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.
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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 is a convenient choice for forex traders, requiring no minimum deposit to begin trading with its Schwab One account. Through this account, investors can access the thinkorswim platform, although all forex trades are settled in U.S. dollars and the minimum trade size is 10,000 units. Schwab Global accounts offer more international flexibility with access to twelve markets in local currencies, albeit with conversion fees ranging from 0.2% to 1%. Schwab doesn't charge commissions for forex trading, instead deriving revenue from the bid/ask spread, which averaged 1.35 pips for EUR/USD in October 2024. Charles Schwab's commissions and fees have been awarded a 4-star rating, and it's ranked #23 out of 62 brokers by ForexBrokers.com.
FXCM provides forex trading with spreads that slightly exceed the industry average. In May 2024, EUR/USD spreads averaged 0.78 pips for FXCM's offerings in the EU, U.K., and Australia, while its St. Vincent and the Grenadines entity had spreads of 1.38 pips. FXCM also offers commission-based accounts with low spreads of 0.28 pips, though when factoring in commissions, the effective spread raises to around 0.74 pips. Active traders can benefit from FXCM's tiered discount system, potentially reducing trading costs significantly based on volume. Like Charles Schwab, FXCM receives a 4-star rating for commissions and fees and ranks #24 out of 62 brokers by ForexBrokers.com.
When comparing Charles Schwab and FXCM for forex trading, Schwab leads with no commissions but a less competitive average spread, while FXCM offers tighter spreads, especially in commission-based accounts. Schwab provides greater flexibility with its Schwab Global account for international securities, whereas FXCM's Active Trader program may appeal to higher-volume traders seeking rebates. Both brokers are similarly rated for their commissions and fees, highlighting their positions as competitive but not standout choices in the market.
| 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 it comes to the variety of investment options, Charles Schwab and FXCM each have their strengths, but Schwab clearly takes the lead in the breadth of offerings. Charles Schwab provides an astoundingly large portfolio with 40,000 tradeable symbols and 73 forex pairs, appealing to investors who prefer a diverse range of opportunities. It also offers the ability to trade U.S. and international exchange-traded securities, giving users the chance to buy stocks from major companies like Apple and Vodafone. Although Schwab doesn't support copy trading or direct purchase of cryptocurrencies, it does offer cryptocurrency derivatives, keeping it competitive in this modern investment landscape.
In contrast, FXCM offers a narrower selection with just 440 tradeable symbols and 43 forex pairs, but it caters to those interested in forex and CFD trading. FXCM doesn't offer direct access to U.S. or international exchange-traded securities, limiting access to physical shares from major companies. However, for investors interested in copy trading, FXCM provides this feature, which Schwab does not. FXCM also deals in cryptocurrency derivatives, maintaining a foothold in emerging digital markets. Despite these offerings, Charles Schwab receives a superior rating of 5 stars for its range of investments, ranking #5 among 62 brokers according to ForexBrokers.com, whereas FXCM rates at 3.5 stars, ranking at #47.
| Feature |
Charles Schwab
|
FXCM
|
|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes |
| Tradeable Symbols (Total) | 40000 | 440 |
| Forex Pairs (Total) | 73 | 43 |
| 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 both offer traders a suite of versatile platforms, each with unique features to meet the needs of various trading styles. Both brokers provide users with simulated trading options via free demo accounts, facilitating practice before committing real funds. With proprietary platforms developed in-house, Schwab and FXCM allow for customized trading experiences. For those who prefer to trade from their desktop or through a web-based interface, both brokers cater to these preferences with Windows-based desktop platforms and browser-based solutions, ensuring ease and flexibility in access.
While Charles Schwab does not offer copy trading or integration with MetaTrader 4 (MT4) or MetaTrader 5 (MT5), FXCM includes copy trading and MT4 support, enhancing its appeal to users seeking these functionalities. FXCM further stands out with ZuluTrade availability, whereas neither broker supports DupliTrade. In terms of charting tools, Schwab offers 24 drawing tools and an extensive 580 columns for watch lists, in contrast to FXCM's more limited 10 drawing tools and 13 watch list fields. Despite these differences, both received a five-star rating for trading platforms and tools, with Schwab ranked fifth and FXCM close behind in sixth, by ForexBrokers.com among 62 brokers.
| 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.
