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IG vs Pepperstone UK 2026: Which Broker Is Better?
Reviewed by Phillip Ashdown
This comparison is for informational purposes only and does not constitute investment advice. Affiliate links may be present.
Quick Verdict
IG is the stronger all-round choice for traders who want platform variety, extensive education and the credibility of a FTSE 100 listing. Pepperstone is better for active traders and scalpers who prioritise raw spread pricing, fast execution and no inactivity fees. Both are FCA regulated and offer spread betting.
Best for cost-sensitive traders: Pepperstone — Razor account offers raw EUR/USD spreads from 0.0 pips with commission of £2.25 per lot per side on MT4/MT5, typically beating IG's 0.6 pip all-in pricing on active volume.
Best for beginners: IG — IG Academy offers structured free courses and webinars Pepperstone doesn't match. Spread-only standard account avoids commission complexity for new traders.
Best overall: IG — 50 years of UK trading history, 15,000+ markets, seven platforms including ProRealTime and L2 Dealer, and FTSE 100 listing make IG the stronger all-rounder.
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IG and Pepperstone are both authorised and regulated by the Financial Conduct Authority, making them trusted choices for UK forex traders. IG is one of the longest-standing brokers in the UK, known for its proprietary platform and broad market access. Pepperstone has built a strong reputation for low-cost trading and fast execution, particularly among active and algorithmic traders. This comparison looks at the key differences between the two across pricing, platforms, execution quality and trader suitability. The goal is to help you decide which broker aligns with your trading style and priorities. Neither is universally better. The right choice depends on what you value most.
IG vs Pepperstone: At a Glance
| Feature | IG | Pepperstone |
|---|---|---|
| FCA Regulation | Yes (FRN 195355) | Yes (FRN 684312) |
| Minimum Deposit | £0 | £0 |
| Pricing Model | Spread-only (standard account) | Spread-only or raw spread + commission (Razor) |
| Spread Betting Available | Yes | Yes |
| Platforms Offered | IG Platform, MT4, ProRealTime, L2 Dealer | MT4, MT5, cTrader, TradingView, Proprietary Platform |
| Inactivity Fees | £12/month after 2 years | None |
| Public Listing | Yes (LSE, FTSE 100) | No (privately held) |
| Best For | Experienced traders wanting platform variety and education | Active traders wanting low costs and fast execution |
Spreads and Fees
Typical spreads by pair
IG operates a spread-only pricing model on its standard retail account. EUR/USD spreads start from 0.6 pips with no separate commission. This keeps things straightforward for traders who prefer all-in pricing without additional charges per trade.
Commission and account fees
Pepperstone offers two account types. The Standard account uses spread-only pricing similar to IG. The Razor account provides raw spreads from 0.0 pips with a commission of around £2.25 per side per standard lot. Active traders and scalpers often prefer the Razor model because the total cost per trade can be lower on major pairs.
Overnight financing and inactivity costs
IG charges a £12 monthly inactivity fee after two years of no activity. Pepperstone does not charge any inactivity fee, which is a clear advantage for traders who may take breaks from the markets.
For a detailed breakdown of how spreads affect trading costs, see our guide to forex spreads explained.
| Fee | IG | Pepperstone |
|---|---|---|
| EUR/USD min spread | 0.6 pips | 0.0 pips (Razor) / 1.0 pips (Standard) |
| GBP/USD min spread | 0.9 pips | 0.0 pips (Razor) |
| USD/JPY min spread | 0.7 pips | 0.0 pips (Razor) |
| FX commission per lot per side | None | £2.25 (Razor MT4/MT5) |
| UK share commission | 0.10% | 0.10% (min £0.01 GBP) |
| Minimum deposit | £0 | £10 |
| Inactivity fee | £12/month after 2 years | None |
Platforms
IG's platform lineup
IG provides its own proprietary web-based trading platform, which is well designed and suitable for most retail traders. It also supports MT4, ProRealTime for advanced charting and automated strategies, and L2 Dealer for direct market access. This gives IG one of the widest platform selections of any UK broker.
Pepperstone's platform lineup
Pepperstone supports MT4, MT5, cTrader and TradingView, alongside its own proprietary trading platform available on both web and mobile app. cTrader is particularly popular among algorithmic traders and those who want depth-of-market visibility. TradingView integration allows traders to execute directly from one of the most widely used charting tools available.
IG suits traders who want a polished proprietary experience with optional professional tools. Pepperstone offers both its own platform and strong third-party options with robust execution infrastructure.
| Feature | IG | Pepperstone |
|---|---|---|
| Proprietary platform | Yes | Yes |
| MT4 | Yes | Yes |
| MT5 | Yes | Yes |
| cTrader | No | Yes |
| TradingView integration | Yes | Yes |
| ProRealTime | Yes | No |
| DMA (L2 Dealer) | Yes | No |
| Execution speed claim | Not published | From 50ms |
| Total instruments | 15,000+ | 1,350+ |
FCA Regulation and Safety
Regulatory status and client protections
Both brokers are authorised and regulated by the Financial Conduct Authority. IG operates under FRN 195355 and is listed on the London Stock Exchange as part of the FTSE 100 index. Pepperstone Limited operates under FRN 684312 and is privately held, though it is also regulated by ASIC in Australia and other global authorities. Client funds at both brokers are held in segregated accounts, and retail clients benefit from negative balance protection. Eligible deposits are covered by the Financial Services Compensation Scheme up to £85,000 per person, per firm.
