Empower vs. Schwab Comparison
Key takeaways:
• Investors at Schwab and Empower can open investment accounts and get access to useful financial planning tools.
• Both firms offer brokerage and managed-account solutions, although Schwab has the stronger self-directed trading setup.
• Advanced trading software is available only at Schwab.
Want a better shot at out-earning the return on your bank account? Opening an investment account with Empower or Charles Schwab could be a smart move. Here’s a closer look at these two financial companies:
Trading and Investing
If you open an investment account at Schwab or Empower, you can trade:
- Closed-end funds
- ETFs
- Mutual funds
- Option contracts
- Stocks, including OTC stocks
- Bonds, CDs, and other fixed-income securities
Schwab goes further by adding futures, forex, and direct access to foreign-stock trading in certain markets. Both companies also provide annuities for retirement-focused investors.
In addition to brokerage accounts, both firms offer advisory programs that invest through managed accounts. These services can provide help from a financial professional. Both companies also have tech-driven advisory solutions, while Schwab also offers a standalone robo account.
For advisory and brokerage clients, Schwab has a wide network of branch offices that offer face-to-face service. Empower does not operate physical branch locations.
Winner: Schwab
Margin
Although Empower does not provide margin trading, Schwab does, and its margin program includes several useful features. For example, a Schwab brokerage account can be used to short stocks and trade option spreads. Because Empower does not offer margin accounts, these strategies are unavailable there.
Schwab customers pay between 11.825% and 10.075% for borrowed funds. For debit balances above $500k, Schwab offers negotiated pricing. For short positions, margin costs depend on the specific stock and can change daily; this information is available on Schwab’s website and desktop platform. Every stock profile at Schwab also shows the security’s margin maintenance requirement.
Winner: Schwab
Promotion
Charles Schwab: Satisfaction guarantee, ACAT reimbursement, and $0-fee trades at Charles Schwab.
Empower: none.
Computer Tech
Empower customers use a website with basic charting tools and straightforward order entry. Although its charts are simple, there are a few chart styles and technical indicators. Drawing tools, however, are not included. The Empower order ticket includes a handful of standard order types and two duration choices (day and GTC).
Schwab’s website raises the bar with a broader set of advanced tools. For example, there are multiple trade tickets, including thinkorswim in the browser for more advanced trading. We found conditional orders, market-on-close orders, and first triggers all. Charting is also much stronger, with drawing tools and more depth.
For investment research, both websites supply a fair amount of information. Empower’s site includes insider-trading data, while Schwab’s site includes analysts’ recommendations.
The top level of trading technology comes from desktop software, and Schwab easily stays ahead here. Empower has no desktop platform, while Schwab again relies on thinkorswim. On desktop, it reaches its highest level with all kinds of advanced features, including
400+ technical studies.
Winner: Schwab
Mobile Apps
The battle continues on mobile. Both firms have two apps. Empower uses an Empower app and a NetXInvestor app. Both deliver the same layout and trading tools. Schwab uses the Schwab app and thinkorswim. The latter operates on a much higher level. It can trade futures and forex, and it also includes advanced charting. The Empower apps, on the other hand, stick with simple charting.
The Empower apps do provide a solid collection of research features that mostly mirror the website. The thinkorswim app leaves out much of that research in favor of more advanced trading tools. The main Schwab app, however, includes plenty of education and research, including free audio and video news.
Winner: Schwab
Complementary Services
Fractional-share Trading: Schwab offers it for
eligible S&P 500 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’s current IRA lineup includes guided, managed, and self-directed choices with
no minimum on several options.
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: A good way to begin investing is with an advisory account. This can come in robo or traditional form, although we do suggest getting some help from a human advisor. That is available at both Schwab and Empower.
Small Accounts: For self-directed trading, we pick Schwab.
Retirement Planning & Long-Term Investing: Both Empower and Schwab are strong choices 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: Even with just its website, Schwab offers a much better experience.
Promotion
Charles Schwab: Satisfaction guarantee, ACAT reimbursement, and $0-fee trades at Charles Schwab.
Empower: none.
Outcome
For most investing and trading needs, Schwab is clearly the stronger pick.
Open Charles Schwab Account
Open Schwab Account
Updated on 4/14/2026.
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