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Pepperstone 1:500 leverage?

  • #1
  • First Post: Nov 15, 2016 2:49am Nov 15, 2016 2:49am
Hi.

Something got me wondering about Pepperstone, why is their leverage extremely high when it comes to being an ECN broker (as they claim)? Or is it because they are based in Melbourne while ASIC don't care about the leverage? And is that why they don't accept many clients from many countries (including Canada)?

Should I trust this broker offering this high leverage? I need your opinions, please, traders.
  • #2
  • Nov 15, 2016 4:01am Nov 15, 2016 4:01am
Quoting Noorx
Hi. Something got me wondering about Pepperstone, why is their leverage extremely high when it comes to being an ECN broker (as they claim)? Or is it because they are based in Melbourne while ASIC don't care about the leverage? And is that why they don't accept many clients from many countries (including Canada)? Should I trust this broker offering this high leverage? I need your opinions, please, traders.

ASIC luckily allows high leverage (contrary to bad NFA from USA that doesn't care about traders at all, but "protects" them with leverage 1:50 . Pepperstone offers it, because they can earn more from commission made by scalpers and short term traders who need high leverage. They are really reliable. Good spreads, commission little bit to high, but with rebate on AUD account is good, no servers problems, fast execution, no stop loss hunting at all (0,1 pip to stop loss and position is safe), good support, many years on market. I have never had any problems with them. However, I heard that newbies don't like news trading with them due to big slippage, which is absolutely normal on fast moving market.
  • #3
  • Nov 15, 2016 4:08am Nov 15, 2016 4:08am
Quoting insomniawawa
{quote} ASIC luckily allows high leverage (contrary to bad NFA from USA that doesn't care about traders at all, but "protects" them with leverage 1:50 . Pepperstone offers it, because they can earn more from commission made by scalpers and short term traders who need high leverage. They are really reliable. Good spreads, commission little bit to high, but with rebate on AUD account is good, no servers problems, fast execution, no stop loss hunting at all (0,1 pip to stop loss and position is safe), good support, many years on market. I...
Thank you for your honest review. You sound like someone who knows how to trade and is experienced, and that sounds really lovely. I trade news with no SL or TP, so I'll deposit the minimum.




Cheers.
  • #4
  • Nov 15, 2016 6:54am Nov 15, 2016 6:54am
Quoting Noorx
{quote} Thank you for your honest review. You sound like someone who knows how to trade and is experienced, and that sounds really lovely. I trade news with no SL or TP, so I'll deposit the minimum. Cheers.

You welcome Trading without stop loss it's highly ineffective way of trading forex due to big leverage and potential risk of erasing account. The biggest problem with that you can't measure risk which is the only one unknown on market that you can estimate. It's better to wait one minute after news and then trade with stop loss. For example if you enter market with stop order just before NFP you can get 100 pips slippage if first tick move equals 100 pips which really can happen. 40-60 pips moves on first tick happen many times a month during most important news.
  • #5
  • Nov 15, 2016 7:01am Nov 15, 2016 7:01am
Quoting insomniawawa
{quote} You welcome Trading without stop loss it's highly ineffective way of trading forex due to big leverage and potential risk of erasing account. The biggest problem with that you can't measure risk which is the only one unknown on market that you can estimate. It's better to wait one minute after news and then trade with stop loss.
You're totally right, but don't worry about me. I have a system that tells directions before they announce.
  • #6
  • Nov 15, 2016 7:03am Nov 15, 2016 7:03am
Quoting Noorx
{quote} You're totally right, but don't worry about me. I have a system that tells directions before they announce.

Ok, good luck You answered so fast that I even haven't finished writing 2 more sentences.
  • #7
  • Edited 7:54am Nov 15, 2016 7:39am | Edited 7:54am
i opened a live account with them over a year ago when they were still 1:500. now they no longer accept canadians (existing are safe) and only offer 1:100

also, although i don't trade pre news, i did make some screen recordings a while back during news announcements. using the spread indicator i noticed that at the moment of news release the spread jumps quite dramatically but only for a split second. playing the video back and pausing it is the only way to see it

not that this is anything new, it was just interesting to see it happen
  • #8
  • Nov 15, 2016 5:38pm Nov 15, 2016 5:38pm
Quoting Noorx
Hi. Something got me wondering about Pepperstone,............ I need your opinions, please, traders.
Hey buddy !
I opened at Pepperstone last year a live account.
But I wasn t that happy .. reason was the orderexecution and the slippage .
During the news the widened the spread to a enormeous size , I remember ..
after about 20 trades with a really small lotsize I took my capital and ran away..
... they still write me emails ..

It depends on the trading style .. but I prefer cutting my trades with a knife .. they said it was a knife.. but it was an axe in real ..
I can imagine for long sl´s and tp´s like dailie or weekly charts they aren t that bad

Hope that helped ..
Guido
Risiko birgt immer auch die Chance.
  • #9
  • Nov 16, 2016 1:53am Nov 16, 2016 1:53am
Quoting Sesamstrasse
{quote} Hey buddy ! I opened at Pepperstone last year a live account. But I wasn t that happy .. reason was the orderexecution and the slippage . During the news the widened the spread to a enormeous size , I remember .. after about 20 trades with a really small lotsize I took my capital and ran away.. ... they still write me emails .. It depends on the trading style .. but I prefer cutting my trades with a knife .. they said it was a knife.. but it was an axe in real .. I can imagine for long sls and tps like dailie or weekly charts they aren t...

