Is Pepperstone or CMC Markets better for beginners in the UK?
Verdict
- For most UK beginners we prefer Pepperstone. It publishes average spreads, so you know your typical cost, it has five platforms on one account, and its negative balance protection and FSCS cover are clearly stated.
- CMC Markets is the better choice for a beginner who wants guaranteed stops. It sells them, and refunds the fee if the stop isn't triggered. Pepperstone doesn't offer them.
- On EUR/USD minimums, CMC's standard account is lower: from 0.5 pips, against 1 pip on Pepperstone Standard. Pepperstone's spread bets also start at 0.5.
- Both firms are FCA-authorised and offer spread betting and CFDs, so either is a regulated place to start.
Both are long-established FCA firms, so neither is a risky choice. The question is which suits someone new. Pepperstone wins on transparency and platform choice, and CMC Markets wins on guaranteed stops and having no minimum deposit. Here is the comparison on each firm's own published terms.
Our answer: Pepperstone for most beginners, CMC if you want guaranteed stops
Pepperstone suits a beginner who wants to know what trading will cost. It publishes an average EUR/USD spread of 1.1 pips on its commission-free Standard account, where CMC publishes only a minimum. It also suits beginners who want room to grow: the same Pepperstone Limited account (FCA 684312) can run on its own app now and on TradingView, MT5 or cTrader later. If the idea of a stop slipping past your level worries you, CMC's guaranteed stop is a real advantage, and we say so below.
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Pepperstone and CMC Markets compared for a new UK trader
| Pepperstone | CMC Markets | |
|---|---|---|
| UK company and FCA ref. | Pepperstone Limited, 684312 | CMC Markets UK plc, 173730 |
| Spread betting and CFDs | Both | Both |
| Minimum deposit | £10 by card; no minimum by bank transfer | None |
| EUR/USD, commission-free account | 1.1 pips average (1 pip minimum) | From 0.5 pips |
| EUR/USD, raw pricing | Razor 0.1 pips average + £2.25 per side (GBP) | FX Active from 0.0 + 0.0025% per side |
| Spot gold, commission-free | 0.19 | From 0.2 points |
| Guaranteed stops | Not offered | Yes, fee refunded if not triggered |
| Platforms | Own web and app, MT4, MT5, cTrader, TradingView | Next Generation, mobile app, MT4 |
| Negative balance protection | Yes, for retail | Not confirmed in our data |
Where CMC Markets is the better beginner choice
- Guaranteed stops. A beginner can fix the worst-case loss on a trade, and CMC refunds the fee if the stop isn't hit.
- No minimum deposit, against Pepperstone's £10 card minimum. Pepperstone bank transfers have no minimum either.
- A lower EUR/USD minimum on the standard account: from 0.5 pips, against Pepperstone Standard's 1 pip.
- Clear withdrawal timings: CMC says requests made before its 4pm UK cut-off are processed the same day, and UK bank transfers then take one to two working days.
Where Pepperstone is the better beginner choice
- You can see your typical cost, because Pepperstone publishes averages and CMC publishes 'from' figures.
- More platforms to grow into: TradingView, cTrader and MT5 as well as MT4 and its own app.
- Protections clearly stated: retail negative balance protection, segregated client money and FSCS cover up to £85,000 for eligible clients.
- Quick card withdrawals, which Pepperstone lists as same day to 1 working day.
A simple way to decide
- If you plan to hold trades over weekends or through company results, choose CMC Markets for guaranteed stops.
- If you want TradingView or cTrader, or simply clearer cost figures, choose Pepperstone.
- Whichever you choose, start with a small deposit and test a withdrawal before trading more.
Sources
Is CMC Markets cheaper than Pepperstone?
We can't say for typical trades. CMC publishes 'from' spreads and Pepperstone publishes averages, so the figures aren't like for like. On minimums alone, CMC's standard EUR/USD (0.5) is lower than Pepperstone Standard (1).
Do both offer spread betting to UK beginners?
Yes. Pepperstone and CMC Markets both offer spread betting and CFDs in the UK.
What leverage does each allow for UK retail clients?
Both follow FCA caps. Pepperstone lists 1:30 on major FX. CMC publishes margin rates from 3.34% on forex and 5% on indices and commodities.
Both firms offer leveraged CFDs and spread bets, which carry a high risk of losing money rapidly. 73.6% of retail investor accounts lose money when trading spread bets and CFDs with Pepperstone Limited. Check each firm's current terms before you open an account. This comparison is not investment advice.