The StockBrokers.com annual broker review assesses more than a dozen different brokers over six months, surfacing the best online stock brokers
. This review compares Charles Schwab vs Interactive Brokers. Is Charles Schwab or Interactive Brokers a better online broker?
First, we will make a comparison of the stock and option trading fees for trading with both brokers. Charles Schwab charges more than Interactive Brokers for placing regular stock trades ($4.95 and $0 (the broker charges a per share rate instead), respectively). With options, the base fees charged are $4.95 (Charles Schwab) and $0 (Interactive Brokers). Each option contract then costs $0.70 at Interactive Brokers and $0.65 at Charles Schwab. Note that some brokers charge a per-share fee instead of a flat-fee commission. For a full breakdown of commissions, read our online broker reviews
For our next comparison of these two brokers, being able to trade the way you want is a must. Charles Schwab alongside Interactive Brokers offer clients Stock Trading, Options Trading, Mutual Funds and Futures Trading. When it comes to mutual funds, Interactive Brokers boasts an offering of 10051 mutual funds compared to Charles Schwab's 5509 available funds. Commission free ETFs can also be a nice plus, with Interactive Brokers falling behind Charles Schwab, offering 45 commission free ETFs compared to Charles Schwab's 244.
Last but not least, by breaking down important features, tools, etc that each broker offers, we can really help to separate the two. Interactive Brokers has virtual trading, Charles Schwab doesn't. For mobile trading, Charles Schwab along with Interactive Brokers both support the iPhone App, iPad App and Android App. Furthermore, some investors like to bank online, and multiple brokerages provide these services to clients. Clients can have Debit Cards at Interactive Brokers while customers at Charles Schwab can have Checking Accounts, Savings Accounts, Debit Cards, Credit Cards and Mortgage Loans. On the whole, when it comes to tools, research, and mobile trading, Charles Schwab posted awards Best in Class - Platforms & Tools and Best in Class - Research in 2018, while Interactive Brokers found itself with Best in Class - Mobile Trading.
Overall, both Charles Schwab and Interactive Brokers hold a 4.50 star rating.