I'm trading on 5M interval without issues, so only news traders have problem with trading at Pepperstone...
  • #10
  • Nov 16, 2016 3:46am Nov 16, 2016 3:46am
Quoting grrbear
i opened a live account with them over a year ago when they were still 1:500. now they no longer accept canadians (existing are safe) and only offer 1:100 also, although i don't trade pre news, i did make some screen recordings a while back during news announcements. using the spread indicator i noticed that at the moment of news release the spread jumps quite dramatically but only for a split second. playing the video back and pausing it is the only way to see it not that this is anything new, it was just interesting to see it happen
Thank you for your review, sir / ma'am. Appreciated.
  • #11
  • Edited 4:39am Nov 16, 2016 3:50am | Edited 4:39am
Quoting Sesamstrasse
{quote} Hey buddy ! I opened at Pepperstone last year a live account. But I wasn t that happy .. reason was the orderexecution and the slippage . During the news the widened the spread to a enormeous size , I remember .. after about 20 trades with a really small lotsize I took my capital and ran away.. ... they still write me emails .. It depends on the trading style .. but I prefer cutting my trades with a knife .. they said it was a knife.. but it was an axe in real .. I can imagine for long sls and tps like dailie or weekly charts they aren t...
Thanks for your honest review, friend! As insomiawawa recalled, news trading must suck for their servers and liquidity. I checked many news events with them and for their spread, it isn't that bad for Razor accounts, just $2.1 with commission. for 0.20 lots. I usually trade before news announcement. But nevertheless, your review as outstanding and appreciated.

Thanks!
  • #12
  • Nov 16, 2016 6:59am Nov 16, 2016 6:59am
Hey Noorx,

Ive been with pepperstone for some time know. - I use their active traders program.. - I dont have major problems with them, but i dont trade news.

My average trade size is 10lot and for that size i dont have slippage, when trading higher lot i break it into 5lot pr click x 4 (Note that i only trade frankfurt & nyc, where there is big liquidity)

The minor problems ive had was dealt with fast and on a proffesional level.

Trading is my only income, and withdrawals are made every month with bank transfer, 4-6 days till they reach my bankaccount, i never had problems with withdrawals, even the bigger ones. No one calls to ask why i withdrawal.

I dont use that much leverage any more, but i still have access to 1:400 on their active traders program, from the agreement i signed when opened account, they state that alle trades over 1lot are beeing a-booked on the active traders account.


Let me know if you have any Questions.

BR M
MY SITTING, NEVER MY THINKING!
  • #13
  • Nov 16, 2016 7:01am Nov 16, 2016 7:01am
I consider every broker that give leverage above 100 without additional fees are bucketshops. Soon or later you will have problems with them
Trade To Freedom
  • #14
  • Nov 16, 2016 8:34am Nov 16, 2016 8:34am
Quoting fxalphabet
I consider every broker that give leverage above 100 without additional fees are bucketshops. Soon or later you will have problems with them
Perhaps you should update your profile then
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MY SITTING, NEVER MY THINKING!
  • #15
  • Nov 16, 2016 8:53am Nov 16, 2016 8:53am
Quoting fxalphabet
I consider every broker that give leverage above 100 without additional fees are bucketshops. Soon or later you will have problems with them

Hahaha, what a bullshit "preferred forex broker- HotForex" hahahaha, broker that has offered recently leverage 1:1000
  • #16
  • Nov 16, 2016 8:57am Nov 16, 2016 8:57am
Hotforex has local office here. If I have problems, one call to police.
Trade To Freedom
  • #17
  • Nov 16, 2016 9:05am Nov 16, 2016 9:05am
But yeah HF is bucketshop. Actually a MM broker. But again, I'm looking for "brokers" with local representative.
Trade To Freedom
  • #18
  • Nov 16, 2016 10:04am Nov 16, 2016 10:04am
Quoting fxalphabet
But yeah HF is bucketshop. Actually a MM broker. But again, I'm looking for "brokers" with local representative.

True, it's MM, so if you know that why don't you choose better? Local office is advantage, but it won't protect you from broker cheating.
  • #19
  • Nov 16, 2016 10:07am Nov 16, 2016 10:07am
Quoting fxalphabet
But yeah HF is bucketshop. Actually a MM broker. But again, I'm looking for "brokers" with local representative.
Hi friend. Basically I was thinking the same because I wondered if any broker offers 1:500 leverage could mean that their after your money. But I was actually wrong - it isn't just about your money. Offering a high leverage could mean you trading more and opening higher lots, and that is just more profit for the broker. Plus, ASIC allows that much so I don't think its a bucketshop broker. Recently, my friend opened an account on Pepperstone with minimum as well to test their servers/liquidity and he tells me they have very, very strong market movement (which can prove that they're an ECN broker) and amazingly low spreads for Razor account just as shown in a demo account, but he hasn't tried news trading yet.
  • #20
  • Nov 16, 2016 10:09am Nov 16, 2016 10:09am
Quoting merrygold
Hey Noorx, Ive been with pepperstone for some time know. - I use their active traders program.. - I dont have major problems with them, but i dont trade news. My average trade size is 10lot and for that size i dont have slippage, when trading higher lot i break it into 5lot pr click x 4 (Note that i only trade frankfurt & nyc, where there is big liquidity) The minor problems ive had was dealt with fast and on a proffesional level. Trading is my only income, and withdrawals are made every month with bank transfer, 4-6 days till they reach my bankaccount,...
Hi merry! You pretty much explained what I needed to know, glad there are no withdrawal problems for you and everyone!



Happy trading
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