Written by ForexBrokers.com
In this head to head comparison of Charles Schwab vs HFM, 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, founded in 1971, is a well-established online broker known for its high trustworthiness, reflected in its top Trust Score rating of 99 with ForexBrokers.com. As a publicly traded company and a bank, Schwab holds five Tier-1 licenses, which underscore its strong regulatory standing. Its presence in the financial market is supported by these highly trusted licenses, further solidifying its reputation as a reliable choice for investors.
In comparison, HFM, established in 2010, offers brokerage services with a solid Trust Score rating of 86, marking it as a trusted broker. Although not publicly traded or a bank, HFM holds two Tier-1 licenses and three Tier-2 licenses. These regulatory credentials demonstrate HFM's commitment to providing trusted services, making it a viable option for those seeking a dependable online brokerage experience.
| Feature |
Charles Schwab
|
HFM
|
|---|---|---|
| Year Founded | 1971 | 2010 |
| Publicly Traded (Listed) | Yes | No |
| Bank | Yes | No |
| Tier-1 Licenses | 5 | 2 |
| Tier-2 Licenses | 0 | 3 |
| Tier-3 Licenses | 0 | 0 |
| Tier-4 Licenses | 0 | 2 |
Charles Schwab and HFM both offer competitive fee structures, but they cater to slightly different trading needs. Charles Schwab impresses with its no minimum deposit requirement for its primary brokerage accounts, offering easy entry for forex trading enthusiasts. With accounts like Schwab One, traders can access the advanced thinkorswim platform to trade forex, settling all trades in U.S. dollars. Noteworthy is the Schwab Global account, tailored for trading in 12 international markets using local currencies, though it incurs conversion fees from 0.2% to 1% based on account balance. Schwab's standout feature is commission-free forex trading, but traders should consider its higher average spread of 1.35 pips on the EUR/USD. For commissions and fees, Schwab earns a commendable 4-star rating and ranks #24 out of 63 brokers.
On the other hand, HFM offers slightly above-average trading costs. The standard account typically has a spread of 1.2 pips, although specific date ranges aren't provided, which may affect the averages. Their Zero account presents a more competitive structure with an effective spread of 0.7 pips after commission, yet again without a defined average. HFM also boasts a solid 4-star rating for commissions and fees, with a ranking of #31 out of 63 brokers. This makes HFM a viable option for those seeking lower spread options in specific accounts, despite its slightly higher overall trading costs.
| Feature |
Charles Schwab
|
HFM
|
|---|---|---|
| Minimum Deposit | $0 | $0 |
| Average Spread EUR/USD - Standard | 1.35 | 1.2 |
| All-in Cost EUR/USD - Active | 1.35 | 0.7 |
| Active Trader or VIP Discounts | No | No |
| ACH or SEPA Transfers | Yes | No |
| PayPal (Deposit/Withdraw) | No | No |
| Skrill (Deposit/Withdraw) | No | Yes |
| Visa/Mastercard (Credit/Debit) | No | Yes |
| Bank Wire (Deposit/Withdraw) | Yes | Yes |
Dive deeper: Best Low Spread Forex Brokers.
Charles Schwab and HFM are both online brokers that cater to investors looking to trade a wide array of financial instruments. Charles Schwab impressively offers access to 40,000 tradeable symbols, a figure far exceeding HFM's 500. This includes exchange-traded securities on both U.S. and international exchanges, giving investors opportunities to buy stocks like Apple or Vodafone. In contrast, HFM does not provide direct access to any exchange-traded securities and focuses primarily on CFDs and forex pairs. For forex traders, HFM offers 102 tradeable forex pairs, surpassing Schwab's 73 pairs, presenting a better selection for those specifically interested in currency trading.
