Written by ForexBrokers.com
In this head to head comparison of Charles Schwab vs XM Group, 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 financial broker that enjoys a reputation for safety and reliability, earning a perfect Trust Score of 99 from ForexBrokers.com. Schwab stands out, particularly because it holds five Tier-1 licenses, known for their high level of trust. As a publicly traded bank, it offers an extra layer of credibility and assurance to its traders and investors, making it a favored choice for those prioritizing security.
In comparison, XM Group, which started in 2009, is a reputable online broker with a noteworthy Trust Score of 88 from ForexBrokers.com, putting it in the trusted category. XM Group, while not publicly traded, holds four Tier-1 licenses and one Tier-2 license, further demonstrating its commitment to maintaining a trusted position in the financial sector. While it doesn't have the banking status that Charles Schwab boasts, XM Group still provides a reliable trading environment for those looking for a solid and trusted broker.
| Feature |
Charles Schwab
|
XM Group
|
|---|---|---|
| Year Founded | 1971 | 2009 |
| Publicly Traded (Listed) | Yes | No |
| Bank | Yes | No |
| Tier-1 Licenses | 5 | 4 |
| Tier-2 Licenses | 0 | 1 |
| Tier-3 Licenses | 0 | 0 |
| Tier-4 Licenses | 0 | 1 |
Charles Schwab offers a welcoming entry point for forex traders due to its no minimum deposit requirement for its main brokerage accounts, which include Schwab One and Schwab Global. These accounts provide access to the thinkorswim platform, where all forex trades are settled in U.S. dollars with a minimum trade size of 10,000 units, requiring a margin of $500 based on 20:1 leverage. While the Schwab One account allows for trading in U.S. dollars, the Schwab Global account enables access to twelve international markets with trades placed in local currencies, though conversion fees between 0.2% to 1% may apply. Schwab does not charge commissions for forex trading; instead, costs are embedded in the bid/ask spread, with the average EUR/USD spread at 1.35 pips, higher than the industry norm. Schwab's commissions and fees earn it a rating of 4 stars, ranking 23rd among 63 brokers according to ForexBrokers.com.
On the other hand, XM Group is known for its expensive standard account spreads, with average spreads for its XM Zero account remaining unpublished. While the specifics of its spreads make it less transparent for clients seeking clear cost breakdowns, it still manages to secure a 4-star rating for its commissions and fees. However, in terms of ranking, it places 33rd out of 63 brokers in the ForexBrokers.com listing for the Commissions and Fees category. This suggests that while both Charles Schwab and XM Group achieve the same star rating, Schwab ranks higher in terms of competitive positioning among its peers.
When comparing Charles Schwab and XM Group, it's clear that Schwab offers a more transparent approach with its trading costs clearly outlined through spreads and helpful tools like the overnight carry charges calculator. Meanwhile, XM Group's less transparent spread information could be a consideration for traders seeking more detailed cost insights. Ultimately, both brokers provide solid services with their differing strengths, yet Schwab's slightly better ranking might make it the preferable choice for those prioritizing clarity and ease of trading with international options.
| Feature |
Charles Schwab
|
XM Group
|
|---|---|---|
| Minimum Deposit | $0 | $5 |
| Average Spread EUR/USD - Standard | 1.35 | 1.6 |
| All-in Cost EUR/USD - Active | 1.35 | 0.8 |
| 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.
When comparing Charles Schwab and XM Group, investors will find distinct differences in the range of investments available through each broker. Charles Schwab offers an impressive 40,000 tradeable symbols, making it an exceptional choice for those seeking a wide variety of investment options. In contrast, XM Group provides 1,394 tradeable symbols but still offers a diverse selection, suitable for many traders. For those interested in forex trading, Charles Schwab and XM Group both offer forex as CFDs or spot contracts, with Schwab providing access to 73 forex pairs while XM Group offers 55. Both platforms allow clients to invest in exchange-traded securities on U.S. and international exchanges, enabling the purchase of high-profile stocks like Apple and Vodafone.
