Written by ForexBrokers.com
In this head to head comparison of Charles Schwab vs FXCM, we will compare the trading platforms, mobile apps, range of investments, costs, market research, and more. Let's dive in.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Charles Schwab and FXCM are both prominent online brokers with strong trust scores, but they differ significantly in their history and regulatory endorsements. Founded in 1971, Charles Schwab is a publicly traded financial institution that also functions as a bank. It is highly trusted with a perfect Trust Score of 99 according to ForexBrokers.com and holds five Tier-1 licenses. These licenses indicate a high level of oversight and reliability in financial dealings.
In comparison, FXCM was founded in 1999, is also publicly traded, but doesn't operate as a bank. FXCM maintains a respectable Trust Score of 95, backed by four Tier-1 licenses and two Tier-2 licenses. Although slightly less than Charles Schwab in highest level licenses, FXCM's combination of Tier-1 and Tier-2 licenses still signifies a robust level of safety and compliance. Ultimately, both brokers showcase substantial trustworthiness, catering to a broad range of investors and traders.
| Feature |
Charles Schwab
|
FXCM
|
|---|---|---|
| Year Founded | 1971 | 1999 |
| Publicly Traded (Listed) | Yes | Yes |
| Bank | Yes | No |
| Tier-1 Licenses | 5 | 4 |
| Tier-2 Licenses | 0 | 2 |
| Tier-3 Licenses | 0 | 0 |
| Tier-4 Licenses | 0 | 0 |
Charles Schwab and FXCM both provide various options for forex trading, but their commissions and fees differ significantly. Schwab offers a seamless entry into forex trading with no minimum deposit requirement for their primary accounts, Schwab One and Schwab Global. While Schwab doesn’t charge commissions for forex trading, the trading costs mainly come from the bid/ask spread. The EUR/USD spread for October 2024 averaged 1.35 pips, which is on the higher end of the spectrum. Schwab makes it easy to estimate overnight holding costs by listing these charges in their thinkorswim platform. When purchasing international securities through Schwab Global, potential currency conversion fees can range from 0.2% to 1%, based on account balance size. Schwab earns a 4-star rating for commissions and fees and is ranked #24 out of 63 brokers by ForexBrokers.com.
In comparison, FXCM has a different fee structure that appeals to high-volume traders. While FXCM's commission-based accounts boast low underlying spreads of 0.28 pips (excluding commissions), the effective spread averages 0.74 pips once commissions are factored in. The spreads on standard accounts vary by region, with the EUR/USD spread averaging 0.78 pips for EU, U.K., and Australia accounts during May 2024. For traders involved in FXCM's Active Trader Rebate Program, spreads can be significantly reduced depending on trading volume. However, this program isn’t available in the U.K. or EU, which can be a drawback for some traders. FXCM also garners a 4-star rating in commissions and fees and is closely ranked #25 among 63 brokers by ForexBrokers.com.
Both Charles Schwab and FXCM cater to different trader profiles with their pricing and fee structures. Schwab is more fitting for those interested in U.S. dollar-based trading or those exploring international markets with fewer currency barriers. FXCM, on the other hand, provides more competitive spreads for high-volume or commissioned account holders. Traders must consider their own trading needs and preferences to determine the best broker for them in terms of costs.
| Feature |
Charles Schwab
|
FXCM
|
|---|---|---|
| Minimum Deposit | $0 | Starts from $50 |
| Average Spread EUR/USD - Standard | 1.35 | 0.78 |
| All-in Cost EUR/USD - Active | 1.35 | 0.78 |
| Active Trader or VIP Discounts | No | Yes |
| ACH or SEPA Transfers | Yes | Yes |
| PayPal (Deposit/Withdraw) | No | Yes |
| Skrill (Deposit/Withdraw) | No | Yes |
| Visa/Mastercard (Credit/Debit) | No | Yes |
| Bank Wire (Deposit/Withdraw) | Yes | Yes |
Dive deeper: Best Low Spread Forex Brokers.