When it comes to additional trading features, both Charles Schwab and HFM offer forex trading as CFDs or spot contracts, and both do not provide direct cryptocurrency purchases. However, they do offer cryptocurrency derivatives for investors looking to explore this market. While Charles Schwab does not support copy trading, HFM does, catering to traders looking to mirror more experienced investors. In terms of investment range, Charles Schwab takes a slight edge with a rating of 5 stars compared to HFM's 4 stars, also ranking much higher at #5 compared to HFM's #36 according to ForexBrokers.com.
| Feature |
Charles Schwab
|
HFM
|
|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes |
| Tradeable Symbols (Total) | 40000 | 500 |
| Forex Pairs (Total) | 73 | 102 |
| 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 HFM both offer traders a suite of advanced tools and platforms, but they cater to slightly different needs. Both companies provide a chance to practice with free virtual demo accounts and feature their own proprietary platforms, accessible through Windows-based desktop downloads and web-based browsers. While Schwab doesn't support copy trading features or the popular MetaTrader 4 and 5, it manages to stand out with extensive charting capabilities, offering 580 fields for watch lists and 24 drawing tools, plus the ability to trade directly from a stock chart. Its comprehensive offerings give it a rating of 5 stars for trading platforms and tools, positioning it as the 5th among 63 brokers according to ForexBrokers.com.
HFM, on the other hand, appeals to traders who prefer social and algorithmic trading by providing features like copy trading alongside support for MetaTrader 4 and MetaTrader 5. Although it offers fewer watch list columns than Schwab, with just 7 fields, HFM compensates with a wider variety of 30 drawing tools. It also supports direct trading from a stock chart, enhancing the overall trading experience. Despite these advantages, it trails Charles Schwab in rankings, earning 4 stars and ranking 42nd out of 63 brokers for trading platforms and tools on ForexBrokers.com. This makes HFM a compelling choice for traders who prioritize community-driven trading tactics and prefer the MetaTrader platforms.
| Feature |
Charles Schwab
|
HFM
|
|---|---|---|
| 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 | Yes |
| DupliTrade | No | No |
| ZuluTrade | No | No |
| Charting - Indicators / Studies (Total) | 374 | 15 |
| Charting - Drawing Tools (Total) | 24 | 30 |
| Charting - Trade From Chart | Yes | Yes |
| Watchlists - Total Fields | 580 | 7 |
Dive deeper: Best MetaTrader 4 Brokers, Best MetaTrader 5 Brokers.
Charles Schwab and HFM both provide convenient mobile trading apps available for iPhone and Android users, making it easy for traders to access the stock and forex markets on the go. Both apps offer stock or forex price alerts and support for drawing trendlines, as well as viewing multiple time frames like daily, weekly, and intraday charts. However, Charles Schwab stands out by allowing watchlist symbol syncing, meaning changes made in one’s watchlist are reflected across all devices, a feature HFM currently does not offer. Additionally, Charles Schwab offers significantly more technical studies for charting with 374 options compared to HFM's 30.
When it comes to user ratings, Charles Schwab earns a higher rating with five stars for their mobile trading app, compared to HFM’s four stars. On ForexBrokers.com, Charles Schwab ranks as the #6 mobile trading app out of 63 brokers, while HFM comes in at #39. This superior ranking and feature set suggest that Charles Schwab’s app provides a more comprehensive and user-friendly experience for both novice and experienced traders. Both platforms do support creating a watchlist with real-time quotes and automatically saving chart drawings, ensuring a seamless trading experience.
| Feature |
Charles Schwab
|
HFM
|
|---|---|---|
| Android App | Yes | Yes |
| Apple iOS App | Yes | Yes |
| Mobile Alerts - Basic Fields | Yes | Yes |
| Watchlist Syncing | Yes | No |
| Mobile Charting - Indicators / Studies | 374 | 30 |
| 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.
Both Charles Schwab and HFM deliver daily market commentary and supply forex news from industry-leading sources like Bloomberg, Reuters, and Dow Jones, ensuring investors stay informed on market movements. Both brokers provide an economic calendar, displaying key global economic events. However, when it comes to specific research tools, there are distinctions. HFM distinguishes itself by offering Autochartist tools for technical and fundamental analysis and also provides a sentiment-based trading tool that showcases the ratio of long or short positions across various instruments. Charles Schwab does not offer these particular tools, which may be a consideration for traders focused on these aspects of market analysis.
