Pepperstone and Tickmill are both respectable brokerages with a lot of features to offers. How do they compare in terms of spread?
Which broker, Pepperstone or Tickmill, is better regarding spreads? If we compare the spreads between Tickmill and Pepperstone, Tickmill has a much lower spread than Pepperstone. However, we must also note that Pepperstone is more trustworthy than Tickmill. Let's break down the explanation below.
Tickmill Spreads by Account Type
Tickmill is a broker established in 2015 and created by an experienced team of global market traders who understand what traders require to attain their maximum potential. It's great that the broker offers three distinct account types so they can meet the requirements of a wide variety of traders. You can try the Classic, the Pro, or the VIP account.
To dive further into the spreads offered at Tickmill, we must look at the different real account types it offers and the breakdown of each one of them. This will help us understand which account type is better regarding spreads and commissions. They are as follows:
Spreads in Classic Account
The most basic account offered at Tickmill is their classic account. However, this account is not basic at all. The classic account charges zero commissions and requires a minimum deposit of just $100. Despite this, their spreads are not so forgiving. Spreads on the classic account begin at 1.6pips. If you're a scalper, this may be a lot for you. However, this may be great if you're a long-term or beginner trader.
See Also:
Spreads in Pro Account
If you want to get the best of both worlds, the pro account is just the one for you. Requiring a minimum deposit of just $100, you can enjoy spreads that begin at 0.0 pips. However, there is a catch. This account does charge a commission of 2 per side per 100,000 traded. Depending on what type of trader you are, I'd say this is still a steal.
See Also:
Spreads VIP Account
Last but certainly not least, who can forget the VIP account offered by Tickmill? This account has spreads that begin at 0.0 pips, and its commission fees are also quite reasonable. The commissions on the VIP account are only 1 per side per 100,000 traded. So, whether you're a scalper or a swing trader, this should be your best account. However, remember that it requires a minimum balance of $50,000.
See Also:
Pepperstone Spreads by Account Type
Pepperstone is a broker that is widely considered one of the most reputable trading providers. Pepperstone caters to the specific requirements of each trader by providing a wide variety of account types.
To dive further into the spreads offered at Pepperstone, we must look at the different real account types it offers and the breakdown of each one of them. This will help us understand which account type is better regarding spreads and commissions. They are as follows:
Standard Account Spreads
The most basic account offered by Pepperstone is called the Standard account. This account has spreads that begin at 1.0 pips but increase depending on the market volatility. It is also important to note that this account charges commissions that begin at $7 round turn for every $100K traded.
Razor Account Spreads
If you want a more upscale trading account, the razor account is for you. The pips for this account started from 0.00 pips due to the nature of Pepperstone as an ECN broker. But, in reality, charges you about 1.0 to 1.3 pips on average. However, you can enjoy the benefit of zero commissions. If you're a new trader still dipping your toes in the industry, there is no better way to start your trading career.
Final Verdict
Pepperstone is one of the most well-known trading brokers in the world. They have a demonstrated history of delivering outstanding and cutting-edge trading conditions, supported by industry-leading customer service. They are widely known for being one of the major forex brokers in terms of volume, and they have stringent regulations to ensure that you may trade without worrying about losing your money.
In general, I found Tickmill to be a very advanced online broker that was, at the same time, quite easy to use. They also provided a professional service appropriate for traders of all experience levels. The spreads and commissions are among the lowest in the industry, and the accounts are adaptable enough to meet the requirements of various traders. Because they are regulated in several jurisdictions, I am free to concentrate solely on my trading, and should I want assistance, the support team is easy to contact.
Spread is one of the most important factors in trading. Not only can it affect your trading cost, but it also affects your profit as well. How does spread affect profit in forex?
20 Comments
Theo
Mar 21 2023
Okay, here's the deal. I agree that Tickmill has better spreads than Pepperstone. The article mentioned that Tickmill's Pro and VIP accounts offer 0.0 pips, while Pepperstone charges an average of 1.0-1.3 pips for their spreads. While I now know who offers better spreads, the Pro and VIP accounts are not beginner-friendly.
