How do Pepperstone and IG compare on spreads and commission?
Verdict
- Pepperstone, our pick, offers two pricing models: Razor at a 0.1-pip EUR/USD average plus commission ($3.50 per side on MT5, $3.00 on cTrader), or Standard at 1.1 pips average with no commission.
- IG charges no commission on standard CFDs and spread bets and publishes EUR/USD 'from 0.6 points', a minimum, not an average.
- Like for like at the minimums, Razor on cTrader costs $6 a lot round turn and IG's 0.6 points about $6; Pepperstone's spread bet minimum of 0.5 is lower than IG's.
- IG does not publish an average EUR/USD figure in our data, so Pepperstone's Razor average cannot be matched against it.
IG and Pepperstone price trades differently: IG builds its charge into the spread, while Pepperstone lets you choose between a raw spread plus commission and a commission-free spread. Here is how the published numbers line up.
Pepperstone's two pricing models
Razor gives you the raw interbank spread (EUR/USD minimum 0.0, average 0.1 pips) and charges commission per lot: $3.50 per side on MT5, TradingView and the Pepperstone platform, $3.00 on cTrader, or £2.25 per side on a GBP account. Standard bundles a one-point mark-up into the spread (EUR/USD minimum 1.0, average 1.1) with no commission. For active FX traders, Razor is usually the cheaper of the two.
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One lot of EUR/USD, priced both ways
Round-turn cost of one standard lot (100,000 units) in a USD account, at $10 per pip. Minimums are best-case; averages are what Pepperstone says you typically pay.
| Account | Spread | Commission | Total |
|---|---|---|---|
| Pepperstone Razor, cTrader (minimum) | 0.0 = $0 | $6 | $6 |
| Pepperstone Razor, cTrader (average) | 0.1 = $1 | $6 | $7 |
| Pepperstone Razor, MT5 (average) | 0.1 = $1 | $7 | $8 |
| Pepperstone Standard (average) | 1.1 = $11 | $0 | $11 |
| IG (from 0.6 points) | 0.6 = $6 | $0 | $6 |
Reading the comparison fairly
At the best-case figures, IG's 0.6 points and Razor on cTrader land at about the same $6. The difference is that Pepperstone also publishes an average, and that average (0.1 pips) keeps Razor's total at $7 on cTrader; IG gives no average in our data, so its typical cost is unknown. Against Pepperstone's Standard account, IG's commission-free pricing looks cheaper at both firms' published figures. For spread bettors, Pepperstone's EUR/USD minimum of 0.5 is below IG's 0.6.
Costs beyond EUR/USD
- Share CFDs at Pepperstone: 0.10% per side on UK shares (minimum £0.01) and $0.02 per share on US shares. IG's share commissions are not in our data.
- Guaranteed stops: IG charges a premium only if triggered; Pepperstone does not offer them.
- Inactivity: Pepperstone charges no inactivity fee.
Sources
Pricing as published by each firm.
Does IG charge commission on forex?
Not on standard spread bets and CFDs, according to IG's UK forex page; its cost is in the spread, quoted from 0.6 points on EUR/USD.
What is Pepperstone's commission on Razor?
From £2.25 per lot per side on a GBP account; $3.50 per side on MT5 and TradingView, and $3.00 per side on cTrader for FX on a USD account.
Which is cheaper for a beginner trading small sizes?
It depends on the account. Pepperstone's spread betting account (EUR/USD minimum 0.5, no commission) undercuts IG's published minimum, while Pepperstone Standard is wider than IG.
Trading on margin magnifies losses as well as gains. Spread bets and CFDs are complex and high-risk: 73.6% of retail investor accounts lose money when trading them with Pepperstone Limited. Fees and terms change, so confirm them on each broker's own site before you trade. Not investment advice.