Empower vs. Schwab Comparison
Key takeaways:
• Investors at Schwab and Empower can open investment accounts and receive some helpful financial planning.
• Brokerage, robo, and traditional managed accounts are available at both firms.
• Pro-level trading software can be used only at Schwab.
Are you looking for a way to beat the return your bank account is delivering right now? An investment account through Empower or Charles Schwab might be your ticket. Here's the lowdown on these two investing firms:
Trading and Investing
If you open a securities account at Schwab or Empower, you'll be able to trade:
- Closed-end funds
- ETFs
- Mutual funds
- Option contracts
- Stocks, including OTC stocks
- Bonds and other fixed-income securities
Schwab goes a little further and adds in futures contracts, forex, and foreign stocks. Both firms offer annuities for retirement planning.
Besides brokerage accounts, both firms have investment-advisory programs that deliver securities investing through managed accounts. In these programs, it's possible to get some help from a financial advisor. Both firms also have hybrid human-robo programs; at Schwab, a straight robo account can be opened as well.
For its advisory and brokerage customers, Schwab has a large network of branch locations that provide in-person customer service. Empower does not have brick-and-mortar locations.
Winner: Schwab
Margin
Although Empower doesn't offer margin trading, Schwab does, and its margin service has many useful features. For example, with a brokerage account, it's possible to short stocks and trade option spreads. Because Empower doesn't offer margin accounts, these trading strategies are not possible there.
Schwab customers pay between 12.075% and 10.325% for borrowed money. For debit balances above $500k, Schwab provides negotiated rates. For short positions, the cost of margin varies by stock and even by day; this rate is available on Schwab's website and desktop platform. On every stock profile at Schwab, the stock's margin maintenance requirement is shown.
Winner: Schwab
Visit Websites
Empower: Get FREE investment checkup at Empower.
Charles Schwab: Satisfaction guarantee, ACAT reimbursement, and $0-fee trades at Charles Schwab.
Computer Tech
Empower customers get to use a website with simple charting and basic order entry. Although graphs are elementary, there are a few plot styles and technical studies. Drawing tools, however, are missing in action. The Empower trade ticket has a few basic order types and two duration choices (day and GTC).
Schwab's website kicks up the trading level a notch or two with several advanced tools. For example, there are multiple order tickets, the most sophisticated of which will be found on thinkorswim, a web-browser platform. We found conditional, market-on-close, and first triggers all. Graphs also are on a high level with drawing tools and more.
For security research, both websites have a good amount of information. Empower's site has insider trading activity, while Schwab's site has analysts' trade recommendations.
The highest level of trading will be found with desktop software, and here Schwab clearly pulls ahead of its rival. Empower has no desktop platform, while Schwab uses thinkorswim once again. This time, it finds its highest level with all sorts of advanced tools, including hundreds of technical studies.
Winner: Schwab
Mobile Apps
Mobile software continues the digital conflict. Both firms have two apps. Empower uses an Empower app and a NetXInvestor app. Both have the same interface and trading resources. Schwab uses Schwab and thinkorswim apps. The latter is on a very high level. It can trade futures and forex; plus, it has very advanced charting. The Empower apps, by contrast, only have simple charting.
The Empower apps do have a good deal of security research tools (they basically recreate the website). The thinkorswim app leaves out most research tools in favor of advanced trading. The main Schwab app, though, has a great deal of education and research; we're talking audio and video news at no charge.
Winner: Schwab
Complementary Services
Fractional-share Trading: Schwab has it for stocks. Both firms have it for mutual funds.
DRIP Service: Dividends can be set to automatically reinvest at both broker-dealers.
IRA Lineups: An Individual Retirement Account can be opened at either securities firm. Empower has a low-balance fee.
Automatic Mutual Fund Purchases: Traders at both brokerage houses can establish recurring purchases of mutual funds.
Fully-Paid Stock Lending: Only at Schwab.
Extended-Hours Trading: Ditto.
Initial Public Offerings: Ditto.
Winner: Schwab
Recommendations
Beginners: The best way to start an investing journey is with an advisory account. This could be in robo or traditional format, although we do suggest getting some help from a human advisor. This is possible at both Schwab and Empower.
Small Accounts: For self-directed trading, we defend Schwab.
Retirement Planning & Long-Term Investing: Both Empower and Schwab are really good here.
Mutual Fund Trading: Schwab's website has much better fund resources, although Empower does offer more funds (16,649 versus 5,622). Take your pick.
Stock and ETF Trading: With its website alone, Schwab provides a much better experience.
Websites
Empower: Get FREE investment checkup at Empower.
Charles Schwab: Satisfaction guarantee, ACAT reimbursement, and $0-fee trades at Charles Schwab.
Outcome
For most investing and trading services, Schwab is clearly the better choice.
Open Charles Schwab Account
Open Schwab Account
Open Empower Account
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Updated on 1/7/2026.
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