Now, I'm curious about why both brokers offer higher spreads for their standard accounts. For instance, Tickmill offered 1.6 pips of their spread and Pepperstone charge 1.0 pips.
Santi
Mar 21 2023
The reason why brokers offer higher spreads on their standard accounts is because they usually come with other benefits that appeal to beginner traders, such as lower minimum deposit requirements or simpler trading conditions. ((For example, TickMill standard account offered zero commission). On the other hand, the pro accounts often require higher minimum deposits and have more complex trading conditions but offer lower spreads as a result. Read also : Which is Better? Commision or Spread
Brokers also use spreads as a way to make money. They receive the difference between the bid and ask prices, and this is known as the spread. So, even though the spreads on standard accounts are higher, they can still be profitable for the broker because they may attract more beginner traders who will trade more frequently.
Harry
Mar 21 2023
So, I've been checking out Pepperstone lately. Even though the article says their trading fees might be higher than Tickmill's, they seem like a more reliable broker to me. The article mentioned how Pepperstone has won a bunch of awards, and they use really advanced technology in their business. Plus, get this: they process around $8.3 billion worth of deals every single day! That's a ton of traders using their platform. And when I checked out their rating on this website, they've got a solid 4.3 out of 5 stars.
But hey, I've got a question for you: does Pepperstone accept US traders? They seem like a top-notch broker based on their track record!
Samuel
Mar 21 2023
Pepperstone does not accept clients from the United States due to regulatory restrictions. However, they do accept clients from many other countries around the world. If you dont know why? It is because the regulatory reasons. The broker is regulated by the Australian Securities and Investments Commission (ASIC) and the Financial Conduct Authority (FCA) in the United Kingdom, but it is not registered with the U.S. Commodity Futures Trading Commission (CFTC) or the National Futures Association (NFA), which are the regulatory bodies responsible for overseeing forex trading in the United States. Therefore, Pepperstone cannot legally accept U.S. clients at this time. If you are US Traders, and want to find the brokers that accept US Trader, you can read at this information : US Client Brokers
Eddie
Mar 21 2023
I think it is due to the FATCA. Basically, FATCA makes it mandatory for foreign financial institutions to report on the assets and identities of their US customers to the US Internal Revenue Service (IRS). This adds a bunch of compliance costs for foreign brokers, and if they don't comply, they can get hit with some major penalties.
If a broker goes against the regulations related to accepting US traders, they can get some seriously harsh penalties. This might include getting slapped with some hefty fines, losing their license, facing legal action, and taking a hit to their rep. The penalties can vary depending on the specific violation and regulatory authority involved. For example, the US Commodity Futures Trading Commission (CFTC) can whack them with fines up to $1 million per violation, while the National Futures Association (NFA) can hit them with fines up to $250,000 per violation. In some cases, they might even have to return any profits they made from their shady activities - that's called disgorgement of profits.
Danny
Mar 26 2023
When it comes to spreads, I'm interested in the fact that both Tickmill and Pepperstone offer spreads as low as 0.0 pips. While Pepperstone is known to be an ECN broker, I'm not sure about Tickmill's status, especially since their VIP account also offers 0.0 pips. However, I'm concerned about the average spreads when trading with Tickmill, as some articles suggest they may range from 1.0 to 1.3 pips with zero commission. I'm wondering whether Tickmill can also be considered an ECN broker, and whether as a beginner, STP execution can still be a good option for trading. Thank you!
Le Roy
Mar 26 2023
Yeah, both Tickmill and Pepperstone can be considered as ECN brokers because they offer ECN/STP execution. This means you get direct access to liquidity providers and can trade with interbank spreads, which can be pretty tight and variable during normal market conditions. However to make sure they are really ECN, you can contact their Customer Service.
If you're a beginner, you can still go for STP execution. It's a good option if you want a transparent and reliable trading environment. With STP execution, your trades are routed to liquidity providers, so you can get access to competitive spreads and maybe even improve your pricing.