Company structure and history
IG was founded in 1974 and operates through three separate FCA regulated entities: IG Markets (FRN 195355) for CFDs, IG Index (FRN 114059) for spread betting, and IG Trading and Investments (FRN 944492) for share dealing. Pepperstone launched in 2010 and operates its UK business through Pepperstone Limited (company number 08965105), with additional licences in Australia, Cyprus and other jurisdictions. IG's FTSE 100 listing brings public disclosure requirements that privately held Pepperstone doesn't face, though both meet FCA standards for UK retail clients.
Verify each broker's authorisation on the FCA Register: IG on the FCA Register and Pepperstone on the FCA Register.
For more on what FCA regulation means for traders, see our guide to FCA regulation explained.
Both brokers provide FSCS protection for eligible UK retail clients up to £85,000 per person, per firm.
Who Should Choose IG?
- Traders who want access to a proprietary platform alongside MT4 and ProRealTime
- Those who value extensive educational content and market analysis
- Experienced traders seeking direct market access via L2 Dealer
- Traders who want no fixed minimum deposit with a FTSE 100 listed broker
- Those who prefer a publicly listed, FTSE 100 broker with decades of UK history
Ready to open an account? Visit IG.
Who Should Choose Pepperstone?
- Active traders and scalpers who want raw spread pricing with low commissions
- Traders who prefer MT5, cTrader or TradingView
- Those who want no minimum deposit and no inactivity fees
- Algorithmic traders who value fast execution and cTrader's depth-of-market tools
- Traders looking for a globally regulated broker with strong execution infrastructure
Ready to open an account? Visit Pepperstone.
Final Verdict
IG and Pepperstone are both strong choices for UK forex traders, but they serve different priorities. IG offers a broader platform ecosystem, extensive education and the credibility of a FTSE 100 listing. It suits traders who want depth, variety and a well-established proprietary experience. Pepperstone focuses on low trading costs, fast execution and access to popular third-party platforms like cTrader and TradingView. It appeals to active traders, scalpers and those who want to start without a deposit requirement. There is no universal winner. The best broker depends on whether you prioritise platform choice and educational support or raw pricing and execution speed.
Read our full individual reviews for more detail: View IG Review and View Pepperstone Review. You can also compare both brokers against the wider market on our best forex brokers UK page.
Frequently Asked Questions
Is IG or Pepperstone cheaper for active traders?
Pepperstone's Razor account is meaningfully cheaper for active traders. Raw EUR/USD spreads average 0.1 pips on Razor, with commission of £2.25 per standard lot per side on MT4 and MT5. That typically lands the all-in cost well below IG's 0.6 pip minimum on standard accounts. For casual traders, the difference is modest because trade volume is low. For anyone running serious frequency or size, Pepperstone Razor is the sharper tool.
Which has better trading platforms, IG or Pepperstone?
Both offer strong platform choice but take different angles. IG covers seven platforms including its own web app, MT4, MT5, ProRealTime, L2 Dealer for DMA, and TradingView. Pepperstone supports five: its own platform, MT4, MT5, cTrader, and TradingView. The key difference is cTrader, which Pepperstone supports properly with institutional-style liquidity and C# algo support, while IG doesn't. If you specifically want cTrader or TradingView execution, Pepperstone. If you need ProRealTime or DMA, IG.
Do both IG and Pepperstone offer spread betting?
Yes, both offer spread betting to UK residents. IG has run spread betting since 1974 under IG Index (FRN 114059), with minimum stakes from 13p per point. Pepperstone added spread betting as one of three account types alongside CFD Standard and CFD Razor. Both route profits through the UK tax structure where spread betting gains are typically free from Capital Gains Tax and stamp duty. Tax rules depend on your circumstances and can change.
Which is better for beginners, IG or Pepperstone?
IG is the stronger starting point for beginners. The IG Academy hub offers structured free courses, webinars and a beginner-focused content library that Pepperstone doesn't match. Pepperstone assumes a degree of existing knowledge and focuses on execution quality rather than education. If you already know how forex works and want a low-cost broker, Pepperstone. If you're starting from scratch and want guidance, IG.
Does Pepperstone's Razor account really beat IG on costs?
For meaningful volume, yes. On EUR/USD, Razor quotes raw spreads averaging 0.1 pips and adds £2.25 commission per standard lot per side on MT4 and MT5. The all-in cost per round turn comes to roughly 0.3-0.4 pips at standard lot sizes. IG's minimum EUR/USD spread is 0.6 pips with no commission on the standard account. Over hundreds of trades the difference compounds. On a handful of trades a month, the absolute gap is small enough that most traders won't notice.
Does IG or Pepperstone charge an inactivity fee?
IG charges £12 per month after two years of account inactivity. Pepperstone doesn't charge an inactivity fee at all, though accounts holding less than 10 units of currency and inactive for three months may be archived. Reactivation is available on request. If you step away from trading for extended periods, Pepperstone leaves your account alone. For traders who remain even occasionally active, neither fee structure will trouble you.
Risk Warning: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading these products. You should consider whether you understand how these instruments work and whether you can afford the high risk of losing your money.