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 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 | 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 it comes to the variety of investments available, both Interactive Brokers and Charles Schwab have a lot to offer. Interactive Brokers excels in providing forex trading options with 90 tradeable forex pairs, whereas Charles Schwab offers 73 forex pairs. While both brokers allow users to trade foreign currencies as CFDs or spot contracts, Interactive Brokers stands out by offering the option to buy actual cryptocurrency, a feature absent from Charles Schwab’s offerings. Additionally, both platforms support exchange-traded securities across U.S. and international markets, allowing investors to broaden their portfolios with stocks like Apple and Vodafone.
In terms of tradeable symbols, Charles Schwab surpasses Interactive Brokers significantly, offering 40,000 compared to Interactive Brokers' 8,500. Despite this, Interactive Brokers is recognized for its exceptional range of investments, earning a five-star rating and achieving the top rank out of 63 brokers in the Range of Investments category by ForexBrokers.com. Charles Schwab also garners a five-star rating, standing at a commendable fifth place. However, neither platform currently supports copy trading, which could be a consideration for those interested in mirrored trading strategies.
| 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.
Both Interactive Brokers and Charles Schwab provide a comprehensive suite of trading platforms and tools, ideal for new and seasoned traders alike. They both offer simulated trading, allowing users to practice with virtual accounts before committing real capital. Their proprietary platforms are available as downloadable applications for Windows as well as web-based platforms, ensuring accessibility regardless of device preference. While neither broker supports copy trading, MetaTrader, DupliTrade, or ZuluTrade, they make up for this with their rich features designed in-house. With capabilities like trading directly from charts, investors can make informed decisions quickly.
When it comes to charting, Interactive Brokers outshines Charles Schwab with 85 drawing tools compared to Schwab’s 24. However, Charles Schwab provides a vast range of columns for watch lists, totaling 580, while Interactive Brokers offers an impressive 659. Both brokers are top rated with five stars for their trading platforms and tools, denoting their superior quality. Nonetheless, Interactive Brokers ranks slightly higher, taking the #3 slot while Charles Schwab holds the #5 position out of 63 brokers reviewed by ForexBrokers.com. This highlights the marginal differences that potential investors might consider when choosing a platform that suits their trading needs.
| 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.
Interactive Brokers and Charles Schwab both offer comprehensive mobile trading apps for iPhone and Android users, designed to meet the needs of investors on the go. Both apps provide users with the ability to set price alerts for stocks and forex, sync watchlists with their online accounts, and access real-time quotes. While both platforms are equipped with tools to draw trendlines on charts and view multiple time frames, Interactive Brokers offers 97 technical studies for charting, whereas Charles Schwab provides a more extensive selection with 374 studies. However, Charles Schwab's app has the added convenience of auto-saving chart drawings, a feature that Interactive Brokers lacks.
Both apps have received impressive ratings of five stars for their mobile trading capabilities, reflecting their strong performance and user satisfaction. In terms of ranking, Interactive Brokers is slightly ahead, coming in at number four in ForexBrokers.com's Mobile Trading Apps category out of 63 brokers, while Charles Schwab is ranked sixth. Whether your priorities are advanced charting, real-time data, or seamless syncing, both Interactive Brokers and Charles Schwab offer strong mobile solutions that cater to diverse trading needs.
| 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 it comes to market research offerings, both Interactive Brokers and Charles Schwab provide high-quality resources, but there are key differences to consider. Both brokers offer daily market commentary and forex news from renowned sources like Bloomberg and Reuters, along with comprehensive economic calendars displaying global news events. However, Interactive Brokers stands out by offering a variety of additional research tools, such as Trading Central for technical analytics, a sentiment-based trading tool, TipRanks market research, and Acuity Trading's Signal Centre. These tools can provide a significant advantage for those seeking more in-depth analysis and trading insights.
Despite both brokers receiving a 5-star rating for research quality, Interactive Brokers holds a slight edge in the ForexBrokers.com rankings, landing at #3 compared to Charles Schwab's #4. This higher ranking is due to the wider range of specialized tools and services offered by Interactive Brokers. While Charles Schwab provides a solid research foundation, those who require advanced tools for technical analysis and sentiment insights might find Interactive Brokers to be the more comprehensive choice for their trading needs.
| 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 excel, offering a wide array of learning materials. Both platforms provide ample resources on forex and CFDs, with at least 10 educational pieces such as articles and videos dedicated to these topics. Interactive Brokers and Charles Schwab also host online webinars regularly, with searchable archives for clients who wish to learn at their own pace. Additionally, each broker offers a rich collection of beginner-focused videos, ensuring that newcomers to trading are well-equipped with essential knowledge. Moreover, both offer advanced videos for more seasoned traders and feature an investor dictionary with over 50 investing terms, making complex concepts more accessible.
In terms of ratings, both Interactive Brokers and Charles Schwab score highly with a perfect five-star rating for their educational offerings. However, when considering rankings among 63 brokers, Interactive Brokers holds a slight edge, coming in third in the Education category, while Charles Schwab ranks sixth. This suggests that while both platforms are strong contenders, Interactive Brokers may have a slight advantage in providing educational resources, making it particularly appealing for beginners looking to deepen their understanding of trading.
| 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 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
|
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 | |
| 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 (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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