Written by ForexBrokers.com
In this head to head comparison of Interactive Brokers vs Charles Schwab, we will compare the trading platforms, mobile apps, range of investments, costs, market research, and more. Let's dive in.
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Interactive Brokers, established in 1977, and Charles Schwab, founded in 1971, are both publicly traded online brokers that have garnered perfect Trust Scores of 99 from ForexBrokers.com, placing them in the highly trusted category. However, despite their equal ratings, there are notable differences in their structures and regulatory statuses. Interactive Brokers operates exclusively as a brokerage while Charles Schwab also functions as a bank, offering a broader range of financial services.
When it comes to regulatory licensing, Interactive Brokers holds 9 Tier-1 licenses and 2 Tier-2 licenses. In comparison, Charles Schwab holds 5 Tier-1 licenses and does not possess any Tier-2 licenses. These licenses reflect the stringent oversight each company undergoes to maintain their standing among investors. Overall, both platforms are strong candidates for those seeking trusted online brokers, with Interactive Brokers demonstrating wider regulatory reach through its licensing.
| Feature |
Interactive Brokers
|
Charles Schwab
|
|---|---|---|
| Year Founded | 1977 | 1971 |
| Publicly Traded (Listed) | Yes | Yes |
| Bank | No | Yes |
| Tier-1 Licenses | 9 | 5 |
| Tier-2 Licenses | 2 | 0 |
| Tier-3 Licenses | 0 | 0 |
| Tier-4 Licenses | 0 | 0 |
When comparing the commissions and fees of Interactive Brokers with Charles Schwab, both have distinct offerings that cater to different forex trading preferences. Interactive Brokers stands out with its competitive pricing, providing a low commission rate for forex trading. The typical spread for EUR/USD during Q3 2024 was 0.19 pips, culminating in an all-in spread of approximately 0.59 pips after commissions. They use a commission structure that charges per trade instead of marking up spreads, with fees ranging from $16 to $40 per million round turn. Active traders can enjoy discounts when hitting certain monthly trading volumes. Interactive Brokers holds an impressive 5-star rating and is ranked #2 out of 62 brokers for commissions and fees by ForexBrokers.com.
In contrast, Charles Schwab offers a straightforward approach by not charging commissions for forex trading. Instead, their costs are embedded within the bid/ask spread of the currency pairs available. The EUR/USD spread at Schwab averaged 1.35 pips in October 2024, which leans toward the higher end of the industry norm. Schwab features accessible forex trading via the thinkorswim platform through the Schwab One account, and traders can trade international securities or forex in U.S. dollars, even though the smallest trade size is 10,000 units. With a 4-star rating, Schwab is ranked #23 for commissions and fees by ForexBrokers.com.
In summary, Interactive Brokers provides more attractive rates for high-volume traders due to its commissions and volume discounts. Meanwhile, Charles Schwab offers the advantage of zero commission costs but at wider spreads. The choice between these brokers will largely depend on your trading volume and whether you prioritize lower spreads or a no-commission structure.
| Feature |
Interactive Brokers
|
Charles Schwab
|
|---|---|---|
| Minimum Deposit | $0 | $0 |
| Average Spread EUR/USD - Standard | 0.59 | 1.35 |
| All-in Cost EUR/USD - Active | 0.59 | 1.35 |
| Active Trader or VIP Discounts | Yes | No |
| ACH or SEPA Transfers | Yes | Yes |
| PayPal (Deposit/Withdraw) | No | No |
| Skrill (Deposit/Withdraw) | No | No |
| Visa/Mastercard (Credit/Debit) | No | No |
| Bank Wire (Deposit/Withdraw) | Yes | Yes |
Dive deeper: Best Low Spread Forex Brokers.