Just keep in mind that during extreme market volatility, STP execution may not always provide the best pricing, as liquidity providers may not be available. So in those cases, ECN execution could offer better pricing and faster order execution.
In the end, it all depends on your trading style and what you're comfortable with. As a beginner, it's important to do some research and choose a broker that provides a trading environment that suits your needs, and offers the necessary resources and support for you to learn and improve your trading skills.
Salinas
Mar 26 2023
@danny, ECN spreads are not always 0.0, my friend. In fact, they can be pretty variable and change fast depending on stuff like how much people are trading and if liquidity providers are around.
ECN stands for Electronic Communication Network, which is just fancy talk for tech that lets forex traders access a bunch of liquidity providers, like banks, hedge funds, and other brokers. That way, traders can get the best available prices for buying and selling.
The cool thing about ECN trading is that you can get access to tighter spreads and better pricing, especially when things are going normally. But just be aware that some ECN brokers might charge you a commission or add to the spread, which can bump up the cost of trading.
Overall, ECN brokers offer a more transparent and direct trading environment, which can be great for traders looking to save some cash on their trades. You can learn more about ECN at here : What Are ECN Broker?
Frendy
Mar 26 2023
Yo, man! I've noticed that whether I'm dealing with fixed or variable spreads, I always seem to get hit with high spreads and slippage during crazy volatile times and big news releases. It's costing me some serious cash, so I wanted to know how Tickmill and Pepperstone handle spreads during those hectic moments and what they do to prevent slippage. I mean, they may advertise super low spreads of like 0.0 or just 1 pip, but is that even realistic during the chaos of a wild market?
Also, got any tips for snagging good spreads during news announcements? I know there's gotta be some sweet opportunities to make bank during those times, right?
Wesley
Mar 26 2023
When things get crazy during volatile times and news announcements, it's pretty normal to get hit with high spreads and slippage, whether you're rocking a fixed or variable spread. To check out how Tickmill and Pepperstone deal with this, you can use their 0.0 pips account to get a tighter spread that reflects what's actually going down in the market. But keep in mind, even with the tightest spreads, there's no guarantee that you'll get lower spreads during announcements since the market's spread can still widen!
If you're trying to get in on the action during news announcements, one tip is to chill and wait for the market to settle down before jumping in. The spreads and volatility are usually off the charts when the news first drops, so give it some time. You can also try using limit orders to avoid slippage and score a better price. (you can learn the limit order in here : MT4 and MT5 Pending orders)
But just remember, trading during high volatility periods and news announcements is always a bit of a gamble, so be sure to have a solid risk management plan in place!
Jesse
Apr 3 2023
Hey, I'm new to forex trading and I want to learn how to trade. I noticed there's a difference in spread between Tickmill and Pepperstone. The author suggests that beginners should choose the Classic account in Tickmill and the Standard account in Pepperstone. However, I chose Tickmill because it has no commission, unlike Pepperstone that offered lower spread as 1.00 pips but the commission is around $7 which is very high commission to me.
My next question is, as a beginner with a $100 deposit, what is the best trading style for me?
Grealish
Apr 3 2023
In my opinion, it's better for beginners to start with a swing trading style because it allows for a more relaxed trading approach with longer trading times. With swing trading, you can carefully analyze the market and learn at a slower pace.
Day trading and scalping require more skill and experience to read the market quickly, which can be difficult for beginners and lead to mistakes. However, this is just my opinion, and it's important to find the trading style that suits your individual goals and preferences. You can try out different styles using a demo account and good luck!
Jacky Leonardo
Apr 3 2023
G'day mate, I reckon the razor account that has 0.0 spread feature on Pepperstone. It sounds bloody interesting, eh? The article also says it's an ECN account that offers transparent and deep market access, so it could be a great choice for EA traders, right?
Speaking of Pepperstone, do they have any other platforms besides MetaTrader 4 and 5, or is that all she wrote? And if there are other options, which one's the best? Could ya shed some light on this for me, cheers mate!
