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 and XM Group are both prominent online brokers, excelling in various aspects of forex trading. When it comes to commissions and fees, Charles Schwab provides a user-friendly experience with no minimum deposit requirement for its primary brokerage accounts, Schwab One and Schwab Global. The Schwab One account allows traders to access the thinkorswim platform for forex trading, settling all trades in U.S. dollars. Schwab doesn't charge commissions for forex trading—costs come from the bid/ask spread, which for EUR/USD was 1.35 pips in October 2024. While more suitable for those trading international securities in multiple currencies, the Schwab Global account incurs conversion fees ranging from 0.2% to 1%. Charles Schwab earns a 4-star rating for commissions and fees and places 23rd out of 62 brokers according to ForexBrokers.com.
On the other hand, XM Group provides a straightforward trading model, but the standard account spreads are generally considered costly. Notably, XM has not published the average spreads for its commission-based XM Zero account, which leaves traders with less transparency on potential trading costs. Despite these considerations, XM Group also garners a 4-star rating for commissions and fees, positioning itself at 33rd in the ForexBrokers.com ranking, slightly behind Charles Schwab in this category.
Both Charles Schwab and XM Group offer competitive forex trading options, but they differ in terms of cost structures and transparency. Schwab's no-commission, spread-based model coupled with a higher spread average indicates potentially higher long-term trading costs. Meanwhile, XM's lack of clarity on average spreads, particularly for its XM Zero account, might pose concerns for traders focused on minimizing transaction costs. These factors contribute to their placement in the ForexBrokers.com rankings, with Charles Schwab ranked higher for commissions and fees.
| 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.
Charles Schwab and XM Group both provide vast investment options for traders looking to diversify their portfolios. Schwab excels with an enormous selection of 40,000 tradeable symbols, including 73 forex pairs, enabling clients to tap into a wide spectrum of markets. Similarly, XM Group offers a respectable 1,394 tradeable symbols, with 55 forex pairs, catering to traders who prefer focused diversification. Both brokers permit the trading of exchange-traded securities on U.S. and international exchanges, giving investors access to major companies like Apple and Vodafone. Though neither broker supports the purchase of actual cryptocurrencies, they do provide options for trading cryptocurrency derivatives.
Where they differ is in additional trading features. XM Group offers copy trading, allowing investors to automatically replicate the strategies of successful traders, a feature Schwab does not offer. In terms of recognition, Charles Schwab boasts a 5-star rating for its range of investments and ranks 5th among 62 brokers according to ForexBrokers.com; a testament to its comprehensive offerings. XM Group, while slightly lower rated at 4.5 stars and ranked 23rd, still provides a considerable diversity of investment opportunities, making it a solid choice for many traders.
| 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.
When comparing the trading platforms and tools offered by Charles Schwab and XM Group, both brokers offer simulated trading with a free virtual demo account, allowing users to practice trading strategies without financial risk. Charles Schwab distinguishes itself with a proprietary platform developed in-house, while XM Group relies on popular third-party platforms, such as MetaTrader 4 and 5. Both brokers provide desktop and web-based platforms for flexible trading experiences, but their offerings diverge significantly when it comes to copy trading: XM Group offers this feature, whereas Charles Schwab does not.
Charles Schwab shines in charting tools, providing 24 drawing tools and extensive customization options with 580 watch list columns, which greatly outnumbers XM Group's 7 columns. Both brokers allow for trading directly from stock charts, enhancing user convenience. In terms of ratings, Charles Schwab receives a stellar five-star rating for its trading platforms and tools and is ranked fifth out of 62 brokers by ForexBrokers.com. Conversely, XM Group, while still respectable, has a four-star rating and is ranked 30th, indicating a slight advantage for Charles Schwab in this comparison.
| 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.
Charles Schwab and XM Group both provide mobile trading apps available on iPhone and Android devices, enabling users to trade on the go. Both apps allow users to set up stock and forex price alerts and create watchlists that sync seamlessly with their online accounts. They also offer the ability to draw trendlines and view multiple time frames on charts, catering to various trading strategies. A notable distinction is that Charles Schwab's app offers 374 technical studies for chart analysis compared to XM Group's 30, which may appeal to those who prioritize extensive analytical tools.
While both apps allow for creating watchlists with real-time quotes, Charles Schwab stands out by auto-saving chart drawings, a feature not available with XM Group's app. In terms of user feedback, Charles Schwab's mobile app garners a 5-star rating, while XM Group's app holds a 4-star rating. When ranked by ForexBrokers.com among 62 brokers, Charles Schwab shines at an impressive #6, whereas XM Group is positioned at #27, highlighting Schwab's stronger performance in mobile trading capabilities.
| 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 excel in offering comprehensive market research, including daily market commentary and access to forex news from prominent sources such as Bloomberg, Reuters, and Dow Jones. This ensures that traders using either broker receive timely and credible market updates. Both platforms provide users with an economic calendar to stay informed about significant global events that could impact various economies, an indispensable tool for any trader. However, while XM Group offers additional technical analysis tools from Trading Central and a sentiment-based trading tool, Charles Schwab does not, which might influence traders seeking these specific research capabilities.
In terms of overall research offerings, both Charles Schwab and XM Group receive high marks, each earning a perfect 5-star rating. However, Charles Schwab edges ahead in rankings, securing the #4 spot, compared to XM Group's #8, according to ForexBrokers.com. This distinction could be a deciding factor for traders who prioritize research resources. Despite some differences, traders seeking robust market insights and reliable news from either broker will find a solid foundation for making well-informed trading decisions.
| 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.
Charles Schwab and XM Group both offer a wealth of educational resources to assist beginners in gaining a solid understanding of forex and CFDs. Both platforms provide more than 10 pieces of educational content, including articles, videos, and archived webinars focused on these areas. Additionally, each offers monthly online educational webinars, ensuring that beginners have access to fresh and relevant learning opportunities. For those interested in on-demand learning, both brokers maintain searchable archives of past webinars, allowing clients to explore and learn at their own pace.
When it comes to video content tailored to education, both Charles Schwab and XM Group support beginners with over ten videos dedicated to basic trading topics, alongside advanced material for more seasoned traders. A noteworthy distinction is that Charles Schwab includes an investor dictionary of over 50 terms, a resource absent from XM Group's offerings. Despite these slight differences, they both achieve a stellar rating of five stars for education from consumers. Within the education rankings on ForexBrokers.com, Charles Schwab claims the sixth position, narrowly leading XM Group which holds the seventh spot. Both brokers are highly regarded in the education category, making them excellent choices for those keen on building their trading knowledge from the ground up.
| 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 62 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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