When comparing the investment offerings of Interactive Brokers and Charles Schwab, both platforms cater to diverse investor needs with a wealth of options. Interactive Brokers provides access to an impressive 8,500 tradeable symbols, inclusive of 90 forex pairs, thus appealing to those seeking variety. Meanwhile, Charles Schwab offers a notably larger selection with 40,000 tradeable symbols, though their forex pair offerings are slightly fewer at 73. Both brokers grant their users access to U.S. and international exchange-traded securities, facilitating the purchase of popular stocks like Apple in the U.S. and Vodafone in the UK. However, Interactive Brokers stands out with the ability for clients to buy actual cryptocurrency directly, whereas Charles Schwab offers only cryptocurrency derivatives. Despite both lacking a copy trading feature, this array of distinctive investment options earns both brokers top marks, with each receiving 5-star ratings in the Range of Investments category from ForexBrokers.com.
Though both brokers shine in offering diverse investment opportunities, Interactive Brokers takes the lead with the Number 1 rank among 62 brokers in the same category, while Charles Schwab holds a respectable 5th place. The comprehensive portfolios provided by both ensure that investor preferences are well-catered, but those eyeing cryptocurrency and an extensive collection of tradeable symbols might favor Interactive Brokers slightly more. Meanwhile, investors looking for a broader selection overall could find Charles Schwab more aligned with their trading goals. Whether you're seeking a wide range of securities or specific investment types, both brokers deliver strong offerings to assist in making informed financial decisions.
| Feature |
Interactive Brokers
|
Charles Schwab
|
|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes |
| Tradeable Symbols (Total) | 8500 | 40000 |
| Forex Pairs (Total) | 90 | 73 |
| U.S. Stock Trading (Non CFD) | Yes | Yes |
| Int'l Stock Trading (Non CFD) | Yes | Yes |
| Social Trading / Copy Trading | No | No |
| Cryptocurrency (Physical) | Yes | No |
| Cryptocurrency (Derivative) | Yes | Yes |
| Disclaimers | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). |
Dive deeper: Best Copy Trading Platforms.
When comparing Interactive Brokers and Charles Schwab, both brokers stand out for their comprehensive trading platforms and tools, making them top-rated choices in the industry. They each offer a free virtual demo account, a proprietary platform, and Windows-based desktop software, alongside web-based interfaces, ensuring flexibility for users. Despite their strong set of features, neither supports copy trading or third-party tools like MetaTrader 4 and 5, DupliTrade, or ZuluTrade, focusing instead on their in-house solutions. The ability to trade directly from stock charts is available with both brokers, though Interactive Brokers provides a wider array of drawing tools, with 85 options compared to Charles Schwab's 24.
Interactive Brokers and Charles Schwab both achieve a stellar five-star rating for trading platforms and tools. While Interactive Brokers claims the #3 spot and Charles Schwab ranks #5 in this category according to ForexBrokers.com, both brokers deliver formidable platforms for traders. Interactive Brokers sets itself apart with an impressive 659 fields available for watch lists, providing extensive customization for users, while Charles Schwab offers 580 fields, also supporting detailed market tracking. Whether considering their ranking or toolsets, both brokers provide compelling choices for traders seeking advanced trading experiences.
| Feature |
Interactive Brokers
|
Charles Schwab
|
|---|---|---|
| Virtual Trading (Demo) | Yes | Yes |
| Proprietary Platform | Yes | Yes |
| Desktop Platform (Windows) | Yes | Yes |
| Web Platform | Yes | Yes |
| Social Trading / Copy Trading | No | No |
| MetaTrader 4 (MT4) | No | No |
| MetaTrader 5 (MT5) | No | No |
| DupliTrade | No | No |
| ZuluTrade | No | No |
| Charting - Indicators / Studies (Total) | 155 | 374 |
| Charting - Drawing Tools (Total) | 85 | 24 |
| Charting - Trade From Chart | Yes | Yes |
| Watchlists - Total Fields | 659 | 580 |
Dive deeper: Best MetaTrader 4 Brokers, Best MetaTrader 5 Brokers.
