Comparison of eToro and Charles Schwab
| Feature | eToro | Charles Schwab |
|---|---|---|
| Broker | ||
| Year Founded | 2006 | 1973 |
| Broker Type | MM, Social | DMA |
| Dealing | B-book | A-book |
| Execution | Instant | Market |
| Regulation | SFSA, FCA, CySEC, ASIC, SEC | SEC, FINRA, CFTC, NFA, FDIC |
| Platforms | eToro | Thinkorswim, StreetSmart Edge, Schwab Web, Mobile |
| Spread | ⬈ High | ⮕ Average |
| Maximum Leverage | 1:30 | 1:50 |
| Minimum Deposit | $200 | $1 |
| Base Currencies | USD | USD |
| Funding Methods | Bank Wire, Credit Card, Debit Card, PayPal, Skrill, Neteller, Klarna, Rapid Transfer, Trustly | Bank Wire, ACH (MoneyLink), Mobile Check Deposit, Internal Transfer |
| Inactivity Fee | $10 per month after 12 months | ✖ |
| Interest on Margin | ✖ | ✖ |
| Withdrawal Fee | $5 | $25 domestic wire ($15 online); $0 ACH |
| Investor Protection | Investor Compensation Fund (ICF) | SIPC |
| Protection Size | €20 000 | $500 000 |
| Segregated Accounts | ✔ | ✔ |
| Negative Balance Protection | ✔ | ✖ |
| Guaranteed Stop Loss | ✖ | ✖ |
| Copy Trading | ✔ | ✖ |
| VPS | ✖ | ✖ |
| MAM/PAMM | ✖ | ✖ |
| Scalping Allowed | ✖ | ✔ |
| EAs/Robots | ✖ | ✔ |
| Depth of Market (DOM) | ✖ | ✔ |
| Tradable Assets (CFDs) | Currencies, Indices, Stocks, ETFs, Cryptocurrencies, Metals, Energies, Soft Commodities | Stocks, ETFs, Options, Futures, Forex, Bonds, Mutual Funds, Commodities |
| Review | eToro Review | Charles Schwab Review |
About eToro
eToro is a globally renowned social trading platform, offering a unique approach to forex and CFD trading through its innovative copy trading feature. Established in 2007 and regulated by multiple top-tier authorities, including the FCA, CySEC, and ASIC, eToro has become a popular choice for traders of all experience levels. The platform allows users to follow and copy successful traders, making it particularly appealing to beginners seeking to learn and profit from experienced professionals. Beyond social trading, eToro offers a diverse range of instruments, including forex, stocks, ETFs, commodities, and cryptocurrencies, making it a versatile platform for portfolio diversification. Its proprietary platform is user-friendly and comes with robust analytical tools, catering to both novice and seasoned traders. However, while eToro's zero-commission stock trading is a standout feature, its relatively high spreads and inactivity fees may deter cost-conscious traders.
Pros
- Unique copy trading feature for following successful traders
- Regulated by multiple top-tier authorities (FCA, CySEC, ASIC, etc.)
- Offers a wide range of instruments, including cryptocurrencies and stocks
- User-friendly proprietary platform with robust analytical tools
- Zero-commission stock trading for non-leveraged positions
- Integrated social features for sharing insights and strategies
Cons
- Relatively high spreads compared to other brokers
- Inactivity fees applied after 12 months of non-use
- Limited options for advanced trading platforms like MT4 or MT5
- Withdrawal fees for certain transactions
- Customer support may have delayed response times during peak periods
About Charles Schwab
Charles Schwab is one of the largest U.S. brokers, serving more than 34 million clients with over $9 trillion in assets. Schwab offers zero-commission stock and ETF trades, powerful thinkorswim and StreetSmart Edge platforms, and access to 65+ forex pairs, futures, and 24/5 equity trading. Client assets are protected by SIPC up to $500,000 with additional coverage up to $600 million.
