Written by ForexBrokers.com
In this head to head comparison of Charles Schwab vs AvaTrade, 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 AvaTrade are noteworthy options for online brokerage, each with unique characteristics regarding their regulatory standing. Charles Schwab, established in 1971, is a publicly traded company and operates as a bank. It holds an impressive five Tier-1 regulatory licenses, which are deemed highly trusted by ForexBrokers.com. This contributes to its almost perfect Trust Score of 99, classifying it as a highly trusted platform. In contrast, AvaTrade, founded in 2006, is not publicly traded and does not function as a bank. It maintains four Tier-1 licenses and three Tier-2 licenses, resulting in a commendable Trust Score of 94.
While both brokers are deemed trustworthy, Charles Schwab's status as a public company and bank with a longer history might appeal to those who prefer maximum regulatory assurance. AvaTrade, on the other hand, still presents a reliable choice with a slightly lower trust rating, supported by a combination of Tier-1 and Tier-2 licenses. Whether prioritizing the extensive regulatory credentials of Charles Schwab or the balanced license portfolio of AvaTrade, investors can find a fit tailored to their preferences and standards of trust.
| Feature |
Charles Schwab
|
AvaTrade
|
|---|---|---|
| Year Founded | 1971 | 2006 |
| Publicly Traded (Listed) | Yes | No |
| Bank | Yes | No |
| Tier-1 Licenses | 5 | 4 |
| Tier-2 Licenses | 0 | 3 |
| Tier-3 Licenses | 0 | 1 |
| Tier-4 Licenses | 0 | 1 |
When comparing the commissions and fees for online brokers Charles Schwab and AvaTrade, you'll find some distinct differences that cater to various trading needs. Charles Schwab is ideal for forex traders who appreciate no minimum deposit requirement. It offers a variety of financial account types, specifically the Schwab One and Schwab Global accounts, which provide access to the thinkorswim platform for forex trading. Notably, Schwab doesn't charge commissions for forex trading; instead, it uses the bid/ask spread, with an average spread of 1.35 pips on the EUR/USD as of October 2024. That said, Schwab settles all trades in U.S. dollars and, should you opt for its Schwab Global account to trade internationally, conversion fees can range from 0.2% to 1% based on your account balance. Charles Schwab is rated 4 stars for commissions and fees, ranking 23rd out of 62 brokers as per ForexBrokers.com.
AvaTrade, on the other hand, provides spreads that are slightly more favorable, standing at just under one pip (0.9 pips as of June 2024), which aligns with industry standards but is still higher than some competitors like CMC Markets and Tickmill. For professional traders who qualify, AvaTrade’s Professional account offers even more competitive spreads at approximately 0.6 pips, positioning itself in line with brokers such as FP Markets. AvaTrade shines with a 4.5-star rating for commissions and fees and holds a stronger rank at 12th out of 62 brokers in the same category according to ForexBrokers.com.
In summary, Charles Schwab suits those who want to trade without initial deposit constraints and enjoy robust tools like the thinkorswim platform, albeit at a higher spread cost. AvaTrade offers more competitive spreads, especially appealing to professional traders, making it a worthwhile consideration depending on your trading strategy. Ultimately, both brokers present strong options, but your choice may depend on your specific trading needs and preferences.
| Feature |
Charles Schwab
|
AvaTrade
|
|---|---|---|
| Minimum Deposit | $0 | $100 |
| Average Spread EUR/USD - Standard | 1.35 | 0.93 |
| All-in Cost EUR/USD - Active | 1.35 | 0.61 |
| Active Trader or VIP Discounts | No | Yes |
| ACH or SEPA Transfers | Yes | No |
| 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.
Charles Schwab and AvaTrade both facilitate forex trading, offering contracts for difference (CFDs) or spot contracts. Charles Schwab stands out with an impressive selection of 40,000 tradeable symbols, compared to AvaTrade's 1,260. In terms of forex pairs, Schwab offers 73, whereas AvaTrade provides 53. Charles Schwab also enables clients to purchase exchange-traded securities on both U.S. and international markets, such as Apple and Vodafone shares, while AvaTrade does not extend this capability. Despite these differences, both brokers offer the option to trade cryptocurrency derivatives, but neither allows the purchase of actual cryptocurrency.
