Pepperstone vs IC Markets UK: I Funded Both and Compared (2026)

How I Compared Them: I Funded Both in the Same Week

What I was looking for before I funded

I trade forex on cTrader and occasionally use spread betting for UK tax efficiency. Before funding I had three questions: which entity actually holds my money, what is the real cost per lot, and which platforms are available. I funded both accounts during the same week in June 2026 so the conditions were comparable.

My starting point was my Pepperstone forex review, which gave me a baseline for what to expect from the Pepperstone side. I then replicated the same opening process with IC Markets to see where the experience differed.

The thing you notice immediately when opening IC Markets from the UK

When I started the IC Markets application from the UK I was routed to IC Markets (EU) Ltd, the CySEC-regulated entity based in Cyprus. There is no FCA-regulated IC Markets entity to choose. That routing happens automatically and is not flagged prominently during onboarding.

The FCA has issued a warning in relation to IC Markets Global, a separate entity. UK clients signing up are directed to the EU (CySEC) entity or the Mauritius (FSC) entity. Neither provides FSCS coverage. I noted this immediately and it became the central finding of my comparison.

The Regulatory Difference: FCA vs CySEC

What Pepperstone's FCA registration means for your money

Pepperstone Limited holds FCA authorisation under FRN 684312. Your deposits are held in segregated client accounts under FCA rules, and you are entitled to claim the Financial Services Compensation Scheme (FSCS) up to £85,000 if the firm fails.

FCA supervision also means Pepperstone must meet ongoing capital adequacy requirements, report regularly to the regulator, and follow UK conduct rules. For a retail trader, those protections are the baseline expectation for any broker you hold funds with.

Which entity IC Markets actually onboards UK clients through

UK clients applying to IC Markets are onboarded through IC Markets (EU) Ltd, regulated by the Cyprus Securities and Exchange Commission (CySEC) under licence 362/18. This entity is MiFID II compliant, which for retail clients means segregated funds, negative balance protection, and a 1:30 leverage cap on major forex pairs.

That is a reasonable standard of regulation. However, CySEC is not the FCA, and the protections are materially different for UK retail traders. The FCA warning relating to IC Markets Global is a separate matter but worth being aware of if you encounter it during research.

FSCS vs ICF: the protection gap that matters

The FSCS covers eligible UK retail clients up to £85,000 per firm. The ICF (Investor Compensation Fund) under CySEC covers eligible clients up to EUR 20,000, approximately £17,000 at recent exchange rates. The gap between the two schemes is significant if you are holding a meaningful account balance.

For most retail traders with smaller accounts the ICF limit may feel adequate. But if you are scaling up, or simply want the full protection framework that comes with an FCA-regulated firm, Pepperstone is the only option between these two that provides it.

The Cost Comparison

Raw spread commissions on cTrader

On cTrader, Pepperstone's UK Razor commission is £2.25 per side, or £4.50 round turn per standard lot. IC Markets EU charges $3.00 per side (USD) on its Raw Spread account, which at recent exchange rates is line-ball with Pepperstone once converted. On this platform the two are effectively level on cost.

Both brokers offer average EUR/USD raw spreads from 0.0 pips, with typical spreads around 0.1 pip during liquid London/New York sessions. For a high-volume scalper the per-lot cost difference between these two brokers is not the story.

MT4 and MT5 commission: where Pepperstone edges ahead

On MT4 and MT5, Pepperstone charges £2.25 per side on a GBP Razor account, which is £4.50 round turn per standard lot. IC Markets EU charges $3.50 per side (USD), around $7 round turn, so once you account for the currency Pepperstone is a little cheaper here.

Trading in a GBP-denominated account also removes the FX conversion step on each trade with Pepperstone. IC Markets' USD commission is converted at the spot rate, which adds a minor variable to your true cost per lot.

Spread betting: Pepperstone offers it, IC Markets does not

Spread betting is a UK-specific product that allows profits to be free from Capital Gains Tax and stamp duty under current HMRC rules. Always verify your own tax position, as individual circumstances vary. Pepperstone offers spread betting through its UK entity. IC Markets (EU) Ltd does not offer spread betting at all.

For UK traders who use spread betting as part of their tax planning, this is a definitive product difference. It cannot be replicated through CFD trading with IC Markets, and it represents a meaningful practical advantage for Pepperstone among UK retail traders.

Where Pepperstone Won in My Testing

UK regulatory protection and FSCS

This was the clearest win. Pepperstone is FCA authorised, your money sits under UK regulatory rules, and you have access to the FSCS up to £85,000. I did not have to think twice about which entity held my funds or whether it matched UK expectations.

With IC Markets, even though the CySEC entity is a legitimate regulated broker, I was aware throughout that the protection framework was different and that my FSCS rights did not apply.

Spread betting availability

I placed several spread bets during my testing week. The positions are structured as tax-free under the spread betting wrapper under current HMRC rules, which CFD trading does not replicate. IC Markets simply does not offer this product for UK clients.

If your trading strategy ever includes UK tax efficiency through spread betting, Pepperstone is the only option between these two brokers.

Platforms: a close match, with Pepperstone's own platform on top

Both brokers offer MT4, MT5, cTrader and TradingView, so the core platform choice is much the same. Pepperstone adds its own proprietary Pepperstone platform and mobile app on top of that lineup.

In practice the platform side is close to a draw, so for most UK traders the decision rests on the regulatory and product differences above rather than platform availability.

Where IC Markets Is Competitive

Instrument range and global asset coverage

IC Markets offers over 2,250 tradeable instruments including forex, indices, commodities, stocks, bonds, and crypto CFDs. The breadth of its instrument list is a genuine strength, particularly for traders who want access to a wide range of equity CFDs alongside forex.

Pepperstone's instrument range is extensive but IC Markets edges ahead on sheer volume of listed products. If instrument variety is your primary concern, IC Markets holds its own.

Established MT4 and MT5 execution reputation

IC Markets has a strong reputation among algorithmic traders and EA users on MT4 and MT5, with servers known for fast execution and low latency. This matters for scalpers and automated strategies, and this reputation predates Pepperstone's growth in the UK market.

If you run MT4 expert advisors or MT5 automated strategies and execution speed on those specific platforms is your priority, IC Markets is a credible choice at the technical level. The regulatory trade-off remains, but the execution quality is real.

My Honest Verdict

I came into this comparison expecting cost to be the main story. It was not. The two run comparable raw-spread structures: level on cTrader, with Pepperstone slightly cheaper on MetaTrader. The real story is regulatory standing and product range, and on both counts Pepperstone is the stronger choice for UK traders. See also how Pepperstone compares to CMC Markets if you want a broader look at UK CFD and spread betting alternatives.

Choose Pepperstone UK if...

• You want FCA authorisation and FSCS protection up to £85,000
• You use or plan to use spread betting for UK tax efficiency
• You want Pepperstone's own platform and app alongside MT4, MT5, cTrader and TradingView
• You want your account held under a UK regulatory framework without exception

Choose IC Markets if...

• You understand and accept that you will be with the CySEC entity, not an FCA firm
• You do not need spread betting and are comfortable with CFDs only
• You prioritise a very wide instrument range and IC Markets' established MT4/MT5 execution reputation
• The ICF protection up to EUR 20,000 is sufficient for your account size

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