Schwab vs. Interactive Brokers: Compare Features
Schwab offers a more comprehensive suite of services, including investing and retirement tools, cash management options, and wealth management.
Interactive Brokers | Schwab | |
|---|---|---|
Investing Options | Full Access To Almost Any Asset | Full Access To Almost Any Asset |
Investing Types | Stocks, Options, Futures, ETFs, Crypto, Bonds & CDs, Margin, Mutual Funds, Hedge funds, Forex, Commodities | Stocks, Options, Futures, ETFs, Bonds & Fixed Income, Forex,Mutual Funds, Money Market Funds |
Automated Investing | Yes | Yes |
Paper Trading | Yes | Yes |
IPO Access | No | Yes |
Dedicated Advisor | No | Yes |
Tax Loss Harvesting | No | Yes |
In contrast, Interactive Brokers is more suited for active traders, offering advanced trading tools and extensive market access.
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Self Investing And Fundamental Analysis Options
Schwab is better for long-term investors who maintain a high-value portfolio, while IBKR may be more attractive for active investors.
When it comes to fundamental analysis, Schwab really shines. Their research tools give you insights from their team and expert commentary.
Investors can buy fractional shares (called “Schwab Slices”), practice trading with Schwab Paper Money, and access IPOs.
Investors can also get real-time alerts, use stock screeners, and tap into a ton of educational resources to sharpen your trading skills
IBKR also provides a vast selection of global markets and asset classes, offering unmatched access for those interested in international investing. IBKR’s offer great research tools, including the IBKR Global Analyst and PortfolioAnalyst.
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Trading Options And Technical Analysis Tools
Interactive Brokers provides superior tools and options for traders, particularly those focused on technical analysis.
The platform’s standout feature is the Trader Workstation (TWS), which caters to advanced traders by offering over 100 technical indicators, such as moving averages, Bollinger Bands, RSI, and MACD.
IBKR paper trading can be great for beginners and those who want to train themselves before jumping into deep water.
In addition to technical indicators, TWS includes real-time data feeds and sophisticated pattern recognition tools, which automatically detect chart patterns like head and shoulders, triangles, and trendlines.
The platform's charting features let you create custom charts with various indicators, making it perfect for those seeking deeper market insights.
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Robo Advisor And Automated Investing
Schwab robo advisor provides a more comprehensive experience and includes features not available through Interactive Brokers.
Schwab’s Intelligent Portfolios offer a flexible robo-advisory experience with no management fees and over 80 low-cost ETFs.
It does require a minimum investment of $5,000, but you get 24/7 support and features like automatic rebalancing and tax-loss harvesting.
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Retirement Accounts
On the other hand, Schwab offer a variety of retirement accounts—traditional, Roth, rollover, SEP, and Simple IRAs—appealing to small business owners and anyone looking for flexible options.
Plus, there's the Schwab Personal Choice, which lets you manage your retirement investments yourself.
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Fees
IBKR's fee are more affordable than Schwab.
Schwab charges $0 commissions on U.S. stocks, mutual funds, ETFs, and on its robo advisor, Schwab’s Intelligent Portfolios. Options trades are priced at $0.65 per contract.
Schwab | Interactive Brokers | |
|---|---|---|
Fees | Up to 0.80%
$0 online commission on U.S. listed stocks, mutual funds and ETFs, options: $0.65 per-contract, Schwab Intelligent Portfolio – 0%, Schwab Intelligent Portfolios Premium – One-time planning fee: $300 + Monthly advisory fee: $30, Schwab Wealth Advisory: up to 0.80% | 0% – 0.75%
$0 online commission on U.S. listed stocks and ETFs, Options: $0.15 – $0.65 per-contract, Futures: $0.25 – $0.85 per-contract. For Interactive Advisors: asset-based management fees of 0.10% to 0.75% |
In contrast, IBKR provides ultra-low commissions, particularly advantageous for high-volume traders, along with access to global markets at competitive rates for international trades.
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Cash Management And Savings Rates
IBKR offers more competitive rates on uninvested cash, but Schwab's checking account offer more banking options.
IBKR’s Universal Account focuses on investment, offering highly competitive interest rates on cash balances, although it requires a $10,000 minimum to qualify for the highest rates.
The account also supports mobile check deposits, direct deposits, and bill payments.
Schwab | Interactive Brokers | |
|---|---|---|
Savings APY | 0.05% | 3.83%
There will be no interest paid on the first USD 10,000 of cash. Accounts with NAV less than 100k earn a proportional rate |
The Schwab Investor Checking account has no monthly fees, unlimited ATM fee rebates worldwide, and no foreign transaction fees.
You can easily pay bills, deposit checks through your phone, and get real-time transaction alerts. Just keep in mind that interest rates on uninvested cash are pretty low.
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Wealth Management Options
Schwab stands out as the superior choice for wealth management, as Interactive Brokers does not provide personalized wealth management services.
For personalized investment strategies, Schwab’s Wealth Advisory service pairs you with certified financial planners focused on your long-term goals.
If you have a larger portfolio, Schwab Private Client Services and Schwab Private Wealth Services offer dedicated financial advisors for customized advice and planning tailored to your needs
Bottom Line
On the bottom line, Schwab provides broader tools and analysis options for long-term, value investors, including diverse retirement plans, robo-advisor services, and comprehensive wealth management solutions.
In contrast, Interactive Brokers is more suited to active traders, offering superior technical tools and access to unique assets, such as cryptocurrencies, forex and commodities.
