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 |
When comparing Charles Schwab to HFM for their commissions and fees, both brokers receive a commendable 4-star rating, yet differ in their overall approach to costs and trading offerings. Charles Schwab impresses with no minimum deposit requirement for its main brokerage accounts, making forex trading accessible. Utilizing the thinkorswim platform, forex trades via Schwab One are handled in U.S. dollars, with a minimum trade size of 10,000 units, demanding a $500 margin under 20:1 leverage. Schwab offers access to twelve international markets through the Schwab Global account, albeit with conversion fees ranging from 0.2% to 1% for trades in local currencies.
Schwab does not charge commissions on forex trades, instead relying on the bid/ask spread. For October 2024, the average spread for EUR/USD was 1.35 pips, slightly above the industry average. Overnight carry charges can be conveniently checked on the thinkorswim platform, aiding traders in maintaining cost-effective positions. Schwab earns a #23 ranking out of 62 brokers for commissions and fees according to ForexBrokers.com, reflecting a competitive edge in its trading services.
On the other hand, HFM presents trading costs slightly above the industry norm, with typical spreads of 1.2 pips for standard accounts. For Zero accounts, the effective spread is reduced to 0.7 pips after commission. However, the absence of specific date ranges for these spreads might not provide a consistent average. Despite this, HFM maintains a respectable #31 ranking among 62 brokers. Both Charles Schwab and HFM offer distinct advantages in their fee structures, appealing to different trader preferences and strategies.
| 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 both provide a variety of investment options for traders, but they cater to different needs. Charles Schwab excels with an impressive offering of 40,000 tradeable symbols, including 73 forex pairs, and allows direct trading of U.S. and international stocks such as Apple and Vodafone. Although it does not offer copy trading or direct cryptocurrency purchases, Schwab's range extends to cryptocurrency derivatives. This broad scope of investments has earned Charles Schwab a top-tier ranking of 5 stars and a 5th place out of 62 brokers for its investment range.
HFM, on the other hand, offers a more focused selection with 500 tradeable symbols. Its strength lies in forex trading with 102 forex pairs available. While HFM does not provide access to U.S. or international stocks, it does support copy trading, which can be appealing to traders interested in following the strategies of others. Like Charles Schwab, HFM also offers cryptocurrency derivatives but not direct purchases. HFM is rated 4 stars for its range of investments, ranking it 36th out of 62 brokers in this category.
| 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 present a variety of options for traders using their respective trading platforms and tools. Both brokers provide simulated trading through free virtual demo accounts, allowing users to practice without risking real money. Each offers a proprietary platform, Windows-based desktop download options, and web-based trading platforms accessible via a browser. However, HFM distinguishes itself by offering copy trading—a feature Charles Schwab does not have—and by supporting popular platforms like MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which Schwab does not offer. Both brokers allow trading directly from stock charts, but HFM offers slightly more drawing tools at 30 compared to Schwab's 24.
When it comes to watch list customizability, Charles Schwab far surpasses HFM with 580 columns, whereas HFM offers only 7. This difference could be pivotal for traders who prioritize extensive watch list functionalities. Both platforms are rated highly, but Charles Schwab edges out HFM, earning 5 out of 5 stars for its trading platforms and tools, and securing the #5 rank out of 62 brokers according to ForexBrokers.com. HFM, while commendable, receives a 4-star rating and is ranked #42. This makes Charles Schwab a potentially better choice for traders seeking top-tier trading tools and platform performance.
| 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.
When it comes to mobile trading apps, Charles Schwab and HFM both offer versions compatible with iPhone and Android devices. They cater to traders who require stock or forex price alerts, real-time watchlists, and trendline drawing capabilities. However, a notable advantage of Charles Schwab's app is its watchlist symbol syncing feature, which ensures a seamless experience as updates made on the mobile app mirror those on the client’s online account—a feature that HFM lacks. Additionally, Charles Schwab outshines HFM in the number of technical studies available for charting, offering 374 options compared to HFM’s 30.
In terms of user ratings and industry rankings, Charles Schwab's mobile trading app is highly rated with five stars, positioning it as the sixth-best among 62 brokers, according to ForexBrokers.com. This indicates a higher level of user satisfaction and app functionality. Conversely, HFM receives a slightly lower rating of four stars and ranks 39th in the same list. Both apps allow traders to view stock or forex charts in multiple time frames and provide the convenience of auto-saving chart drawings, but it’s clear that Charles Schwab provides a more comprehensive and highly regarded mobile 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.
When comparing Charles Schwab and HFM in terms of market research offerings, both provide daily market commentary and access to forex news from top-tier sources such as Bloomberg, Reuters, and Dow Jones. However, there are some differences in the tools and resources they offer. HFM provides specific tools for technical and fundamental analysis from Autochartist and a sentiment-based trading tool that shows the ratio of long or short positions across different instruments. On the other hand, Charles Schwab does not offer these particular tools, but it compensates with a highly-rated market research service. Both brokers include an economic calendar to keep investors informed about global news events.
In terms of research quality, Charles Schwab holds a higher ranking and rating. It is rated 5 stars by ForexBrokers.com for its research offerings and is ranked #4 out of 62 brokers in the Research category. HFM, while still strong, receives a 4-star rating and is ranked #20. This indicates that Charles Schwab might offer a more comprehensive and well-regarded research service compared to HFM, despite a narrower range of specialized analytical tools.
| 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.
When it comes to educational resources for beginner investors, both Charles Schwab and HFM offer strong support. They each provide over ten educational materials focused on forex and CFDs, ensuring newcomers have access to a wealth of information in the form of articles, videos, and archived webinars. Both platforms also host monthly webinars, keeping clients up-to-date with trending topics and trading strategies. Additionally, these webinars are archived, allowing beginners the flexibility to learn at their own pace.
Charles Schwab and HFM cater to beginners with at least ten instructional videos covering foundational trading topics. They also go above and beyond, offering more than ten advanced videos tailored to seasoned traders looking to refine their skills. Both platforms include an investor dictionary with over 50 essential investing terms, fostering a comprehensive learning environment. While Charles Schwab is rated five stars for its education, ranking #6 out of 62 brokers, HFM holds a four-star rating and places #37, indicating a slight advantage for Charles Schwab in the realm of educational offerings.
| 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 62 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
|
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 |
| Broker Screenshots | Charles Schwab | HFM | |
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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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