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.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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 it comes to commissions and fees, Interactive Brokers stands out with its competitive forex pricing, even though their average spreads aren't published publicly. In the third quarter of 2024, they offered an average spread of 0.19 pips for the EUR/USD pair, effectively becoming 0.59 pips after considering commission. Their pricing model relies on commissions per trade rather than marked-up spreads, offering a rate as low as $16 to $40 per million round turn. Active traders can benefit from reduced rates when trading volumes exceed certain thresholds, underscoring their focus on high-volume traders. Interactive Brokers ranks #2 out of 63 brokers in the Commissions and Fees category and is highly rated with 5 stars.
Charles Schwab, on the other hand, simplifies entry into forex trading by removing minimum deposit requirements for its main brokerage accounts. Offering two account types through the thinkorswim platform, Schwab focuses on spreads instead of commissions for forex trades. As of October 2024, the average spread for the EUR/USD pair was 1.35 pips, which is towards the higher end of the industry average. The Schwab Global account facilitates international trading in local currencies but requires conversion fees ranging from 0.2% to 1%. Despite the lack of commissions, the higher spread costs and fees might interest traders specifically focused on international markets. Charles Schwab is rated 4 stars and holds the #23 spot in the Commissions and Fees category.
In summary, Interactive Brokers offers low commission rates and valuable discounts for active traders, earning them a top-tier ranking and 5-star rating. Charles Schwab provides easy access to forex and international markets with commission-free trading, yet at the cost of higher spreads, reflected in their 4-star rating and #23 ranking. Both brokers cater to different kinds of traders, whether you are an active high-volume trader or interested in a broader range of international trading opportunities.
| Feature |
Interactive Brokers
|
Charles Schwab
|
|---|---|---|
| Minimum Deposit | $0 | $0 |
| Average spread (EUR/USD) - Standard account | 0.59 | 1.27 |
| All-in Cost EUR/USD - Active | 0.65 | 1.27 |
| Non-wire bank transfer | Yes | Yes |
| PayPal (Deposit/Withdraw) | No | No |
| Skrill (Deposit/Withdraw) | No | No |
| Bank Wire (Deposit/Withdraw) | Yes | Yes |
Dive deeper: Best Low Spread Forex Brokers.
Interactive Brokers vs Charles Schwab: both brokers deliver a wide range of investments, including access to exchange-traded U.S. stocks and ETFs, plus international shares. Forex is available at each broker (via CFD or spot), with Interactive Brokers offering 90 currency pairs compared with Charles Schwab’s 73. If sheer breadth of listings matters, Charles Schwab leads with about 40,000 tradeable symbols, while Interactive Brokers lists roughly 8,500.
Crypto access is a key difference: Interactive Brokers lets clients buy actual cryptocurrency, while Charles Schwab does not; both support cryptocurrency CFDs. Neither broker offers copy trading. For Range of Investments, each earns 5 out of 5 stars, though ForexBrokers.com ranks Interactive Brokers #1 out of 63 brokers in this category, with Charles Schwab at #5. Choose Schwab for the largest overall symbol count, or Interactive Brokers for deeper forex coverage and direct crypto.
| Feature |
Interactive Brokers
|
Charles Schwab
|
|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes |
| Tradeable Symbols (Total) | 8500 | 40000 |
| Forex Pairs (Total) | 90 | 73 |
| U.S. Stocks (Shares) | Yes | Yes |
| Global Stocks (Non-U.S. Shares) | Yes | Yes |
| Copy Trading | No | No |
| Cryptocurrency (Underlying) | Yes | No |
| Cryptocurrency (CFDs) | 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.
Interactive Brokers vs Charles Schwab: both brokers deliver strong trading platforms and tools. Each offers a free paper trading account, an in-house platform, a Windows desktop platform, and a web platform. You can place trades directly from charts with either broker. Neither supports copy trading, and neither offers MetaTrader 4 or MetaTrader 5.
