IC Markets vs Pepperstone 2026 — Which Broker Is Better?

A head-to-head comparison of two of the world's top forex brokers. We compare spreads, commissions, platforms, regulation, and execution — based on 10+ years of firsthand experience as an IC Markets IB with 761 clients.

Quick Verdict — IC Markets vs Pepperstone

Both IC Markets and Pepperstone are excellent brokers. They share many similarities — both are Australian-founded, both offer MT4/MT5/cTrader, and both provide ECN-style raw spread accounts. However, IC Markets edges ahead in the areas that matter most to active traders: tighter spreads, lower all-in trading costs, and more tradable instruments.

When you add TradersFXPartner's commission discount (up to 21% off), the cost advantage becomes substantial. IC Markets Raw Spread at $5.50/lot vs Pepperstone Razor at $7.00/lot means you save $1.50 on every single lot traded — an advantage that compounds significantly over time.

Pepperstone wins on number of regulatory licenses and educational content for beginners. If you are a beginner who needs hand-holding, Pepperstone may suit you better. For every other trader — especially scalpers, algo traders, and active day traders — IC Markets with our discount is the stronger choice.

Spreads & Trading Costs Compared

This is where IC Markets pulls ahead convincingly. According to ForexBrokers.com, IC Markets lists an average EUR/USD spread of 0.02 pips on raw accounts, while Pepperstone averages 0.10 pips. Both are far below the industry average, but IC Markets consistently delivers tighter pricing across all major pairs.

The all-in cost difference is the key number. With our IC Markets bonus discount, you pay roughly $5.70 per lot on EUR/USD (0.02 pip average spread + $5.50 commission) compared to $8.00 at Pepperstone (0.10 pip + $7.00). That is a 29% saving on every trade. For a trader doing 100 lots/month, this translates to $230/month or $2,760/year in saved costs.

Execution Speed & Infrastructure

Both brokers operate ECN/STP models with no dealing desk. IC Markets processes over $20 billion in daily trading volume and routes orders through 25+ liquidity providers. Pepperstone also offers deep liquidity through Tier-1 bank connections. Average execution speed is under 40 milliseconds at IC Markets, comparable to Pepperstone's performance.

Both brokers host servers in Equinix data centers (NY4 for US and LD5 for Europe). Both offer free VPS hosting for qualifying traders. IC Markets has a zero requote policy and no minimum order distance restrictions, making it particularly strong for scalping and high-frequency strategies. Pepperstone also allows scalping without restrictions.

In practice, execution quality is very similar between the two brokers. Both handle volatile events like NFP releases and central bank announcements well, with minimal slippage on market orders. The real differentiation comes from trading costs, not execution quality — which is where IC Markets with our discount has a clear advantage.

Regulation & Safety

Pepperstone holds seven regulatory licenses including FCA (UK), ASIC (Australia), BaFin (Germany), and CySEC (Cyprus). IC Markets holds three licenses: ASIC, CySEC (EU clients via IC Trading at ictrading.com), and FSA (Seychelles). On paper, Pepperstone has broader regulatory coverage — particularly the FCA license, which is one of the most respected in the world.

However, both ASIC and CySEC are Tier-1 regulators that require segregated client funds, negative balance protection, and strict capital requirements. IC Markets clients under ASIC or CySEC receive the same level of protection as Pepperstone clients under those regulators. EU clients at both brokers benefit from the Investor Compensation Fund (up to €20,000).

In our 10+ years as an IC Markets IB, we have never experienced issues with fund security or withdrawal processing. IC Markets has maintained a clean regulatory record since their founding in 2007. For detailed regulatory information, see our IC Markets review.

Account Types & Platforms

IC Markets offers three account types: Standard (commission-free, spreads from from 1.0 pips), Raw Spread MT4/MT5 ($7.00/lot, spreads from 0.0), and Raw Spread cTrader ($6.50/lot, spreads from 0.0). With our commission discount, the Raw Spread MT4/MT5 drops to $5.50/lot and cTrader to $5.50/lot.

Pepperstone offers Standard (commission-free, spreads from 1.0 pips) and Razor (from 0.0 pips + $7.00/lot commission). They also offer a swap-free account and spread betting for UK clients. Both brokers support MT4, MT5, cTrader, and TradingView.

The key difference: IC Markets with our discount gives you raw spreads at $5.50/lot, while Pepperstone Razor costs $7.00/lot with no IB discount available. Both brokers support identical platforms, so the trading experience is the same — but the cost is meaningfully different.

Which Broker Should You Choose?

Choose IC Markets through TradersFXPartner if: you are an active trader, scalper, or algo trader who prioritizes low trading costs. Our commission discount (up to 21% off) makes IC Markets significantly cheaper than Pepperstone for every trading style. You also benefit from 2,200+ instruments and leverage up to 1:500 for global clients.

Choose Pepperstone if: you are a beginner who values extensive educational content and webinars, or if you specifically require FCA (UK) regulation for your trading entity. Pepperstone also offers spread betting for UK tax benefits.

For the majority of traders, IC Markets with our permanent commission discount is the better value proposition. The 29% cost saving on every trade compounds into thousands of dollars per year for active traders — a real, measurable advantage that no amount of educational content can match.

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IC Markets vs Pepperstone — FAQ