If you’re interested in trading foreign exchange, you might find yourself weighing Charles Schwab vs. FOREX.com. This article will look at both brokers, comparing the features, backgrounds and reputations of each to provide useful insight.
When choosing among online trading platforms, you’ll want to consider cost, ease of use, effectiveness and customer support. This overview provides the answers you need to choose an online broker that meets your trading needs.
- What Is Charles Schwab?
- Pros
- Cons
- See All 15 Items
What Is Charles Schwab?
Founded in San Francisco in 1971, Charles Schwab & Co., Inc. (NYSE: SCHW) now has its headquarters in Westlake, Texas.
Charles R. Schwab, chairman and former CEO, started the company as a traditional brokerage but pioneered discount brokering in 1974. Since then, the company has grown from the nation’s largest discount brokerage to the largest publicly traded investment services firm in the United States, with about $10.31 trillion in client assets.
Charles Schwab offers banking, brokerage and financial advisory services, as well as retirement planning.
Pros
- Trusted and publicly traded
- Offers multiple assets
- Access to exchanges in 30 countries
- Sound research
- High-quality educational resources
Cons
- Forex only available on Thinkorswim
- Limited options for payment
- No support for MetaTrader 4 and 5
What Is FOREX.com?
Gain Capital Group, LLC, founded by Glenn Henry Stevens in 1999 to provide online trading services, is headquartered in Warren, New Jersey. It launched FOREX.com in 2004. Gain Capital grew rapidly over the next 16 years, acquiring or launching financial services and trading platforms in Asia, Australia, Canada, Europe and the U.S.
In 2010, the company went public on the New York Stock Exchange under the symbol GCAP. StoneX Group Inc. (Nasdaq: SNEX) bought Gain Capital Group (known then as Gain Capital Holdings, Inc.) in an all-cash deal in 2020.
FOREX.com's primary services are online forex trading, unleveraged gold and silver in the U.S. and contracts for difference (CFDs) outside the U.S. Other features include access to 80 currency pairs, analysis tools and educational materials.
Pros
- StoneX is a trusted and publicly traded
- Low forex fees
- Access to thousands of markets
- Variety of currency pairs
- Educational resources
Cons
- Limited financial instruments
- Higher spreads than most platforms
- Desktop platform not user-friendly
Comparing Charles Schwab vs. FOREX.com
A look under the hoods of Charles Schwab and FOREX.com might help you determine the best trading platform.
The Schwab brokerage and FOREX.com both stand on solid reputations in the financial services industry. As such, the determining factors for you might lie in understanding the offerings, costs, trade experiences, customer service and security of each of the forex trading platforms. Here’s a closer look at Charles Schwab vs. FOREX.com.
Offerings
Charles Schwab offers a wide range of financial products beyond forex, including money market funds, bonds and fixed-income products, mutual funds, exchange-traded funds, stocks, international stocks, options, futures, cryptocurrency investing, margin loans, annuities and insurance. You can also take advantage of trading, automated investing, wealth management, banking and financial advisory services.
On FOREX.com, you can trade forex and unleveraged gold and silver in the U.S. However, you can also trade stocks, futures, options, cryptocurrencies, indexes and interest rates across its owner, StoneX. FOREX.com offers performance analytics, research and education. Wealth management is also available through StoneX.
Costs
Neither Charles Schwab nor FOREX.com charges a commission for trading forex. You can open a RAW account on FOREX.com with lower spreads (near 0.0 pips) and pay a commission of $7 per $100,000 traded. Charles Schwab has a slightly higher average spread at EUR/USD 1.4 pips, compared to FOREX.com’s average 1.2 pips.
Another cost consideration is an inactivity fee. Charles Schwab doesn’t charge for inactivity. FOREX.com, meanwhile, charges $15 for inactive accounts for 12 months or longer.
Trade Experience
Charles Schwab forex trading is available only on Thinkorswim, a robust platform available on desktop, web and mobile apps.
Within the Trade Tab, you can find a dedicated layout for forex and customize the interface. You can also access charting tools for technical analysis and hundreds of indicators and enable automated trading strategies.
FOREX.com offers its proprietary Advanced Trading on desktop and Web Trading. It also supports TradingView, MetaTrader 4 and 5 and NinjaTrader. The Advanced Trading platform has charting tools, more than 200 indicators, drawing tools and predefined automated strategies. It also features built-in risk-management tools.
Types of Orders
Charles Schwab and FOREX.com offer the three most common order types: market, limit and stop. However, with the features available in Thinkorswim and the Advanced Trading platform on FOREX.com, you can create complex order types.
Charles Schwab’s “Blast All” feature can trigger all your orders at once and FOREX.com’s “Good ‘til Time” (GTT) feature keeps orders active until a specific time and date. Both forex trading platforms feature a button that immediately closes all open positions.
Customer Service
Charles Schwab and FOREX.com offer customer account support through live chat, email, telephone, frequently asked questions and educational resources. Customer support is available 24/7 on Charles Schwab and 24/5 on FOREX.com.
Trustpilot reviews are critical of Charles Schwab. Several reviewers have complained about customer support on Schwab.com, which has a TrustScore of 1.6 out of 5 from 477 reviews and International.Schwab.com, which displays a score of 2.8 out of 5 from five reviews.
FOREX.com, however, boasts a TrustScore of 4.7 out of 5 from 1,751 reviews, many of which glow about the platform’s customer support.
Security
Charles Schwab is a Securities Investor Protection Corporation member, which safeguards customers up to $500,000. Schwab also keeps clients’ money separate from the company’s money.
A Charles Schwab forex account requires two-step verification. Customers are protected by SchwabSafe, multilayered encryption, automated alerts, monitoring and trained specialists who handle sensitive information.
FOREX.com also goes to considerable lengths to protect your accounts, money and information. It keeps clients’ money separate from its funds and requires banks to provide “trust letters” assuring that clients’ money is held separately from the banks’ money.
You could also be eligible for the Financial Services Compensation Scheme, which offers up to £50,000 if FOREX.com ceases to operate.
Charles Schwab vs. FOREX.com: Which Is Right for You?
Charles Schwab and FOREX.com offer services and features that could support your foray into forex trading. By reviewing the various advantages and downsides both brokers have to offer, you can decide which one best aligns with your financial goals and get to trading.
Frequently Asked Questions
Does Charles Schwab do forex trading?
Forex trading is available from Charles Schwab via Thinkorswim, the self-directed trading platform Schwab acquired with the purchase of TD Ameritrade in 2020. Currently, users can access more than 65 currency pairs.
Is FOREX.com allowed in the USA?
Yes. FOREX.com is registered as a futures commission merchant and retail foreign exchange dealer with the Commodity Futures Trading Commission and is a member of the National Futures Association.
Which broker is best for forex trading?
FOREX.com is arguably one of the best brokers for trading forex. The online trading platform boasts many currency pairs, competitive spreads, low account minimums and a customizable trading platform.
Get a Forex Pro on Your Side
FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets with low pricing and fast, quality execution on every trade.
You can also tap into:
- EUR/USD as low as 0.2 with fixed $5 commissions per 100,000
- Powerful, purpose-built currency trading platforms
- Monthly cash rebates of up to $9 per million dollars traded with FOREX.com’s Active Trader Program
Learn more about FOREX.com’s low pricing and how you can get started trading with FOREX.com.