AvaTrade distinguishes itself by offering copy trading, an option not available with Charles Schwab. With regards to range of investments, Charles Schwab receives a 5-star rating and ranks #5 out of 62 brokers, highlighting its diverse offerings. Meanwhile, AvaTrade holds a 4-star rating, placing it at #32 in the same category. While Charles Schwab's wide array of investment options might be appealing to some investors, AvaTrade's features like copy trading may cater to others seeking different trading strategies.
| Feature |
Charles Schwab
|
AvaTrade
|
|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes |
| Tradeable Symbols (Total) | 40000 | 1260 |
| Forex Pairs (Total) | 73 | 53 |
| 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.
When comparing the trading platforms and tools of Charles Schwab and AvaTrade, both brokers provide a variety of features but cater to slightly different needs. Charles Schwab boasts a top-rated proprietary platform available across multiple devices, including a Windows-based desktop and a web-based interface. It offers a comprehensive suite of charting tools, with 24 drawing tools and the capability to trade directly from stock charts. Furthermore, Charles Schwab excels in customization, enabling users to compile extensive watch lists with up to 580 fields. Gaining a 5-star rating for its platforms and tools, Charles Schwab ranks impressively at number 5 out of 62 brokers.
On the other hand, AvaTrade provides its proprietary platform alongside popular options like MetaTrader 4 and MetaTrader 5, ensuring traders have access to advanced features and versatility. Additionally, AvaTrade supports innovative features like copy trading through platforms such as DupliTrade and ZuluTrade, making it appealing to users interested in social trading strategies. Although AvaTrade offers fewer drawing tools for charting and a more limited watch list capacity of 7 fields compared to Charles Schwab, its overall rating stands at a good 4.5 stars, ranking it 13th among 62 brokers. This makes AvaTrade a strong contender for traders looking for flexibility with added social trading features.
| Feature |
Charles Schwab
|
AvaTrade
|
|---|---|---|
| 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 | Yes |
| Charting - Indicators / Studies (Total) | 374 | 80 |
| Charting - Drawing Tools (Total) | 24 | 13 |
| 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 AvaTrade deliver solid options for iPhone and Android users. They each support stock and forex price alerts, along with synchronized watchlists that update seamlessly between devices and online accounts. Whether you're tracking stock trends or forex movements, both apps allow you to set up and manage watchlists with real-time quotes with ease. However, Schwab outshines AvaTrade with an impressive offering of 374 technical studies available for chart analysis compared to AvaTrade's 73. A notable edge Schwab holds is its ability to auto-save chart drawings, providing an added layer of convenience for users wanting to pick up where they left off.
While both apps allow users to draw trendlines and view multiple timeframes on charts, Schwab's app stands out with a five-star rating, outperforming AvaTrade's 4.5 stars. This higher rating is mirrored in its overall ranking, where Schwab is placed at number six by ForexBrokers.com out of 62 brokers, compared to AvaTrade's rank at thirteen. For users seeking a comprehensive and user-friendly mobile trading experience, Charles Schwab's app steps ahead in several key areas, making it a preferred choice for many traders.
| Feature |
Charles Schwab
|
AvaTrade
|
|---|---|---|
| Android App | Yes | Yes |
| Apple iOS App | Yes | Yes |
| Mobile Alerts - Basic Fields | Yes | Yes |
| Watchlist Syncing | Yes | Yes |
| Mobile Charting - Indicators / Studies | 374 | 73 |
| 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 AvaTrade both provide comprehensive market research capabilities, but they diverge significantly in certain areas. Charles Schwab stands out with its daily market commentary and forex news from top-tier sources such as Bloomberg and Reuters, making it an excellent resource for staying informed. While both brokers offer an economic calendar to track significant global news events, Schwab's commitment to providing real-time market updates earns it a five-star research rating and a solid #4 ranking among 62 brokers by ForexBrokers.com.
On the other hand, AvaTrade offers unique tools like a sentiment-based trading tool and features from Trading Central, which are attractive for investors interested in market sentiment analysis. Despite not providing daily market commentary, AvaTrade holds its ground with forex news from leading sources and ranks at #34, with a four-star rating from ForexBrokers.com. AvaTrade is a strong choice for traders who prioritize insight into trading sentiment and technical analysis tools.
| Feature |
Charles Schwab
|
AvaTrade
|
|---|---|---|
| Daily Market Commentary | Yes | No |
| 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 it comes to educational resources for beginners, both Charles Schwab and AvaTrade have a lot to offer. Each broker provides an extensive selection of more than 10 educational pieces focused on forex and CFDs. These include articles, videos, and archived webinars, ensuring comprehensive learning for anyone new to trading. Both platforms also host online educational webinars at least once a month and maintain a searchable archive of previously recorded sessions, so newcomers can learn at their own pace. Moreover, beginners can benefit from over 10 educational videos specifically designed for them, available on both platforms.