When comparing Charles Schwab and FXCM, both brokers offer forex trading either as CFDs or spot contracts. However, Charles Schwab stands out with a significantly larger inventory of tradeable symbols, providing access to 40,000 options compared to FXCM's 440. In terms of forex pairs, Charles Schwab lists 73 pairs while FXCM offers 46. Moreover, Charles Schwab allows clients to purchase U.S. and international securities, like Apple and Vodafone, directly on exchanges. In contrast, FXCM does not provide access to such exchange-traded securities. Both brokers offer cryptocurrency derivatives instead of actual cryptocurrencies.
FXCM distinguishes itself by providing copy trading opportunities, which may appeal to users interested in mirroring strategies. Despite this, Charles Schwab boasts a better rating, attaining 5 stars for investment range, compared to FXCM's 3.5 stars. Furthermore, Charles Schwab ranks higher in the Range of Investments category by ForexBrokers.com, securing the 5th spot out of 63 brokers, whereas FXCM is placed at 47th. Overall, Charles Schwab provides a broader selection of investment options, appealing to those seeking a diverse trading portfolio.
| Feature |
Charles Schwab
|
FXCM
|
|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes |
| Tradeable Symbols (Total) | 40000 | 440 |
| Forex Pairs (Total) | 73 | 46 |
| U.S. Stock Trading (Non CFD) | Yes | No |
| Int'l Stock Trading (Non CFD) | Yes | No |
| Social Trading / Copy Trading | No | Yes |
| Cryptocurrency (Physical) | No | No |
| Cryptocurrency (Derivative) | Yes | Yes |
| Disclaimers | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). |
Dive deeper: Best Copy Trading Platforms.
Charles Schwab and FXCM are two prominent online brokers known for their trading platforms and tools. Both brokers offer simulated or paper trading with free virtual demo accounts, providing a risk-free environment for learning and testing trading strategies. They also have proprietary platforms developed in-house and offer Windows-based desktop platforms, as well as web-based trading options. However, their features diverge when it comes to certain functionalities. While FXCM supports copy trading and the popular MetaTrader 4 (MT4) platform, Charles Schwab doesn't offer these options. Instead, Schwab provides an impressive 580 watch list fields compared to FXCM's 13, offering traders greater flexibility in monitoring assets. Furthermore, Schwab's charting tools include 24 drawing options, more than double FXCM's 10, and both brokers allow for direct trading from a stock chart.
Another prominent difference lies in third-party trading integrations. FXCM offers ZuluTrade for automated trading, whereas Charles Schwab does not. However, both brokers forgo integrations with DupliTrade and MetaTrader 5 (MT5). In terms of overall platform performance, each broker shines, garnering a five-star rating in Trading Platforms and Tools. Nevertheless, Charles Schwab edges FXCM out slightly in the rankings, holding the #5 spot compared to FXCM's #6 position according to ForexBrokers.com. This ranking reflects Schwab's broader array of watch list options and charting tools, appealing to traders who prioritize customizable data tracking and analysis features.
| Feature |
Charles Schwab
|
FXCM
|
|---|---|---|
| Virtual Trading (Demo) | Yes | Yes |
| Proprietary Platform | Yes | Yes |
| Desktop Platform (Windows) | Yes | Yes |
| Web Platform | Yes | Yes |
| Social Trading / Copy Trading | No | Yes |
| MetaTrader 4 (MT4) | No | Yes |
| MetaTrader 5 (MT5) | No | No |
| DupliTrade | No | No |
| ZuluTrade | No | Yes |
| Charting - Indicators / Studies (Total) | 374 | 115 |
| Charting - Drawing Tools (Total) | 24 | 10 |
| Charting - Trade From Chart | Yes | Yes |
| Watchlists - Total Fields | 580 | 13 |
Dive deeper: Best MetaTrader 4 Brokers, Best MetaTrader 5 Brokers.
Charles Schwab and FXCM both provide comprehensive mobile trading apps for iPhone and Android users. Both apps offer essential features like price alerts, the ability to draw trendlines, and the functionality to view multiple time frames on charts. Additionally, the convenience of watchlist symbol syncing ensures changes are synchronized between the mobile app and online accounts for both services. However, Charles Schwab truly excels in charting capabilities, offering a significant 374 technical studies compared to FXCM's 59. Both apps provide the security of auto-saving chart drawings and allow users to create watchlists with real-time quotes.
