There are two types of Pepperstone trading accounts: Razor and Standard accounts. What is the difference between the two and which one suits you best?

pepperstone trading account

It's very common for a broker to offer more than one trading account. Most brokers tend to assign different trading conditions in each of their accounts. This is because each account is addressed to help different types of traders. Thus, knowing what to look for before choosing which trading account suits you.

Pepperstone is a good example of a broker with various account types, namely the Standard and Razor accounts. Each of their accounts caters to different traders. Here is the general idea of the account specifications.

Feature Pepperstone Standard Account Pepperstone Razor Account
🔢Spread 1.0 pips 0.0 pips
💸Commission $0.08 round turn per 0.01
Instruments Forex, indices, commodities, cryptocurrencies, and shares Forex, indices, commodities, cryptocurrencies, and shares
💰Deposit AUD200 or equivalent AUD200 or equivalent
⚖Leverage 1:30 1:30
Allowed Strategies Hedging, scalping, Expert Advisor Hedging, scalping, Expert Advisor
💻Platforms MT4, MT5, cTrader, TradingView MT4, MT5, cTrader, TradingView
⚡Execution Type Market execution Market execution

Many argue that Pepperstone's Standard account is suitable for beginners. On the other hand, the Razor account is said to work best for scalpers. Is this true?


Understanding Pepperstone Trading Account

Pepperstone understands that each trader has different needs regarding trading conditions. This is why this broker is equipped with two different trading accounts.


Standard Account

The first Pepperstone trading account to talk about is the Standard account. This account type is the 'default' one so it's normal for most traders to choose this account. This is a good account for new traders as it helps them grasp trading in general. Usually, the Standard account has a much higher spread but no commission fees, but what about the Pepperstone Standard account?

Considering this is a Standard account, Pepperstone actually has quite a low spread for this account. With just 1.0 pips, the Pepperstone Standard account can be considered as carrying one of the lowest spreads in the market.

Pepperstone uses multiple liquidity providers from Tier 1 Banks to provide the lowest spread. Not to mention, traders won't be charged a commission fee here. This account has no swap fee, so it is the perfect choice for long-term traders.

Pepperstone Standard account can be accessed through multiple trading platforms, including MT4, MT5, cTrader, and TradingView. In order to  start a live account, traders should deposit some money. Pepperstone's Standard account does not set a minimum amount of money, but they suggest traders fund their account with at least AUD200 or equivalent.

Leverage is also available in this account with a maximum amount of 1:30. This account uses market execution order to ensure traders have flexible pricing through all the available instruments, including forex, indices, commodities, cryptocurrencies, and shares. Here is the spread for major pairs in the Pepperstone Standard account.

pepperstone standard


Razor Account

Aside from the Standard account, Pepperstone also comes with a special account to offer low spreads. The Razor account type in Pepperstone is created for that particular purpose. It is the best choice for both scalpers and algorithmic traders alike.

The Razor account in Pepperstone offers a spread from 0.0 pips and a regular commission fee that starts from $0.08 round turn per 0.01 lots traded. The commission fees may change based on the trader's account, platform, and base currency. For example, traders who use EUR for their trading account currency will have to pay EUR0.06 round turn commission fees per 0.01 lots.

Here is the spread for the Pepperstone Razor account for major pairs.

pepperstone razor

That said, traders should understand that a low spread means a commission will be involved. This is the example of Pepperstone Razor account commission for MT4 and MT5 accounts.


Meanwhile, cTrader and TradingView users will be charged commissions of $3.00 per 1 lot per side.

There is also leverage available with a maximum amount of 1:30. The recommended minimum deposit is about the same as the Standard account, which uses Non-Dealing Desk executions.


What Else to Know?

Despite the differences in several features, both Pepperstone trading account has similar benefits. To start with, both Standard and Razor accounts have 0.01 minimum lot. This means traders can take more minor positions. Both accounts also allow scalping, hedging, and Expert Advisors, making them more flexible for all trading strategies.


Which Pepperstone Account is the Best?

Choosing which Pepperstone trading account is the best is hard if you don't know what to look for. Here are some essential features to consider when choosing a trading account.

  1. Spreads and Commissions: Spread and commission can directly affect your trading cost, which explains why traders typically seek accounts with the lowest spreads to minimize expenses.
  2. Minimum Deposit: The minimum deposit amount can also affect how much you have to spend money on your trading accounts. Beginners typically look for brokers with low minimum deposits since they're still inexperienced.
  3. Leverage: Leverage can impact your gain and losses in trading.
  4. Instrument Choices: While not all traders keep a wide variety of assets in their portfolios, having more choices is always suitable for analyzing market correlation and diversifying the risk.
  5. Execution Type: Traders must pay attention to what kind of executions the broker applies as it will directly affect the trading quality.
  6. Trading Platforms: Like it or not, trading platforms are where traders spend most of their trading activities. Most brokers mainly stick to MT4, MT5, and cTrader, with the occasional in-house platforms.
  7. Allowed Strategies: Things like hedging, scalping, and even Expert Advisor should be considered when choosing the right trading account.

To put it into perspective, Pepperstone basically applies the same condition to both the Standard and Razor accounts in terms of minimum deposit, leverage, instrument choices, execution type, trading platforms, and allowed strategies.

As such, you can choose the best Pepperstone account by the spreads and commissions. With a slightly bigger spread but no commission fees, Standard Account is much simpler and, thus, is better for new traders.

On the other hand, the Razor account has tighter spreads and is much better for experienced scalpers.


Pepperstone is a multi-asset brokerage that offers Cryptocurrency, indices, forex, and many more. This broker is known for a highly-rated software solution, ultra-low fees, fast execution speeds of 30ms, and innovative Crypto products.