IC Markets
XM vs Pepperstone
XM vs Pepperstone: XM offers a $5 minimum, spread-only pricing and copy trading; Pepperstone offers no minimum deposit, a Razor account at $3.50 per side and five platforms including cTrader and TradingView. Compare regulation, deposits, spreads, leverage and fees.
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XM is a spread-only broker with a $5 minimum deposit, no commission and its own copy trading service. Pepperstone has no minimum deposit, a Razor account from 0.0 pips at $3.50 per side, and MT4, MT5, cTrader, TradingView and its own platform. The better fit depends on where you live, how often you trade and which company would hold your account.
Quick Answer
| Best for | Winner | Why |
|---|---|---|
| Starting small | Pepperstone | No minimum against $5 |
| Raw-spread account | Pepperstone | XM has no raw-spread account |
| No inactivity fee | Pepperstone | XM: $10 a month after 90 days without activity |
| cTrader | Pepperstone | XM doesn’t offer it |
A “winner” here means the better published figure on that one line. It is not a recommendation: the right broker depends on where you live and how you trade.
Comparison Table
| XM | Pepperstone | |
|---|---|---|
| Operating since | Over 15 years in business | 2010 (founded in Melbourne) |
| Company for international clients | XM Global Limited, licensed by the FSC in Belize (8557558) | Pepperstone Markets Limited, licensed by the Securities Commission of The Bahamas (SIA-F217) |
| Regulators in the group | CySEC, DFSA, FSC Belize, FSA Seychelles, FSC Mauritius | FCA, ASIC, CySEC, BaFin, DFSA, CMA Kenya, SCB Bahamas |
| Minimum deposit | $5 | No minimum (top-ups from $10) |
| Commission-free spreads | Ultra Low from 0.8 pips; Standard from 1.6 pips | Standard from 1.0 pips |
| Raw-spread account | None | Razor from 0.0 pips plus $3.50 per side |
| Maximum leverage | 1:1000 | 1:200 for retail clients of the Bahamas company (Pro clients up to 1:1000 on forex and gold); 1:30 on major pairs for UK and EU retail clients |
| Platforms | MT4, MT5, XM App | MT4, MT5, cTrader, TradingView, Pepperstone platform |
| Copy trading | XM Copy Trading, from $50 per strategy | CopyTrading by Pepperstone on MT4 and MT5, and cTrader Copy (no Pepperstone fee; providers may charge a performance fee) |
| Inactivity fee | $10 a month after 90 days without activity | None |
| Withdrawal fee | None from XM | None, except $20 on international bank wires |
| Swap-free | Islamic option on all accounts | No swap-free account described on its global site |
| Bonus | 50% deposit bonus up to $100 and further bonuses (not in every country) | None (refer a friend: up to $1,000 each) |
Figures come from each broker’s official site, checked on 11 October 2026 (Pepperstone on 19 October 2026). Spreads move through the day, and conditions vary by country and by the company that holds your account.
Regulation and Safety
XM’s group holds licences from CySEC in Cyprus and the DFSA in Dubai, plus offshore licences in Belize, Seychelles and Mauritius. Most international clients open accounts with XM Global Limited, licensed by the FSC in Belize. XM says negative balance protection applies to all clients.
Pepperstone was founded in Melbourne in 2010. Its group holds licences from the FCA in the UK (684312), ASIC in Australia (AFSL 414530), CySEC in Cyprus (388/20), BaFin in Germany (151148), the DFSA in Dubai (F004356) and Kenya’s CMA (128). Most international clients join Pepperstone Markets Limited, licensed by the Securities Commission of The Bahamas (SIA-F217), which keeps retail client money in segregated accounts with tier-1 banks and gives retail clients negative balance protection. India’s RBI lists Pepperstone on its alert list.
Both groups hold top-tier licences, but those protect only the clients of the licensed companies. What matters is which company your country places you with, so check your client agreement before you deposit.
Trading Costs
On commission-free accounts, XM lists: Ultra Low from 0.8 pips; Standard from 1.6 pips. Pepperstone lists: Standard from 1.0 pips. “From” figures are minimums, so expect wider live spreads, especially around news.
Only Pepperstone offers a raw-spread account: Razor from 0.0 pips plus $3.50 per side. XM is spread-only, which is simpler but usually costs more per trade for frequent traders.
XM’s inactivity fee: $10 a month after 90 days without activity. Pepperstone lists no inactivity fee. Withdrawal fees: XM: none from XM; Pepperstone: none, except $20 on international bank wires.
Platforms and Copy Trading
XM offers MT4, MT5 and XM App. Pepperstone offers MT4, MT5, cTrader, TradingView and Pepperstone platform.
XM’s copy trading: XM Copy Trading, from $50 per strategy. Pepperstone’s copy trading: CopyTrading by Pepperstone on MT4 and MT5, and cTrader Copy (no Pepperstone fee; providers may charge a performance fee). Copying another trader doesn’t remove risk: you can lose money as fast as trading yourself.
Leverage
XM’s maximum leverage: 1:1000. Pepperstone’s: 1:200 for retail clients of the Bahamas company (Pro clients up to 1:1000 on forex and gold); 1:30 on major pairs for UK and EU retail clients.
A higher maximum is not an advantage in itself. Leverage multiplies losses as fast as gains, so beginners should use far less than either broker allows.
Which One Should You Choose?
Go with XM if:
- You want to start with as little as $5
- You prefer spread-only pricing with no commission
- You want copy trading and regular bonuses
Go with Pepperstone if:
- You want FCA, ASIC or CySEC regulation in the group
- You want raw spreads with cTrader or TradingView
- You don’t want a minimum deposit or an inactivity fee
Whichever you choose, test a small withdrawal early, verify your account before you need your money, and risk only what you can afford to lose.
FAQ
Which has the lower minimum deposit, XM or Pepperstone? Pepperstone. XM: $5. Pepperstone: no minimum (top-ups from $10).
How are XM and Pepperstone regulated? XM’s international clients deal with XM Global Limited, licensed by the FSC in Belize (8557558). Pepperstone’s deal with Pepperstone Markets Limited, licensed by the Securities Commission of The Bahamas (SIA-F217). Group regulators: XM: CySEC, DFSA, FSC Belize, FSA Seychelles, FSC Mauritius; Pepperstone: FCA, ASIC, CySEC, BaFin, DFSA, CMA Kenya, SCB Bahamas.
Which is cheaper to trade with? It depends on the account. Commission-free: XM: Ultra Low from 0.8 pips; Standard from 1.6 pips; Pepperstone: Standard from 1.0 pips. Raw accounts: XM: none; Pepperstone: Razor from 0.0 pips plus $3.50 per side.
Does either charge an inactivity fee? XM: $10 a month after 90 days without activity. Pepperstone: none.
Do both offer copy trading? XM: XM Copy Trading, from $50 per strategy. Pepperstone: CopyTrading by Pepperstone on MT4 and MT5, and cTrader Copy (no Pepperstone fee; providers may charge a performance fee).
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