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AlgoVerdict

Pepperstone vs. IC Markets — Broker Comparison for EAs

Pepperstone vs. IC Markets — Straight Answer

Two of the most mature ECN brokers for Expert Advisors — and a very close race. Pepperstone is one of the most broadly regulated brokers anywhere (ASIC, FCA, CySEC, DFSA, BaFin, CMA, SCB), offers the Razor account with raw spreads from 0.0 pips and five platforms including cTrader and TradingView. IC Markets shines with disclosed server locations (Equinix NY4 (MT4/MT5) · Equinix LD5 (cTrader)), comparable raw spreads from 0.0 pips, a free VPS for active accounts and an explicitly unrestricted EA policy. In short: if you prioritise maximum Tier-1 regulatory breadth (including BaFin for German clients), take Pepperstone; if you bet on demonstrable latency infrastructure, an easier-to-reach free VPS and, outside the EU, higher leverage, IC Markets is the home. Both are first class for EAs — the table below shows the profiles side by side.

Execution & Infrastructure

Both are genuine no-dealing-desk ECN/STP brokers with direct liquidity access — the baseline for reliable EA fills. IC Markets discloses its server locations (Equinix NY4 (MT4/MT5) · Equinix LD5 (cTrader)), an edge for latency-sensitive scalping (execution score 5.0 in our review). Pepperstone also delivers first-class execution (execution score 4.5) and ranks among the strongest-executing houses in the comparison, but does not name a data centre itself; our current record: Equinix NY4 (VPS measurement).

Costs: Raw Spread + Commission

  • Pepperstone Razor: raw spread from 0.0 pips (Razor) + 3.50 USD/lot/side (Razor MT4/MT5/TradingView, 7 USD RT) or 3.00 USD/side (cTrader, 6 USD RT).
  • IC Markets: raw spread from 0.0 pips (Raw, avg EUR/USD 0.1) + 3.50 USD/lot/side (MT, 7 USD round turn) · 3.00 USD/side (cTrader, 6 USD RT); globally also Raw Pro at 1.50 USD/side from a 5,000 USD deposit.

On the standard raw accounts the cost base is identical (~0.6–0.7 pips effective on EUR/USD), and both charge the same rate on cTrader. The full breakdown is in our spread comparison.

Regulation & Leverage

  • Pepperstone: ASIC (Australia, AFSL 414530), FCA (UK, 684312), CySEC (Cyprus/EU, 388/20), DFSA (Dubai, F004356), BaFin (Germany, 151148), CMA (Kenya, licence 128), SCB (Bahamas, SIA-F217). Leverage: 1:30 retail (ASIC/FCA/CySEC/BaFin) · 1:200 retail (SCB) · 1:500 pro clients only.
  • IC Markets: ASIC (Australia, AFSL 335692), CySEC (EU, 362/18), FSA (Seychelles, SD018). Leverage: up to 1:5000 dynamic (Global/FSA, MT) · 1:1000 (cTrader) · EU/CySEC & ASIC: 1:30.

Pepperstone is the regulation champion here — the BaFin licence is a genuine plus for German traders. IC Markets offers the higher offshore leverage via its Seychelles entity. The sister brand IC Trading, by contrast, is licensed solely by the FSC Mauritius (leverage 1:500).

Platforms & VPS

  • Pepperstone: MT4, MT5, cTrader, TradingView, Pepperstone platform; free VPS for pro clients with minimum volume only (EU/DE: ≥ 1M USD notional in 60 days).
  • IC Markets: MT4, MT5, cTrader, TradingView; free VPS: yes (IC VPS from 15 lots FX/metals per month, Global entity).

Both cover the key algo platforms (including cTrader). Pepperstone adds its own in-house platform, IC Markets the lower VPS threshold for retail clients. More in our VPS comparison and the VPS guide.

EA, Scalping & Hedging Policy

Both allow EAs, scalping and hedging without restriction. Not a differentiator — both are uncompromisingly EA-friendly.

Verdict: Who Wins?

  • Choose Pepperstone if maximum Tier-1 regulatory breadth matters to you (especially the BaFin licence for German clients) and you value a broad platform line-up including a proprietary app.
  • Choose IC Markets if disclosed latency infrastructure (Equinix NY4 (MT4/MT5) · Equinix LD5 (cTrader)), an easier-to-reach free VPS and — outside the EU — higher offshore leverage come first.

IC Markets sits on the recommendation list of our overall comparison Best Broker for EA / Algo Trading; you will find Pepperstone in the ECN brokers list and the scalping comparison, among others. Individual reviews: Pepperstone and IC Markets.