Both Interactive Brokers and Charles Schwab offer comprehensive mobile trading experiences for iPhone and Android users. Investors can set stock and forex price alerts, and changes to watchlists sync seamlessly between the mobile app and the online account with both brokers. When it comes to charting tools, Charles Schwab stands out with an impressive offering of 374 technical studies compared to Interactive Brokers' 97. Both brokers allow users to draw trendlines and view multiple time frames on their charts, but only Charles Schwab’s mobile app saves drawing settings automatically.
For those who prioritize watchlists, both brokers enable the creation of watchlists with real-time quotes. In terms of user satisfaction, both mobile apps have earned a top rating of 5 out of 5 stars. However, according to ForexBrokers.com rankings, Interactive Brokers comes in slightly higher at #4 out of 62 brokers compared to Charles Schwab’s #6 ranking. This indicates Interactive Brokers’ slight edge in this competitive category, though both brokers offer solid mobile trading platforms.
| Feature |
Interactive Brokers
|
Charles Schwab
|
|---|---|---|
| Android App | Yes | Yes |
| Apple iOS App | Yes | Yes |
| Mobile Alerts - Basic Fields | Yes | Yes |
| Watchlist Syncing | Yes | Yes |
| Mobile Charting - Indicators / Studies | 97 | 374 |
| Mobile Charting - Draw Trendlines | Yes | Yes |
| Mobile Charting - Multiple Time Frames | Yes | Yes |
| Mobile Charting - Drawings Autosave | No | Yes |
| Mobile Watchlist | Yes | Yes |
Dive deeper: Best Forex Trading Apps.
When comparing the market research offerings of Interactive Brokers and Charles Schwab, both platforms provide daily market commentary and deliver forex news from leading sources such as Bloomberg, Reuters, and Dow Jones. However, Interactive Brokers has a more comprehensive set of tools for investors. It includes research tools from Trading Central and sentiment-based trading insights that reveal the ratio of long and short positions across various instruments. Additionally, Interactive Brokers integrates market analysis from TipRanks and Acuity Trading's Signal Centre, which Charles Schwab does not. Both brokers provide access to an economic calendar featuring current and upcoming global events, ensuring investors stay informed about worldwide economic developments.
Despite these differences, both Interactive Brokers and Charles Schwab boast high ratings for their research capabilities, each receiving a perfect five-star rating. Nevertheless, Interactive Brokers edges slightly ahead in rankings by ForexBrokers.com, coming in at third place out of 62 brokers, while Charles Schwab maintains a strong position at fourth. These rankings reflect the broad range of research tools and resources available to users, making Interactive Brokers an excellent choice for those seeking depth in market analysis while Charles Schwab still offers solid research support for investors.
| Feature |
Interactive Brokers
|
Charles Schwab
|
|---|---|---|
| Daily Market Commentary | Yes | Yes |
| Forex News (Top-Tier Sources) | Yes | Yes |
| Autochartist | No | No |
| Trading Central (Recognia) | Yes | No |
| Social Sentiment - Currency Pairs | Yes | No |
| TipRanks | Yes | No |
| Signal Centre (Acuity Trading) | Yes | No |
| Economic Calendar | Yes | Yes |
Dive deeper: Best Brokers for Forex Research.
When it comes to educational resources for beginners, both Interactive Brokers and Charles Schwab provide extensive options tailored to new traders. Interactive Brokers offers educational materials focused on forex and CFDs, including articles, videos, and webinars, ensuring that novices have access to over 10 resources specifically addressing these topics. Charles Schwab matches this offering, also providing a wealth of educational content on forex and CFDs. Both brokers host monthly live educational webinars to keep their clients engaged and informed, and they offer searchable archives of recorded sessions for easy reference. New traders will also find over 10 beginner-specific video tutorials at each platform, helping to demystify trading concepts.