Johnson
Apr 3 2023
Let me help ya! In addition to MetaTrader 4 and 5, Pepperstone also offers cTrader as a trading platform option. Each platform has its own strengths and weaknesses, so the best choice for you depends on your personal preferences and trading needs. MetaTrader 4 is the most widely used platform and has a wide range of tools and indicators, while MetaTrader 5 offers more advanced features and can handle more trading instruments. cTrader is known for its user-friendly interface and advanced charting capabilities. The best way to decide which platform is right for you is to test each one using a demo account. Hope that helps, mate!
Lilian
Apr 3 2023
I would suggest choosing cTrader as the trading platform if you're planning to trade with the Razor account in Pepperstone. cTrader is considered to be a great trading platform for ECN trading, as it is designed to work specifically with ECN brokers like Pepperstone. It provides direct access to interbank liquidity and allows for market depth analysis, which can be especially helpful for traders who use order book analysis or scalping strategies. Additionally, cTrader has a user-friendly interface that is easy to navigate, making it a popular choice for both new and experienced traders.
For more information about cTrader and MT5, you can read this article : Which is Better for Raw Spread : cTrader Vs MT5
Cheers!!
Gray
Apr 17 2023
" However, we must also note that Pepperstone is more trustworthy than Tickmill"
Based on that sentence that I took from the articcel, could you please help me understand why Pepperstone is considered safer than Tickmill, particularly in terms of regulation? What specific regulations does Pepperstone adhere to, and what is the regulatory body that oversees their operations? Understanding these details will help me determine if Pepperstone's management practices are of high quality and if they are subject to rigorous oversight from a reputable regulatory body!
Thank you!
Gary
Apr 17 2023
@Gray: Pepperstone is considered safer than Tickmill because it's regulated by more reputable organizations. The Australian Securities and Investments Commission (ASIC) and the UK's Financial Conduct Authority (FCA) are two of the top regulatory bodies that keep an eye on Pepperstone's operations. They enforce strict rules to make sure that everything is fair and transparent, and that clients' money is safe.
Pepperstone has to follow certain terms set out by these regulatory bodies, like keeping a certain amount of money in reserve, keeping client funds separate from their own, and getting audits from independent companies.
Overall, by following all these rules and being regulated by the best, Pepperstone shows they're committed to keeping their clients' money safe and their operations above board. But remember, regulations can vary depending on where you are, so it's always smart to do your research before picking a broker.
Shanon
May 19 2023
I've noticed that when I trade with brokers, the spread I actually get doesn't always match the minimum spread they advertise. It does happen occasionally, but most of the time, the spread seems to be slightly higher. Is there a specific reason for this? I'm particularly curious about the spread comparison between Tickmill and Pepperstone. Can you shed some light on why there might be a discrepancy between the advertised minimum spread and the actual spread experienced by traders? Thank you for any insights you can provide!
Raigor
May 19 2023
@Shanon: Oh, I totally get what you're saying! It's a bit frustrating when you see those minimum spreads advertised by brokers, but then when you actually trade, the spreads are often a bit higher. So why does this happen, right?
Well, there are a few reasons for this sneaky little spread discrepancy. One thing to keep in mind is that the market conditions can play a role. When things get all crazy and volatile out there, like during big news events or when everyone's rushing to make trades, the spread can widen. It's like the demand and uncertainty make the brokers increase the spread a bit.
Another thing is that some brokers offer what's called variable spreads. Basically, it means that the spread can change depending on what's going on in the market. So even though they have a minimum spread listed, it's not set in stone. The spread can move around depending on how things are flowing.
Anna
Jun 2 2023
Hey there! Let's have a little chit-chat about Pepperstone and their razor account. So, here's the deal: Pepperstone claims to be an ECN broker, which means they should offer super tight spreads, right? Well, they do advertise spreads starting from 0.00 pips for the razor account. But in reality, when you start trading, they end up charging you around 1.0 to 1.3 pips on average. What's up with that?
It's a valid question to ask why there's a difference between the advertised spreads and the actual charges on the razor account. As an ECN broker, Pepperstone is supposed to provide direct access to liquidity providers and offer those sweet, tight spreads that traders love. So, what's going on here?