For overall market research, Charles Schwab excels with a top ranking of #4 by ForexBrokers.com and a perfect five-star rating for research capabilities. In comparison, HFM holds a respectable #20 rank and a four-star rating, indicating solid offerings but with room for improvement. If you're seeking comprehensive research support, Charles Schwab may be the better choice, albeit those who value advanced trading tools like Autochartist and sentiment indicators might find HFM more appealing. Both platforms strive to cater to investor needs, each with its unique strengths.
| Feature |
Charles Schwab
|
HFM
|
|---|---|---|
| Daily Market Commentary | Yes | Yes |
| Forex News (Top-Tier Sources) | Yes | Yes |
| Autochartist | No | Yes |
| Trading Central (Recognia) | No | No |
| Social Sentiment - Currency Pairs | No | Yes |
| TipRanks | No | No |
| Signal Centre (Acuity Trading) | No | No |
| Economic Calendar | Yes | Yes |
Dive deeper: Best Brokers for Forex Research.
Both Charles Schwab and HFM provide an array of educational resources tailored for beginner traders interested in forex and CFDs. Each offers a minimum of 10 educational pieces like articles, videos, and archived webinars specifically focused on these topics. Additionally, they both host regular monthly webinars accessible online, which are excellent for learners eager to further their knowledge. A searchable archive of previous webinars ensures clients can learn at their own pace, while both platforms also present extensive beginner educational videos designed to cover the essentials of trading.
When it comes to more advanced learning materials, Charles Schwab and HFM once again shine, offering at least 10 advanced educational videos to cater to experienced traders aiming to refine their strategies. To support traders in mastering financial terminology, both brokers provide an investor dictionary with over 50 essential investing terms. However, Charles Schwab stands out in terms of ratings, receiving a full 5 stars for its educational offerings compared to HFM's 4 stars. Furthermore, Charles Schwab ranks impressively at #6 out of 63 brokers in the Education category by ForexBrokers.com, while HFM holds the #37 spot. This recognition highlights Charles Schwab's comprehensive and effective educational tools, making it an attractive option for those starting their trading journey.
| Feature |
Charles Schwab
|
HFM
|
|---|---|---|
| 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 HFM. Charles Schwab finished with an overall rank of #6, while HFM finished with an overall rank of #30.
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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HFM
|
|---|---|---|
| Overall Rating |
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| Trust Score | 99 | 86 |
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Both Charles Schwab and HFM do not offer the option to buy actual (delivered) cryptocurrencies; however, they both provide the ability to buy cryptocurrency derivatives, allowing investors to trade based on cryptocurrency values without owning the digital currency itself.
Charles Schwab supports ACH and SEPA transfers and bank wires for fund transactions but does not offer PayPal, Skrill, or Visa/Mastercard, whereas HFM provides Skrill, Visa/Mastercard, and bank wire options but does not support ACH or SEPA transfers or PayPal.