When compared on their overall performance, Charles Schwab's mobile trading app receives perfect marks with a 5-star rating, while FXCM follows closely with a commendable 4.5 stars. According to ForexBrokers.com, Charles Schwab ranks as the 6th best out of 63 brokers in the mobile trading app category, showcasing its superior user experience and functionality. FXCM, meanwhile, holds the 16th position, reaffirming its solid mobile trading offerings but with some room for improvement in reaching the top-tier level that Schwab currently enjoys.
| Feature |
Charles Schwab
|
FXCM
|
|---|---|---|
| Android App | Yes | Yes |
| Apple iOS App | Yes | Yes |
| Mobile Alerts - Basic Fields | Yes | Yes |
| Watchlist Syncing | Yes | Yes |
| Mobile Charting - Indicators / Studies | 374 | 59 |
| Mobile Charting - Draw Trendlines | Yes | Yes |
| Mobile Charting - Multiple Time Frames | Yes | Yes |
| Mobile Charting - Drawings Autosave | Yes | Yes |
| Mobile Watchlist | Yes | Yes |
Dive deeper: Best Forex Trading Apps.
Charles Schwab and FXCM provide quality market research tools to their users, but with some differences in their offerings. Both platforms supply daily market commentary and access to top-tier forex news from sources like Bloomberg and Reuters. They also offer comprehensive economic calendars to keep traders informed about global news events. However, FXCM distinguishes itself with additional resources, including Trading Central's analysis tools and a sentiment-based trading tool showing long and short positions. Furthermore, FXCM provides market research from TipRanks, which is not available with Charles Schwab.
In terms of overall ratings, Charles Schwab shines with a full 5-star rating for its research capabilities, ranking 4th among 63 brokers according to ForexBrokers.com. FXCM holds a slightly lower but still impressive 4.5-star rating, placing 11th in the same ranking. While both brokers offer valuable insights and news, Charles Schwab excels in its broader market research offerings, whereas FXCM provides more specialized tools for technical analysis and market sentiment.
| Feature |
Charles Schwab
|
FXCM
|
|---|---|---|
| Daily Market Commentary | Yes | Yes |
| Forex News (Top-Tier Sources) | Yes | Yes |
| Autochartist | No | No |
| Trading Central (Recognia) | No | Yes |
| Social Sentiment - Currency Pairs | No | Yes |
| TipRanks | No | Yes |
| Signal Centre (Acuity Trading) | No | No |
| Economic Calendar | Yes | Yes |
Dive deeper: Best Brokers for Forex Research.
When comparing Charles Schwab to FXCM in terms of educational resources for beginners, both brokers offer a wealth of information. Charles Schwab and FXCM each provide a minimum of ten educational pieces focused on forex or CFDs, ensuring beginners have access to comprehensive learning materials. Additionally, both companies host online educational client webinars at least once a month and maintain searchable archives of these sessions. These webinars can be a beneficial resource for newcomers eager to deepen their understanding of trading strategies and market trends.
Further enhancing the educational experience, both Charles Schwab and FXCM offer a collection of at least ten beginner-friendly videos covering essential trading topics. They also cater to more advanced traders with an equal number of videos for those with more experience. For quick access to important terminology, each broker presents an investor dictionary with over 50 defined investing terms. While Charles Schwab scores slightly higher with a five-star rating for education compared to FXCM's 4.5 stars, both are highly ranked in this category, with Charles Schwab holding the 6th spot and FXCM the 14th among 63 brokers surveyed by ForexBrokers.com. Overall, both platforms deliver valuable educational content suitable for any trading novice.
| Feature |
Charles Schwab
|
FXCM
|
|---|---|---|
| Education (Forex or CFDs) | Yes | Yes |
| Client Webinars | Yes | Yes |
| Client Webinars (Archived) | Yes | Yes |
| Videos - Beginner Trading Videos | Yes | Yes |
| Videos - Advanced Trading Videos | Yes | Yes |
| Investor Dictionary (Glossary) | Yes | Yes |
Dive deeper: Best Forex Brokers for Beginners.
