# Pepperstone

Pepperstone is an Australian forex and CFDs broker providing trading services with forex, stocks, commodities and other asset classes in multiple jurisdictions. The company was founded in 2010 in Melbourne, Australia, by Owen Kerr and Joe Davenport. The group operates internationally through subsidiaries in the UK, Germany, Cyprus, Kenya, Bahamas, and the UAE.

## History

Pepperstone was founded in 2010 by Owen Kerr and Joe Davenport but it did not receive its Australian Financial Services License (AFSL) from the Australian Securities and Investments Commission (ASIC) until February 2013.
In 2014, the firm was ranked #1 on BRW Fast Starters, with reported revenues of $60m and 66% growth. In 2015, it secured a license under the Financial Conduct Authority (FCA) in the UK. By that time the company had already obtained licenses in the UAE with the Dubai Financial Services Authority (DFSA) and in the Bahamas under the Securities Commission of the Bahamas (SCB).
In 2016, Pepperstone sold a majority of its business to Champ Private Equity. The equity firm later exited the company, selling its stake in 2018 to Tamas Szabo CEO and Fiona Lock. In February 2017, to comply with its FCA obligations, the firm temporarily suspend trading for its UK clients.
After Brexit, Pepperstone could no longer operate in European Union under its UK FCA license. To continue operations Pepperstone secured additional licenses from BaFin in Germany and CySEC in Cyprus by 2020.
In June 2022, Pepperstone became an Approved Broker Member of the Financial Commission, a self-regulatory organization in the financial services space.
In 2022, the UK subsidiary increased net profit by 36% to over £10 million. However, it failed to break above the broker's revenue of £12.7 million in 2020. The client funds decreased to £25.16 mln below the previous year's £28.9 mln. Pepperstone reduced employee and legal expenses and tripled marketing expenses instead.
In June 2024, Pepperstone introduced 24-hour CFD trading on US shares on its trading platforms cTrader, MetaTrader, and TradingView.

## Regulation

After Brexit, to remain operational in EU, Pepperstone secured regulatory licenses in Germany and Cyprus. The company also expanded to Kenya and the UAE. The company is authorized and regulated by several financial authorities: the Australian Securities and Investments Commission (ASIC), the FCA in the United Kingdom, CySEC Cyprus, DFSA Dubai, CMA Kenya, SCB Bahamas, and BaFin Germany.
Pepperstone has offices in Melbourne, London, Düsseldorf, Dubai, Limassol, Nassau, and Nairobi.

## Sponsorship

In May 2022, Pepperstone entered into a global sponsorship deal with the Association of Tennis Professionals (ATP), gaining naming rights to the official ATP rankings. After February 2024, the naming rights were transferred to the Saudi Arabian Public Investment Fund.
In 2024, Pepperstone announced a partnership with the Asian Football Confederation, hired John McEnroe as a Global Tennis Ambassador, and established partnerships with the Geelong Football Club and the Adelaide Strikers. In November 2024, the company became a sponsor of the Ultimate Fighting Championship (UFC) in Asia.
In January 2025, Pepperstone signed a multi-year sponsorship agreement with the Aston Martin Aramco F1 Team.

## Controversy

In October 2014, the Australian Securities and Investments Commission (ASIC) discovered that Pepperstone had been operating in Japan without a license from the Japanese Financial Services Agency. It was only after the ASIC report that Pepperstone notified its Japanese clients via email about the lack of a license and informed them that they could only withdraw their funds until 31 December 2014.
In February 2023, Peter Spanos, Pepperstone's head of market risk, left the company to take a similar role at GO Markets, a rival brokerage firm. Spanos remarked that he was pleased to join a company with a supportive culture. A company he has since left.

### Insider trading scam

In 2014, the Herald Sun reported that Pepperstone's head of sales, Joel Murphy, was dismissed after blowing the whistle on a $7 million insider trade scam. Murphy uncovered a scheme carried out by Lukas Kamay and Chris Hill, who gained 20,000% in profits, and informed his boss as well as the Australian Securities and Investments Commission. Murphy was dismissed on the day of their arrest and was denied bonuses exceeding $1 million.
The story was later covered in the press under the headline "Pepperstone helped the Australian Securities and Investments Commission and Australian Federal Police uncover Australia's largest insider trading case in history," without revealing that the person who initially discovered the fraud had been dismissed without receiving his due compensation. Murphy later founded a brokerage company and eventually hired one of the convicted fraudsters, Chris Hill, as a risk analyst, giving him a chance to recover from the incident and rebuild his career.