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 it comes to commissions and fees for forex trading, Charles Schwab provides a user-friendly entry with no minimum deposit required. This makes it accessible for both beginners and seasoned traders. Schwab offers the Schwab One account for forex trading through the thinkorswim platform, which uses U.S. dollars for settling all trades. The smallest trade size is 10,000 units, requiring a $500 margin with 20:1 leverage. Although Schwab doesn’t charge commissions on forex trades, costs are built into the bid/ask spread, with the average spread for EUR/USD being 1.35 pips as of October 2024. Schwab also gives investors an edge by openly listing overnight carry charges, helping traders estimate costs for holding positions overnight. Schwab scores 4 stars out of 5 and ranks #23 among 62 brokers in the Commissions and Fees category.
In comparison, Pepperstone excels with its Razor account, especially for high-volume traders who can benefit from its Active Trader program. The Razor account features a commission-based pricing structure and competitive spreads, with the total cost for the EUR/USD pair averaging 0.80 pips, which includes a 0.10 pip spread and a 0.70 pip commission-equivalent. Meanwhile, Pepperstone’s Standard account is commission-free but comes with higher spreads, averaging 1.1 pips for the EUR/USD pair as of July 2024. For professional clients and high-volume traders, Pepperstone offers rebates that lower trading costs further when volume thresholds are met. With its aggressive pricing and rebate offers, Pepperstone earns a higher rating of 4.5 stars and ranks #10 in the Commissions and Fees category among 62 brokers.
Overall, both Charles Schwab and Pepperstone provide solid options for forex traders, but they cater to slightly different needs and trading habits. Charles Schwab is ideal for those who appreciate easy access and no commission trading costs built into the spread, albeit with a slightly higher spread. In contrast, Pepperstone shines when it comes to competitive pricing and additional savings through its Active Trader program, making it a better choice for those who engage in high-frequency trading and can meet the volume requirements to fully benefit from its rebates.
| 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 Charles Schwab and Pepperstone, both brokers offer forex trading through CFDs or spot contracts. However, Charles Schwab stands out with a significantly larger range of investment options, providing access to approximately 40,000 tradeable symbols, compared to Pepperstone's 1,726. For those interested in forex pairs, Charles Schwab offers 73 pairs while Pepperstone offers 65. Schwab also grants clients the opportunity to invest in exchange-traded securities on both U.S. and international exchanges, a feature that Pepperstone lacks. This means Schwab users can directly purchase stocks like Apple on the NASDAQ or Vodafone on the London Stock Exchange, unlike Pepperstone users who do not have this option.
In terms of additional investment features, Pepperstone offers copy trading, a service not available through Charles Schwab. Both brokers provide access to cryptocurrency derivatives, but neither allows the purchase of actual cryptocurrencies. As a result of its broader range of options, Charles Schwab has been awarded 5 stars for its range of investments and is ranked 5th out of 62 brokers by ForexBrokers.com. In contrast, Pepperstone receives 4 stars in the same category and ranks 26th, indicating a more limited selection despite its specialized services. This information can help potential investors determine which broker better aligns with their investment goals.
| 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 cater to traders with a range of platform options and tools. Charles Schwab boasts a 5-star rating for its trading platforms and tools, ranking 5th out of 62 brokers. It offers a proprietary platform and supports trading via a Windows-based desktop platform as well as a web-based platform. Schwab provides a simulated trading experience through its virtual demo account. Drawing tools are ample, with 24 options for charting, and traders can execute trades directly from stock charts. Additionally, its watch list functionality is particularly comprehensive, with 580 fields to tailor market surveillance.
On the other hand, Pepperstone, which holds a 4-star rating and ranks 22nd, also provides a proprietary platform with both desktop and web-based trading options. Like Schwab, it offers a virtual demo account for simulated trading. However, Pepperstone takes a different route by supporting MetaTrader 4 and 5, platforms highly favored by forex traders. Pepperstone does offer copy trading, along with dual platforms like DupliTrade, unlike Schwab. With 30 drawing tools available, Pepperstone surpasses Schwab in this aspect but falls short in watch list fields, offering just 7. Despite these differences, both brokers facilitate trading from stock charts, catering to a wide range of trader preferences.
| 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, both Charles Schwab and Pepperstone offer apps compatible with iPhone and Android devices, providing users the ability to access the market at their convenience. In terms of functionality, both brokers allow for features like price alerts and the ability to create watchlists with real-time quotes. These watchlists can sync with their respective online accounts, ensuring a seamless transition between mobile and web platforms. Additionally, both apps support charting capabilities with the option to draw trendlines and view multiple time frames, and they automatically save any chart modifications.
However, a closer look reveals some stark differences. Charles Schwab’s mobile app is substantially ahead in technical capabilities, offering a whopping 374 technical studies for chart analysis compared to Pepperstone’s 30. This breadth of analytical tools contributes significantly to Charles Schwab’s higher rating of 5 stars for its mobile trading app, compared to Pepperstone's 4 stars. Ranking-wise, Charles Schwab holds the 6th position among 62 brokers in the Mobile Trading Apps category by ForexBrokers.com, while Pepperstone comes in at 21st. This lays out an obvious choice for traders who prioritize a comprehensive set of charting tools in their mobile trading experience.
| 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.
Charles Schwab and Pepperstone both offer excellent resources for market research, catering to investors seeking insightful information. Each provides daily market commentary, ensuring clients stay informed. They both deliver forex news from top-tier sources like Bloomberg and Reuters, adding credibility to their research offerings. In terms of research tools, Pepperstone stands out with support from Autochartist, providing users with advanced technical analysis tools not available with Charles Schwab. Additionally, Pepperstone offers a sentiment-based trading tool that reveals long or short positions across various currency pairs, an edge not found in Charles Schwab's platform.
While both brokers supply an economic calendar to keep traders updated on significant global events, Charles Schwab takes the lead in research quality. It boasts a top-tier ranking as the fourth-best broker for research among 62 peers as per ForexBrokers.com, with a flawless 5-star rating. In contrast, Pepperstone, although offering competitive features and receiving a strong 4.5-star rating, holds the 12th spot in the same ranking. This positions Charles Schwab as a slightly better choice for those prioritizing comprehensive research capabilities in their trading experience.
| 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.
Charles Schwab and Pepperstone both offer a solid range of educational resources designed for forex and CFD traders at all levels. Whether you prefer learning through articles, videos, or webinars, both platforms have got you covered with a minimum of ten educational pieces each. They also both offer online educational client webinars at least once a month, ensuring you have regular opportunities to expand your knowledge and skills. Additionally, both platforms provide a searchable archive of previously recorded webinars for learning at your own pace.
For beginners, Charles Schwab and Pepperstone each present at least ten educational videos specifically tailored to those new to trading. They also cater to advanced traders with at least ten expert-level videos. Moreover, both include an investor dictionary featuring definitions for over 50 investing terms, helping users navigate complex market jargon. Despite these similarities, Charles Schwab stands out slightly with a five-star education rating and ranks sixth in education among 62 brokers reviewed by ForexBrokers.com, compared to Pepperstone’s 4.5-star rating and eighteenth-place rank.
| 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 62 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
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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 | |
| Winner | check_circle | ||
| 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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