Product Disclosure

Statement
Pepperstone Group Limited

Company: Pepperstone Group Limited

ACN: 147 055 703
AFSL: 414530
Date updated: November 2022
Date Updated: November 2021

Risk Warning: trading leveraged products like Margin FX and CFDs puts your capital at risk. You should consider whether you can afford to
take the high risk of losing your money.
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Trade in small amounts ............................ 11

Contents
Profit potential from market movements 11
1. Introduction ............................................. 4
6. Key risks of trading Margin FX Contracts
2. About our products .................................. 5 and CFDs ............................................... 12
What is Margin FX? ......................................5 Not trading on a formal exchange ........... 12
Example: Base and term currencies ...........5 Suitability risk ............................................ 12
What is a CFD? .............................................5 Volatility risk .............................................. 12
CFDs over Underlying Assets with set Leverage risk ............................................. 13
expiry dates ..................................................6
Example: Trading with leverage ............... 13
Example: Rollover adjustment.....................6
Market risk ................................................. 13
3. Appropriateness ...................................... 6
Counterparty risk ....................................... 13
4. Trading with us ........................................ 7
System risk ................................................ 14
What happens when you trade? ..................7
Execution risk ............................................ 14
Margin ...........................................................7
Cryptocurrency Risk .................................. 14
Margin Obligations .......................................7
Automated trading risk ............................. 15
Example: Margin requirement .....................8
Client money risk ....................................... 16
Knowing your Margin Requirement ............8
Regulatory risk ........................................... 16
Tiered Margins ............ Error! Bookmark not
defined. 7. Regulatory benchmark disclosure .......... 16
Meeting Margin Calls ...................................9 8. Fees and Costs ...................................... 20
IMPORTANT: what happens when you don’t
Spreads ...................................................... 20
meet a Margin Call .......................................9
Example: Spread charge ........................... 20
Stop Loss Orders and Limit Orders .............9
Payment of Margin .................................... 20
Example: Stop Loss Order ...........................9
Example: Margin payment ........................ 20
Example: Limit Order ................................ 10
Contract roll fee ......................................... 20
Calculating Profit and Loss ...................... 10
Swap Rates ................................................ 20
Margin FX Contracts ................................. 10

CFDs .......................................................... 10 Example 1: Swap Rates ............................ 20

Example: Profit from a CFD ...................... 10 Example 2: Swap Rates ............................ 21

The Platform ............................................. 11 Administration Fees (Swap Free only) ..... 21

Trading hours ............................................ 11 Commissions ............................................ 21

5. Key benefits of trading Margin FX MetaTrader ................................................ 21

Contracts and CFDs ............................... 11 Example: Commissions – MetaTrader .... 21
General benefits ........................................ 11 cTrader ....................................................... 22
Market access ........................................... 11 Example: Commissions – cTrader ........... 22

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Index and equity CFD dividends ............... 22

Index CFDs ................................................ 22

Example: Index Dividends ......................... 22

Equity CFDs ............................................... 22

Corporate actions ..................................... 22

9. Conflicts of Interest ............................... 23

10. What to do if you have a complaint......... 23

11. General .................................................. 24

Superannuation funds .............................. 24

Tax implications ........................................ 24

AML requirements .................................... 24

Your privacy ............................................... 25

Public Holidays ......................................... 25

Out of Hours Trading ................................ 25

Communication ......................................... 25

12. Words that we use in this PDS ................ 25

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1.6 Before you decide to trade with us it’s

1. Introduction important that you read and
understand:
1.1 This Product Disclosure Statement
(“PDS”) is provided to Retail Clients (a) this PDS - which provides you with
and sets out important information the material information that you
about the Margin FX and CFD products need to know about us and the
that we offer, to help you decide products we offer;
whether you want to trade with us.
(b) our Terms and Conditions – which
1.2 The products covered by this PDS are provide more detail about the exact
provided by Pepperstone Group trading terms that apply when you
Limited, ACN 147 055 703 open an account with us; and
(“Pepperstone”, “we”, “us”, “our”).
(c) our Financial Services Guide -
1.3 This PDS is dated 27 September 2021. which provides you with
The information in this PDS may information about the financial
change from time to time. If there are services we offer and the fees we
material changes, we’ll let you know in charge.
writing. You can also get a copy of the
latest version of this PDS on our 1.7 The contents of this PDS is general
website. If you have any questions or information only and doesn’t take into
have some feedback on things we can account your personal situation,
do better, please get in touch with us financial objectives or needs. It’s up to
using the details below. you to make sure the products that we
offer suit your specific needs. You
1.4 Our contact details are: shouldn’t trade with us unless you
understand the features and risks of
Pepperstone Group Limited the products that we offer. This means
that you might need to seek
Level 16, Tower 1 independent advice before you start
727 Collins Street trading with us.
Melbourne VIC 3008
1.8 You should consider whether you meet
Email: support@[Link] our target market by viewing our Target
Market Determination on our website.
Call: 1300 033 375/+61 3 9020 0155
1.9 Trading leveraged derivative products
Live Chat: [Link] like Margin FX Contracts and CFDs
involves many risks and we strongly
1.5 We’re an Australian financial services advise you to only trade with money
provider, licensed by ASIC under AFS that you can afford to lose.
Licence 414530. ASIC doesn’t endorse
specific financial products or 1.10 The key risks to keep in mind when
contracts, and its regulations apply to you’re deciding whether to trade these
our Australian financial services types of products are:
activities only. Our products and this
PDS aren’t intended for distribution in (a) the products that we offer are
jurisdictions outside of Australia where leveraged products – so depositing
to do so would be unlawful. If you don’t a small amount of money will give
live in Australia, it’s your responsibility you greater exposure to an
to make sure that there aren’t any laws Underlying Asset;
or regulations in your jurisdiction that
restrict you from trading with us. (b) the markets you’re exposed to can
be very volatile (i.e. they can move
up and down in value quite quickly)
and hard to predict;
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(c) you won’t own or have any rights in you don’t get voting rights in shares)
the Underlying Asset when you and there’s no exchange of one
invest in a product based on that currency or Underlying Asset for
asset (for example a CFD based on another.
Apple US shares doesn’t mean you
own Apple shares);
What is Margin FX?
(d) it’s possible for you to lose the
money that you’ve deposited into 2.3 A Margin FX Contract is a leveraged
your Account if the market moves OTC derivative Contract that allows you
against your open Contracts. We’ll to try and make a profit by speculating
provide you with Negative Balance on the value of one currency compared
Protection which limits your to another. Margin FX Contracts are
maximum losses (including any leveraged products because to
costs that you incur) to the value purchase one, you only need to deposit
of your Account equity, preventing a fraction of the Contract’s total value
your Account from going into in your Account as collateral (or
deficit or negative balance; and Margin), rather than paying the full
value of the currency.
(e) if you don’t have enough money in
your Account to support an open 2.4 There are two currencies represented
Contract, you may be Closed-Out of in every quote for a Margin FX
that Contract before you’re ready. Contract, a “base currency” against
another currency, known as the “term
1.11 We explain these and other risks in currency”. For example, the price of the
more detail in section 6 of this PDS. Australian dollar in terms of the US
dollar.
1.12 Under the Corporations Act and
associated regulations, you will be Example: Base and term currencies
classified as a Retail Client unless you
satisfy one of the requirements to be
classified as a Wholesale Client and
The Australian dollar (“AUD”) as against the US
you apply to us to be so categorised.
dollar (“USD”) is AUD/USD 0.70000, this means
We will notify you of our decision and
that one Australian dollar is equal to, or can be
of your classification in writing. This
exchanged for, 70 US cents.
PDS doesn’t apply to you if you’re
classified as a Wholesale Client. You’ll
need to refer to the Wholesale Client What is a CFD?
Information Statement which can be
found on our website. 2.5 A CFD is another type of OTC derivative
Contract which derives its value from
2. About our products the value of an Underlying Asset – for
example, the price of a share, a market
index or a particular commodity.
2.1 We offer Margin FX Contracts and
CFDs, which are OTC derivatives. OTC 2.6 We offer a number of different types of
derivatives aren’t traded directly on an CFDs, including CFDs based on indices,
exchange or a regulated market. shares, precious metals, energy, soft
commodities and Cryptocurrencies.
2.2 Trading OTC derivatives allows you to For a full list of the CFDs that we offer,
make a profit or loss based on changes please visit our website.
in the price or value of an Underlying
Asset. When you trade OTC derivatives, 2.7 CFDs can be traded in many
your Contracts are cash adjusted or currencies, not just AUD, so you should
Closed-Out in compliance with our check the CFD description within the
Agreements. You don’t take physical Platform before you trade.
delivery of the Underlying Asset (e.g.
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2.8 When you trade CFDs, you’re taking a your expired at the
position on the change in value of the Contract time of
relevant Underlying Asset over time. In expiry
other words, you’re speculating on
whether the value of the Underlying
Asset is going to rise or fall in the Debit
A higher
future, compared to when you opened Long (Rollover
price/premium
(or executed) your Contract. Like Charge)
Margin FX Contracts, you don’t own or
have any rights in the Underlying Asset
Credit
associated with a particular CFD.
Short (Rollover
Benefit)
2.9 The amount of profit or loss that you
experience when you trade a CFD will
be the difference between the price Credit
when you open the Contract and the A lower
Long (Rollover
price when it’s Closed-Out (adjusted to price/discount
Benefit)
reflect holding costs, where these
apply). If the value of the CFD has
moved in your favour, we’ll pay money Debit
into your Account. If it moves against Short (Rollover
you, we’ll deduct money from your Charge)
Account.

