Does Pepperstone Allow Scalping? Key Facts

Scalping is a fast-paced trading strategy in which traders execute numerous quick trades to capitalise on minor price fluctuations. This strategy appeals to active traders seeking to benefit from brief market movements while avoiding long-term position holding. As one of the top brokers in the world, many traders may wonder, Does Pepperstone allow scalping?

In this article, we’ll explore Pepperstone’s scalping policies, including whether the broker supports scalping, and what features make it an ideal platform for short-term traders. We’ll also cover any potential restrictions to be aware of.

What Is Scalping?

Scalping is a trading method that focuses on short-term positions that are typically held for a few seconds to a few minutes. The goal is to accumulate small profits repeatedly throughout the day rather than holding trades for longer periods. Scalpers generally rely on technical analysis, tight spreads, fast execution, and high trading frequency.

Is Scalping Allowed on Pepperstone?

Yes, Pepperstone fully supports scalping. The broker allows traders to open and close trades within seconds without any restrictions on holding periods. Scalpers can execute rapid trades, take advantage of small price movements, and use automated trading tools or Expert Advisors (EAs) to support their strategies. Pepperstone’s infrastructure is designed to support such high-speed trading styles with institutional-grade execution speeds, low latency, and tight spreads.

Moreover, the broker has no dealing desk intervention, which means orders are executed directly through liquidity providers. This ensures transparency and efficiency, vital factors for successful scalping. Let’s take a more comprehensive look at the factors that make Pepperstone an ideal broker for scalping.

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Why Pepperstone Is Ideal for Scalping

Pepperstone is an ideal broker that offers scalping. Here are some of the reasons why Pepperstone is a favourable option for traders who prefer scalping:

• Tight Spreads from 0.0 Pips - Scalpers thrive on low costs, and Pepperstone delivers in this area. It offers spreads from 1.0 pips on the standard account and from 0.0 pips on the Razor account (with a low commission). Lower spreads reduce the cost per trade, translating to possibly higher profit potential.

• Lightning-Fast Execution - Pepperstone boasts ultra-fast average order execution speeds that depend on the specific Pepperstone branch a trader is trading on. Specifically, most orders are executed in less than 30 milliseconds (Pepperstone Group Limited) and 60 milliseconds (Pepperstone Limited). The clients of Pepperstone Group Limited are those accessing the Australian branch of the company. On the other hand, clients accessing the company’s services from other jurisdictions, including the UK, Europe at large, Africa, and others, are on Pepperstone Limited.

• No Restrictions on Trading Styles - Unlike some brokers that impose minimum holding times or restrict scalping activity, Pepperstone welcomes scalpers and does not apply FIFO (First In, First Out) rules or time-based trade limitations.

• Advanced Trading Platforms - Scalpers using Pepperstone can choose from several trading platforms that support rapid analysis and execution: MetaTrader 4, Popular for its customisable charts and EA integration, and MetaTrader 5, with Advanced tools, faster backtesting, and multi-asset capability. cTrader, optimised for speed and offering Level II pricing and advanced order types, is also available.

• Low Latency and VPS Support - Pepperstone offers VPS (Virtual Private Server) hosting to traders running automated scalping systems, ensuring 24/7 Operation. This helps to maintain uninterrupted trading activity without relying on a local machine. It also helps to execute orders faster with server-side hosting and reduces delays. In other words, traders avoid disconnections or slowdowns during high-impact news or market spikes. 

To qualify for free VPS service at Pepperstone, traders must meet specific requirements: a trading volume of USD 1,000,000 or more (or the equivalent in another currency or asset) over a 60-day period. If you meet this volume criterion, you’ll receive free VPS hosting for the following calendar month. 

If you fail to meet the trading volume requirement, Pepperstone will suspend your access to the VPS service. Each client is eligible for only one VPS service at a time, and Pepperstone reserves the right to update the eligibility criteria, so it’s the client’s responsibility to stay informed about any changes. 

Types of Scalping

There are a few common scalping styles, these are:

Time-Based Scalping

Time-Based Scalping is a disciplined approach where traders open positions for fixed, ultra-short durations. Typically, the holding time is between 30-60 seconds, allowing traders to capitalise on market volatility rather than directional bias. This method relies on precise timing and rapid execution. It often employs algorithms to automatically close trades at predetermined intervals regardless of profit or loss. Ideal for liquid markets like major forex pairs during peak hours, it requires ECN-style execution, low latency, and strict risk management. 