After testing 63 of the best forex brokers, our research and account testing finds that Charles Schwab is better than FXCM. Charles Schwab finished with an overall rank of #6, while FXCM finished with an overall rank of #15.
Charles Schwab is a highly trusted financial institution and multi-asset broker catering to U.S.-based and international forex traders. Schwab's award-winning thinkorswim platform offers over 70 tradeable currency pairs alongside impressive tools, research, and education. That said, the broker’s forex offering is still largely limited to what is available on thinkorswim.
| Feature |
Charles Schwab
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FXCM
|
|---|---|---|
| Overall Rating |
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| Trust Score | 99 | 95 |
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Both Charles Schwab and FXCM do not provide options to purchase actual delivered cryptocurrency, but they do offer the ability to trade cryptocurrency derivatives.
Both Charles Schwab and FXCM support ACH and SEPA transfers, while also allowing account funding via bank wires, but FXCM has the additional advantage over Charles Schwab by offering more flexible deposit and withdrawal options through PayPal, Skrill, Visa, and Mastercard.
Please note:
We review each broker’s overall global offering – a “Yes” checkmark in our Compare Tool does not guarantee the availability of any specific features in your country of residence. To verify the availability of any features within your country of residence, please contact the broker directly.
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0 of 5| Overall Rating | Charles Schwab | FXCM | |
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| Trust Score | 99 | 95 | |
| Winner | check_circle | ||
| Review | Charles Schwab Review | FXCM Review |
| Broker Screenshots | Charles Schwab | FXCM | |
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| Regulation | Charles Schwab | FXCM | |
|---|---|---|---|
| Trust Score | 99 | 95 | |
| Year Founded | 1971 | 1999 | |
| Publicly Traded (Listed) | Yes | Yes | |
| Bank | Yes | No | |
| Regulated in one or more EU or EEA countries (MiFID). | No | Yes | |
| Tier-1 Licenses | 5 | 4 | |
| Tier-2 Licenses | 0 | 2 | |
| Tier-3 Licenses | 0 | 0 | |
| Tier-4 Licenses | 0 | 0 |
| Tier-1 Licenses (Highly Trusted) | Charles Schwab | FXCM | |
|---|---|---|---|
| Australia (ASIC Authorised) | No | Yes | |
| Canada (CIRO Authorised) | Yes | Yes | |
| Hong Kong (SFC Authorised) | Yes | No | |
| Japan (SFC Authorised) | No | ||
| Singapore (MAS Authorised) | Yes | No | |
| Switzerland (FINMA Authorised) | |||
| United Kingdom (U.K.) (FCA Authorised) | Yes | Yes | |
| USA (CFTC Authorized) | Yes | No | |
| New Zealand (FMA Authorised) | No | ||
| Regulated in one or more EU or EEA countries (MiFID). | No | Yes |
| Tier-2 Licenses (Trusted) | Charles Schwab | FXCM | |
|---|---|---|---|
| Kenya (CMA Authorised) | |||
| Israel (ISA Authorised) | Yes | ||
| South Africa (FSCA Authorised) | Yes | ||
| UAE (DFSA/Central Bank Authorised) | No | ||
| India (SEBI Authorised) | No | ||
| Jordan (JSC Authorised) |
| Investments | Charles Schwab | FXCM | |
|---|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes | |
| Tradeable Symbols (Total) | 40000 | 440 | |
| Forex Pairs (Total) | 73 | 46 | |
