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XM vs Pepperstone (2026): Which Broker Is Actually Better?
We tested both brokers with real accounts. Compare spreads, regulation, withdrawals, and features — with a clear winner for every trader type.
Verdict: Pepperstone Wins
Pepperstone edges out XM for experienced traders due to its superior platform choices (including cTrader and TradingView), tighter spreads on its Razor account, and exceptional execution speeds. However, XM remains the better choice for true beginners thanks to its unmatched educational resources, low $5 minimum deposit, and generous bonus programs (where permitted).
XM vs Pepperstone: Side-by-Side Comparison
| Feature | | |
|---|---|---|
| Founded | 2009 | 2010 |
| Trust Score | 90/100 | 95/100 |
| EUR/USD Spread (Standard) | 1.6 pips | 1.1 pips |
| EUR/USD Spread (Raw/ECN) | 0.6 pips | 0.0 pips |
| Minimum Deposit | $5 | $0 ($200 recommended) |
| MetaTrader 4 & 5 | Yes | Yes |
| cTrader | No | Yes |
| TradingView | No | Yes |
| Copy Trading | Yes | Yes (via third-party) |
| Education Resources | Excellent | Good |
| Forex Pairs | 55+ | 60+ |
| Customer Support | 24/5 | 24/5 (Weekend via email) |
XM vs Pepperstone: Breakdown of Trading Costs
When it comes to trading fees, Pepperstone is generally the cheaper option for active traders, while XM is more accessible for small accounts. Pepperstone's 'Razor' account charges a competitive commission ($3.50 per lot per side) but delivers institutional-grade spreads averaging near 0.0 pips on EUR/USD. XM's Zero account is also competitive but spreads are slightly wider. On Standard (commission-free) accounts, Pepperstone again undercuts XM, averaging 1.1 pips vs XM's 1.6 pips on EUR/USD.
| Fee Type | XM | Pepperstone |
|---|---|---|
| EUR/USD (Standard Account) | 1.6 pips | 1.1 pips |
| EUR/USD (Raw/ECN Account) | 0.6 pips + commission | 0.0 pips + $3.50 commission |
| GBP/USD (Standard Account) | 2.1 pips | 1.4 pips |
| Deposit Fee | Free | Free |
| Withdrawal Fee | Free (above $200) | Free (Bank wire fees may apply) |
| Inactivity Fee | $15/mth (after 90 days) | None |
Regulation & Security: Are They Safe?
Both XM and Pepperstone are highly trusted, multi-regulated brokers with pristine reputations. Pepperstone holds a slight edge due to being regulated by the FCA (UK) and BaFin (Germany), two of the strictest watchdogs in the world, in addition to ASIC (Australia) and CySEC (Cyprus). XM is also heavily regulated by ASIC, CySEC, and the DFSA (Dubai), making both brokers exceptionally safe choices. Both segregate client funds in Tier-1 banks.
XM
Tier 1- Regulators:CySEC (Cyprus)ASIC (Australia)DFSA (Dubai)IFSC (Belize)
- Investor Protection: Yes (Varies by region, e.g., ICF in EU)
- Licensed Since: 2009
Pepperstone
Tier 1- Regulators:FCA (UK)ASIC (Australia)CySEC (Cyprus)BaFin (Germany)CMA (Kenya)DFSA (Dubai)SCB (Bahamas)
- Investor Protection: Yes (Varies by region, e.g., FSCS in UK)
- Licensed Since: 2010
Trading Platforms: The Tech Advantage
This is where Pepperstone pulls ahead significantly. While XM offers reliable, customized versions of MT4 and MT5, Pepperstone offers those plus cTrader and native TradingView integration. For algorithmic traders, Pepperstone's execution speeds (averaging under 30ms) paired with cTrader's advanced DOM (Depth of Market) make it a superior environment. Furthermore, being able to trade directly on TradingView charts is a massive plus for modern retail traders.
| Feature | XM | Pepperstone |
|---|---|---|
| MetaTrader 4 | ||
| MetaTrader 5 | ||
| cTrader | Yes (Excellent) | |
| TradingView Integration | Yes (Full) | |
| Mac Native App | ||
| Web Platform | MT WebTrader | cTrader Web, MT Web, TradingView |
| VPS for EAs | Free (requires min balance/volume) | Discounted/Free for active traders |
| Execution Speed | Fast (<100ms) | Ultra-Fast (<30ms) |
Pros & Cons: XM vs Pepperstone
XM
Pros
- Outstanding educational resources and daily live webinars
- Micro accounts available (trade 1,000 units instead of 100,000)
- Very low $5 minimum deposit
- Generous bonus and loyalty programs (outside regulated zones like EU/AU)
- Excellent multilingual customer service in 30+ languages
Cons
- Spreads on standard accounts are slightly wider than competitors
- No cTrader or TradingView platform options
- Charges an inactivity fee after 90 days of no trading
Pepperstone
Pros
- Institutional-grade execution speeds perfect for scalping and EAs
- Multiple premium platforms: MT4, MT5, cTrader, and TradingView
- Razor account offers near-zero spreads on major pairs
- Regulated by the FCA and BaFin (among others)
- No inactivity fees ever charged
Cons
- Educational resources are good but don't match XM's depth
- No deposit bonuses or loyalty programs (due to strict regulation)
- No proprietary platform (relies entirely on third-party software)
Expert Verdict: XM vs Pepperstone
Choose XM if you are a beginner. The combination of a $5 minimum deposit, the ability to trade Micro lots (which drastically reduces risk while learning), and arguably the best free live trading education in the industry makes XM the perfect incubator for new traders. You can make mistakes cheaply while learning from professionals.
Choose Pepperstone if you are intermediate to advanced. If you scalp, use Expert Advisors (EAs), or rely heavily on technical analysis, Pepperstone is the clear winner. The inclusion of cTrader and full TradingView integration gives you superior tools. More importantly, Pepperstone's Razor account offers tighter spreads and faster execution speeds than XM, which directly impacts your bottom line if you trade frequently.
Ultimately, both are incredibly safe, tier-1 regulated brokers. Pepperstone wins on pricing and technology; XM wins on education and accessibility.
XM vs Pepperstone: Frequently Asked Questions
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Risk Warning: Forex and CFD trading involves significant risk of loss. 68–80% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.|Affiliate Disclosure: We may receive compensation from the brokers listed on this page. This does not influence our rankings or reviews, which are based on independent analysis.
Comparison data updated March 2026. Broker terms, spreads, and conditions vary by region and account type. See our methodology | Full Disclaimer | Privacy Policy