Interactive Brokers vs. Schwab – A Detailed Comparison
Discover our detailed comparison of Interactive Brokers and Schwab to help determine which is best for you. Whether you’re a seasoned trader or just starting out, choosing the right platform can significantly impact your trading experience.
To make your research easier, we manually found key data for Interactive Brokers and Schwab across the internet and compiled it all in this article.
- Advanced order types
- Best for automated trading
- Low options commissions
- thinkorswim charting tools
- Best overall investing platform
- Banking and investing options
Overview of Interactive Brokers
Interactive Brokers (IBKR) is a well-established brokerage firm founded in 1978, known for providing advanced trading and investing services to a diverse clientele, including individual investors, institutions, and professional traders. IBKR offers competitive pricing for options and futures, but lacks when it comes to charting and ease of use.
✓ Advanced order types
✓ Best for automated trading
✓ Low options commissions
Interactive Brokers is Best For
Interactive Brokers is best for advanced traders who prefer to automate their trading strategies. IBKR is far from beginner-friendly, as the platforms are advanced and require some technical knowledge to utilize effectively. If you are looking for a modern, easy-to-use investing platform, IBKR is not your best option.
Overview of Schwab
Charles Schwab is a well-established brokerage firm known for its wide range of investment products and services. Schwab also provides a user-friendly online platform and mobile app, along with educational resources to help clients make informed investment decisions. Additionally, they offer banking services, retirement accounts, and access to financial advisors.
✓ thinkorswim charting tools
✓ Best overall investing platform
✓ Banking and investing options
Schwab is Best For
Schwab is a great brokerage for long-term investors and active traders alike. With its recent acquisition of TD Ameritrade and the thinkorswim platform, Schwab is suitable for anybody looking to trade and invest in the stock market.
Key Characteristics of Interactive Brokers and Schwab
| Platform | Platform Type | Tradeable Assets | Charting Features | Data | Premium Pricing |
|---|---|---|---|---|---|
| Interactive Brokers | Brokerage Platform | Stocks, ETFs, Mutual Funds, Options, Futures, Futures Options, Crypto, Bonds | Downloadable desktop platforms, web platform, mobile app | Must buy real-time data | No premium features |
| Schwab | Brokerage Platform | Stocks, ETFs, Mutual Funds, Options, Index Options, Futures, Futures Options, Bonds | thinkorswim platform | Real-time data with funded account | No premium features |
Trading Features and Tools
| Platform | DRIP | Margin Trading | Insurance | Mobile App |
|---|---|---|---|---|
| Interactive Brokers | Yes, but with fees | Yes | SIPC Insured | Yes |
| Schwab | Yes, no fees | Yes | SIPC/FDIC Insured | Yes |
Trading Costs and Commissions Compared
| Fee Type | Interactive Brokers | Schwab |
|---|---|---|
| Equity Commission | Free | Free |
| Option Commission | $0.65 per contract | $0.65 per contract |
| Futures Commission | $0.85 per contract, $0.25 micro | $2.25 per contract |
| Futures Options Commission | $0.85 per contract, $0.25 micro | $2.25 per contract |
| Option Exercise Fee | None | None |
Interactive Brokers vs Schwab – Bottom Line
Choosing between Interactive Brokers and Schwab depends on your specific trading needs, preferred trading tools, and the type of assets you’re interested in.
Both platforms offer distinct advantages, but by considering the detailed comparison above, you can select the one that aligns best with your trading strategy and goals.
For more detailed reviews and comparisons, continue exploring our other articles on brokerage platform comparisons.
What is the Overall Best Charting Software?
I have reviewed and used nearly every trading platform available, and I believe that TradingView is the best overall charting software available. Here are some reasons why:
- All of TradingView’s key features are free to use
- TradingView provides real-time data for free whenever possible
- You are not tied to a single broker and can use whichever you want while charting on TradingView
- You can track all markets on a single platform, including stocks, ETFs, crypto, forex, and futures.
- TradingView has an excellent economic calendar and various screeners
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