2.10 While you have open Contracts, you

may also attract financing costs or
Swap Charges after each rollover (5pm 2.13 Open Contracts will be rolled over
New York time). The costs you’ll incur indefinitely until they’re Closed-Out.
depends on the Underlying Asset that
you’re trading and are subject to Example: Rollover adjustment
change. We explain our fees and other
costs in more detail of section 8 of this
PDS. You’ve bought 2 lots of a cocoa CFD which
expires. The last traded bid price for the
underlying futures Contract is $2,924 USD and
CFDs over Underlying the next front running bid price is $2,914 USD.
This means that we’ll credit your Account $7
Assets with set expiry USD, calculated as follows:
dates (Expired Contract Bid Price – New Front Month
Bid Price) – Average Spread = (2924 – 2914) –
3 = $7 USD.
2.11 Some CFDs will be over Underlying
Assets that have set expiry dates.

2.12 Once the relevant Underlying Asset has

expired, your Contract will be
3. Appropriateness
automatically “rolled over” to a new 3.1 If we assess that you may not be
one. We’ll either debit or credit your suitable for trading with us, we may, at
Account with the price difference our discretion, exercise our rights to
between the two contracts, in one of terminate our agreement with you. See
these ways: Section 16 of our Terms and
Conditions for more information.

The price of Status of Adjustment

your new your we’ll apply
Contract expired to your
relative to Contract Account

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4.5 As set out by ASIC, the maximum retail

4. Trading with us leverage and corresponding Margin
requirement for our products are:
What happens when you (a) 30:1 for a Major Currency Pair -
trade? 3.33% of the notional value;

4.1 Contracts are also known as positions. (b) 20:1 for a Minor Currency Pair, gold
You open a Contract by either buying or a Major Stock Market Index - 5%
(“going long”) or selling (“going short”) of the notional value;
a Margin FX Contract or CFD:
(c) 10:1 for a commodity (other than
(a) you go “long” when you buy a gold) or a Minor Stock Market
Margin FX Contract or CFD in the Index - 10% of the notional value;
expectation that there’ll be an
increase in value of the Underlying (d) 2:1 for crypto-assets - 50% of the
Asset, which will result in an notional value;
increase in the price of the Margin
FX Contract or CFD; and (e) 5:1 for shares or other assets - 20%
of the notional value.
(b) you go “short” when you sell a
Margin FX Contract or CFD in the 4.6 Our Margin requirement falls into two
expectation that there’ll be a categories - Initial Margin and
decrease in the value of the Continuing Margin:
Underlying Asset, which will result
in a fall in the price of the base (a) Initial Margin is the deposit we
currency of the Margin FX Contract require from you when you open a
or CFD. Contract; and

4.2 A Contract is open until it’s Closed-Out. (b) Continuing Margin is the money
We calculate the amount of profit or you need to pay us to ensure that
loss to you when your Contract is your Account balance is enough to
Closed-Out. You can instruct us to keep your Contract open, taking
Close-Out your Contract and we can into account all realised and/or
also exercise our right to Close-Out unrealised profits and losses
your Contract under the Agreements. (“P&L”) on your Account for all of
your open Transactions.
4.3 There are no cooling-off arrangements
for Margin FX Contracts and CFDs. 4.7 You need to deposit Initial Margin into
This means that once we execute your your Account in full before your
Order, you don’t have the right to return Contract can be opened. The amount
the Contract or ask for a refund of the of Initial Margin that we’ll require will
money you’ve paid to buy the Contract. depend on the Contract you’re trading,
market exposure, and the volatility of
the market at the time. In times of
Margin increased volatility, the risk of trading a
particular product also increases.
Margin Obligations During these times we may require you
to deposit more Initial Margin in your
4.4 You must meet our Margin requirement Account to help protect both you and
to trade Margin FX Contracts and CFDs us from the additional risk. You should
with us. This means that you’ll need to refer to the Initial Margin schedule
deposit money into your Account as within the Platform to confirm the
Margin. Initial Margin required for the particular
Contract that you want to open.

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4.8 You’re required to keep enough money 4.13 While we’ll do our best to get in touch
in your Account to meet our Margin with you when your Account is
requirement for as long as your approaching or has reached a Margin
Contract is open. Call, we can’t guarantee that this will
happen in every case. Market
4.9 When the market moves against you, movements may be too great and your
we’ll require you to cover the adverse Contract may have already reached an
price movement by depositing more Order Close-Out level before your
money in your Account as Continuing Margin Call is made.
Margin. We’ll also credit Continuing
Margin to you when a Contract moves 4.14 For this reason, you’re responsible for
in your favour. ensuring that you meet your Margin
requirement and are aware of any
4.10 We’ll let you know when we need you to Margin Calls. You’re also responsible
deposit Continuing Margin in your for ensuring that you’re up to date with
Account by making a Margin Call via any changes to your Margin
the Platform. Margin Calls are made on requirement, which can vary in times of
a net Account basis i.e. if you have high volatility or because of upcoming
several Contracts open under one market events. You can do this by
trading Account, then Margin Calls are regularly logging into the Platform to
netted across all of your open actively monitor and manage your open
Contracts under that Account. In other Contracts and check for Margin Calls
words, the unrealised profits of one of and any Margin changes.
your open Contracts can be used or
applied as Initial Margin or Continuing 4.15 We operate Margin Call and Margin
Margin for another Contract, provided stop-out systems designed to minimise
those Contracts are under the same your losses and to take action before
Account. the market moves further against your
open Contracts.
Example: Margin requirement
4.16 Each type of Platform that we offer has
a different Margin Call and stop-out
You’ve opened a buy Contract on AUD/USD for system.
1 lot. You’ve selected 30:1 leverage, so your
Initial Margin requirement on this Contract is 4.17 There may be differences between the
approximately $3,333 AUD (100,000 / 30 = way Margin is calculated on an
$3,333 AUD). Account basis between the Platforms.
Before using a Platform, we
recommend that you make yourself
4.11 We dynamically recalculate your aware of the specific Margin
Margin requirement based on market requirement by visiting the relevant
movement and volatility and display website for the Platform.
this amount within the Platform. It’s
important that you monitor this and 4.18 Each trading system we use has its
ensure that you’ve got enough money own Margin Call notification system.
in your Account as Margin to cover We encourage you to review all options
market movements, so that your open to you in terms of how those
Contract can stay open during periods systems work or reach out to us at
of volatility. support@[Link] for more
information.
Knowing your Margin Requirement
4.12 We’ll make Margin Calls to you via the
Platform.