For more seasoned investors, Interactive Brokers and Charles Schwab continue to offer advanced educational content, with at least 10 videos designed for those with greater expertise. Both platforms feature an investor dictionary to help users familiarize themselves with key investing terms, each covering over 50 essential concepts. With an impressive five-star rating each for educational offerings, Interactive Brokers and Charles Schwab are recognized for their comprehensive support for learners. However, Interactive Brokers holds a slightly higher ranking in the education category on ForexBrokers.com, coming in at #3 compared to Charles Schwab's #6. This distinction might make Interactive Brokers a slightly more appealing choice for those prioritizing educational resources.
| Feature |
Interactive Brokers
|
Charles Schwab
|
|---|---|---|
| Education (Forex or CFDs) | Yes | Yes |
| Client Webinars | Yes | Yes |
| Client Webinars (Archived) | Yes | Yes |
| Videos - Beginner Trading Videos | Yes | Yes |
| Videos - Advanced Trading Videos | Yes | Yes |
| Investor Dictionary (Glossary) | Yes | Yes |
Dive deeper: Best Forex Brokers for Beginners.
After testing 62 of the best forex brokers, our research and account testing finds that Interactive Brokers is better than Charles Schwab. Interactive Brokers finished with an overall rank of #2, while Charles Schwab finished with an overall rank of #6.
Interactive Brokers is a highly trusted multi-asset broker with an extensive offering of tradeable global markets. It delivers competitive fees and high-quality research and education, as well as a modern, institutional-grade trading platform suite.
| Feature |
Interactive Brokers
|
Charles Schwab
|
|---|---|---|
| Overall Rating |
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| Trust Score | 99 | 99 |
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Interactive Brokers allows investors to both purchase actual cryptocurrencies with delivery and trade cryptocurrency derivatives, while Charles Schwab provides access only to cryptocurrency derivatives, without the option for purchasing actual cryptocurrencies with delivery.
Interactive Brokers and Charles Schwab both support ACH and SEPA transfers, as well as bank wires for depositing or withdrawing account funds, but neither platform offers PayPal, Skrill, or Visa and Mastercard options for transactions.
Please note:
We review each broker’s overall global offering – a “Yes” checkmark in our Compare Tool does not guarantee the availability of any specific features in your country of residence. To verify the availability of any features within your country of residence, please contact the broker directly.
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0 of 5| Overall Rating | Interactive Brokers | Charles Schwab | |
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| Trust Score | 99 | 99 | |
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| Review | Interactive Brokers Review | Charles Schwab Review |
| Broker Screenshots | Interactive Brokers | Charles Schwab | |
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| Regulation | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Trust Score | 99 | 99 | |
| Year Founded | 1977 | 1971 | |
| Publicly Traded (Listed) | Yes | Yes | |
| Bank | No | Yes | |
| Regulated in one or more EU or EEA countries (MiFID). | Yes | No | |
| Tier-1 Licenses | 9 | 5 | |
| Tier-2 Licenses | 2 | 0 | |
| Tier-3 Licenses | 0 | 0 | |
| Tier-4 Licenses | 0 | 0 |
| Tier-1 Licenses (Highly Trusted) | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Australia (ASIC Authorised) | Yes | No | |
| Canada (CIRO Authorised) | Yes | Yes | |
| Hong Kong (SFC Authorised) | Yes | Yes | |
| Japan (SFC Authorised) | Yes | No | |
| Singapore (MAS Authorised) | Yes | Yes | |
| Switzerland (FINMA Authorised) | Yes | No | |
| United Kingdom (U.K.) (FCA Authorised) | Yes | Yes | |
| USA (CFTC Authorized) | Yes | Yes | |
| New Zealand (FMA Authorised) | No | No | |
