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Charles Schwab vs Interactive Brokers (2025)
Compare Interactive Brokers (IBKR) versus Charles Schwab: which firm is better for
trading, online investing tools, and pricing.
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Interactive Brokers vs. Schwab
Points to remember:
• Schwab and Interactive Brokers both offer brokerage and managed accounts.
• Only Schwab provides full-service financial planning and advisory accounts.
• Both Interactive Brokers and Schwab have excellent advanced trading software.
If you want a new brokerage account with top-quality software at a very low price, Charles Schwab and Interactive Brokers are two of the best choices.
Commissions
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
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Charles Schwab
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$0
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$49.95 ($0 to sell)
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$0.65 per contract
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$0
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$0
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IB
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$0
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$14.95
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$0.70 per contract
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$0
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$30
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Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
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Charles Schwab
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IB
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Promotions
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Interactive Brokers: Use this referral link to get up to $1,000 of IBKR stock for free!
Asset Classes
You can trade the following at Interactive Brokers and Charles Schwab:
• Stocks
• Bonds and other fixed-income products
• ETFs (Exchange-traded funds)
• Closed-end funds
• Mutual funds
• Forex
• Futures
For stocks, Schwab lets you trade over-the-counter and foreign stocks. Interactive Brokers goes even further with global assets (including bonds and funds), precious metals, cryptocurrencies, event contracts, warrants, and more.
Both Schwab and Interactive Advisors offer robo accounts that use ETFs with low fees; some Interactive Advisors portfolios also have stocks. Only Schwab has traditional programs with human advisors, and Schwab has branch offices for in-person help.
Winner: Interactive Brokers/Advisors
Margin Trading
Since both companies are built for serious trading, margin trading is available at both. Interactive Brokers has a margin calculator; stock pages show initial and maintenance margin for both long and short trades.
IBKR charges 5.83% for margin loans at all debit levels, and Pro customers pay even less. Schwab uses a tiered system with rates from 12.575% to 10.825%.
Winner: Interactive Brokers
Websites
Both brokers have websites for account management, research, charting, and placing trades. In our review, Schwab’s website was a bit easier to use. Still, the IBKR website has some great tools, like a trade ticket with 12 order types. Charts can go full-screen and come with many indicators, drawing tools, and other features.
One thing missing from the IBKR website is a browser-based platform. Schwab’s website does have this, called thinkorswim. It provides an advanced trade ticket, full-screen charting, and Level II data. The site also offers helpful resources like free stock reports and advanced option tools.
Winner: Pretty close
Desktop Platforms
For even more advanced trading, both companies offer desktop programs. Schwab uses the thinkorswim name, and this software goes beyond what the website offers. It includes live streaming business news, futures and forex trading boxes, more technical indicators, and even some games.
Interactive Brokers offers two desktop platforms: Trader Workstation (TWS) and IBKR Desktop. Trader Workstation is more advanced, while IBKR Desktop still has useful tools like a security screener, option tools, and different layouts. TWS has extra features, including:
• Probability lab
• Forecast trader
• iBot, an artificial intelligence tool
• Margin calculator
• Educational center with video tutorials
• Time & sales data
Winner: Another draw
Mobile Trading
In this case, Schwab has two apps and IBKR has one. The single IBKR app has some great tools, including a trade ticket with over 20 order types. You can use toggle switches for extended hours and bracket orders. Chart lovers will find many features, but the chart can only be seen vertically, which is a drawback.
On Schwab’s two mobile apps, you can view charts horizontally. There are fewer order types, but you do get stop and trailing orders. Both Schwab’s main app and the IBKR app offer mobile check deposit. Unlike IBKR, Schwab’s apps both provide live CNBC streaming. The thinkorswim trading app has the best trade ticket and chart tools, with over four hundred technical studies.
Winner: Schwab
Day & Swing Trading
Short Positions: Both companies let you short stocks in margin accounts. Schwab’s website and mobile app make it easy to choose “buy to cover” and “sell short.” Interactive Brokers shows the number of shares available to short.
Direct-Access Routing: Both thinkorswim and Trader Workstation let you pick routing options for orders. TWS has more choices than thinkorswim.
PDT Counter: IBKR software counts your day trades for you.
Level II Quotes: Both TWS and thinkorswim have Level II market data.
Extended-Hours Trading: Both offer pre-market, after-market, and overnight trading.
Maker-Taker Fees: You may see these at Interactive Brokers if you route orders to IBKRATS in Trader Workstation.
Winner: Interactive Brokers
Other Services
Fully-Paid Stock Lending: Offered by both companies.
IRAs: Both have Individual Retirement Accounts.
Dividend Reinvestment Plan: Available at both for stocks. Schwab also has DRIP for ETFs.
IPO Access: Only available at Schwab.
Fractional-share Trading: Interactive Brokers lets you buy whole-dollar amounts in stocks and ETFs. Schwab only allows this for stocks.
Systematic Mutual Fund Trades: Only at Schwab.
Winner: Schwab
Recommendations
Beginners: Interactive Brokers is meant for advanced traders. Beginners should choose Schwab.
Small Investors: For robo accounts, choose Interactive Advisors. For regular brokerage accounts, either Schwab or Interactive Brokers is fine.
Active Stock Trading: Both brokers are good with their desktop platforms.
Long-Term Investors & Retirement Savers: Schwab is the better choice.
Mutual Funds: Schwab has a better mutual fund section and offers over 5,000 funds.
Promotions
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Interactive Brokers: Use this referral link to get up to $1,000 of IBKR stock for free!
IBKR vs Schwab Judgment
Overall, these two firms are very close. Schwab’s branch locations and cash management tools make it the better choice overall.
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Updated on 5/30/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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