Pepperstone vs CMC Markets on total trading costs
Verdict
- Pepperstone is our pick on total trading costs for most Australian CFD traders because it publishes average spreads, has no inactivity fee and lists free deposits and withdrawals in Australia.
- CMC Markets' published FX minimums are lower: EUR/USD from 0.5 pips on its standard account, or 0.0 plus 0.0025% commission on FX Active, against Pepperstone's 1.0-pip Standard minimum.
- Pepperstone's all-in Razor average on EUR/USD works out at USD 7–8 per round-turn lot, depending on platform.
- CMC charges a fee for a guaranteed stop-loss (refunded if it isn't triggered); Pepperstone doesn't offer guaranteed stops at all.
Total cost is more than the headline spread: commission, share fees, protection orders and account charges all add up. On the parts both brokers publish, here is where Pepperstone is cheaper, where CMC is, and where neither gives you enough to compare.
Our view: Pepperstone for transparent all-in pricing
Pepperstone publishes averages, not just best-case minimums, so you can estimate a month's cost before you trade. Razor averages 0.1 pips on EUR/USD plus USD 3.50 per side on MT5 (USD 3.00 on cTrader); Standard averages 1.1 pips with no commission. Around those prices, Pepperstone's Australian deposit and withdrawal tables are fee-free, and Pepperstone says it charges no inactivity or account-keeping fee. CMC's FX figures are 'from' figures on its UK site, which tell you the floor, not what you typically pay.
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FX cost: averages vs minimums
Compare like with like. At their minimums CMC is cheaper: 0.5 pips against Pepperstone Standard's 1.0, and 0.0025% of a €100,000 position is €2.50 a side on FX Active, against Pepperstone's USD 3.50 on MT5. What we can't tell from CMC's published data is how far its typical spread sits above that floor. CMC's figures come from its UK site; check that CMC Markets Asia Pacific Pty Ltd (AFSL 238054) offers the same accounts in Australia.
| Account | Spread | Commission |
|---|---|---|
| Pepperstone Standard | 1.1 pips (average); 1.0 (minimum, UK page) | None |
| Pepperstone Razor | 0.1 pips (average); 0.0 (minimum) | USD 3.50 per side MT5; USD 3.00 cTrader |
| CMC Markets standard | from 0.5 pips (minimum) | None |
| CMC Markets FX Active | from 0.0 pips (minimum) | 0.0025% per transaction |
Costs beyond the spread
- Share CFDs: Pepperstone charges 0.07% per side on Australian shares, 0.10% on UK and German shares, 0.20% on Hong Kong shares and USD 0.02 a share on US stocks, with no minimums. CMC's share CFD commission isn't in our data.
- Guaranteed stops: CMC charges a fee to attach a GSLO and refunds it in full if the stop isn't triggered. Pepperstone has no GSLO, which costs nothing upfront but leaves you exposed to slippage.
- Index CFDs: Pepperstone charges no commission and publishes averages, e.g. AUS200 1.5 points and US500 0.4. CMC index spreads aren't in our data.
- Overnight financing: neither broker's swap rates are in our data; check them in the platform before holding positions.
Which is cheaper for you
- High-frequency EUR/USD trader on cTrader: Pepperstone Razor, at USD 7 a round-turn lot on published averages.
- Occasional trader who values guaranteed stops: CMC, accepting the GSLO fee when it triggers.
- ASX share CFD trader: Pepperstone's 0.07% per side is published; ask CMC for its rate and compare.
Sources
Is CMC Markets cheaper than Pepperstone on forex?
On minimum spreads, CMC's published figures are lower. Pepperstone publishes averages as well, so its typical cost is easier to estimate; CMC's averages aren't in our data.
Does Pepperstone charge an inactivity fee?
No. Pepperstone says it has no inactivity or account-keeping fee, though accounts under 10 currency units left unused for three months or more may be archived.
Are both regulated by ASIC?
Yes: Pepperstone Group Limited under AFSL 414530 and CMC Markets Asia Pacific Pty Ltd under AFSL 238054.
CFDs and margin FX are complex, leveraged products with a high risk of losing money rapidly. Read Pepperstone's PDS and TMD and decide whether you can afford that risk. This page is general information, not investment advice.