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Meeting Margin Calls resulting realised loss from any excess

money in your Account. We can do this
4.19 When we make a Margin Call you must at our discretion, without giving you
immediately deposit the requested notice.
money into your Account.
4.26 When your Account equity falls below
4.20 We hold and manage any money that 50% of the Margin requirement then we
we receive from you in compliance with will automatically Close-Out some or all
the Corporations Act and our of your open Contracts and deduct the
Agreements. resulting realised loss from any excess
money in your Account. We can do this
MetaTrader 4 and MetaTrader 5 at our discretion, without giving you
notice.
4.21 If your Account equity falls below the
Margin requirement for any one of your 4.27 The Close-Out process is designed to
Accounts, the MetaTrader minimise your losses and to take
4/MetaTrader 5 Platform will action before the market moves further
automatically trigger a Margin Call at against your open Contracts. It’s in your
90% of Margin requirement. A Margin interest to ensure that you have enough
Call will be displayed via the Platform cleared funds deposited in your
and the area that displays your Account Account to meet your changing Margin
balance and equity will flash red. requirement i.e. deposit more money in
addition to meeting the Margin
cTrader requirement as a buffer against any
adverse Continuing Margins that arise,
4.22 If your Account equity falls below the to avoid your Contracts being Closed-
Margin requirement for any one of your Out.
Accounts, the cTrader Platform will
automatically trigger a Margin Call at Stop Loss Orders and
99% of Margin requirement. The
Platform will send you an internal email Limit Orders
to inform you of the Margin Call,
providing an audible notification. 4.28 You can place a Stop Loss or a Limit
Order within the Platform, but we can’t
4.23 If your Account equity falls below the guarantee that these mechanisms will
Margin requirement while you’re on be effective. This is because markets
Margin Call, our automated Close-Out can be volatile and unforeseen events
system or our support team may, at can occur which may result in your
their discretion, delete working Orders, Stop Loss or Limit Loss Orders not
partially Close-Out or Close-Out some being accepted, or instead activating at
or all of your Contracts to reduce your a next available price that’s worse than
Margin requirement until it’s fully the price you originally set.
covered by your Account equity.
Example: Stop Loss Order
4.24 Any open Contracts are deemed to be
at risk of being Closed-Out as soon as
your Account enters into a Margin Call. You speculate that the price of US30 will
decrease and you only want to lose $200 USD if
IMPORTANT: what happens you’re incorrect. To try and limit your risk you
can open a 1 lot Contract at the price of
when you don’t meet a Margin $19,871 USD and set the Stop Loss Order at
Call $20,071 USD (i.e. 19871 + 200).

4.25 If you fail to meet any Margin Call then The price of US30 doesn’t fall as you thought it
we may decide to Close-Out some or all would, but continues to appreciate. The market
of your open Contracts and deduct the moves rapidly at the time of closing, meaning

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that your Stop Loss Order isn’t accepted at your (e) the difference between the prices
set price of $20,071 USD and is instead closed that you bought and sold the CFD
at $20,074 USD. As a result, you incurred a loss for;
of $203 USD - $3 more than your $200
maximum. (f) the costs of daily financing or
swaps (including any Swap
Charges or Swap Benefit relating to
Example: Limit Order the CFD);

(g) any Rollover Charges or Rollover

You speculate that the price of AUD/USD will Benefits relating to the CFD;
decrease after hitting parity with the USD.
Instead of waiting for the market to reach this (h) any commission charges relating
price, you place a ‘sell’ Limit Order at 1.00000 to the CFD; and
AUD/USD. This Order will trigger a sell trade
once the price of AUD/USD reaches 1.00000 or (i) any other fees or benefits relating
higher. to the CFD.

The price of AUD/USD immediately changes Example: Profit from a CFD

from 0.99980 to 1.00050. The price movement
triggers your sale trade, and you receive a fill
price of 1.00050 instead of 1.00000. The AUS200 index CFD is currently trading at a
price of 5464. You expect that the index will
rise by 20 points during the week, so you buy
Calculating Profit and Loss one Contract of AUS200 at 5464.

Four days later the AUS200 index has risen to a

Margin FX Contracts price of 5484 as you expected, meaning you
made a profit. You Close-Out the Contract to
4.29 The profit or loss from a Margin FX take your profits by selling the Contract of
Contract is calculated by keeping the AUS200 at 5484.
units of the base currency constant
and working out the difference in the Your profit from this trade is calculated from
number of units of the term currency. these factors:

4.30 The profit or loss that you make on a ● the difference between the prices that
Margin FX Contract will be the net of: you bought and sold the Contract for:
5484 – 5464 = 20 points. One Contract
(a) the difference between the prices has a fixed value per point $1 AUD, so
that you bought and sold the this equates to 20 * 1 = $20 AUD
Margin FX Contract for;
● the cost of daily financing or swaps:
(b) the costs of daily financing or Benchmark interest rate of 2.0% + 2.5%
swaps (including any Swap = 4.5% (the benchmark interest rate is
Charges or Swap Benefit relating to the relevant 1 month interbank rate for
the Margin FX Contract); the currency of the Contract) Swap
Charges: [5464 * (0.045/365)] * 4 =
(c) any commission charges relating $2.69 AUD
to the Margin FX Contract; and
The net profit you’ve made on this trade is: 20 –
(d) any other fees or benefits relating 2.69 = $17.31 AUD
to the Margin FX Contract.

CFDs 4.32 Please refer to section 8 of this PDS for

more information on our fees and
4.31 The profit or loss that you make on a costs, as well as our Terms and
CFD will be the net of: Conditions for the specific terms that
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govern your trading relationship with vary within these times, please check
us. our website for further information on
trading sessions for your Contract.
The Platform
5. Key benefits of
4.33 You can trade our products by opening
and Closing-Out Contracts using our trading Margin FX
online Platform, which means any of
these systems: Contracts and
(j) MetaTrader 4 and MetaTrader 5 - CFDs
provided by MetaQuotes. Please
visit [Link] for
relevant information on how to use General benefits
these systems.
5.1 Margin FX and CFDs are useful
(k) cTrader - provided by Spotware. products when you want to:
Please visit [Link] for
relevant information on how to use (a) diversify an investment portfolio;
this system.
(b) hedge risks from your other
4.34 We source our Platform from third investments; or
party providers, so we’re relying on
them to ensure that the relevant (c) speculate on market movements.
systems and procedures are regularly
updated and maintained.
Market access
4.35 We recommend that you open a
“demo” Account on your chosen 5.2 The products that we offer allow you to
Platform and practice trading in a gain exposure to an Underlying Asset
simulated environment before you without actually having to purchase it.
engage in “live trading”. This will help This enables you to invest in particular
you to become familiar with the products or a group of products that
features and functionality of the you might not otherwise be able to
Platform that you’re using. access easily or in one place.