According to ForexBrokers.com, both earn 5 stars for Trading Platforms and Tools. In the 63-broker lineup, Interactive Brokers ranks #2 while Charles Schwab ranks #7. If platform depth and top-tier rankings matter most, Interactive Brokers has a slight edge; if you’re already in Schwab’s ecosystem, its platform lineup remains a high-rated choice.
| Feature |
Interactive Brokers
|
Charles Schwab
|
|---|---|---|
| Virtual Trading (Demo) | Yes | Yes |
| Proprietary Desktop Trading Platform | Yes | Yes |
| Desktop Platform (Windows) | Yes | Yes |
| Web Platform | Yes | Yes |
| Copy Trading | No | No |
| MetaTrader 4 (MT4) | No | No |
| MetaTrader 5 (MT5) | No | No |
| Charting - Indicators / Studies (Total) | 155 | 374 |
| Charting - Trade From Chart | Yes | Yes |
Dive deeper: Best MetaTrader 4 Brokers, Best MetaTrader 5 Brokers.
Interactive Brokers and Charles Schwab both offer full-featured mobile trading apps for iPhone and Android. Each app supports price alerts and watchlists that sync with your online account, so changes carry over across devices. Both let you draw trendlines on charts, and both earned 5-star ratings for mobile trading.
For charting depth, Schwab offers more technical studies (374 vs. 97 for Interactive Brokers) and automatically saves your chart drawings, while Interactive Brokers does not auto-save. Despite that, ForexBrokers.com ranks Interactive Brokers higher overall for Mobile Trading Apps (#4 of 63) compared with Charles Schwab (#6 of 63). Choose Schwab if you want a bigger set of indicators and saved drawings, or pick Interactive Brokers if overall mobile performance and ranking matter more to you.
| Feature |
Interactive Brokers
|
Charles Schwab
|
|---|---|---|
| Android App | Yes | Yes |
| Apple iOS App | Yes | Yes |
| Mobile Price Alerts | Yes | Yes |
| Mobile Watchlists - Syncing | Yes | Yes |
| Mobile Charting - Indicators / Studies | 97 | 374 |
| Mobile Charting - Draw Trendlines | Yes | Yes |
| Mobile Charting - Trendlines Autosave | No | Yes |
Dive deeper: Best Forex Trading Apps.
Interactive Brokers vs Charles Schwab: both deliver daily market commentary, an economic calendar, and forex news from major outlets like Bloomberg, Reuters, and Dow Jones. Each earns a 5-star Research rating, yet ForexBrokers.com ranks Interactive Brokers slightly higher (#3 of 63) than Charles Schwab (#5 of 63), reflecting a small edge in overall research depth.
The key differences come down to third‑party tools. Neither broker uses Autochartist, but Interactive Brokers adds Trading Central analytics, a sentiment gauge showing the ratio of long vs. short positions, TipRanks insights, and Acuity Trading tools like Signal Centre. Charles Schwab does not include these extras. If you want richer toolsets and sentiment data, Interactive Brokers stands out; if you mainly need daily commentary, an economic calendar, and headline news, both brokers cover the bases well.
| Feature |
Interactive Brokers
|
Charles Schwab
|
|---|---|---|
| Daily Market Commentary (Articles) | Yes | Yes |
| Forex News (Top-Tier Sources) | Yes | Yes |
| Autochartist | No | No |
| Trading Central | Yes | No |
| Client sentiment data | Yes | No |
| TipRanks | Yes | No |
| Acuity Trading | Yes | No |
| Economic Calendar | Yes | Yes |
Dive deeper: Best Brokers for Forex Research.
Interactive Brokers and Charles Schwab both deliver strong education for beginners. Each offers at least 10 beginner-friendly trading videos, plus ongoing monthly webinars so you can keep learning in real time. As you progress, both brokers also provide 10+ advanced video lessons to help you move beyond the basics.
Details about whether either broker provides 10 or more dedicated forex/CFDs education pieces were not specified. That said, both earn 5 out of 5 stars for Education from ForexBrokers.com. Interactive Brokers holds the #1 Education ranking out of 63 brokers, while Charles Schwab ranks #6—making IB a slight favorite for learners who want the top-rated education experience, with Schwab close behind.
| Feature |
Interactive Brokers
|
Charles Schwab
|
|---|---|---|
| Webinars | Yes | Yes |
| Videos - Beginner Trading Videos | Yes | Yes |
| Videos - Advanced Trading Videos | Yes | Yes |
Dive deeper: Best Forex Brokers for Beginners.
