Pepperstone Vs interactive brokers 2025: Compared - which is better broker?

When choosing the right broker in 2025, Pepperstone and Interactive Brokers (IBKR) are two of the most reputable platforms for global traders. While Pepperstone is known for its forex and CFD excellence, IBKR dominates in real stock, options, and futures trading.

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Let’s break down both brokers in detail to see which one suits your specific trading goals best.

Overview of Both Brokers

Pepperstone, founded in 2010 in Melbourne, has grown rapidly into one of the world’s most recognized forex and CFD brokers. It supports over 300,000 clients globally and is renowned for fast execution, tight spreads, and platform flexibility.

Interactive Brokers (IBKR) was launched in 1978 and is headquartered in the U.S. It has become a top choice for institutional traders, hedge funds, and advanced retail investors, offering real access to stocks, ETFs, options, and more across 100+ markets.

In summary:

• Pepperstone = Best for active forex and CFD traders

• IBKR = Best for professional, long-term, and multi-asset investors

Licensing and Investor Protection

Pepperstone is regulated by:

• ASIC (Australia)

• FCA (UK)

• BaFin (Germany)

• DFSA (UAE)

• CySEC (Cyprus)

• SCB (Bahamas)

Interactive Brokers is regulated by:

• SEC and FINRA (USA)

• FCA (UK)

• ASIC (Australia)

• IIROC (Canada)

• SFC (Hong Kong)

• MAS (Singapore)

Both firms adhere to top-tier regulations and offer:

• Segregated client accounts

• Negative balance protection (Pepperstone)

• SIPC and FDIC insurance (IBKR, U.S. only)

IBKR offers deeper protection for U.S. clients, while Pepperstone ensures broader global safety across multiple jurisdictions.

Assets and Product Offerings

Pepperstone provides:

• 60+ forex pairs

• Commodities, indices, shares, ETFs (all as CFDs)

• Cryptocurrencies (CFDs only)

• No options or futures

IBKR offers:

• Stocks, ETFs, mutual funds, and bonds

• Forex (institutional level)

• Options and futures

• Commodities, indices, and fractional shares

IBKR supports real asset ownership and institutional-level access, whereas Pepperstone excels in leveraged CFD and forex trading.

Fee Models and Account Types

Pepperstone:

• Razor Account: Raw spreads from 0.0 pips + $3.50 commission/lot

• Standard Account: Spread-only, no commission

• No minimum deposit

IBKR:

• IBKR Lite: Commission-free U.S. stocks and ETFs

• IBKR Pro: Tiered or fixed pricing for global assets

• Suggested deposit: $2,000+

Pepperstone’s pricing is ideal for low-cost, high-volume traders, while IBKR is better for high-net-worth clients and global investing.

Trading Platforms and Interface Usability

Pepperstone supports:

• MetaTrader 4 and 5

• cTrader

• TradingView

• Myfxbook AutoTrade, DupliTrade

Interactive Brokers offers:

• Trader Workstation (TWS)

• IBKR GlobalTrader (mobile)

• WebTrader and APIs

Pepperstone wins for forex trading ease and third-party integration, while IBKR’s TWS is built for experienced, data-driven traders.

Execution Quality and Speed

Pepperstone:

• Sub-30ms execution via global servers

• ECN-style order matching

• No dealing desk

IBKR:

• Smart order routing

• Institutional-grade liquidity

• Execution algorithms for stocks and options

Both brokers excel here, but Pepperstone is faster for forex, and IBKR leads for equity/options routing and execution control.

Trading Tools and Research Services

Pepperstone offers:

• Autochartist

• Smart Trader Tools suite

• VPS, API, and Trading Central analysis

IBKR provides:

• Market scanners and option strategy builders

• 60+ research providers (Morningstar, Zacks, Reuters)

• IBKR Campus and webinars

IBKR wins for institutional research, while Pepperstone is better for efficient, day-to-day technical trading tools.

Deposit, Withdrawal, and Global Accessibility

Pepperstone supports:

• Visa/MasterCard

• PayPal, Skrill, Neteller

• Bank transfers

• No fees for deposits/withdrawals

IBKR supports:

• Bank transfers (ACH, SWIFT)

• Check deposits (U.S. only)

• 1 free withdrawal/month, then fees apply

Pepperstone offers faster, more flexible funding, particularly for international and retail traders.

User Support and Reputation

Pepperstone:

• 24/5 multilingual support

• Live chat, phone, email

• High user ratings for service speed

IBKR:

• 24/5 support via ticket and phone

• Limited live chat access

• Mixed reviews on response time

Pepperstone consistently outperforms in customer support, especially for non-institutional clients.

Pepperstone vs Interactive Brokers – Pros & Cons

Pepperstone Pros:

• ECN-style forex trading with low spreads

• MT4, cTrader, TradingView access

• No minimum deposit, easy funding

• Excellent global support

Pepperstone Cons:

• CFD-only model (no real asset ownership)

• Not available to U.S. residents

IBKR Pros:

• Real stock, ETF, options, and futures trading

• Institutional-grade research and execution

• Wide global market access

IBKR Cons:

• Complex interface and pricing

• Less suitable for beginners or short-term forex traders

FAQs – Pepperstone Vs Interactive Brokers 2025 Compared

1. Can I trade real stocks with Pepperstone?No. All instruments are CFDs.

2. Does IBKR offer forex trading?Yes, but primarily to professionals with institutional-level access.

3. Is Pepperstone better for scalping?Yes, with fast execution and raw spreads via Razor accounts.

4. Which broker has better support?Pepperstone is more responsive and beginner-friendly.

5. Which is better for options trading?Interactive Brokers, hands down.

6. Can I automate trading with both?Yes. Pepperstone offers EAs, APIs; IBKR offers scripting via TWS.

Conclusion: Which Broker Wins in 2025?

Both Pepperstone and Interactive Brokers are world-class, but they serve different needs.

Choose Interactive Brokers if:

• You trade real stocks, ETFs, or options

• You need access to institutional tools and global markets

• You’re a professional or long-term investor

Choose Pepperstone if:

• You focus on forex, crypto, indices, or commodities

• You value fast execution, tight spreads, and flexibility

• You prefer user-friendly platforms like MT4 or TradingView

👉 Join Pepperstone Now to access razor spreads, lightning-fast execution, and elite platforms built for performance.

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