Side-by-Side Comparison

Advertising notice: our recommendations come first — brokers we have an affiliate partnership with (marked "Partner"). If you open an account via such a link we earn a commission, at no extra cost to you. The star rating is independent of this and uses the same weighted criteria for every broker. Choose "Rating" to sort purely by score.

How this order is builtpartners first · as of 01 October 2026
  • Selection: the 3 brokers this article compares (IC Markets, IC Trading, Pepperstone) — an editorial selection by the article’s topic.
  • Order — partner influence: yes: Our partner brokers (active affiliate link) come first in editorial order, then every other reviewed broker by overall rating. If you open an account via a partner link we earn a commission, at no extra cost to you. Use the “Rating” toggle to sort the whole list purely by score.
  • Rating — partner influence: no: Weighted average of Costs 20%, Execution 20%, Algo suitability 20%, Regulation 15%, Conditions 15%, Deposits & support 10%, the same for every broker. Commissions do not count, and no rating is raised for partners. Methodology →
  • As of: 01 October 2026
Sort
BrokerTypeRegulationLeverageMin. depositRatingVisit
Our recommendations · partnerseditorial order, affiliate links
IC MarketsPartnerECN / Raw SpreadASIC, CySEC, FSAup to 1:5000 dynamic0 USD4.6Visit
IC TradingPartnerECN / Raw SpreadFSC Mauritius1:5000 USD4.4Visit
Other reviewed brokers · by rating
PepperstoneECN / STPASIC, FCA, CySEC, DFSA +31:30 retailnone required4.4Visit

Frequently asked questions

Is Pepperstone or IC Markets better regulated?

Pepperstone is more broadly regulated (incl. ASIC, FCA, CySEC, DFSA, BaFin). IC Markets is regulated by ASIC, CySEC and the Seychelles FSA; the high leverage runs through the Seychelles entity. For German clients, Pepperstone's BaFin licence is a clear plus. Don't mix them up: the sister brand IC Trading is licensed solely by the FSC Mauritius.

Which broker has lower costs?

The Razor/Raw accounts are practically level — Pepperstone: 3.50 USD/lot/side (Razor MT4/MT5/TradingView, 7 USD RT) or 3.00 USD/side (cTrader, 6 USD RT); IC Markets: 3.50 USD/lot/side (MT, 7 USD round turn) or 3.00 USD/side (cTrader, 6 USD RT). In its global line-up IC Markets also offers Raw Pro at 1.50 USD/side from a 5,000 USD deposit.

Do both allow Expert Advisors and scalping?

Yes, both allow EAs, scalping and hedging without restriction — both are among the most EA-friendly brokers in the comparison.

Which broker is better for scalping?

Both are excellent. IC Markets has a slight edge for latency-sensitive high-frequency EAs thanks to its disclosed server locations (MetaTrader in Equinix NY4, cTrader in LD5) and an execution score of 5.0; Pepperstone does not name specific data centres. More in our Best Broker for Scalping comparison.

What actually changes for you as an EU client between the two?

Leverage is capped identically: 1:30 for retail clients under ESMA. What differs is the entity you land with. Alongside ASIC, FCA and CySEC, Pepperstone holds a BaFin licence (151148) and therefore a German authorisation. IC Markets onboards EU clients through its CySEC entity; the high leverage (up to 1:5000 dynamic (Global/FSA, MT)) is available only via the Seychelles entity.

Which account type is the relevant one for running EAs?

On both sides, practically only the raw variant with a separate commission. Pepperstone's standard account builds costs into the spread and is considerably more expensive for active EAs; at IC Markets the commission-free standard account widens the EUR/USD spread to typically just under 1 pip. For EAs, Razor and Raw remain the sensible choice.

How do the platform line-ups differ for algo traders?

Both cover MT4, MT5, cTrader and TradingView; Pepperstone adds its own platform and lists over 1,350 CFDs (depending on the entity). At both brokers the commission is lower on cTrader — Pepperstone: 3.00 USD/side (cTrader, 6 USD RT); IC Markets: 3.00 USD/side (cTrader, 6 USD RT). If your EA runs in MQL anyway, the platform question is secondary.

How do you qualify for a free VPS at either broker?

IC Markets: yes (IC VPS from 15 lots FX/metals per month, Global entity). Pepperstone: pro clients with minimum volume only (EU/DE: ≥ 1M USD notional in 60 days). If your portfolio does not reach those thresholds, budget VPS rent as a running cost — uninterrupted operation is non-negotiable for 24/7 EAs.