Additionally, both Charles Schwab and XM Group offer cryptocurrency derivatives, although neither broker allows for the purchase of actual cryptocurrencies. A notable difference lies in the copy trading feature, which is available with XM Group but not with Charles Schwab. This can be a significant factor for those who might benefit from mimicking other successful traders. In terms of recognition, Charles Schwab earns a stellar 5-star rating and ranks #5 out of 63 brokers in the Range of Investments category by ForexBrokers.com, while XM Group is not far behind with a 4.5-star rating and a #23 ranking. Ultimately, the choice between these two brokers may depend on specific trading needs and personal investment strategies.
| Feature |
Charles Schwab
|
XM Group
|
|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes |
| Tradeable Symbols (Total) | 40000 | 1394 |
| Forex Pairs (Total) | 73 | 55 |
| U.S. Stock Trading (Non CFD) | Yes | Yes |
| Int'l Stock Trading (Non CFD) | Yes | Yes |
| 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 XM Group both offer a variety of trading platforms and tools, catering to different trader needs. Charles Schwab distinguishes itself with its proprietary platform, delivering a tailored trading experience, and supports both a Windows-based desktop platform and a web-based option. In contrast, XM Group integrates popular platforms like MetaTrader 4 (MT4) and MetaTrader 5 (MT5), though it does not offer an in-house platform. Both brokers provide virtual demo accounts for simulated trading, allowing beginners to practice without financial risk.
When it comes to trading features, Charles Schwab excels with a broader array of drawing tools for charting and an extensive selection of 580 watch list columns, allowing traders to customize their experience extensively. Although XM Group offers fewer drawing tools and watch list options, it supports copy trading, a feature not available with Charles Schwab. This variety in functionality results in Charles Schwab achieving a higher rating of 5 stars for its trading platforms and tools compared to XM Group's 4 stars. Notably, Charles Schwab ranks 5th out of 63 brokers in the Trading Platforms and Tools category, while XM Group ranks 31st, reflecting their overall platform strength and user satisfaction.
| Feature |
Charles Schwab
|
XM Group
|
|---|---|---|
| Virtual Trading (Demo) | Yes | Yes |
| Proprietary Platform | Yes | No |
| 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 | 30 |
| Charting - Drawing Tools (Total) | 24 | 15 |
| Charting - Trade From Chart | Yes | Yes |
| Watchlists - Total Fields | 580 | 7 |
Dive deeper: Best MetaTrader 4 Brokers, Best MetaTrader 5 Brokers.
Both Charles Schwab and XM Group provide reliable mobile trading apps for iPhone and Android users, allowing seamless access to stock and forex markets. Traders can receive price alerts, synchronize watchlists with their online accounts, and even enjoy real-time quotes on their mobile watchlists. When it comes to charting tools, Charles Schwab stands out by offering 374 technical studies, compared to XM Group's 30. Each app supports drawing trend lines and viewing charts in multiple time frames, but only Charles Schwab automatically saves these drawings for future reference.
For those seeking a user-friendly and highly rated mobile trading experience, Charles Schwab holds an edge, receiving a perfect 5-star rating for their app and securing the 6th spot among 63 brokers according to ForexBrokers.com. XM Group, while respectable with a 4-star rating, ranks 29th and does not offer auto-saving for chart annotations. Both brokers deliver commendable tools and features, yet Charles Schwab's app offers some additional advantages that could be key for active traders.
| Feature |
Charles Schwab
|
XM Group
|
|---|---|---|
| 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 | No |
| Mobile Watchlist | Yes | Yes |
Dive deeper: Best Forex Trading Apps.
Charles Schwab and XM Group both provide solid research offerings, including daily market commentary and access to forex news from respected sources like Bloomberg and Reuters. While both brokers are equipped with economic calendars for prospective global events, XM Group provides a slight edge in additional tools with Trading Central analytics and a sentiment-based trading tool. This extra layer of information can be particularly helpful for traders looking to gauge market sentiment and make informed decisions across various currency pairs.
Despite differences in supplementary tools, both brokers excel in research capabilities, each earning a perfect five-star rating for research. In terms of overall ranking in the research category by ForexBrokers.com, Charles Schwab slightly outpaces XM Group, ranking 4th compared to XM Group's 8th place out of 63 brokers. This shows that investors seeking comprehensive market analysis will find quality resources with either platform, though Charles Schwab holds a slight lead in overall evaluation.
| Feature |
Charles Schwab
|
XM Group
|
|---|---|---|
| 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 | 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 XM Group for beginners, both platforms provide an excellent range of materials to help newcomers to trading. Charles Schwab and XM Group both offer over 10 educational pieces dedicated to forex and CFDs, ensuring a comprehensive learning experience for those wanting to delve into trading these financial instruments. In addition, both brokers organize at least one educational webinar each month and maintain searchable archives of past webinars, allowing traders to learn at their own pace. Both companies also boast more than 10 beginner videos specifically designed to introduce key trading concepts to novices.