Trading hours Trade in small amounts

4.36 The Platform opens on Sunday at 5.3 The products that we offer are
5.01pm New York (EST) time and leveraged products, so you only have to
closes at 4:55pm New York (EST) time deposit a small amount of money in
Friday. You can view live prices and your Account as Margin to get a large
place live Orders during these hours exposure.
except during rollover from 4:59pm to
5:01pm New York time, when trading is Profit potential from
disabled. You can still access the
Platform and view your Account, market movements
market information, research and our
other services outside of these hours, 5.4 Because entering into a Margin FX
but you won’t be able to trade or Contract involves trading one currency
access any live prices. against another, you have the ability to
make money when you think one
4.37 We’ll provide services to you outside of particular currency is going to drop.
these hours at our sole discretion.
Trading times for each Contract may

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5.5 You also have the ability to both buy down in value quite quickly) so the risk
and sell CFDs and benefit from the that you’ll incur losses when you trade
movement of those markets in either in derivatives Contracts can be
direction. For example, if you think a substantial.
particular stock index will fall, you
might choose to sell a stock index CFD 6.5 High volatility means the markets can
and benefit from the fall in the price of be very difficult to predict. This means
that index. that you shouldn’t consider any
Contract offered by us or any other
financial services provider to be a
6. Key risks of trading “safe” trade.

Margin FX 6.6 If the market moves against you, you

can find yourself in a position where
Contracts and the money you have on deposit in your
Account isn’t enough to maintain your
CFDs Contract, and you’ll be required to
immediately deposit additional money
as Margin to keep your Contract Open
Not trading on a formal i.e. to “top up” your Account. If you
exchange don’t pay the additional money when
we require you to, and your Margin
6.1 Trading with us is different to trading drops below 50% of the Margin
on a formal exchange. Unlike the required to maintain your current Open
Australian Securities Exchange and Contracts, we are required to Close-
other exchanges, there’s no clearing Out your Contracts.
house for Margin FX Contracts and
CFDs, and the performance of a CFD 6.7 In times of extreme volatility, pricing of
and/or Margin FX Contract by us isn’t Contracts can be impacted as the
“guaranteed” by an exchange or source of that pricing (liquidity) dries
clearing house. up. This can mean, for example:

6.2 You’re also not buying the Underlying (a) the market “gaps” and jumps past
Asset (like a share or the currency), the price that you want or expect;
you’re investing in an interest in that
Underlying Asset. (b) the underlying bid/ask spread
widens (i.e. the gap between the
buy and sell price is wider); and
Suitability risk
(c) you could even find it difficult to
6.3 The products that we offer are high risk obtain a price for particular
and can be complex to understand. It’s Contracts.
critical that you consider your own
current circumstances to make sure 6.8 We pass on any pricing re-quotes
that these products are suitable for directly to you, without any bias
you. If you don’t understand the key towards the direction the pricing has
features and risks of the products that moved in.
we offer, you should seek independent
financial advice before you start 6.9 Highly volatile market conditions can
trading with us. make it difficult for us to execute
Orders at the given price, due to an
extremely high volume of Orders
Volatility risk and/or available liquidity. By the time
we’re able to execute Orders, the
6.4 Margin FX and CFDs are derivatives. Bid/Offer price may be reset. This may
Derivative markets generally can be mean that certain Orders at this time
highly volatile (i.e. they move up and are rejected.
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6.10 Hanging Orders can also occur during

periods of high volume. A Hanging
Market risk
Order is when an Order sits in the
“orders” window of the Platform after 6.12 Markets for currency and other
it’s been executed. Generally, the Order Underlying Assets can be influenced by
has been executed, but it’s simply a number of things, including:
taking a few moments for it to be
confirmed. During periods of (a) interest rate fluctuations;
particularly heavy volume, it’s possible
for a queue of Orders to form, and the (b) changes in asset valuations; and
increase in incoming Orders can
sometimes create a delay in confirming (c) suspensions in trading in the
certain Orders. Underlying Market, Underlying
Asset or reduced liquidity in the
financial products.
Leverage risk
6.13 These influences reflect unforeseen
6.11 You can trade Margin FX Contracts and events or changes in conditions and
CFDs with a high degree of leverage are very hard to predict. They inevitably
because of the small Margin result in rapid price fluctuations and
requirement. Trading with leverage market volatility.
means that even a slight change in the
market could lead to a proportionately 6.14 For this reason, it’s important that you
much larger movement in the value of closely monitor your open Contracts
your investment. and the relevant markets at all times.

Example: Trading with leverage 6.15 While you have the ability to hedge your
risk when you trade with us (in that you
can hold both buy and sell positions in
EUR/USD is trading at 1.12000 and your the same or similar Contract at the
Account equity is €10,000 EUR. You believe same time), hedged Contracts still
that the price of EUR/USD will fall, so you sell 1 carry risk. You will be charged interest
lot (100,000 EUR) of EUR/USD at 1.12000. on both sides of the Contract and you
Leverage on this trade relative to your Account can incur losses because of rollover
equity is 10:1, in other words the size of your costs, exchange rate fluctuations or
trade is 10 times larger than your Account widening spreads. These losses could
equity. Your losses won’t be limited by your also trigger a Margin Call.
equity and you could lose more than the
leveraged amount that you traded.
Counterparty risk
Five days later the price of the EUR/USD has
risen to 1.12500 and you choose to close your 6.16 We’re the issuer of every derivative
Contract at this price by buying 1 lot (100,000 Contract that we offer and the
EUR) of EUR/USD at 1.12500. The net counterparty to each trade. We also
movement for EUR/USD has been 0.44%: manage the Platform that handles your
(1.12500 – 1.12000) /1.12000 * 100 = 0.44%. trading activity. For this reason, we’re
the main counterparty that you’re
Because you traded using 10: 1 leverage, the exposed to.
loss you incurred from the price movement of
EUR/USD is amplified by 10 times. 6.17 To help you consider this risk, please
note that we take our legal and
Your loss on this trade, ignoring any other fees regulatory compliance obligations very
and charges, is €444.44 EUR at the time the seriously. We have many policies,
trade is closed: 100,000 * 0.00500 = $500 USD systems and processes in place to
or 500 / 1.12500 = €444.44 or an equity loss of monitor our business practices and
4.44% on your Account: 444.44 / 10,000 * 100. ensure that we remain compliant with
our various regulatory obligations.