| U.S. Stock Trading (Non CFD) | Yes | No | |
| Int'l Stock Trading (Non CFD) | Yes | No | |
| Social Trading / Copy Trading | No | Yes | |
| Cryptocurrency (Physical) | No | No | |
| Cryptocurrency (Derivative) | Yes | Yes | |
| Disclaimers | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). |
| Cost | Charles Schwab | FXCM | |
|---|---|---|---|
| Average Spread EUR/USD - Standard | 1.35 | 0.78 | |
| All-in Cost EUR/USD - Active | 1.35 | 0.78 | |
| Active Trader or VIP Discounts | No | Yes | |
| Inactivity Fee | No | Yes | |
| Execution: Agency Broker | Yes | Yes | |
| Execution: Market Maker | No | Yes |
| Funding | Charles Schwab | FXCM | |
|---|---|---|---|
| Minimum Deposit | $0 | Starts from $50 | |
| PayPal (Deposit/Withdraw) | No | Yes | |
| Skrill (Deposit/Withdraw) | No | Yes | |
| Visa/Mastercard (Credit/Debit) | No | Yes | |
| Bank Wire (Deposit/Withdraw) | Yes | Yes | |
| ACH or SEPA Transfers | Yes | Yes |
| Trading Platforms | Charles Schwab | FXCM | |
|---|---|---|---|
| Proprietary Platform | Yes | Yes | |
| Desktop Platform (Windows) | Yes | Yes | |
| Web Platform | Yes | Yes | |
| Social Trading / Copy Trading | No | Yes | |
| MetaTrader 4 (MT4) | No | Yes | |
| MetaTrader 5 (MT5) | No | No | |
| cTrader | No | No | |
| DupliTrade | No | No | |
| ZuluTrade | No | Yes |
| Trading Tools | Charles Schwab | FXCM | |
|---|---|---|---|
| Virtual Trading (Demo) | Yes | Yes | |
| Alerts - Basic Fields | Yes | Yes | |
| Watchlists - Total Fields | 580 | 13 | |
| Charting - Indicators / Studies (Total) | 374 | 115 | |
| Charting - Drawing Tools (Total) | 24 | 10 | |
| Charting - Trade From Chart | Yes | Yes | |
| Charts can be saved | Yes | Yes |
| Mobile Trading | Charles Schwab | FXCM | |
|---|---|---|---|
| Android App | Yes | Yes | |
| Apple iOS App | Yes | Yes | |
| Mobile Alerts - Basic Fields | Yes | Yes | |
| Mobile Watchlist | Yes | Yes | |
| Watchlist Syncing | Yes | Yes | |
| Mobile Charting - Indicators / Studies | 374 | 59 | |
| Mobile Charting - Draw Trendlines | Yes | Yes | |
| Mobile Charting - Multiple Time Frames | Yes | Yes | |
| Mobile Charting - Drawings Autosave | Yes | Yes | |
| Mobile Economic Calendar | Yes | Yes |
| Research | Charles Schwab | FXCM | |
|---|---|---|---|
| Daily Market Commentary | Yes | Yes | |
| Forex News (Top-Tier Sources) | Yes | Yes | |
| Autochartist | No | No | |
| Trading Central (Recognia) | No | Yes | |
| TipRanks | No | Yes | |
| Social Sentiment - Currency Pairs | No | Yes | |
| Economic Calendar | Yes | Yes |
| Education | Charles Schwab | FXCM | |
|---|---|---|---|
| Education (Forex or CFDs) | Yes | Yes | |
| Client Webinars | Yes | Yes | |
| Client Webinars (Archived) | Yes | Yes | |
| Videos - Beginner Trading Videos | Yes | Yes | |
| Videos - Advanced Trading Videos | Yes | Yes | |
| Investor Dictionary (Glossary) | Yes | Yes |
| Major Forex Pairs | Charles Schwab | FXCM | |
|---|---|---|---|
| GBP/USD | Yes | Yes | |
| USD/JPY | Yes | Yes | |
| EUR/USD | Yes | Yes | |
| USD/CHF | Yes | Yes | |
| USD/CAD | Yes | Yes | |
| NZD/USD | Yes | Yes | |
| AUD/USD | Yes | Yes | |
| Review | Charles Schwab Review | FXCM Review |
| Overall | Charles Schwab | FXCM | |
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| Trust Score | 99 | 95 | |
| Winner | check_circle | ||
| Review | Charles Schwab Review | FXCM Review |
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