For more seasoned traders, both Charles Schwab and XM Group provide over 10 advanced educational videos to build on existing knowledge. A point of difference, however, is Charles Schwab's inclusion of a robust investor dictionary with over 50 investing terms, which is not offered by XM Group. Rated with five stars for their educational offerings, Charles Schwab ranks 6th, just ahead of XM Group which holds the 7th position out of 63 brokers according to ForexBrokers.com. This positions both as leading options for traders looking to expand their skills and understanding through structured educational content.
| Feature |
Charles Schwab
|
XM Group
|
|---|---|---|
| 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 | No |
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 XM Group. Charles Schwab finished with an overall rank of #6, while XM Group finished with an overall rank of #17.
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
|
XM Group
|
|---|---|---|
| Overall Rating |
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| Trust Score | 99 | 88 |
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Both Charles Schwab and XM Group do not offer the ability to buy actual delivered cryptocurrency, but they do provide options for investing in cryptocurrency derivatives.
Charles Schwab supports ACH or SEPA transfers and bank wires for depositing or withdrawing account funds, while XM Group also facilitates bank wires but uniquely provides options like Skrill, Visa, and Mastercard, unlike Charles Schwab; neither broker supports transactions via 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 | XM Group | |
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| Trust Score | 99 | 88 | |
| Winner | check_circle | ||
| Review | Charles Schwab Review | XM Group Review |
| Broker Screenshots | Charles Schwab | XM Group | |
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| Regulation | Charles Schwab | XM Group | |
|---|---|---|---|
| Trust Score | 99 | 88 | |
| Year Founded | 1971 | 2009 | |
| Publicly Traded (Listed) | Yes | No | |
| Bank | Yes | No | |
| Regulated in one or more EU or EEA countries (MiFID). | No | Yes | |
| Tier-1 Licenses | 5 | 4 | |
| Tier-2 Licenses | 0 | 1 | |
| Tier-3 Licenses | 0 | 0 | |
| Tier-4 Licenses | 0 | 1 |
| Tier-1 Licenses (Highly Trusted) | Charles Schwab | XM Group | |
|---|---|---|---|
| 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 | No | |
| 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 | XM Group | |
|---|---|---|---|
| Kenya (CMA Authorised) | No | No | |
| 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 | XM Group | |
|---|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes | |
| Tradeable Symbols (Total) | 40000 | 1394 | |
| Forex Pairs (Total) | 73 | 55 | |
| U.S. Stock Trading (Non CFD) | Yes | Yes | |
| Int'l Stock Trading (Non CFD) | Yes | Yes | |
| 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 | XM Group | |
|---|---|---|---|
| Average Spread EUR/USD - Standard | 1.35 | 1.6 | |
| All-in Cost EUR/USD - Active | 1.35 | 0.8 | |
| Active Trader or VIP Discounts | No | No | |
| Inactivity Fee | No | Yes | |
| Execution: Agency Broker | Yes | No | |
| Execution: Market Maker | No | Yes |
| Funding | Charles Schwab | XM Group | |
|---|---|---|---|
| Minimum Deposit | $0 | $5 | |
| 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 | XM Group | |
|---|---|---|---|
| Proprietary Platform | Yes | No | |
| 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 | XM Group | |
|---|---|---|---|
| Virtual Trading (Demo) | Yes | Yes | |
| Alerts - Basic Fields | Yes | Yes | |
| Watchlists - Total Fields | 580 | 7 | |
| Charting - Indicators / Studies (Total) | 374 | 30 | |
| Charting - Drawing Tools (Total) | 24 | 15 | |
| Charting - Trade From Chart | Yes | Yes | |
| Charts can be saved | Yes | Yes |
| Mobile Trading | Charles Schwab | XM Group | |
|---|---|---|---|
| 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 | No | |
| Mobile Economic Calendar | Yes | Yes |
| Research | Charles Schwab | XM Group | |
|---|---|---|---|
| Daily Market Commentary | Yes | Yes | |
| Forex News (Top-Tier Sources) | Yes | Yes | |
| Autochartist | No | No | |
| Trading Central (Recognia) | No | Yes | |
| TipRanks | No | No | |
| Social Sentiment - Currency Pairs | No | Yes | |
| Economic Calendar | Yes | Yes |
| Education | Charles Schwab | XM Group | |
|---|---|---|---|
| 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 | No |
| Major Forex Pairs | Charles Schwab | XM Group | |
|---|---|---|---|
| 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 | XM Group Review |
| Overall | Charles Schwab | XM Group | |
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| Trust Score | 99 | 88 | |
| Winner | check_circle | ||
| Review | Charles Schwab Review | XM Group Review |
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