Written by ForexBrokers.com
In this head to head comparison of Charles Schwab vs Pepperstone, 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 publicly traded company that operates as both an online broker and a bank. It holds a total of five Tier-1 licenses, reflecting its strong regulatory standing, and boasts a perfect Trust Score of 99 from ForexBrokers.com. This makes it one of the most reliable options available to investors. Being publicly listed adds an additional layer of transparency and accountability, catering well to those who prioritize secure and well-regulated financial services.
Pepperstone, on the other hand, was established in 2010 and is not publicly traded. While it does not operate as a bank, Pepperstone holds three Tier-1 licenses and two Tier-2 licenses, signifying a secure regulatory framework. Its Trust Score of 95 is a strong indication of its credibility and reliability in the online trading space. Despite being younger and less diversified compared to Charles Schwab, Pepperstone remains a trustworthy option for traders seeking a specialized brokerage experience.
| Feature |
Charles Schwab
|
Pepperstone
|
|---|---|---|
| Year Founded | 1971 | 2010 |
| Publicly Traded (Listed) | Yes | No |
| Bank | Yes | No |
| Tier-1 Licenses | 5 | 3 |
| Tier-2 Licenses | 0 | 2 |
| Tier-3 Licenses | 0 | 0 |
| Tier-4 Licenses | 0 | 2 |
When comparing Charles Schwab to Pepperstone for their commissions and fees, both brokers offer competitive options, though they cater to different trading needs. Charles Schwab provides a seamless entry to forex trading with no minimum deposit for its Schwab One account, though trades need to be settled in U.S. dollars and the smallest trade size is 10,000 units. Schwab doesn’t charge commissions on forex trades; instead, costs are derived from the bid/ask spread. For October 2024, the average EUR/USD spread at Schwab was 1.35 pips, which is relatively high. Schwab earned a 4-star rating for commissions and fees, ranking #23 out of 63 brokers on ForexBrokers.com.
In contrast, Pepperstone shines with its commission-based Razor account, especially for high-volume traders participating in their Active Trader program. The Razor account, which works with platforms like TradingView and MetaTrader, reported an average EUR/USD spread of 0.10 pips, with the all-in cost rising to 0.80 pips once commissions are factored in. For those trading less frequently, Pepperstone’s Standard account offers commission-free trading with an average spread of 1.1 pips for the same currency pair. With the advantage of rebating a portion of the spread for active traders, Pepperstone boasts a 4.5-star rating and ranks #10 for commissions and fees on ForexBrokers.com.
Overall, Charles Schwab and Pepperstone cater to different trading styles. Schwab offers a solid platform for beginners with no commission on forex and a higher spread, while Pepperstone attracts seasoned traders with competitive pricing and rebates for high-volume trades. Depending on your trading habits, either broker could provide an excellent fit, but Pepperstone offers more considerable savings for the high-volume trader.
| Feature |
Charles Schwab
|
Pepperstone
|
|---|---|---|
| Minimum Deposit | $0 | $0 |
| Average Spread EUR/USD - Standard | 1.35 | 1.00 |
| All-in Cost EUR/USD - Active | 1.35 | 0.70 |
| 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 the investment offerings of Charles Schwab and Pepperstone, Schwab clearly leads with a vast array of choices, providing access to 40,000 tradeable symbols, compared to Pepperstone's 1,726. For those keen on forex trading, both brokers offer forex as CFDs or spot contracts, with Schwab offering 73 tradeable forex pairs and Pepperstone closely following with 65 pairs. An important distinction is that Charles Schwab enables clients to invest directly in U.S. and international exchange-traded securities, allowing them to purchase shares of companies like Apple and Vodafone, whereas Pepperstone does not offer this capability.
