What is the difference between a Pepperstone Razor and Standard account?
Verdict
- Pepperstone's Razor account charges raw spreads (EUR/USD 0.1 pips average) plus a commission; the Standard account charges no commission but a wider spread (EUR/USD 1.1 pips average).
- At the published averages, a round lot of EUR/USD costs about $8 on Razor via MT5 and $11 on Standard.
- In the UK, MT4 and TradingView are available on Razor only; Standard runs on Pepperstone's platform, MT5 and cTrader.
- Both share the same £10 minimum deposit, 1:30 retail leverage on major FX and FCA oversight; UK residents can add a spread betting account too.
The two accounts trade the same markets with the same protections. What changes is how you pay: Razor separates the cost into a tight spread and a visible commission, while Standard bundles everything into the spread. That choice also decides which platforms you can use in the UK.
Pricing: commission versus mark-up
On Razor, Pepperstone passes through raw FX spreads from 0.0 and charges commission per lot: $3.50 a side on MT5, TradingView and its own platform, $3.00 on cTrader, or £2.25 in a GBP account. On Standard there is no commission except on shares; instead Pepperstone adds a 1-point mark-up on FX inside the spread. For anyone who trades FX regularly, Razor is usually the better account, and it is the one we recommend opening first.
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Cost per round lot, worked out
| Pair | Razor via MT5 | Razor via cTrader | Standard |
|---|---|---|---|
| EUR/USD | 0.1 pips ($1) + $7 = $8 | $1 + $6 = $7 | 1.1 pips = $11 |
| GBP/USD | 0.2 pips ($2) + $7 = $9 | $2 + $6 = $8 | 1.2 pips = $12 |
Platforms differ in the UK
- Razor CFD account: Pepperstone web and app, MT5, MT4, TradingView and cTrader.
- Standard CFD account: Pepperstone web and app, MT5 and cTrader. No MT4, no TradingView.
- Spread betting account: Pepperstone web and app, MT5, MT4, TradingView and cTrader.
What stays the same
Both are CFD accounts with Pepperstone Limited, regulated by the FCA (684312), with the same retail leverage caps (1:30 major FX, 1:20 major indices and gold, 1:5 shares), negative balance protection and FSCS cover for eligible clients up to £85,000. Share CFDs carry commission on both, for example 0.10% per side on UK shares. Overnight financing applies on both when you hold positions.
Which one should you pick?
- Choose Razor if you trade FX or gold often, scalp, or use MT4 or TradingView in the UK.
- Choose Standard if you prefer one all-in price on screen and trade small and rarely.
- Consider the spread betting account instead if you are a UK taxpayer: Pepperstone says spread betting profits are exempt from capital gains tax, though treatment depends on your circumstances and can change.
- You can hold more than one account, so you can run Razor and a spread betting account side by side.
Sources
Is Razor always cheaper than Standard?
On EUR/USD and GBP/USD at the published averages, yes: about $8 vs $11 and $9 vs $12 per round lot on MT5. Check other instruments individually.
Can I switch from Standard to Razor later?
You can hold several Pepperstone accounts at once, so you can open a Razor account alongside your Standard one.
Do both accounts have the same minimum deposit?
Yes, £10 in the UK.
CFDs are complex and leveraged, and you can lose money quickly. Consider whether you understand how they work and whether you can afford the risk. Not investment advice; spreads and fees quoted are the brokers' own published figures and can change.