In addition to beginner resources, both Charles Schwab and AvaTrade cater to more experienced traders with a variety of advanced educational videos. Each broker provides an investor dictionary featuring definitions for over 50 investing terms, aiding in the understanding of industry jargon. Charles Schwab, however, edges ahead with a perfect 5-star education rating, ranking sixth among 62 brokers according to ForexBrokers.com. AvaTrade, with a slightly lower 4-star education rating, impressively holds the second position for education in the same ranking list. Thus, while both brokers excel in educational offerings, some users may find Charles Schwab's resources slightly more comprehensive.
| Feature |
Charles Schwab
|
AvaTrade
|
|---|---|---|
| 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 62 of the best forex brokers, our research and account testing finds that Charles Schwab is better than AvaTrade. Charles Schwab finished with an overall rank of #6, while AvaTrade finished with an overall rank of #13.
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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AvaTrade
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|---|---|---|
| Overall Rating |
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| Trust Score | 99 | 94 |
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Both Charles Schwab and AvaTrade provide the option to purchase cryptocurrency derivatives, but neither platform offers the ability to buy actual delivered cryptocurrency.
In comparing online brokers, Charles Schwab supports ACH and SEPA transfers and bank wires for transactions, while AvaTrade offers a wider range of deposit and withdrawal options including PayPal, Skrill, Visa, Mastercard, in addition to bank wires, but not ACH or SEPA transfers.
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 | AvaTrade | |
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| Trust Score | 99 | 94 | |
| Winner | check_circle | ||
| Review | Charles Schwab Review | AvaTrade Review |
| Broker Screenshots | Charles Schwab | AvaTrade | |
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| Regulation | Charles Schwab | AvaTrade | |
|---|---|---|---|
| Trust Score | 99 | 94 | |
| Year Founded | 1971 | 2006 | |
| 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 | 3 | |
| Tier-3 Licenses | 0 | 1 | |
| Tier-4 Licenses | 0 | 1 |
| Tier-1 Licenses (Highly Trusted) | Charles Schwab | AvaTrade | |
|---|---|---|---|
| Australia (ASIC Authorised) | No | Yes | |
| Canada (CIRO Authorised) | Yes | Yes | |
| Hong Kong (SFC Authorised) | Yes | No | |
| Japan (SFC Authorised) | No | Yes | |
| 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 | AvaTrade | |
|---|---|---|---|
| Kenya (CMA Authorised) | No | No | |
| Israel (ISA Authorised) | No | Yes | |
| 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 | AvaTrade | |
|---|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes | |
| Tradeable Symbols (Total) | 40000 | 1260 | |
| Forex Pairs (Total) | 73 | 53 | |
| 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 | AvaTrade | |
|---|---|---|---|
| Average Spread EUR/USD - Standard | 1.35 | 0.93 | |
| All-in Cost EUR/USD - Active | 1.35 | 0.61 | |
| Active Trader or VIP Discounts | No | Yes | |
| Inactivity Fee | No | Yes | |
| Execution: Agency Broker | Yes | No | |
| Execution: Market Maker | No | Yes |
| Funding | Charles Schwab | AvaTrade | |
|---|---|---|---|
| Minimum Deposit | $0 | $100 | |
| 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 | No |
| Trading Platforms | Charles Schwab | AvaTrade | |
|---|---|---|---|
| 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 | Yes | |
| ZuluTrade | No | Yes |
| Trading Tools | Charles Schwab | AvaTrade | |
|---|---|---|---|
| Virtual Trading (Demo) | Yes | Yes | |
| Alerts - Basic Fields | Yes | Yes | |
| Watchlists - Total Fields | 580 | 7 | |
| Charting - Indicators / Studies (Total) | 374 | 80 | |
| Charting - Drawing Tools (Total) | 24 | 13 | |
| Charting - Trade From Chart | Yes | Yes | |
| Charts can be saved | Yes | Yes |
| Mobile Trading | Charles Schwab | AvaTrade | |
|---|---|---|---|
| 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 | 73 | |
| 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 | AvaTrade | |
|---|---|---|---|
| Daily Market Commentary | Yes | No | |
| 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 | AvaTrade | |
|---|---|---|---|
| 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 | AvaTrade | |
|---|---|---|---|
| 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 | AvaTrade Review |
| Overall | Charles Schwab | AvaTrade | |
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| Trust Score | 99 | 94 | |
| Winner | check_circle | ||
| Review | Charles Schwab Review | AvaTrade Review |
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