2 minute read
Does Pepperstone Trade Against You
from Pepperstone review
by Jone Eva
A common concern among forex and CFD traders is whether their broker “trades against” them—essentially taking the opposite side of your trades to profit when you lose. In this article, we’ll explain Pepperstone’s execution model, why it does not trade against you, and how its structure aligns interests with clients.
Open your Pepperstone account now and trade with confidence!
How Liquidity Providers Support Fair Execution
When you place a trade, Pepperstone routes your order to multiple liquidity providers. These institutions compete to fill your order at the best price. Key points:
Aggregation: Prices from top banks and ECNs are aggregated, ensuring you get the best bid/ask.
Depth of Market: On cTrader and MT5, you can see multiple price levels, confirming true market liquidity.
No Re‑quotes: Market execution accounts fill at the best available price, even during volatility.
Why “Trading Against You” Is a Myth in ECN/STP
In a market‑making model, the broker can profit if you lose. But with ECN/STP:
The broker’s profit comes solely from the commission or spread you pay.
Client losses benefit the liquidity providers, not the broker.
Pepperstone’s P&L is independent of individual trade outcomes, aligning its success with platform performance and client growth.
Client Protections and Transparency
Pepperstone further ensures fairness through:
Regulation by FCA, ASIC, CySEC, and DFSA—requiring strict audit trails and segregation of client funds.
Trade Confirmations: You receive real‑time order confirmations with price and timestamp.
Negative‑Balance Protection: You cannot lose more than your deposited equity.
These measures reinforce that Pepperstone does not—and cannot—trade against you.
Conclusion
Pepperstone’s ECN/STP model, multi‑provider liquidity aggregation, and regulatory oversight mean the broker does not trade against you. Its revenue derives from transparent commissions and spreads, aligning its interests with yours: the more you trade successfully, the more the broker earns in legitimate fees.
Trade with a broker that puts your interests first:Open your Pepperstone account today.