| Regulated in one or more EU or EEA countries (MiFID). | Yes | No |
| Tier-2 Licenses (Trusted) | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Kenya (CMA Authorised) | No | No | |
| Israel (ISA Authorised) | No | No | |
| South Africa (FSCA Authorised) | No | No | |
| UAE (DFSA/Central Bank Authorised) | Yes | No | |
| India (SEBI Authorised) | Yes | No | |
| Jordan (JSC Authorised) | No | No |
| Investments | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes | |
| Tradeable Symbols (Total) | 8500 | 40000 | |
| Forex Pairs (Total) | 90 | 73 | |
| U.S. Stock Trading (Non CFD) | Yes | Yes | |
| Int'l Stock Trading (Non CFD) | Yes | Yes | |
| Social Trading / Copy Trading | No | No | |
| Cryptocurrency (Physical) | Yes | No | |
| Cryptocurrency (Derivative) | Yes | Yes | |
| Disclaimers | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). |
| Cost | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Average Spread EUR/USD - Standard | 0.59 | 1.35 | |
| All-in Cost EUR/USD - Active | 0.59 | 1.35 | |
| Active Trader or VIP Discounts | Yes | No | |
| Inactivity Fee | No | No | |
| Execution: Agency Broker | Yes | Yes | |
| Execution: Market Maker | No | No |
| Funding | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Minimum Deposit | $0 | $0 | |
| PayPal (Deposit/Withdraw) | No | No | |
| Skrill (Deposit/Withdraw) | No | No | |
| Visa/Mastercard (Credit/Debit) | No | No | |
| Bank Wire (Deposit/Withdraw) | Yes | Yes | |
| ACH or SEPA Transfers | Yes | Yes |
| Trading Platforms | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Proprietary Platform | Yes | Yes | |
| Desktop Platform (Windows) | Yes | Yes | |
| Web Platform | Yes | Yes | |
| Social Trading / Copy Trading | No | No | |
| MetaTrader 4 (MT4) | No | No | |
| MetaTrader 5 (MT5) | No | No | |
| cTrader | No | No | |
| DupliTrade | No | No | |
| ZuluTrade | No | No |
| Trading Tools | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Virtual Trading (Demo) | Yes | Yes | |
| Alerts - Basic Fields | Yes | Yes | |
| Watchlists - Total Fields | 659 | 580 | |
| Charting - Indicators / Studies (Total) | 155 | 374 | |
| Charting - Drawing Tools (Total) | 85 | 24 | |
| Charting - Trade From Chart | Yes | Yes | |
| Charts can be saved | Yes | Yes |
| Mobile Trading | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Android App | Yes | Yes | |
| Apple iOS App | Yes | Yes | |
| Mobile Alerts - Basic Fields | Yes | Yes | |
| Mobile Watchlist | Yes | Yes | |
| Watchlist Syncing | Yes | Yes | |
| Mobile Charting - Indicators / Studies | 97 | 374 | |
| Mobile Charting - Draw Trendlines | Yes | Yes | |
| Mobile Charting - Multiple Time Frames | Yes | Yes | |
| Mobile Charting - Drawings Autosave | No | Yes | |
| Mobile Economic Calendar | Yes | Yes |
| Research | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Daily Market Commentary | Yes | Yes | |
| Forex News (Top-Tier Sources) | Yes | Yes | |
| Autochartist | No | No | |
| Trading Central (Recognia) | Yes | No | |
| TipRanks | Yes | No | |
| Social Sentiment - Currency Pairs | Yes | No | |
| Economic Calendar | Yes | Yes |
| Education | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Education (Forex or CFDs) | Yes | Yes | |
| Client Webinars | Yes | Yes | |
| Client Webinars (Archived) | Yes | Yes | |
| Videos - Beginner Trading Videos | Yes | Yes | |
| Videos - Advanced Trading Videos | Yes | Yes | |
| Investor Dictionary (Glossary) | Yes | Yes |
| Major Forex Pairs | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| GBP/USD | Yes | Yes | |
| USD/JPY | Yes | Yes | |
| EUR/USD | Yes | Yes | |
| USD/CHF | Yes | Yes | |
| USD/CAD | Yes | Yes | |
| NZD/USD | Yes | Yes | |
| AUD/USD | Yes | Yes | |
| Review | Interactive Brokers Review | Charles Schwab Review |
| Overall | Interactive Brokers | Charles Schwab | |
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| Trust Score | 99 | 99 | |
| Winner | check_circle | ||
| Review | Interactive Brokers Review | Charles Schwab Review |
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