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?

It's very common for a broker to offer more than one trading account. Evidently, 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, it's very important to know what to look for before choosing which trading account is suitable for you.

Among many brokers, Pepperstone has one of the best trading account choices. The reason is that all Pepperstone trading accounts come with affordable trading costs. What are they and how to choose the best one for your trading style?

pepperstone trading account


What to Look For in a Trading Account

A trading account is an important part of trading. Here are some important features to pay attention to when choosing a trading account.


Spreads and Commissions

Spread is the first thing to look for when choosing the right trading account. It refers to the gap between the bid (from buyers) and the ask (from sellers) prices of a security or asset  The spread of an account can directly affect the trading cost. Most traders are looking for the lowest spread they can find. But in some cases, it might increase commission fees more than what it would cost traders who trade with average spreads. Low-spread accounts are generally good for scalpers or traders who prefer to trade frequently. But for new traders, a Standard account with no commission fee is a good choice since it offers more flexibility.


Minimum Deposit

A deposit is the first thing to 'pay' for when a trader decides to start a live account. In short, the deposit is the initial amount of money traders should provide before entering the market. Because of that, it's important to know whether traders can pay the minimum deposits or not. The minimum deposit amount can vary widely according to the broker's policy and the type of account. In fact, some brokers might not have a minimum deposit requirement at all. In this case, it is good for new traders who tend to be afraid to provide too much money on their first trade. On the other hand, some brokers usually set their minimum at $10,000 or more.



Leverage is an important factor in determining which trading account to choose. The reason is that this feature will directly affect each client's trading power and therefore affect their strategy. Typically, each broker would have a different policy regarding their leverage. Some broker offers high leverage (up to 1:1000 or even more), but some choose to limit their leverage due to the high risks it carries. It's fairly common for a broker to allow 1:50 leverage on their trading account. Any leverage lower than that possessed lower risk and, therefore, better for new traders.


Instrument Choices

This factor is actually very important. Unfortunately, a lot of traders tend to be blindsided by the cheap trading costs that they forget they might trade with limited instrument choice. While not all traders keep a wide variety of assets in their portfolios, having more choices is always good for analyzing market correlation and diversifying the risk. Forex, commodity and stock CFDs are the basics when it comes to instruments, so any broker account that can offer more is considered prominent in their offering.


Execution Type

There are different types of execution orders depending on the broker. It is important that traders pay attention to what kind of executions the broker applies as it will directly affect the trading quality. Generally, there are two types of execution types. The first one is the market executions; it's where the order executions rely heavily on the available market price. The second type is instant execution, which means the broker will execute the order at the trader's desired price.


Trading Platforms

Like it or not, trading platforms are where traders spend most of their trading activities. Trading platforms also come with a lot of features such as price charts, analytical tools, automated trading, depth of market, news, and many more. In short, it can be a great tool to support traders. Many trading platforms are available right now, but brokers mainly stick to MT4, MT5, and cTrader with the occasional in-house platforms. Traders should make sure that their broker offers platforms that they are comfortable using.


Allowed Strategies

Things like hedging, scalping, and even Expert Advisor should be taken into consideration when choosing the right trading account. For example, not all brokers allow scalping for several reasons. This would be a catastrophe for scalpers who accidentally choose a no-scalping trading account. The same goes for hedging and Expert Advisors.


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. What are the differences between the two Pepperstone accounts? Which is suited for beginners, and which is good for professional traders?


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 the majority of traders to choose this account. This is a good type of 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 0.8 pips, the Pepperstone Standard account can be considered as carrying one of the lowest spreads in the market. That is because 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. There is no swap free for this account, 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 to 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 make sure traders have flexible pricing through all the available instruments that include forex, indices, commodities, cryptocurrencies, and shares.


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. Understand that 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.

The Pepperstone Razor account comes with various choices of trading instruments, including forex, indices, commodities, cryptocurrencies, and shares. All of these can be accessed through various trading platforms such as MT4, MT5, cTrader, and TradingView. There is also leverage available with a maximum amount of 1:30. The recommended minimum deposit is about the same as the Standard account and it 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 it's possible for traders to take smaller positions. Both accounts also allow scalping, hedging, and Expert Advisors, making them more flexible for all kinds of trading strategies.


Which Account is the Best?

It is hard to choose which Pepperstone trading account is the best if you don't know what to look for. To put it into perspective, the Standard account has a slightly bigger spread but doesn't charge commission fees. This makes it much simpler and, thus, better for new traders. However, it might not be suitable for scalpers since this account can be expensive for them. On the other hand, the Razor account has tighter spreads and is much better for scalpers. In exchange, traders will have to pay a commission fee.

For a better understanding of Pepperstone trading accounts, check out the comparison below.

Feature Pepperstone Standard Account Pepperstone Razor Account
🔢Spread 0.8 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


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.