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These obligations include holding 6.22 If you experience a disruption to the

adequate financial resources to Platform, please call our support team
provide financial services, dealing with on +61 3 9020 0155 as soon as
any potential or actual conflicts of possible to open\Close-Out your
interest, handling client money, Contracts.
monitoring and dealing with various
risks we may be exposed to and having
comprehensive record keeping and
Execution risk
reporting processes.
6.23 We aim to provide you with the best
6.18 We also have a robust counterparty pricing available and to fill all Orders at
assessment process in place to ensure the rate you’ve requested. But there are
that we’re not vulnerable to third times when Orders may be subject to
parties that we use, including our what’s known as “slippage”, because of
Liquidity Providers, when providing our an increase in volatility or volume. This
products and services to you. happens most often during
fundamental news events or “gapping”
in the markets, which create conditions
System risk where Orders are difficult to execute
because of extreme price movements.
6.19 We run an online Platform in an
environment (the internet) that by 6.24 The execution of your Order always
nature can’t be guaranteed. This depends on the liquidity that’s available
means there may be issues with you at all price levels. Although you may be
placing Orders or with your Contracts looking to execute at a certain price,
being executed due to internet, system the market may have moved
or network issues on your end. significantly or liquidity may be
Because we can’t promise that the exhausted, in which case your Order
internet will work error-free, we can’t would be filled at the next best price or
accept liability for the risks associated the fair market value.
with the operation of our Platform. For
this reason, you need to be mindful that 6.25 When you’re considering executing an
Platform risks are inherent in every Order, please be mindful that all
Contract that you trade with us. Contracts that you have open at 23:59
(server time) will be subject to rollover.
6.20 For example, a technical issue with Your Contracts will be rolled over by
your internet connection to our servers, debiting or crediting your Account with
may result in a Hanging Order and a a Rollover Charge or Rollover Benefit
delay in executing your Contract. A (as set out in section 2.12). During the
disturbance in the connection path can rollover period, trading may be disabled
sometimes interrupt the signal and for 2 to 5 minutes and there may be
disable the Platform, causing delays in widened spreads as liquidity reduces,
transmission of data between the which could cause you to experience
Platform and our servers. losses or gains. We’re not liable for any
losses that you incur during the rollover
6.21 Disruptions to our operational period.
processes such as communications,
computers, computer networks,
software or external events could also
Cryptocurrency Risk
lead to delays in the execution and
settlement of your Contract, meaning 6.26 CFDs are high risk investment
that you might be unable to trade in a products, which are volatile, creating
particular Contract that we offer and opportunity for high financial returns or
you could suffer a financial loss or losses. Cryptocurrencies are also high
opportunity loss as a result. risk instruments and their value can
fluctuate significantly.
Cryptocurrencies are also subject to

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technology risks. If you choose to to make yourself aware of the hard

invest in Cryptocurrency CFDs, you do forks that could occur.
so acknowledging that these
instruments are much more volatile 6.32 Due to the volatile nature of
than traditional currencies, so sharp Cryptocurrencies, where there is an
and sudden moves in the price could event of a consensus among the
see you lose significant amounts of exchanges and the instrument is no
money very quickly. longer offered, we can delist the
instrument in short notice.
6.27 We base the price of our
Cryptocurrency Contracts on the 6.33 We may enforce a limit on the total
Underlying Market, made available to amount of Cryptocurrency exposure
us by the exchanges and Liquidity that you’re allowed to maintain. This
Providers that we trade with. information is available on our website.
or from our Support team on request to
6.28 When you trade CFDs on support@[Link]. We
Cryptocurrencies, you need to be aware reserve the right to reduce or close
of the risk of a “hard fork” occurring. A your Cryptocurrency positions if your
hard fork is when a single notional exposure size exceeds this
Cryptocurrency splits in two due to a limit.
split in the blockchain network (ledger
of Cryptocurrency transactions) and
occurs when a Cryptocurrency’s
Automated trading risk
existing code is changed. This can
result in both an old and new version of 6.34 While you’re able to connect to and use
the particular Cryptocurrency. third party trading tools and systems
with the Platform (such as automated
6.29 In the event of a hard fork: trading strategies/expert advisors,
copy traders and robot traders), using
(a) we’ll generally follow the these tools and systems is high risk
blockchain that has the majority and could lead to you incurring
consensus of Cryptocurrency significant financial losses.
users. We reserve the right to
determine which blockchain and 6.35 We don’t have any control over the
Cryptocurrency unit has the logic or code that these third party
majority consensus behind them providers use when developing their
and use this as a basis for tools and systems and we’re not
Cryptocurrency Contracts; and responsible or liable for their operation
in connection with the Platform.
(b) there may be substantial price
volatility around the event. We may 6.36 We don’t endorse any third party
suspend trading throughout if we provider and you should take steps to
don’t have reliable prices from the ensure that any third party tools or
Underlying Market. systems that you use to trade with us
have been developed by reputable
6.30 If the hard fork results in a variable providers that, where relevant, are
second Cryptocurrency becoming appropriately licensed or permitted to
tradable on exchanges we have access provide the relevant services to you.
to then, in our absolute discretion, we
may create an equivalent Contract or 6.37 Your use of automated trading
cash adjustment on your Account to strategies such as EAs is solely at our
reflect its value. When a hard fork discretion. We reserve the right to
occurs, restrict access to your Account by
automated trading strategies where we
6.31 We’ll attempt to notify you of potential consider that the level of activity or
hard forks, but it’s your responsibility server messages generated is

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unreasonable, relative to your trading (b) withdraw fees charged as part of a

activities. deposit or withdrawal transaction;

6.38 This may require us to temporarily (c) pay money to us that we’re entitled
change the password to your Account to as a result of you trading with
until the automated strategy or EA is us; and
modified or deactivated. We’ll attempt
to contact you before taking this action (d) make a payment that’s otherwise
but we reserve the right to change your permitted by law or in compliance
password immediately to support the with the operating rules of a
proper functioning of our servers. licensed market.

6.45 You should be aware that we’re solely

Client money risk entitled to any interest or earnings
derived from Client Money being
6.39 Because we’re an issuer of financial deposited in a trust account or
products, we’ll hold your money and invested in compliance with the
other Client Money as part of the Australian Client Money Rules.
financial service we provide to you and
other clients.
Regulatory risk
6.40 Any money that you deposit with us for
trading will be held in a trust account 6.46 Changes to Australian law,
that we maintain with an Authorised government, fiscal, monetary, and
Deposit Taking Institution in regulatory policies may have a material
compliance with the Australian Client adverse effect on your dealings in
Money Rules and ASIC Regulatory Margin FX Contracts and CFDs.
Guide 212: Client Money Relating in
OTC Derivatives. 6.47 We’ll do our best to let you know
whenever a change in legislation will
6.41 Your money may be co-mingled into impact the way that you deal with us.
one or more trust accounts with other
Client Money, which is also held on
trust.
Foreign exchange risks
6.42 We don’t use Client Money for meeting 6.48 If you’re trading in a product that is
our hedging obligations with our denominated in a currency other than
Liquidity Providers, or for meeting the currency of your trading account,
trading obligations with other clients. you’ll be impacted by foreign exchange
We fund any obligations regarding movements.
these transactions from our own
money.
7. Regulatory
6.43 We hold Client Money separately from
our own operational money and we
benchmark
don’t deposit our operational money
into our Client Money trust account. We
disclosure
periodically remove any money from
the trust account that becomes ours as 7.1 In addition to the information we’ve
a result of trading, to ensure that our provided in section 6, ASIC has
operational money doesn’t become developed 7 disclosure benchmarks for
mixed with Client Money. OTC derivatives that help retail
investors understand the risks
6.44 We’ll only withdraw your Client Money associated with Margin FX Contracts
from our trust account to: and CFDs, assess their potential risks
and decide whether trading Margin FX
(a) process a withdrawal for you; Contracts or CFDs is suitable for them.

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These requirements are contained in

RG 227.

7.2 The table on the next page sets out

which RG227 benchmarks we meet
and how we meet them.

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ASIC RG227 Do we
Description
Benchmark meet it?

We try to ensure that our products are only distributed to investors

who have suitable levels of knowledge and experience to trade them.

We have a written policy which sets out the Account opening

process and the minimum level of knowledge and experience that
you’ll need to have before you can open an Account with us. We
update this policy from time to time to improve its effectiveness.

Before you’re able to trade, you’ll need to complete a suitability test,

which asks for information about your trading knowledge and
experience. You may also need to complete an appropriateness test
which contains questions about some of the key features and risks
of the products that we offer. If you fail the appropriateness test, you
won’t be able to retake the test for a period of time.

