Introduction
Charles Schwab and Interactive Brokers are two of the largest names in the brokerage business. Before opening an account with either company, review our comparison of the two firms.
Commissions and Account Minimums
|
|
|
| Rating |
|
|
| Stocks and ETFs |
$0 commissions available for U.S. stocks and ETFs |
$0 online trades for U.S. exchange-listed stocks and ETFs |
| Options (per contract) |
Up to $0.65 for U.S. options |
$0.65 |
| Mutual Funds |
No-fee funds: $0; other funds: 3% of trade value, up to $14.95 |
No-transaction-fee funds: $0; transaction-fee funds: up to $74.95 to buy and $0 to sell |
| Initial Funding Requirement |
$0 for many accounts |
$0 for many accounts |
| Inactivity Fee |
$0 |
$0 |
| IRA Annual Fee |
$0 |
$0 |
| IRA Termination Fee |
$0 |
$0 |
Incentives
Interactive Brokers: Get up to $1,000 in IBKR stock with this referral link!
Charles Schwab: Satisfaction guarantee, ACAT reimbursement, and $0-fee trades at Charles Schwab.
Investment Services
With a Schwab brokerage account, investors can trade the following products:
- Stocks and ETFs
- Options
- Futures contracts
- Options on futures
- Annuities
- Forex
- Mutual funds
- Bonds, CDs, and other fixed-income products
Interactive Brokers provides access to stocks, ETFs, options, futures, futures options, mutual funds, warrants, bonds, commodities, forex, and crypto through its trading platforms, subject to account approval, product availability, and local rules. Schwab offers annuities, while Interactive Brokers focuses heavily on global market access across stocks, options, futures, currencies, bonds, and funds.
There are also investment-advisory accounts to consider. Interactive Brokers offers access to portfolios through its affiliate Interactive Advisors, with most portfolios having a $100 minimum. Schwab offers Schwab Intelligent Portfolios with a $5,000 minimum and no advisory fee, as well as Schwab Wealth Advisory, which starts at $500,000 and has fees starting at 0.80%.
Winner: Toss up
Cash-Management Programs
Neither firm draws a hard line between investing and cash management. Interactive Brokers offers integrated cash-management features connected to a brokerage account, including mobile check deposit, direct deposit, a bank deposit sweep program for eligible clients, and the Karta Visa Infinite US Charge Card for eligible clients.
Schwab uses a different structure. It offers FDIC-insured checking and savings accounts through its affiliate Schwab Bank. Deposit accounts can be linked to investment accounts, and transferring money between accounts is simple through Schwab’s software. Along with a debit card, checkwriting is available with Schwab’s checking account.
Schwab Bank Investor Checking has no monthly service fee, unlimited ATM fee rebates for cash withdrawals worldwide, and no foreign transaction fees. Schwab also offers borrowing solutions such as pledged asset lines and home loans through Schwab Bank.
Winner: Schwab
Trading on Margin
It should not be surprising that both brokerage firms offer margin accounts. Margin trading requires approval, and margin borrowing involves risk.
Interactive Brokers displays margin impact information through its trading tools, including margin checks in Trader Workstation. Schwab also provides margin information and margin trading tools for eligible accounts.
As for borrowing costs, Schwab charges interest on a tiered schedule that starts at 11.825% and ends at 10.075%. Interactive Brokers publishes separate margin-rate schedules for IBKR Lite and IBKR Pro accounts. The IBKR Lite rate currently is 6.14%. IBKR Pro customers pay 5.14%.
Winner: Interactive Brokers
Day Trading
Extended Hours: Pre-market and after-hours trading are available at both firms. Interactive Brokers offers overnight trading in many U.S. stocks and ETFs, and Schwab offers 24/5 trading in more than 1,100 stocks and ETFs on thinkorswim. Crypto trading is available through Interactive Brokers, subject to account approval and availability.
Level II Quotes: Both firms offer market-depth tools and market-data subscriptions. Interactive Brokers lists more than 200 free and premium research and news providers, while Schwab’s thinkorswim platform includes advanced trading tools and data for active traders.
Shorting: Both firms allow short positions in eligible margin accounts. Interactive Brokers offers short-sale tools and stock-loan/availability resources. Schwab also supports short selling in eligible margin accounts.
Direct-access Routing: Interactive Brokers emphasizes direct global market access and advanced execution tools. Schwab’s thinkorswim platforms also provide advanced order-entry tools for active traders.
Maker-Taker Fees: Interactive Brokers’ tiered pricing can pass through exchange, regulatory, and third-party fees and rebates, depending on the product and trading venue.
Other Day-Trading Resources: Both companies provide tools for active traders. Interactive Brokers offers Trader Workstation and IBKR Desktop, while Schwab offers the thinkorswim platform suite.