Spread-Based Scalping

Spread-based scalping is a precision trading strategy where traders capitalise on small bid-ask spread differences in liquid markets. This approach requires brokers with consistently tight spreads (especially during peak hours) and ultra-fast order execution to profit from fleeting price inefficiencies. Pepperstone excels in both these areas.

Scalpers typically focus on major currency pairs like EUR/USD or highly liquid indices where spreads remain narrow. They often enter dozens of quick trades per session to accumulate small gains. The strategy demands low-latency technology, including VPS hosting and direct market access accounts, to overcome the challenge of competing with institutional traders for these micro-opportunities. 

Successful implementation also requires careful monitoring of swap fees and commission structures, as these can quickly erode profits from high-volume spread trading.

Indicator-Based Scalping

Scalpers often rely on technical indicators like moving averages, RSI, and Bollinger Bands applied to 1-minute or 5-minute charts to identify quick entry and exit opportunities. These tools help traders spot trends, momentum shifts, and volatility patterns in fast-moving markets. Moving averages smooth price action to identify direction, RSI highlights overbought or oversold conditions for potential reversals, while Bollinger Bands signal breakout opportunities when price touches the bands. 

Many scalpers combine these indicators with tight stop-losses and take-profits to capitalise on small, rapid price movements, often using platforms like MetaTrader 4 and 5 or cTrader for optimal execution speed. All these platforms are available on Pepperstone.

News Scalping

Scalpers may trade around economic news releases, capitalising on rapid market movement immediately following key data. No matter the style, success in scalping depends on ultra-fast execution, minimal slippage, and low costs, all of which Pepperstone delivers.

Pepperstone Accounts

Pepperstone offers two main account types that cater to different trader needs and are easy to open. Both support scalping, but one stands out for active short-term traders:

The Razor Account

The Razor account is tailored for scalpers and high-frequency traders. It offers spreads from 0.0 pips alongside a commission depending on the trading platform used. The trading platforms available to use include MetaTrader 4, MetaTrader 5, TradingView, cTrader, and the Pepperstone Trading Platform. 

On MetaTrader 4 and MetaTrader 5, the commission is $3.5, €2.60, £2.25, or CHF 3.30 per side for each standard lot, depending on the account currency. TradingView and the Pepperstone Trading Platform also charge a commission of $3.5 per side per lot. However, cTrader offers the lowest rate, with a commission of $3.0 per side per lot. For accounts not denominated in USD on TradingView, cTrader, or the Pepperstone Trading Platform, commissions are automatically converted to the account's currency at the prevailing spot exchange rate.

This account type is best for scalpers who require precision, speed, and institutional-grade pricing. Nonetheless, the Standard account also has features that are attractive to scalpers.

Standard Account

The Standard account features zero commissions and industry-standard spreads. It delivers spreads from as low as 1.0 pips on major currency pairs. Additionally, it offers ultra-fast execution through MT4, MT5, the Pepperstone Trading Platform, cTrader, and TradingView.

Pepperstone Credibility

Founded in 2010, Pepperstone has grown into one of the most reputable brokers in the world. The broker handles billions in daily trading volume and has built a solid reputation among retail and professional traders alike. 

Importantly, Pepperstone is regulated by several financial authorities, including the UK’s Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC), the Dubai Financial Services Authority (DFSA), and the Capital Markets Authority (CMA) of Kenya, among several others. These regulations require Pepperstone to maintain transparency, fund segregation, and fair trading practices. 

On another note, the broker has a great reputation among online reviewers. Pepperstone maintains a 4.4 out of 5 stars rating on Trustpilot, based on over 2,900 client reviews. This is a strong testament to its reliability and trader-focused services.

Final Thoughts

Pepperstone is one of the top forex brokers that supports scalping. The broker offers a powerful combination of low spreads, ultra-fast execution, institutional liquidity, and unrestricted trading strategies. Whether you're using a manual scalping system or an automated Expert Advisor, Pepperstone’s infrastructure and platform offerings are designed to support high-frequency trading.

The Razor account, in particular, stands out as the best choice for scalpers, thanks to its raw spreads and lightning-fast trade execution. With advanced platforms like cTrader and MetaTrader, plus VPS support and global regulation, Pepperstone provides everything needed by scalpers. If scalping is your preferred trading style, Pepperstone is a broker worth considering.

75.3% of retail CFD accounts lose money