Pepperstone vs XM for Australian traders
Verdict
- For Australian traders the choice is Pepperstone: XM doesn't accept Australian residents and lists no ASIC licence, while Pepperstone Group Limited holds AFSL 414530.
- XM's licences are CySEC (120/10), the Belize FSC and the DFSA in Dubai; none of them covers Australia.
- If you want a second ASIC-licensed option, Capital.com (AFSL 513393) is our runner-up in Australia.
- Opening with an offshore entity would put your account outside ASIC's retail leverage caps and negative-balance protection.
The comparison ends early: XM doesn't take Australian clients. What matters more is why an ASIC licence is the right starting point, and how Pepperstone's Australian account sets up against what XM offers elsewhere.
The direct answer: Pepperstone, because XM isn't available
Our broker database marks XM as not accepting Australian residents, and XM's regulation page lists no Australian licence: its entities are regulated by CySEC in Cyprus, the FSC in Belize and the DFSA in Dubai. Pepperstone Group Limited, by contrast, is licensed by ASIC under AFSL 414530 and based at 727 Collins Street, Melbourne. Its Australian clients get a $10 minimum deposit, AUD accounts, PayID and BPAY funding and the full platform range.
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Why the ASIC licence matters
- Leverage: ASIC caps retail leverage at 1:30 on major FX. XM's Belize entity advertises up to 1:1000, which is the kind of offer an Australian would only see from an offshore company.
- Negative balance: Pepperstone restores a retail account that goes negative to zero.
- Client money: Pepperstone holds retail funds in segregated accounts at banks under the Corporations Act, though no compensation scheme applies and Pepperstone notes there is no guarantee every dollar is returned on liquidation.
- Disclosure: you receive a Product Disclosure Statement and a Target Market Determination.
How the accounts would compare
| Pepperstone | XM | |
|---|---|---|
| Accepts Australian residents | Yes | No |
| Australian licence | ASIC AFSL 414530 | None |
| Minimum deposit | $10 | $5 |
| EUR/USD | Razor 0.1 avg + commission; Standard 1.1 avg | 'spreads as low as zero' (Zero account); no EUR/USD figure published |
| Platforms | Own app, MT4, MT5, cTrader, TradingView | MT4, MT5, XM app |
ASIC alternatives worth comparing
Capital.com, through Capital Com Australia Pty Ltd (AFSL 513393), is our second choice for Australians and offers guaranteed stop-losses, which Pepperstone doesn't. IC Markets (AFSL 335692) and FP Markets (AFSL 286354) are also licensed locally and publish raw-spread pricing.
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Sources
Can Australians open an XM account?
Our broker data lists Australia among the countries XM doesn't accept, and XM shows no ASIC licence.
Is Pepperstone regulated in Australia?
Yes. Pepperstone Group Limited holds ASIC AFSL 414530.
What leverage can I get with Pepperstone in Australia?
As a retail client, up to 1:30 on major FX, 1:20 on major indices and gold, and 1:2 on crypto.
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.