Winner: Interactive Brokers
Websites
Websites are a natural starting point, and both brokerage firms in this comparison offer web-based trading resources. IBKR Client Portal includes an order ticket that can be used to trade stocks, options, futures, futures options, mutual funds, warrants, bonds, commodities, forex, and crypto, subject to permissions and availability.
Schwab offers website trading and the thinkorswim platform suite. thinkorswim web supports stocks, ETFs, options, futures, and forex. It also includes analysis tools, watchlists, and charts, and Schwab says thinkorswim can be used for 24/5 trading in more than 1,100 stocks and ETFs.
For traders who want practice tools, Schwab offers paperMoney on thinkorswim, and Interactive Brokers offers paper trading through its platforms.
Winner: Schwab
Mobile Apps
Both firms provide mobile trading tools. Interactive Brokers offers IBKR Mobile, while Schwab offers Schwab Mobile and thinkorswim mobile. Interactive Brokers says its trading platforms support stocks, options, futures, currencies, bonds, and funds, while Schwab says thinkorswim mobile can be used for trading and analysis with tools that sync across desktop, web, and mobile.
Schwab’s thinkorswim mobile app supports paperMoney, which lets clients practice trading with simulated funds using live market data. Interactive Brokers also offers paper trading and advanced order tools through its trading platforms.
Schwab’s thinkorswim mobile app supports trading in stocks, ETFs, options, futures, and forex for eligible clients. Interactive Brokers’ mobile app also supports a broad product lineup, depending on the account’s trading permissions.
Winner: Schwab
Desktop Programs
Although we like the software at both firms, their most advanced tools are found in the desktop platforms. IBKR customers can use Trader Workstation and IBKR Desktop. Interactive Brokers describes Trader Workstation as a powerful platform for active traders and investors, while IBKR Desktop is a newer desktop platform built with a more streamlined interface.
Schwab’s main desktop platform is thinkorswim desktop. It supports stocks, ETFs, options, futures, and forex. Schwab says thinkorswim desktop includes advanced charting, hundreds of technical studies, screeners, watchlists, analysis tools, and paperMoney.
Winner: Schwab
Additional Services
Fully-Paid Stock Lending: Traders at both firms can earn extra income by lending eligible shares of securities.
Systematic Investing: Schwab offers an Automatic Investment Plan for eligible mutual funds. Interactive Brokers has a recurring-investment feature that lets clients invest on a recurring schedule.
Dividend Reinvesting: Schwab offers automatic dividend reinvestment for eligible stocks, ETFs, and mutual funds. Interactive Brokers offers dividend reinvestment for eligible U.S. and Canadian listed common and preferred stocks.
Fractional Shares: Interactive Brokers supports fractional-share trading in eligible products. Schwab offers it for stocks and ETFs listed in the U.S. exchanges and also supports fractional mutual-fund shares.
Individual Retirement Accounts: Schwab and Interactive Brokers both offer IRAs. Schwab has a broad IRA lineup and extensive retirement-planning resources on its website.
IPO Access: Schwab offers IPO access for eligible clients, and Interactive Brokers has an IPO Subscriptions section in Client Portal when offerings are available.
Winner: Schwab
Incentives
Interactive Brokers: Get up to $1,000 in IBKR stock with this referral link!
Charles Schwab: Satisfaction guarantee, ACAT reimbursement, and $0-fee trades at Charles Schwab.
Recommendations
Small Accounts: Interactive Advisors says most portfolios have a $100 minimum. Schwab Intelligent Portfolios requires $5,000, and Schwab Wealth Advisory starts at $500,000. Neither firm has an account minimum for many self-directed brokerage accounts. Interactive Brokers may be better for investors who want broad fractional-share access, while Schwab may be better for investors who want broader planning and branch support.
Mutual Funds: Both firms offer mutual funds, including no-fee or no-transaction-fee choices. Schwab is stronger for investors who want extensive fund tools and Schwab’s own fund lineup.
Retirement Planning & Long-Term Investing: Schwab is stronger for investors who want a larger set of retirement-planning resources, annuities, and wealth-advisory options.
Frequent Stock Trading: Both firms are strong. Interactive Brokers is especially good for global market access, routing choices, and low margin rates, while Schwab is especially good for thinkorswim and 24/5 trading in many stocks and ETFs.
Beginning Investors: A managed account can be a useful way to get started. Schwab has automated and full-service advisory options, while Interactive Brokers offers Interactive Advisors through its affiliate.
Interactive Brokers vs Charles Schwab Verdict
Interactive Brokers remains one of the strongest choices for active and global traders, especially investors who want access to many markets, low margin rates, fractional-share trading, and advanced routing tools. Schwab is stronger for investors who want thinkorswim, branch support, banking through Schwab Bank, annuities, and a broader set of planning resources.
Open Charles Schwab Account
Open Schwab Account
Open IBKR Account
Open IB Account
Updated on 7/13/2026.
Continue Reading