What is the difference between Pepperstone razor and standard account?

Pepperstone offers two primary live account types—Standard and Razor—to cater to different trading styles and experience levels. While both accounts grant access to the same platforms (MT4, MT5, cTrader), liquidity, and regulatory protections, their cost structures, minimum deposits, and ideal use cases diverge. In this in‑depth guide, we’ll explore every aspect of these accounts—spreads, commissions, execution, funding, risk management tools, and trader profiles—so you can decide which account aligns best with your strategy.

Open your Pepperstone account and compare both account types

Cost Structure and Pricing Model

Standard Account – Spread‑Only

• All trading costs are built into the spread.

• Typical EUR/USD spreads start at around 1.0 pip during peak liquidity.

• No separate commission: you simply pay the bid/ask spread on entry and exit.

Razor Account – Raw Spreads + Commission

• Raw interbank spreads from 0.0 pips on major forex pairs.

• Commission of USD 3.50 per side ($7 round‑turn) per standard lot on MT4/MT5; USD 6 round‑turn on cTrader.

• Typical all‑in cost on EUR/USD is around 0.6 pips (spread + commission).

Why it matters: For traders executing a handful of trades per month, the Standard Account’s simplicity can be attractive. For scalpers, EAs, or high-frequency traders, the Razor Account’s lower all‑in cost translates directly into higher net profitability over many trades.

H2: Minimum Deposit and Funding Requirements

Standard Account

• Zero minimum deposit—you can open the account with £0 (or equivalent).

• You must deposit real funds before placing live trades; the amount is your choice.

• Recommended starter funding: £100–£200 to ensure sufficient margin and risk buffer.

Razor Account

• Recommended minimum of USD 200 to accommodate raw‑spread margin requirements and avoid frequent margin calls.

• Same funding methods as Standard: credit/debit cards, bank transfers, e‑wallets (Skrill, Neteller), mobile money, and crypto.

• No deposit or withdrawal fees charged by Pepperstone.

Why it matters: Beginners or budget‑conscious traders often start on the Standard Account with minimal capital. Those ready to leverage raw spreads should fund at least USD 200 to fully utilize the Razor Account’s benefits without undue risk.

H2: Execution Quality and Slippage

Both account types operate on an ECN/STP (no dealing desk) model, routing orders directly to Tier‑1 liquidity providers. However:

• Razor Account users frequently experience marginally better fills and reduced slippage, especially on small‑spread instruments, because there is no markup in the spread.

• Standard Account spreads can widen slightly during low‑liquidity or high‑volatility periods, though execution speed remains sub‑30 ms.

Pepperstone’s infrastructure in Equinix data centers ensures fast, reliable order routing for both accounts.

H2: Leverage and Risk Controls

Leverage options are identical across both accounts, varying only by your region:

• Non‑ESMA regions (ASIC, DFSA, FSCA, etc.): up to 1:500 on majors, 1:200 on minors/commodities, 1:50 on crypto.

• ESMA regions (EU/UK): up to 1:30 on majors, 1:20 on minors/commodities, 1:2 on crypto.

Risk management tools available to both account types include:

• Guaranteed Stop‑Loss Orders (GSLOs) to eliminate slippage risk (small premium).

• Negative‑Balance Protection to prevent losses beyond deposit.

• One‑Click Close All and batch order modification for emergency exit.

H2: Platform Features and Compatibility

Both Standard and Razor accounts grant full access to:

• MetaTrader 4: Expert Advisors, custom indicators, mobile trading.

• MetaTrader 5: Advanced charting, market depth, economic calendar.

• cTrader: Level II pricing, cAlgo for algorithmic strategies, detached charts.

• TradingView integration: chart‑based order entry and social sharing.

Whether you prefer a commission‑free environment or raw spreads, you won’t sacrifice platform functionality.

H2: Ideal Trader Profiles

Standard Account is best for:

• Beginners who need a simple, all‑in spread cost model.

• Swing Traders holding positions for days or weeks.

• Part‑Time Traders who trade infrequently and dislike commission complexity.

Razor Account is best for:

• Scalpers seeking pip‑small profits across many trades.

• Algorithmic Traders running EAs or high‑frequency bots.

• Professional Day Traders demanding institutional‑grade pricing and transparency.

Explore Pepperstone account options and decide which is right for you