Pepperstone does have an edge in offering copy trading, which Schwab doesn't provide, making it appealing for those interested in replicating the trades of experienced investors. Neither Schwab nor Pepperstone allows clients to buy actual cryptocurrencies, but both offer cryptocurrency derivatives. In terms of ratings, Charles Schwab scores higher with 5 stars for its range of investments and is ranked 5th out of 63 brokers by ForexBrokers.com. In comparison, Pepperstone receives 4 stars, ranking 26th. These features make Charles Schwab a more diverse option for investors looking for extensive market access.
| Feature |
Charles Schwab
|
Pepperstone
|
|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes |
| Tradeable Symbols (Total) | 40000 | 1726 |
| Forex Pairs (Total) | 73 | 65 |
| 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 Pepperstone both offer a solid array of trading platforms and tools, each with unique strengths. Schwab provides a proprietary platform with both desktop and web-based options, ranked highly at #5 by ForexBrokers.com. Catering to various trading needs, Schwab supports simulated trading with a free demo account and allows trading directly from stock charts. While it doesn’t offer platforms like MetaTrader 4 or 5, it distinguishes itself with comprehensive options for watch lists, boasting 580 fields, and offers 24 drawing tools for precise charting. Overall, Schwab’s platform earns a top rating of 5 stars, reflecting its thorough and user-friendly approach to trading tools.
Pepperstone also delivers versatile trading options with its proprietary platform available on both desktop and web. While it doesn't reach the very top of ForexBrokers.com's ranking, coming in at #22, it still provides a competitive suite of tools with a 4-star rating. Pepperstone stands out with its support for popular trading platforms like MetaTrader 4 and 5, enhancing functionality especially for those interested in automated trading. Additionally, Pepperstone offers copy trading services through DupliTrade and 30 drawing tools for charting, even though its watch lists feature fewer fields than Schwab’s. Both brokers support direct trading from stock charts and offer free demo accounts, making them accessible for new and seasoned traders alike.
| Feature |
Charles Schwab
|
Pepperstone
|
|---|---|---|
| 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 | Yes |
| 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.
When it comes to mobile trading apps, both Charles Schwab and Pepperstone offer extensive features catered to traders on-the-go. Both brokers provide iPhone and Android apps that let users access price alerts for stocks or forex, sync watchlist symbols seamlessly, and enjoy the flexibility of drawing trendlines directly on charts. Additionally, these apps allow users to explore multiple time frames—such as daily, weekly, or intraday—on their stock or forex charts, and ensure any drawings made on charts are automatically saved. Both apps also support creating watchlists with real-time quotes, enhancing the user's trading experience.
In terms of charting capabilities, Charles Schwab stands out with a generous offering of 374 technical studies, compared to Pepperstone’s 30. This breadth of technical studies can provide traders with more detailed market insights. Reflecting their comprehensive features, Charles Schwab's mobile app is rated five stars and is ranked 6th by ForexBrokers.com among 63 brokers, while Pepperstone’s app garners a solid four-star rating, ranking 21st in the same category. Overall, while both apps provide a wealth of functionality, Schwab edges ahead particularly in terms of charting options and overall rankings.
| Feature |
Charles Schwab
|
Pepperstone
|
|---|---|---|
| Android App | Yes | Yes |
| Apple iOS App | Yes | Yes |
| Mobile Alerts - Basic Fields | Yes | Yes |
| Watchlist Syncing | Yes | Yes |
| 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.
When it comes to market research, both Charles Schwab and Pepperstone offer strong features tailored to the needs of traders. Daily market commentary and forex news from top-tier sources like Bloomberg and Reuters are available through both platforms, ensuring investors stay informed with the latest insights. Each broker provides an economic calendar, offering a comprehensive view of global economic events. However, while Pepperstone integrates advanced technical analysis tools from Autochartist and a sentiment-based trading tool for traders interested in gauging market movers, Charles Schwab does not provide these specific features.
Despite the lack of some advanced tools, Charles Schwab shines with a stellar five-star research rating from ForexBrokers.com, ranking it 4th out of 63 brokers for research capabilities. Pepperstone is not far behind, with a 4.5-star rating and a commendable 12th-place ranking. This makes Charles Schwab a top choice for traders who prioritize research excellence, while Pepperstone appeals to those who value additional analytical tools and sentiment tracking in their trading strategy.
| Feature |
Charles Schwab
|
Pepperstone
|
|---|---|---|
| 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.
When comparing the educational resources offered by Charles Schwab and Pepperstone, both online brokers provide comprehensive support for those new to forex and CFDs trading. Each offers more than ten educational pieces, including articles, videos, and archived webinars designed to enhance your trading knowledge. Both Charles Schwab and Pepperstone also host monthly educational webinars and have user-friendly archives of past sessions for you to explore. Beginner traders can find at least ten dedicated educational videos from both platforms to help them get started. Advanced traders aren't left out either, as each broker provides over ten specialized videos catering to more experienced audiences.
