Australian forex and CFD broker, Pepperstone, has been granted a CySEC license after establishing Pepperstone EU Limited in Cyprus in 2019. The news indicates the company’s commitment to expanding its trading services to European clients ahead of Brexit uncertainty.
Established in 2010, Pepperstone is an award-winning online broker and one of the largest MetaTrader providers in the world. The company has a strong reputation across multiple jurisdictions, already holding licenses with the Australian Securities and Investments Commission (ASIC), the UK Financial Conduct Authority (FCA), the Dubai Financial Services Authority (DFSA), the Capital Markets Authority of Kenya (CMA) and the Securities Commission of the Bahamas (SCB).
What Does The News Mean For Traders?
Once the UK-EU Brexit transition period closes on 31st December 2020, UK-EU passporting at retail FX brokers will also end. This means that brokers holding an FCA license, for example, will not be able to onboard new EU clients, but brokers with an EU license (from CySEC, for example) will be allowed to take UK-based retail clients.
Traders who use UK-regulated brokers should therefore check whether their broker is domiciled and regulated elsewhere in Europe, under a separate entity. If your online trading broker is permitted to deal with clients in your country after Brexit, then it’s likely that nothing will change for you.
If your broker loses its EU-passporting rights, however, your place of residence may not be covered.
The news from Pepperstone means that new traders from both the UK and Europe can be safely onboarded under EU jurisdiction. The company is already regulated in multiple areas and is one of the most trusted brokers to trade with. In fact, this is the second trading license the broker has picked up in 2020 after expanding into Kenya with a license from the Capital Markets Authority of Kenya (CMA).
If you’re thinking about signing up with Pepperstone in light of the new changes, we’ve outlined some pros and cons that you might want to consider.
Pros Of Trading With Pepperstone
- Safe & regulated – Licenses held in multiple jurisdictions (FCA, CySEC, ASIC, DFSA, CMA, SCB)
- Excellent trading conditions – Spreads as low as 0.0 pips on EUR/USD and minimal commission rates with the Razor account
- Superior technology on offer – MT4, MT5 and cTrader on desktop, mobile and tablet
- Award-winning customer service – 24/5 online and phone support, plus trading resources
- Demo account – Traders can practice in a 30-day demo account with 50,000 in virtual funds
Cons of Trading With Pepperstone
- Limited trading instruments – Pepperstone offers around 180 instruments, which is not as many as some online brokers
- Restricted countries – Traders from certain countries including the United States, India, New Zealand, Canada, Brazil and Saudia Arabia are not accepted
- No trading bonuses – Largely due to licensing restrictions, Pepperstone does not offer any deposit welcome bonuses or promotions
Pepperstone’s expansion to Europe has been welcomed by many traders in the area who are seeking a reputable forex and CFD provider.