Pros
- Commission-free online stock and ETF trades
- No minimum deposit or inactivity fee
- 65+ forex pairs and 24/5 trading
- Robust research and education tools
- Enhanced SIPC protection up to $600 million
Cons
- $25 fee for outgoing domestic wires
- No direct spot-crypto or MT4/MT5
- Advanced platforms can overwhelm beginners
eToro & Charles Schwab Regulation
| Feature | eToro | Charles Schwab |
|---|---|---|
Companies | eToro (Seychelles) Limited, eToro (UK) Ltd, Etoro (Europe) Ltd, eToro AUS Capital Limited, eToro USA Securities Inc. | Charles Schwab & Co., Inc.; Charles Schwab Bank, SSB |
Countries | Seychelles, United Kingdom, Cyprus, Australia, United States | United States |
Regulators | SFSA, FCA, CySEC, ASIC, SEC | SEC, FINRA, CFTC, NFA, FDIC |
Investor Protection | Investor Compensation Fund (ICF) | SIPC |
Investor Protection Size | €20 000 | $500 000 |
Publicly Traded | ||
Segregated Accounts | ||
Guaranteed Stop Loss | ||
Negative Balance Protection |
Account Types
| Account | eToro | Charles Schwab |
|---|---|---|
Market Maker Account | ||
| Account Name | eToro | — |
| Min Deposit | $200 | — |
| Lot Size | 0.01 | — |
| Spread Type | Floating | — |
| Execution | Instant | — |
| Min Spread | 1 | — |
| Fee | No | — |
| Max Leverage | 1:30 | — |
| Stop Out | 50% | — |
| Margin Call | 100% | — |
DMA Account | ||
| Account Name | — | Schwab One® |
| Min Deposit | — | $1 |
| Lot Size | — | 0.1 |
| Spread Type | — | Floating |
| Execution | — | Market |
| Min Spread | — | 1.4 |
| Fee | — | No |
| Max Leverage | — | 1:50 |
| Stop Out | — | 30% |
| Margin Call | — | 50% |
| Additional Features | ||
| Demo Account | ||
| VIP Account | ||
| Swap-Free Account | ||
| Copy Trading | ||
| VPS | ||
| PAMM/MAM Accounts | ||
Funding and Fees
| Feature | eToro | Charles Schwab |
|---|---|---|
Base currencies | USD | USD |
Deposit and withdrawal methods | Bank Wire, Credit Card, Debit Card, PayPal, Skrill, Neteller, Klarna, Rapid Transfer, Trustly | Bank Wire, ACH (MoneyLink), Mobile Check Deposit, Internal Transfer |
Inactivity fee | $10 per month after 12 months | |
Interest on margin | ||
Withdrawal fee | $5 | $25 domestic wire ($15 online); $0 ACH |
Trading Platforms and Conditions
| Feature | eToro | Charles Schwab |
|---|---|---|
Trading Platforms | eToro | Thinkorswim, StreetSmart Edge, Schwab Web, Mobile |
Execution Speed | 0 ms | 50 ms |
Scalping | ||
Expert Advisors (EAs) | ||
Depth of Market (DOM) | ||
Spread | high | average |
Trading Assets
| Asset | eToro | Charles Schwab |
|---|---|---|
Currencies | 47 | 65 |
Indices | 13 | 20 |
Stocks | 2500 | 6000 |
Cryptocurrencies | 112 | 1 |
Bonds | 0 | 60000 |
Metals | 7 | 5 |
Energies | 2 | 5 |
Soft Commodities | 4 | 12 |
ETFs | 250 | 2000 |
Education and Analytics
| Feature | eToro | Charles Schwab |
|---|---|---|
Economic Calendar | ||
Indicators | ||
Robots | ||
Signals | ||
Autochartist | ||
Expert Analytics | ||
News Feed | ||
Education Articles | ||
Webinars | ||
Seminars |
Customer Support
| Contact | eToro | Charles Schwab |
|---|---|---|
Email | customerservice@etoro.com | AccessibilityHelp@Schwab.com |
Phone | +1800778439 | +18004359050 |
Facebook | — | |
LinkedIn | ||
YouTube | YouTube | YouTube |
Twitter |
Which Broker is Better?
After comparing eToro and Charles Schwab, eToro comes out ahead as our overall pick. It ranks higher in our internal scoring and delivers a stronger balance of pricing (spreads/fees), platform experience, and product range. That said, the runner-up may still be a better fit if you prioritize specific needs—like a particular account type, funding method, or niche instruments. This is not financial advice; always choose a broker that matches your goals and local regulatory requirements.
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Andriy Bondarenko
Broker Analyst
Andriy is a seasoned expert in broker reviews with over a decade of experience in finance and trading. Under his leadership, the team produces in-depth and unbiased analyses of leading trading platforms.