Client Qualification
Even though we ask some general questions about your experience
and financial capacity, keep in mind that we don’t provide personal
Addresses the issuer’s Yes advice, so we’re not considering whether the products we offer are
policy on investors’ suitable for you based on your specific circumstances.
qualification for trading.
We offer a “demo” trading system which we strongly encourage you
to use before you open a “live” Account. We also have education
information freely available on our website to help you improve your
understanding of the products we offer.

We also do our best to explain many of the risks that you need to be
aware of when you trade with us, before you open an Account.

Once you have an Account with us, we’ll continue to provide you with
information about upcoming market events so that you’re up to date
with matters that may be relevant to your trading decisions.

If you need more information, please contact our support team at

support@[Link].

We offer a range of payment methods that don’t involve the use of

borrowed funds such as Poli, bank transfer, and BPAY. You can view
the payment methods that are available to you within the ‘Funds’
section of our Secure Client Area.

Opening Collateral The benchmark suggests that we should accept a limit of $1,000 for
opening payments made by credit cards. We don’t comply with this
Addresses the issuer’s aspect of the benchmark because we accept credit card payments
policy on the types of No for more than $1,000 as initial funding, so that we can provide you
assets accepted from with flexible payment options.
investors as opening
collateral. Borrowing to fund leveraged products carries with it a high degree of
risk, given the volatility of financial markets. You may not be able to
service your repayments or your Account if the market moves
against you. If you don’t have enough money in your bank account to
start trading in leveraged products, you may not be able to cover
future losses.

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Counterparty Risk –
Hedging
We have a policy in place to manage our exposure to market risk
from your Contracts. This policy sets out the names of our hedging
Addresses the issuer’s Yes counterparties/Liquidity Providers and the factors we take into
practices in hedging its account when deciding if they’re of good standing. This policy is
risk from client positions available in the ‘Legal Documents’ section of our website.
and the quality of this
hedging.

Counterparty Risk We have a policy in place to ensure that we maintain adequate

Financial Resources financial resources and comply with the financial requirements of
our AFS Licence.
Addresses whether the Yes
issuer holds sufficient We’re required to have our financial accounts audited at least
liquid funds to withstand annually. You can get a copy of the latest results of our financial
significant adverse audit process by contacting one of our representatives or via our
market movements. support team at support@[Link].

Client Money
We have a well-defined Client Money Policy and we hold and use
Addresses the issuer’s Yes Client Money in compliance with the Australian Client Money Rules.
policy on its use of client Further information can be found in section 6 of this PDS.
money.

Suspended or Halted
Underlying Assets
There’s no suspension or halting of the Underlying Market for Margin
Addresses the issuer’s FX Contracts. In respect of all our other products, we don’t allow new
practices regarding Yes
Contracts to be opened when the Underlying Market is halted or
investor trading when suspended.
trading in the underlying
asset is suspended or
halted.

We make Margin Calls through the Platform. It’s your responsibility

Margin calls to monitor the Platform and the Margin available in your Account at
all times while you have open Contracts with us.
Addresses the issuer’s Yes
practices in the event of We have a policy in place for our Margin Call practices and our
client accounts entering discretion to Close- Out Contracts.
into margin call.
Further information can be found in section 4 of this PDS.

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currency) of EUR/USD with a leverage level of

8. Fees and Costs 30:1.

8.1 We offer several different Accounts Your Margin requirement for this Contract is
that feature different fees and costs. USD$333.34: (100,000 x 0.1) / 30 =
USD$333.34.

Spreads
8.2 We may charge spreads (the difference
Contract roll fee
between the bid and the ask price) on
8.6 Certain instruments work on an
your trades. We’ll charge this fee in the
ongoing basis and derive their prices
quote currency of the instrument that
from underlying futures contracts.
you’re trading, which you can then
Because futures contracts expire, when
convert into the base currency of your
one futures contract ends, we need to
Account to determine your cost of
change the underlying Contract that we
trading.
derive our price from. To avoid profit
and loss discrepancies, we’ll issue a
Example: Spread charge
balance adjustment on your Account
(either a Rollover Charge or Rollover
A 1 pip spread mark-up in EUR/USD is worth Benefit) to take into account the
USD$10. If you’re trading on an AUD based difference in prices between the two
Account, the cost for this trade would be Contracts as well as the cost of
USD$10 converted into AUD at the spot rate. Closing-Out your original Contract and
re-opening it in a new Contract. Please
see section 2.12 for more information.

Payment of Margin
Swap Rates
8.3 Margin is the amount of money you
need to deposit in your Account to 8.7 Our Swap Rates on our instruments
open and maintain a Contract. The way vary and the amount we charge
that we calculate Margin varies based depends on the funding costs of the
on the Contract you’re trading and the Underlying Asset or Contract and the
leverage settings on your Account. We rates of our Liquidity Providers. Please
recommend that you check the check the Platform for the Swap Rates
specifications of your particular that may apply to your Contracts.
Contract in the Platform to understand
the amount of Margin required. Example 1: Swap Rates

8.4 For a Margin FX Contract, you can use

this formula: (Contract Size x Volume If you have a long Australian Dollar / US Dollar
(in lots)) / Leverage = Margin required. (AUD/USD) Contract and hold it over the 5PM
American EST time (Close of Business) and
8.5 For your convenience, we have a interest rates are higher in AUD than in USD,
Margin calculator available in your then we may pay you a Swap Benefit.
Secure Client Area, which you can
access via this link: This is because you are long the highest
[Link] yielding currency. On the other hand, if you
calculators were short AUD/USD in the above scenario
then you may incur a Swap Charge at our Swap
Example: Margin payment Rate.

In circumstances where the two interest rates

You want to open a Contract for 0.1 lots (1 lot = are near parity (almost equal to each other), we
100,000 base currency, so 0.1 lot = 10,000 base may impose a Swap Charge for both long and

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short open Contracts. A double negative Swap you hold beyond a certain period of
Rate implies that there’s no interest advantage time.
gained by borrowing in one currency to then
invest in the other. 8.11 We set an Administration Fee for each
product that we offer on a Swap Free
Account on a per- lot open basis. The
structure and amount of the
8.8 The Swap Rate that applies to your Administration Fee varies depending
Contract may be tripled on a specific on the Platform you’re using, the
day depending on the traded symbol's Contract you’re trading, the rates set by
underlying instrument. For example, if our Liquidity Providers and the
your Contract is based on FX or metals currency that your Account is in. For
and is held on the Wednesday – more information on the
Thursday Rollover the swap rate will be Administration Fee that we charge for
tripled. Because of the settlement each product that we offer, please visit
structure within the spot market, trades the Swap Free Account page on our
that are open on Wednesday will be website.
settled on the Monday after, so there’s
a need to account for interest earned / 8.12 The Administration Fee Interval is a
charged over this period. period of days between the times that
we’ll charge you the relevant
8.9 Please check the symbol specifications Administration Fee for your Contract.
within the Platform to see when the For each Administration Fee Interval
triple Swap Rate occurs, as this can that your Contract stays open, we’ll
vary based on the instrument that deduct your Administration Fee from
underlies your Contract. your Account. Your Administration Fee
will be charged in proportion to the size
Example 2: Swap Rates of your open Contract.

8.13 We can change our Administration

A Contract for 1 lot of EUR/USD (long) with a Fees and Administration Fee Intervals
EUR based Account has a swap of -8.54 at any time, at our discretion.
(points).