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 | HFM | |
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| Trust Score | 99 | 86 | |
| Winner | check_circle | ||
| Review | Charles Schwab Review | HFM Review |
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| Regulation | Charles Schwab | HFM | |
|---|---|---|---|
| Trust Score | 99 | 86 | |
| Year Founded | 1971 | 2010 | |
| Publicly Traded (Listed) | Yes | No | |
| Bank | Yes | No | |
| Regulated in one or more EU or EEA countries (MiFID). | No | Yes | |
| Tier-1 Licenses | 5 | 2 | |
| Tier-2 Licenses | 0 | 3 | |
| Tier-3 Licenses | 0 | 0 | |
| Tier-4 Licenses | 0 | 2 |
| Tier-1 Licenses (Highly Trusted) | Charles Schwab | HFM | |
|---|---|---|---|
| Australia (ASIC Authorised) | No | No | |
| Canada (CIRO Authorised) | Yes | No | |
| Hong Kong (SFC Authorised) | Yes | No | |
| Japan (SFC Authorised) | No | No | |
| Singapore (MAS Authorised) | Yes | No | |
| Switzerland (FINMA Authorised) | No | No | |
| United Kingdom (U.K.) (FCA Authorised) | Yes | Yes | |
| USA (CFTC Authorized) | Yes | No | |
| New Zealand (FMA Authorised) | No | No | |
| Regulated in one or more EU or EEA countries (MiFID). | No | Yes |
| Tier-2 Licenses (Trusted) | Charles Schwab | HFM | |
|---|---|---|---|
| Kenya (CMA Authorised) | No | Yes | |
| Israel (ISA Authorised) | No | No | |
| South Africa (FSCA Authorised) | No | Yes | |
| UAE (DFSA/Central Bank Authorised) | No | Yes | |
| India (SEBI Authorised) | No | No | |
| Jordan (JSC Authorised) | No | No |
| Investments | Charles Schwab | HFM | |
|---|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes | |
| Tradeable Symbols (Total) | 40000 | 500 | |
| Forex Pairs (Total) | 73 | 102 | |
| 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 | HFM | |
|---|---|---|---|
| Average Spread EUR/USD - Standard | 1.35 | 1.2 | |
| All-in Cost EUR/USD - Active | 1.35 | 0.7 | |
| Active Trader or VIP Discounts | No | No | |
| Inactivity Fee | No | Yes | |
| Execution: Agency Broker | Yes | No | |
| Execution: Market Maker | No | Yes |
| Funding | Charles Schwab | HFM | |
|---|---|---|---|
| Minimum Deposit | $0 | $0 | |
| PayPal (Deposit/Withdraw) | No | No | |
| Skrill (Deposit/Withdraw) | No | Yes | |
| Visa/Mastercard (Credit/Debit) | No | Yes | |
| Bank Wire (Deposit/Withdraw) | Yes | Yes | |
| ACH or SEPA Transfers | Yes | No |
| Trading Platforms | Charles Schwab | HFM | |
|---|---|---|---|
| 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 | Yes | |
| cTrader | No | No | |
| DupliTrade | No | No | |
| ZuluTrade | No | No |
| Trading Tools | Charles Schwab | HFM | |
|---|---|---|---|
| Virtual Trading (Demo) | Yes | Yes | |
| Alerts - Basic Fields | Yes | Yes | |
| Watchlists - Total Fields | 580 | 7 | |
| Charting - Indicators / Studies (Total) | 374 | 15 | |
| Charting - Drawing Tools (Total) | 24 | 30 | |
| Charting - Trade From Chart | Yes | Yes | |
| Charts can be saved | Yes | Yes |
| Mobile Trading | Charles Schwab | HFM | |
|---|---|---|---|
| Android App | Yes | Yes | |
| Apple iOS App | Yes | Yes | |
| Mobile Alerts - Basic Fields | Yes | Yes | |
| Mobile Watchlist | Yes | Yes | |
| Watchlist Syncing | Yes | No | |
| Mobile Charting - Indicators / Studies | 374 | 30 | |
| 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 | HFM | |
|---|---|---|---|
| Daily Market Commentary | Yes | Yes | |
| Forex News (Top-Tier Sources) | Yes | Yes | |
| Autochartist | No | Yes | |
| Trading Central (Recognia) | No | No | |
| TipRanks | No | No | |
| Social Sentiment - Currency Pairs | No | Yes | |
| Economic Calendar | Yes | Yes |
| Education | Charles Schwab | HFM | |
|---|---|---|---|
| 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 | HFM | |
|---|---|---|---|
| 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 | HFM Review |
| Overall | Charles Schwab | HFM | |
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| Trust Score | 99 | 86 | |
| Winner | check_circle | ||
| Review | Charles Schwab Review | HFM Review |
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