Pepperstone or Plus500, which is better for trading indices?
Verdict
- Pepperstone is our pick for indices: it publishes minimum spreads for each major index (US500 0.4, GER40 0.9, UK100 1, NAS100 1 on Razor and spread bets) and offers index spread betting.
- Plus500 publishes no index spread figures in our data, runs only its own platform, and lists no spread betting on its UK site.
- Plus500's advantage is its Guaranteed Stop Order, charged through a wider spread; Pepperstone doesn't offer guaranteed stops.
- Both are FCA-authorised (Pepperstone Limited 684312; Plus500UK Ltd 509909) and cap retail index leverage, at 1:20 for major indices at Pepperstone.
With index trading the spread is the main cost, so the broker that publishes its index spreads has the advantage. Pepperstone does, market by market; Plus500 does not in the data we could verify.
Why Pepperstone is better for index traders
Pepperstone's UK costs page lists index spreads for every account type, and the spread betting account matches Razor's index minimums with no commission. You can trade 20+ indices (26 index products in its account table) on Pepperstone's platform, MT4, MT5, TradingView or cTrader. For spread bets, Pepperstone states UK profits are exempt from capital gains tax, subject to your circumstances.
Affiliate link — we may earn a commission at no extra cost to you.
Pepperstone index spreads, published minimums
Plus500 earns through its spread and charges no commission, but publishes no comparable index figures in our data, so a like-for-like table isn't possible. Compare the two platforms' live US500 and UK100 quotes at the same moment.
| Index | Razor | Standard | Spread bet |
|---|---|---|---|
| US500 | 0.4 | 0.6 | 0.4 |
| NAS100 | 1 | 1.2 | 1 |
| UK100 | 1 | 1.2 | 1 |
| GER40 | 0.9 | 1.2 | 0.9 |
| JPN225 | 7 | 9 | 7 |
How the two firms differ beyond price
- Platforms: Pepperstone offers MT4, MT5, cTrader, TradingView and its own; Plus500 uses only its own web platform and app.
- Spread betting: available at Pepperstone; none found on Plus500's UK site.
- Guaranteed stops: Plus500 offers a Guaranteed Stop Order on some instruments, priced through a wider spread; Pepperstone offers none.
- Inactivity: Plus500's fees page lists up to $10 a month after three months without a login; Pepperstone charges no inactivity fee.
- Negative balance protection: both, for retail clients.
Index leverage for UK retail clients
At Pepperstone, major indices carry up to 1:20 for retail clients, so a £500 margin supports a £10,000 position on US500 or UK100. A 2% move on that position is £200, or 40% of your margin. Size index trades with that arithmetic in mind, particularly around the US open, when index spreads and volatility can jump.
Sources
Index pricing and terms as published.
Does Plus500 offer index spread betting in the UK?
We found none; Plus500's UK site offers CFDs. Pepperstone offers spread betting on indices.
What is Pepperstone's US500 spread?
Pepperstone UK publishes a minimum of 0.4 on Razor and spread bets, and 0.6 on Standard.
Can I use MT5 for indices at Plus500?
Not in our data: Plus500 lists only its own web platform and app. Pepperstone supports MT5 on all UK accounts.
Spread bets and CFDs are complex instruments and carry a high risk of losing money rapidly because of leverage. 73.6% of retail investor accounts lose money when trading spread bets and CFDs with Pepperstone Limited. Consider whether you understand how these products work and whether you can afford to lose your money. This page is general information, not investment advice.