Comparing brokers side by side is no easy task. For our annual broker review, we assess over a dozen brokers on hundreds of different variables to find the best online broker
. Yielding a database of over 4,000 data points, let's compare Charles Schwab vs Interactive Brokers.
To start this comparison, first, we will take a look at the online broker commission rates for placing regular stock and options trades. Charles Schwab, with its regular stock trades costing $4.95, is more expensive than Interactive Brokers's rate of $0 (the broker charges a per share rate instead) per trade. For options trading, Charles Schwab has a base fee of $4.95, and Interactive Brokers a base fee of $0. Each option contract then costs $0.70 at Interactive Brokers and $0.65 at Charles Schwab. It's important to note that not all brokers charge a flat fee per trade. Thus, it is important to read the full commission notes for each broker, which we include with each online broker review
Next to commission rates, being able to trade what you want is important. Both Charles Schwab and Interactive Brokers support Stock Trading, Options Trading, Mutual Funds and Futures Trading. Looking at mutual funds, Interactive Brokers boasts an offering of 11000 mutual funds compared to Charles Schwab's 5846 available funds.
Trading access aside, by comparing popular features and functionality, we can break down relevant differences between both brokers. Interactive Brokers has virtual trading, Charles Schwab doesn't. Taking a look at mobile trading, Charles Schwab along with Interactive Brokers both support the iPhone App, iPad App and Android App. Not to be left out, online banking is also a nice benefit for many investors, and some brokerages provide these services to clients. Checking Accounts and Debit Cards are offered by Interactive Brokers while Charles Schwab offers Checking Accounts, Savings Accounts, Debit Cards, Credit Cards and Mortgage Loans.
Overall, between Charles Schwab and Interactive Brokers, Charles Schwab is the winner
Charles Schwab Review
Interactive Brokers Review