1 lot has a pip value of 10 units of quote Commissions

currency, so
8.14 We may charge commissions on your
8.54 points is equal to 8.54 units of quote Account, which will be reflected when
currency on a 1 lot trade. you open a Contract.

1 lot = 100,000 units of base currency, Swap MetaTrader

rate = - 8.54, Number of nights = 1, Swap fee =
(10 x -8.54 x 1) / 10 = $-8.54. 8.15 Our commission charges will vary
based on the currency of your Account
and will increase/decrease in
Administration Fees (Swap proportion to the size of the Contract
you’re trading. For more information on
Free only) our commission rates, please visit our
website or refer to the commissions
8.10 Swap Free Accounts aren’t charged or and charges information we have sent
paid the usual Swap Charges or Swap you.
Benefits that are associated with
Contracts held through the rollover Example: Commissions – MetaTrader
period. Instead, if you have a Swap
Free Account, you’ll be charged an
Administration Fee for Contracts that The commission charge for USD is USD3.50
(7.00 per round turn). If you have a USD
21
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denominated MetaTrader 4 Account and open underlying cash index once ANZ trades on the
a Contract of 2 lots of EUR/GBP, you would be ex-dividend date. We’ve calculated the overall
charged USD14.00 to open the Contract (being impact to the underlying index as being 10.5
USD7.00 x 2 lots). points.

If you’re buying 1 lot AUS200, you’ll receive

cTrader $10.5 AUD as a cash deposit in your Account. If
you’re selling 1 lot at AUS200, you’ll be charged
8.16 Our commissions on cTrader Accounts $10.5 AUD.
are a flat USD value which will be
converted to your account base
currency. For more information on our Equity CFDs
commission rates, please visit our
website or refer to the commissions 8.20 When the stock that an equity CFD
and charges information we have sent derives its pricing from goes ex-
you. dividend, we’ll credit long Contracts
and debit short Contracts held on the
Example: Commissions – cTrader relevant symbols.

8.21 We calculate the rate applied as an

If you’re trading 100,000 of EUR/USD the “equity dividend” in our absolute
commission charge will be USD$3.00 to open discretion. The rate that we’ll calculate
the Contract and USD$3.00 to Close-Out the will reflect Underlying Market
Contract. conditions and the value of any
withholding tax amounts on the stock.

Index and equity CFD Corporate actions

dividends 8.22 We don’t look to take advantage of
corporate actions for profit purposes,
Index CFDs and we’ll always pass on adjustments
made by our Liquidity Providers to you.
8.17 When an individual stock which is a In some cases, the treatment of
constituent of a cash stock index goes corporate actions such as
ex-dividend, this will have a weighted consolidations, rights issues,
effect on that cash index, known as the takeovers, stock splits and share
“index dividend”. We’ll credit long distributions may be less
Contracts and debit short Contracts advantageous than if you were holding
held in these markets with a cash the Underlying Asset.
adjustment on the ex-dividend date.
8.23 In certain situations, we may ask you to
8.18 We calculate the rate applied as an make a decision about whether a
“index dividend” in our absolute corporate action should be reflected in
discretion. The rate that we’ll calculate your Account, before the ex-date.
will reflect Underlying Market
conditions. 8.24 When reflecting rights issues on limited
risk Contracts, our aim will always be
8.19 Futures indices aren’t affected as to reflect the same monetary
anticipated future dividends are already equivalent of the previously risked
priced in to the market. amount, when taking into account the
new ex-rights position.
Example: Index Dividends
8.25 We’ll attempt to cancel relevant Orders
on CFDs where a corporate action has
ANZ Bank has decided to issue a dividend taken place. We won’t re-enter your
which will have a weighted effect on the Orders for you after a corporate action

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has taken place. It’s your responsibility 10.3 If you have a complaint about the
to re-enter working Orders once this financial services that we’ve provided
has happened. to you, please take these steps:

(a) tell us about your complaint by

9. Conflicts of phone, email or letter using the
details below:
Interest
Mail: Pepperstone Group Limited
9.1 Trading with us carries unavoidable Level 16, Tower 1
risk of conflict of interest because 727 Collins Street
we’re acting as principal in our Melbourne VIC 3008
transactions with you. Because of the
nature of the financial products that we Phone: 03 9020 0155
provide, we can sometimes have
residual long or short Contracts as a Email: support@[Link]
result of total client volume in one
particular direction. (b) if you’re not satisfied with the
outcome, you may refer your
9.2 We get our pricing from independent complaint to our Compliance
sources so the way that we work isn’t Department by email to
designed to negatively impact you, [Link]@[Link]
even though we’re on the other side of
your trades. (c) If our Compliance Department is
unable to resolve the matter, and
9.3 We also have policies in place and 30 days have elapsed since you
actively monitor our employees’ made your complaint, you may
personal trading activities and their refer the matter to the independent
interactions with clients, to ensure that dispute resolution scheme, the
they’re not using information that we Australian Financial Complaints
obtain in the process of operating our Authority (“AFCA”). Our AFCA
business or interacting with clients in membership number is 28689.
an inappropriate way.
(d) You can contact AFCA using these

10. What to do if you details:

Online: [Link]
have a complaint
Email: info@[Link]
10.1 We want to know about any problems
or concerns that you have with our Phone: 1800 931 678
services so that we can take steps to
resolve them. We have formal internal Mail: Australian Financial
and external dispute resolution Complaints Authority
procedures to resolve complaints. You GPO Box 3
can ask for a copy of these procedures Melbourne VIC 3000.
by emailing
support@[Link]. (e) You can also make a complaint
and obtain information about your
10.2 We’ll handle and investigate your rights from ASIC. You can contact
complaint internally in the first ASIC on 1300 300 630. This is a
instance. If you’re not satisfied with the local call information line.
outcome, you’ve got the ability to
escalate your concerns to an external
body for a resolution.

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11. General Tax implications

11.3 Trading our products can have tax
Superannuation funds implications, depending on the current
tax laws and administration, whether
11.1 We discourage superannuation funds you’re an individual or an entity (and
from investing in the types of products your type of entity) for tax purposes,
that we offer. the terms of the Contracts you trade in
and other circumstances.
11.2 Superannuation funds are subject to
many guidelines and restrictions 11.4 The tax implications of your trading
regarding their investment activities activities can be complex and will be
which are contained in the specific to you. If you’re unsure of how
Superannuation Industry Supervision your tax position will be impacted, we
Act 1993, the regulations made under recommend that you speak with your
that Act and circulars issued by past tax advisor before you trade with us.
and present regulators of
superannuation funds including the
Insurance and Superannuation
AML requirements
Commission, the Australian Prudential
Supervisory Authority and the 11.5 Sometimes we may need you to
Australian Taxation Office. Without provide us with information, including
being an exhaustive list, you should identity documents, so that we can
consider these issues if you’re the comply with AML Laws. By submitting
trustee of a complying superannuation an Application Form, opening an
fund: Account and trading with us, you agree
to provide us with any information and
(a) the prohibitions on borrowing and assistance that we may need to
charging assets and whether comply with AML Laws.
dealing in Margin FX Contract or
CFDs would breach those 11.6 We may pass on information that we’ve
prohibitions; collected from you or about your
trading activities to government
(b) the purpose of dealing in Margin agencies and regulators in compliance
FX Contracts or CFDs in the with AML Laws or other applicable
context of a complying laws and regulations, without letting
superannuation fund’s investment you know. We may also carry out anti-
strategy, as well as the fiduciary money laundering and other checks on
duties and other obligations owed you (including restricted lists, blocked
by trustees of those funds; people and countries lists) that we
consider to be necessary or
(c) the need for you, as a trustee of a appropriate. We reserve the right to
complying superannuation fund, to take any action regarding these checks
be familiar with the risks involved without any liability to you.
in dealing in Margin FX Contracts
and CFD and the need to have 11.7 You warrant that:
adequate procedures in place to
manage the risks associated in (a) you’re not aware, and have no
dealing in those Contracts; and reason to suspect, that the money
you use to fund your Account has
(d) the consequences, including been or will be derived from or
adverse tax consequences, if a related to any money laundering,
superannuation fund fails to meet terrorism financing or other illegal
the requirements for it to continue activities, whether prohibited under
to hold complying status. Australian law, international law or
convention or by agreement; and

