Pepperstone can be classified as an ECN broker with a no-desk policy, but not necessarily a true ECN broker。

Pepperstone is one of Australia's best-known brokerage firms, known for its Razor account, which offers institutional-level variable spreads as low as 0 pips. Pepperstone has become a favored choice for international traders。However, potential traders may be wondering: is Pepperstone a real ECN broker？Read on for detailed instructions。

Netizens have different opinions

When you look for answers through search engines, you may find multiple results that contradict each other。Some say, "Yes, Pepperstone is a real ECN broker"; others say, "No, Pepperstone is an STP broker."。

Well, for some very technical reasons, the answer is not that simple。

First, Pepperstone offers two types of accounts, one of which is STP and the other follows the ECN standard。

Second, Pepperstone relies on an innovative STP framework to generate ECN pricing, which falls into the STP category but has its own unique。So, "is Pepperstone a real ECN broker？"The answer to this question depends a lot on what you think of a real ECN broker.。

Pepperstone Official Statement

Pepperstone addressed the controversy in the FAQ section of its website, and the following is a direct quote from January 28, 2023:

"Is Pepperstone an ECN / STP trader or a market maker?？We are often asked this question。Part of the difficulty in answering this question is that 'ECN "and' STP" are marketing terms taken from listed market regimes and different providers The industry gives them different meanings。

A "true ECN" or STP broker is one that introduces a broker or operates under a white label arrangement using someone else's system。

We are the issuer of the products we provide, and we can control the systems we use because we prefer customers to have a direct relationship with us。

That is, we can be considered an "ECN" broker because we do not operate any proprietary trading accounts.。In contrast, we obtain pricing from an external liquidity provider through an electronic communication network (pricing is not provided by us or anyone associated with us), and the pricing will be passed on to you and our other customers without the need for trading desk intervention。

Hedging each trade increases the chance of a problem in the second part of the trade, affecting the first part。Therefore, we do not hedge every position with external liquidity providers because we want to provide you with a better product by providing you with price certainty and the speed with which we deal with you。Rest assured that we take risk management practices very seriously and closely monitor exposures to ensure that they are not exposed to excessive risk。

We consider a "market broker" to be someone who operates a trading desk and creates their own prices, which can be based on their own proprietary trading positions or exposures。We do not currently operate in this manner and therefore do not consider ourselves to be a market maker, although we have market-making authorisation for AFS licences (like all other licensed product issuers in Australia).。"

Pepperstone Admits They Are ECN / STP Brokers, Not Marketers。They also did not specify whether they were STP or ECN brokers.。

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Founded in 2010 by a team of experienced traders working together to improve online trading, Pepperstone is based in Melbourne, Australia and has grown into one of the world's largest forex brokers.。If a trader wants to find a broker that offers low spreads, fast execution and award-winning support, the answer is Pepperstone。

Pepperstone has strong legal safeguards as it is licensed by Australian regulators ASIC and FCA.。Traders "funds can be deposited into separate accounts at Australia's top banks, one of which is National Australia Bank (NAB).。Therefore, if a trader chooses to open an account in Pepperstone, the safety of funds is not an issue。

They successfully partnered with 23 top banks to bring bids to investors instantly via fiber optics, which enabled all orders to be executed 100% automatically with delays as low as zero..05 milliseconds, no need for trading desk intervention and re-quotation, and ultra-low transaction costs。

Pepperstone is trusted by more than 73,000 traders worldwide, processing an average of 125 per day..$500 million in trading volume and won awards for such things as:

Best Forex ECN Broker and Best Forex Trading Support Worldwide 2019 (Europe)
Best Australian Broker and Best Trading Platform 2018 by Compare Forex Brokers
2018 UK Forex Awards Best Forex ECN Broker, Best Forex Trading Support and Best Forex Trading Conditions

With numerous awards, Pepperstone attracts more and more traders from all over the world。Pepperstone's performance rose not only because of its ultra-low spreads and fast execution services, but also because many traders were keen to trade in currencies other than the US dollar.。

As a result, Pepperstone is one of the most responsive brokers to the market because it is willing to accept deposits in 10 currencies, including the Australian dollar, the US dollar, the euro, the Canadian dollar, the British pound, the Swiss franc, the Japanese yen, the New Zealand dollar, the Singapore dollar and the Hong Kong dollar.。

Pepperstone allows traders to choose between 11 trading platforms: MT4 Desktop, MT4 Mac, MT4 iPhone, MT4 Android, MT4 iPad / Tablet, MT5, WebTrader, cTrader WebTrader, cTrader cAlgo and cTrader Mobile。The choice of trading platform is very practical for novices because it executes quickly。

When trading Forex, traders can enjoy 0 on their Razor account.0 pip original spread, over 61 currency pairs, and commission-free account funds for various deposit options。In addition to currency pairs, Pepperstone offers several types of trading tools, including indices and stocks, commodities and cryptocurrency CFD。

Commodity trading tools are very diverse, not only metals, gold and silver, but also soft commodities such as cotton, sugar, coffee, cocoa and orange juice.。Pepperstone also offers energy (oil and gas) trading.。

Pepperstone offers two types of accounts, Razor accounts and Standard accounts。If you are a beginner, it is recommended to choose a EUR / USD average spread of 1.0-1.3 point and commission-free standard account。

Traders with specific trading styles (such as scalping traders and algorithmic traders) may enjoy the traditionally lower-cost setup of Razor accounts, with a trading commission of 7 Australian dollars and a trade of 100,000 US dollars per round..01 (micro) and 1: 400 leverage to start trading。

As Pepperstone customers, traders can deposit and withdraw money through Visa, Mastercard, POLi Internet Banking, Bank Transfer, BPay, PayPal, Neteller, Skrill and Union Pay。

If you are new to trading or want to practice your trading skills in a risk-free environment, you can create a demo account, but if you are experienced or prefer to learn by doing, Pepperstone offers live accounts that allow you to trade with real-time execution and pricing.。

Traders can also use third-party services to follow popular trader scenarios while learning how to improve their trading abilities。Pepperstone works with a range of social trading platforms for traders to choose from, such as Myfxbook, ZuluTrade, Mirror Trader, MetaTrader Signals and Duplitrade。

Pepperstone can be considered an ECN broker

Traders often choose ECN brokers for three important characteristics: low spreads, fast execution, and transparent pricing through depth of market (DOM).。We can think of Pepperstone as an ECN broker because they offer all three services on Razor accounts, even if they don't run on the ECN framework.。

Pepperstone offers two types of accounts (Standard and Razor) and three types of trading platforms (cTrader, MT4 and MT5)。The standard account is an STP type trading account with zero commission and an average EUR / USD spread of 0.8 points; however, the Razor account perfectly reflects the characteristics of the ECN account。

Pepperstone's Razor account promises institutional spreads and zero mark-ups, EUR EUR / USD USD average spreads can be as low as 0.0-0.3 points。Most orders take less than 30 milliseconds to execute (based on the time it takes Pepperstone Bridge to process the order after receiving the order), and you can also access DOM functions on cTrader and MT5。

All this is not cheap, but the commission fees for Razor accounts are not the most expensive in the industry。Only A $7 per 100,000 trades per round (may vary depending on your preferred platform and base currency)。All in all, we can choose Pepperstone's Razor account as an ECN account suitable for scalping and algorithmic trading。

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Pepperstone is amulti-asset broker, providing services such as cryptocurrencies, indices, and foreign exchange。The broker is known for high-quality software solutions, ultra-low prices, fast execution speeds of 30 milliseconds and innovative crypto products。