After testing 63 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
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Charles Schwab
|
|---|---|---|
| Overall Rating |
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| Trust Score | 99 | 99 |
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Compared with Charles Schwab, Interactive Brokers supports buying actual (delivered) cryptocurrencies and cryptocurrency CFDs, whereas Charles Schwab offers crypto CFDs but not direct purchase of actual cryptocurrencies.
Interactive Brokers and Charles Schwab both support ACH/SEPA and bank wire transfers for deposits and withdrawals, do not support PayPal or Skrill, and have no specified details regarding Visa or Mastercard funding options.
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 | |
| Winner | check_circle | ||
| 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 (FSA Authorised) | Yes | ||
| Singapore (MAS Authorised) | Yes | Yes | |
| Switzerland (FINMA Authorised) | Yes | ||
| United Kingdom (U.K.) (FCA Authorised) | Yes | Yes | |
| USA (CFTC Authorized) | Yes | Yes | |
| New Zealand (FMA Authorised) | No | ||
| Regulated in one or more EU or EEA countries (MiFID). | Yes | No |
| Tier-2 Licenses (Trusted) | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Kenya (CMA Authorised) | |||
| Israel (ISA Authorised) | No | ||
| South Africa (FSCA Authorised) | No | ||
| UAE (DFSA, FSRA, or SCA Authorised) | Yes | ||
| India (SEBI Authorised) | Yes | ||
| Jordan (JSC Authorised) |
| Investments | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes | |
| Tradeable Symbols (Total) | 8500 | 40000 | |
| Forex Pairs (Total) | 90 | 73 | |
| U.S. Stocks (Shares) | Yes | Yes | |
| Global Stocks (Non-U.S. Shares) | Yes | Yes | |
| Copy Trading | No | No | |
| Cryptocurrency (Underlying) | Yes | No | |
| Cryptocurrency (CFDs) | 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 account | 0.59 | 1.27 | |
| All-in Cost EUR/USD - Active | 0.65 | 1.27 | |
| Inactivity Fee | No | No | |
| Order execution: Agency | Yes | Yes | |
| Order execution: Market Maker | No | No |
| Funding | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Minimum Deposit | $0 | $0 | |
| PayPal (Deposit/Withdraw) | No | No | |
| Skrill (Deposit/Withdraw) | No | No | |
| Bank Wire (Deposit/Withdraw) | Yes | Yes | |
| Non-wire bank transfer | Yes | Yes |
| Trading Platforms | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Proprietary Desktop Trading Platform | Yes | Yes | |
| Desktop Platform (Windows) | Yes | Yes | |
| Web Platform | Yes | Yes | |
| Copy Trading | No | No | |
| MetaTrader 4 (MT4) | No | No | |
| MetaTrader 5 (MT5) | No | No | |
| cTrader | No | No |
| Trading Tools | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Virtual Trading (Demo) | Yes | Yes | |
| Price Alerts | Yes | Yes | |
| Charting - Indicators / Studies (Total) | 155 | 374 | |
| 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 Price Alerts | Yes | Yes | |
| Mobile Watchlist [DELETED] | |||
| Mobile Watchlists - Syncing | Yes | Yes | |
| Mobile Charting - Indicators / Studies | 97 | 374 | |
| Mobile Charting - Draw Trendlines | Yes | Yes | |
| Mobile Charting - Trendlines Autosave | No | Yes | |
| Mobile Research - Economic Calendar | Yes | Yes |
| Research | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Daily Market Commentary (Articles) | Yes | Yes | |
| Forex News (Top-Tier Sources) | Yes | Yes | |
| Autochartist | No | No | |
| Trading Central | Yes | No | |
| TipRanks | Yes | No | |
| Client sentiment data | Yes | No | |
| Economic Calendar | Yes | Yes |
| Education | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| Webinars | Yes | Yes | |
| Videos - Beginner Trading Videos | Yes | Yes | |
| Videos - Advanced Trading Videos | Yes | Yes |
| Major Forex Pairs | Interactive Brokers | Charles Schwab | |
|---|---|---|---|
| GBP/USD [DELETED] | |||
| USD/JPY [DELETED] | |||
| EUR/USD | Yes | Yes | |
| USD/CHF [DELETED] | |||
| USD/CAD [DELETED] | |||
| NZD/USD [DELETED] | |||
| AUD/USD [DELETED] | |||
| 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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