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(b) the proceeds of your investment

won’t be used to finance any illegal
Communication
activities.
11.12 If you’ve been dealing with us in a
language other than English, for
Your privacy example communicating with some of
our foreign language speakers, then
11.8 Depending on the type of service that please note that we offer these
you ask for, we may ask you to provide services at our discretion and don’t
certain personal information to us, guarantee that they’ll always be
either in writing or verbally, so that we provided to you. There may be
can provide you with that service. For occasions where you must take action
example, as a financial service regarding your Account and a foreign
provider, we have an obligation under language speaking representative isn’t
the AML Laws to verify your identity available.
and the source of your funds. We’ll
keep this information strictly 11.13 English is the primary language in
confidential and use it only for the which we provide our Products and
primary purpose of providing our services and the binding language for
services to you. all our contractual documents. You’re
responsible for monitoring your open
11.9 Your privacy is important to us and Contracts and your Account at all
we’re committed to compliance with times.
the Privacy Act 1988 (Cth) and the
Australian Privacy Principles in the way
that we handle your personal 12. Words that we use
information. For more information,
please refer to our Privacy Policy under in this PDS
the ‘Legal Documents’ tab on our
website. “Account” means your trading account
with us.
Public Holidays “Administration Fee” means the fee
that we charge for Contracts held
11.10 We’re not obliged to quote prices or beyond a certain period of time on
accept Orders or instructions on a Swap Free Accounts, as set out in
public holiday in any jurisdiction which, section 8 of this PDS.
in our reasonable opinion, affects the
relevant Underlying Markets. “Administration Fee Interval” is the
period of days between when we’ll
Out of Hours Trading charge you an Administration Fee on a
Swap Free Account, as set out in
11.11 Although we’re open 24 hours a day, section 8 of this PDS.
we’re not obliged to quote prices or
accept Orders or instructions for any “AFS Licence” means Australian
markets, where Out of Hours Trading, Financial Service Licence.
applies during any time when the
relevant exchange is closed for “Agreements” means this PDS, our
business. We’ll designate the markets Terms and Conditions, Application
to which Out of Hours Trading applies Form, Confirmations and any
on our website from time to time. It’s information on our Platform or website
your responsibility to monitor the which governs our relationship with
Trading Hours of any Product that you you.
wish to trade.
“AML Laws” means our obligations
under the Anti- Money Laundering and
Counter-Terrorism Financing Act 2006
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(Cth) and the Anti-Money Laundering “Liquidity Provider” means a

and Counter-Terrorism Financing Rules counterparty that we pass trades to, to
Instrument 2007 (No. 1). manage our risk, also known as a
hedging counterparty.
“Application Form” means the online
form that you complete on our website “Major Currency Pair” means any two
to open an Account. of the Australian dollar, British pound,
Canadian dollar, Euro, Japanese yen,
“ASIC” means the Australian Securities Swiss franc and US dollar.
and Investments Commission.
“Major Stock Market Index” means any
“Australian Client Money Rules” means of the CAC 40, DAX, Dow Jones
the rules set out in Part 7.8 of Division Industrial Average, EURO STOXX 50
2 of the Corporations Act. Index, FTSE 100, NASDAQ-100 Index,
Nikkei Stock Average, S&P 500 and
“CFD” means a contract-for-difference, S&P/ASX 200.
a type of OTC derivative product that
we offer which is described in more “Margin” means the amount of money
detail in section 2 of this PDS. that you need to deposit into your
Account to enter into or maintain a
“Client Money” means the money that Contract with us under the
you and our other clients deposit with Agreements, which varies depending
us, which we hold in compliance with on the Underlying Asset and other
the Australian Client Money Rules. factors.

“Close-Out” means the termination of “Margin Call” means a notification sent

part or all of a Contract in compliance to you, usually via the Platform,
with the Agreements. requesting you to top up the amount of
money that you have in your Account
“Continuing Margin” means the money as Margin.
you need to pay us to ensure your
Account balance is enough to keep “Margin FX Contract” means a
your Contract open, taking into account leveraged foreign exchange Contract, a
all realised and/or unrealised P&L. type of OTC derivative product that we
offer, which is described in more detail
“Cryptocurrency” means a digital asset in section 2 of this PDS.
that’s subject to significant volatility
and risks. “Minor Currency Pair” means any
currency pair that is not a Major
“Contract” means an OTC derivative Currency Pair.
Contract between you and us, which is
an agreement to pay or receive the “Minor Stock Market Index” means any
difference in value of an Underlying Stock Market Index that is not a Major
Asset. Stock Market Index.

“Corporations Act” means the “Order” means an offer that you make
Corporations Act 2001 (Cth). to enter into a Contract with us under
the Agreements.
“Hanging Order” has the meaning given
to it in section 6.10 of this PDS. “OTC derivatives” means over-the-
counter derivatives, which include
“Limit Order” means a pending Order to Margin-FX Contracts and CFDs, as
enter or Close- Out a Contract at a described in section 2 of this PDS.
trigger price that’s either the same or
better than the price that’s currently “PDS” means this Product Disclosure
available in the market. Statement.

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“Pepperstone”, “we” “us” and “our” value of that Contract – for example a
means Pepperstone Group Limited, stock market index, commodity,
ACN 147 055 703, AFSL 414530. currency pair, futures contract, equity,
crypto currency or any other instrument
“Platform” means any online software or asset.
that we make available to you for
entering into Margin FX Contracts and “Underlying Market” means the market
CFDs under the Agreements, described in which an Underlying Asset is traded.
in more detail in section 3 of this PDS. For example, the Australian Securities
Exchange.
“Retail Client” has the same meaning
given by sections 761G and 761GA of “Wholesale Client” has the same
the Corporations Act. meaning as under section 761G of the
Corporations Act.
“RG227” means ASIC Regulatory Guide
227.

“Rollover Charge” means a charge that

you may incur on a future based CFD
that you hold overnight, as described in
sections 2 and 8 of this PDS.

“Rollover Benefit” means a benefit that

you may receive on a future based CFD
that you hold overnight, as described in
sections 2 and 8 of this PDS.

“Stop Loss Order” means a pending

order to exit a Contract if the set trigger
price is reached.

“Swap Benefit” means a benefit that

you could incur for holding a Contract
through 5pm New York Time.

“Swap Charge” means a charge that

you could incur for holding a Contract
through 5pm New York Time.

“Swap Rate” means the rate at which

we’ll apply a Swap Charge or Swap
Benefit to you.

“Target Market Determination” means

the target market determination made
for the purposes of section 994B of the
Corporations Act.

“Terms and Conditions” means the

current version of our Terms and
Conditions, which form part of our legal
relationship with you, as available on
our website.

“Underlying Asset” means the

instrument or asset that underlies your
Order or Contract and determines the
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Level 16, Tower One Local Call 1300 033 375 [Link]
727 Collins Street Phone +61 3 9020 0155 support@[Link]
Melbourne VIC 3008
28
AUSTRALIA