When it comes to mobile trading apps, both Charles Schwab and FXCM offer comprehensive apps for iPhone and Android users. Each provides the ability to receive important stock or forex price alerts, and sync watchlist symbols seamlessly with available clients' online accounts. For those who rely heavily on technical analysis, Charles Schwab stands out with a remarkable 374 technical studies available for its mobile app charting, compared to FXCM's 59. However, both apps allow users to draw trendlines and explore various time frames, such as daily, weekly, or intraday views, making them versatile tools for traders.
Additional features like auto-saving chart drawings and creating watchlists with real-time quotes are standard on both Schwab and FXCM mobile apps. User ratings highlight Schwab's edge, as it boasts a perfect 5-star rating in mobile trading apps compared to FXCM's respectable 4.5 stars. According to ForexBrokers.com's ranking of 62 brokers, Schwab takes the higher spot at #6, while FXCM ranks at #16. These differences might help traders decide which app better meets their needs for mobile trading.
| 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 both provide daily market commentary and access to forex news from reputable sources like Bloomberg, Reuters, and Dow Jones. However, when it comes to analytical tools and resources, there are some differences. FXCM offers technical analysis resources via Trading Central, as well as a sentiment-based trading tool that provides insights into long or short positions across various currencies. Charles Schwab does not offer these specific tools, which may limit some traders seeking advanced analytics. Additionally, FXCM provides market research from TipRanks, while Charles Schwab does not.
Both brokers provide an economic calendar to keep traders informed of global economic events. Despite these differences in research offerings, Charles Schwab excels in overall research quality, receiving a 5-star rating and securing the #4 rank among 62 brokers on ForexBrokers.com. FXCM is not far behind with a 4.5-star rating and a rank of #11. These rankings reflect the comprehensive market research experience both companies offer, with Charles Schwab holding a slight edge in overall evaluation.
| 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 the educational resources offered to beginners by Charles Schwab and FXCM, both platforms have committed to providing a solid foundation for new traders entering the world of forex and CFDs. Charles Schwab impresses with a wide array of educational content, including more than ten articles and videos alongside archived webinars focused on forex topics. For those who prefer live learning, they offer monthly webinars, which are conveniently archived for later viewing. Schwab also caters to a range of learners, from beginners to more seasoned traders, with over ten videos dedicated to both novice and advanced trading insights. Additionally, an extensive investor dictionary featuring definitions of more than 50 investing terms is available, making it easier for beginners to grasp complex concepts. Their dedication to education is reflected in their five-star rating and #6 ranking out of 62 brokers according to ForexBrokers.com.
FXCM also delivers an informative experience for beginner investors, providing a comprehensive library of over ten pieces of educational content focused on forex and CFDs. Like Charles Schwab, FXCM offers accessible learning through monthly webinars, stored in an archive for easy access. To cater to a broad audience, FXCM ensures that its educational materials include both beginner-friendly and advanced trading videos, each exceeding ten in number. The platform further enriches the learning process with an investor dictionary that includes definitions of at least 50 terms. Although FXCM is rated slightly lower than Charles Schwab with a 4.5-star rating, it remains a formidable contender in the education category, achieving a respectable ranking of #14 out of 62 brokers as evaluated by ForexBrokers.com.
| 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 62 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 | 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 | FXCM | |
|---|---|---|---|
| Kenya (CMA Authorised) | No | No | |
| Israel (ISA Authorised) | No | Yes | |
| South Africa (FSCA Authorised) | No | Yes | |
| UAE (DFSA/Central Bank Authorised) | No | No | |
| India (SEBI Authorised) | No | No | |
| Jordan (JSC Authorised) | No | No |
| Investments | Charles Schwab | FXCM | |
|---|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes | |
| Tradeable Symbols (Total) | 40000 | 440 | |
| Forex Pairs (Total) | 73 | 43 | |
| 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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