bank and Barclays transfers, a Dubai office and a DFSA-regulated DIFC company, none of which IC Markets lists.
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Published average spreads, pair by pair
Both brokers present these figures as averages, so this is a like-for-like comparison. Minimums are lower still (IC Markets lists 0.0 on EUR/USD), but nobody trades at the minimum all day.
| Instrument | Pepperstone Razor | IC Markets Raw Spread |
|---|---|---|
| EUR/USD | 0.1 | 0.01 |
| GBP/USD | 0.2 | 0.04 |
| USD/JPY | 0.3 | 0.03 |
| XAU/USD | 0.12 | 0.09 |
| Commission per side | $3.50 ($3.00 on cTrader for FX) | $3.50 |
Add the commission: cost per standard lot
On one lot of EUR/USD or GBP/USD a pip is worth $10. Round-trip commission is $7 on both raw accounts, or $6 on Pepperstone's cTrader for forex:
- EUR/USD: IC Markets $0.10 + $7 = $7.10; Pepperstone MT5 $1 + $7 = $8; Pepperstone cTrader $1 + $6 = $7.
- GBP/USD: IC Markets $0.40 + $7 = $7.40; Pepperstone MT5 $2 + $7 = $9; Pepperstone cTrader $8.
- Gold, 100 ounces: IC Markets $9 + $7 = $16; Pepperstone $12 + $7 = $19 (cTrader gold commission is also $3.50 per side).
- At 10 EUR/USD lots a day on MT5, the gap is about $9 a day; on cTrader it is effectively zero.
The commission-free accounts can't be compared on paper
Pepperstone's Standard account publishes an average of 1.1 pips on EUR/USD. IC Markets' Standard account says 'from 0.8 pips', which is a minimum rather than an average, so the two numbers measure different things. If you prefer commission-free pricing, watch both live spreads at the same time of day before deciding.
What the spread table leaves out for UAE traders
- Account currency: Pepperstone offers AED. IC Markets' ten base currencies (AUD, USD, EUR, CAD, GBP, SGD, NZD, JPY, HKD, CHF) don't include it, so dirham deposits get converted.
- Funding: Pepperstone lists Mashreq Bank and Barclays transfers in the UAE; IC Markets publishes no Gulf funding method.
- Regulation: Pepperstone's UAE accounts sit with its Bahamas company, inside a group with a DFSA-regulated DIFC company. IC Markets lists Seychelles, Cyprus and Australia, and its pages don't confirm whether it accepts UAE residents.
- Withdrawals: IC Markets says card withdrawals can take 3–5 business days and international wires up to 14 days; Pepperstone lists card withdrawals within 1 business day in the UAE.
Sources
Spreads and account terms as each broker publishes them.
Which is better for scalping, Pepperstone or IC Markets?
On EUR/USD, Pepperstone on cTrader and IC Markets Raw cost about the same per lot (around $7). On GBP/USD and gold, IC Markets' published averages are lower.
Does IC Markets accept clients from the UAE?
Its regulation pages list entities in Seychelles, Cyprus and Australia, and we couldn't confirm UAE eligibility from its own site. Ask before you apply.
Are these spreads guaranteed?
No. Both brokers publish averages, and live spreads widen around news and at the daily rollover.
What about Capital.com and XS?
We hold no published EUR/USD average for Capital.com. XS's Elite account is published at 0.1 pips average on EUR/USD with a $6 round-turn commission and a $500 minimum, about $7 per lot.
Trading CFDs and forex on margin is high risk: leverage can wipe out a deposit quickly, and these products are complex. Nothing here is investment advice. Broker fees, licences and account terms change, so check them on the broker's own site before you sign up.