However, when diving deeper into additional learning tools, Charles Schwab appears to have a slight edge. Both brokers have an investor dictionary with more than 50 investing terms, ensuring that newcomers can quickly learn the necessary jargon. Despite these similarities, Charles Schwab's educational offerings receive a 5-star rating, compared to Pepperstone's 4.5-star rating. This difference is reflected in their rankings, with Charles Schwab positioned at #6 and Pepperstone at #17 in the Education category by ForexBrokers.com among 63 brokers. This distinction makes Charles Schwab a slightly more favorable option for those prioritizing extensive learning resources.
| Feature |
Charles Schwab
|
Pepperstone
|
|---|---|---|
| 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 Pepperstone. Charles Schwab finished with an overall rank of #6, while Pepperstone finished with an overall rank of #16.
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
|
Pepperstone
|
|---|---|---|
| Overall Rating |
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| Trust Score | 99 | 95 |
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Both Charles Schwab and Pepperstone do not offer the ability to buy actual delivered cryptocurrency, but they do provide options for trading cryptocurrency derivatives, allowing investors to engage in crypto markets without owning the actual digital assets.
When comparing online brokers, Charles Schwab supports ACH and SEPA transfers as well as bank wires, but lacks options like PayPal, Skrill, and Visa or Mastercard, whereas Pepperstone not only provides ACH, SEPA, and bank wire options but also offers additional conveniences such as PayPal, Skrill, and Visa or Mastercard for depositing and withdrawing funds.
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 | Pepperstone | |
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| Trust Score | 99 | 95 | |
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| Review | Charles Schwab Review | Pepperstone Review |
| Broker Screenshots | Charles Schwab | Pepperstone | |
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| Regulation | Charles Schwab | Pepperstone | |
|---|---|---|---|
| Trust Score | 99 | 95 | |
| 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 | 3 | |
| Tier-2 Licenses | 0 | 2 | |
| Tier-3 Licenses | 0 | 0 | |
| Tier-4 Licenses | 0 | 2 |
| Tier-1 Licenses (Highly Trusted) | Charles Schwab | Pepperstone | |
|---|---|---|---|
| Australia (ASIC Authorised) | No | Yes | |
| 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 | Pepperstone | |
|---|---|---|---|
| Kenya (CMA Authorised) | No | Yes | |
| Israel (ISA Authorised) | No | No | |
| South Africa (FSCA Authorised) | No | No | |
| UAE (DFSA/Central Bank Authorised) | No | Yes | |
| India (SEBI Authorised) | No | No | |
| Jordan (JSC Authorised) | No | No |
| Investments | Charles Schwab | Pepperstone | |
|---|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes | |
| Tradeable Symbols (Total) | 40000 | 1726 | |
| Forex Pairs (Total) | 73 | 65 | |
| 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 | Pepperstone | |
|---|---|---|---|
| Average Spread EUR/USD - Standard | 1.35 | 1.00 | |
| All-in Cost EUR/USD - Active | 1.35 | 0.70 | |
| Active Trader or VIP Discounts | No | Yes | |
| Inactivity Fee | No | No | |
| Execution: Agency Broker | Yes | Yes | |
| Execution: Market Maker | No | Yes |
| Funding | Charles Schwab | Pepperstone | |
|---|---|---|---|
| Minimum Deposit | $0 | $0 | |
| 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 | Pepperstone | |
|---|---|---|---|
| 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 | Yes | |
| DupliTrade | No | Yes | |
| ZuluTrade | No | No |
| Trading Tools | Charles Schwab | Pepperstone | |
|---|---|---|---|
| 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 | Pepperstone | |
|---|---|---|---|
| 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 | 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 | Pepperstone | |
|---|---|---|---|
| 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 | Pepperstone | |
|---|---|---|---|
| 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 | Pepperstone | |
|---|---|---|---|
| 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 | Pepperstone Review |
| Overall | Charles Schwab | Pepperstone | |
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| Trust Score | 99 | 95 | |
| Winner | check_circle | ||
| Review | Charles Schwab Review | Pepperstone Review |
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