Which is better for international investing: IBKR or Schwab?

Interactive Brokers is generally better for international investing with access to 150+ markets worldwide, lower international fees, and multi-currency accounts. Schwab has limited international market access.

Does IBKR or Schwab have lower fees?

Both offer commission-free US stock trades. IBKR has lower margin rates (starting at 5.83%) and better international fees. Schwab has no account minimums and free domestic wire transfers.

Which platform is better for beginners: IBKR or Schwab?

Charles Schwab is more beginner-friendly with simpler platforms, extensive educational resources, and no account minimums. IBKR is more complex but offers advanced tools for experienced traders.

Can Europeans use both IBKR and Schwab?

Interactive Brokers is widely available in Europe with local entities. Charles Schwab International is available but with limited services compared to US clients. IBKR is generally the better choice for Europeans.

Interactive Brokers vs Charles Schwab 2025: Complete Comparison

Compare Interactive Brokers and Charles Schwab to find the best broker for your investment needs in 2025.

Broker Overview

Interactive Brokers (IBKR)

Interactive Brokers, founded in 1978, is a global electronic broker known for low-cost trading and access to international markets. IBKR serves institutional and individual investors with advanced trading technology and comprehensive market access.

Key features:

Access to 150+ markets in 33 countries
Low margin rates and competitive pricing
Advanced trading platforms (TWS, IBKR Mobile)
Comprehensive options and futures trading
Multi-currency accounts

Charles Schwab

Charles Schwab, established in 1971, is one of the largest US brokers offering full-service investment solutions. Known for excellent customer service, educational resources, and comprehensive financial planning services.

Key features:

Commission-free US stock and ETF trades
Extensive branch network (300+ locations)
Comprehensive research and education
Robo-advisor (Schwab Intelligent Portfolios)
Banking services and credit cards

Quick Comparison

Feature	Interactive Brokers	Charles Schwab
Founded	1978	1971
Account Minimum	$0	$0
Stock Commissions	$0 (US stocks)	$0 (US stocks/ETFs)
Options	$0.65 per contract	$0.65 per contract
Margin Rates	5.83% - 7.83%	8.325% - 12.325%
International Markets	150+ markets	Limited
Fractional Shares	Yes	Yes
Robo-Advisor	No	Yes (free)
Banking Services	Limited	Full banking
Branch Locations	None	300+

Fees and Commissions

Interactive Brokers Fees

US Stocks: $0 commission
Options: $0.65 per contract
Futures: $0.85 per contract
International stocks: Varies by market (typically 0.05-0.10%)
Margin rates: 5.83% - 7.83% (tiered)
Currency conversion: 0.002% (2 basis points)
Account fee: $0 (waived with $100k+ or age 25 and under)
Inactivity fee: $20/month (waived with $100k+ or age 25 and under)

Charles Schwab Fees

US Stocks/ETFs: $0 commission
Options: $0.65 per contract
Futures: $2.25 per contract
International stocks: $49.95 per trade
Margin rates: 8.325% - 12.325% (tiered)
Currency conversion: 0.45% - 1.25%
Account fee: $0
Wire transfers: Free domestic, $25 international

Trading Platforms

Interactive Brokers Platforms

Trader Workstation (TWS): Professional desktop platform with advanced charting and order types
IBKR Mobile: Full-featured mobile app for iOS and Android
Client Portal: Web-based platform for basic trading and account management
GlobalTrader: Simplified web platform for casual investors
API: Comprehensive API for algorithmic trading

Charles Schwab Platforms

Schwab.com: User-friendly web platform with research integration
Schwab Mobile: Award-winning mobile app
StreetSmart Edge: Advanced desktop platform for active traders
thinkorswim: Professional platform (acquired from TD Ameritrade)
Schwab Intelligent Portfolios: Robo-advisor platform

Markets and Products

Interactive Brokers Markets

Global reach: 150+ markets in 33 countries
Asset classes: Stocks, ETFs, options, futures, forex, bonds, CFDs
Currencies: 23+ base currencies
International stocks: Direct access to European, Asian, and other markets
Fractional shares: Available for US stocks
Cryptocurrency: Limited crypto exposure through ETFs

Charles Schwab Markets

Primary focus: US markets with some international ETFs
Asset classes: Stocks, ETFs, options, futures, forex, bonds, mutual funds
International: Limited direct international stock access
Fractional shares: Available for S&P 500 stocks
Mutual funds: Extensive selection including Schwab funds
Cryptocurrency: No direct crypto trading

Research and Tools

Interactive Brokers Research

Fundamental data: Comprehensive financial data and ratios
Technical analysis: Advanced charting with 100+ indicators
News and analysis: Real-time news from multiple sources
Risk analytics: Portfolio risk assessment tools
Market scanners: Customizable stock and options scanners
Economic calendar: Global economic events and data

Charles Schwab Research

Schwab Equity Ratings: Proprietary stock ratings (A-F scale)
Third-party research: Reports from Credit Suisse, Argus, and others
Market commentary: Daily and weekly market insights
Educational content: Extensive library of articles and videos
Sector analysis: In-depth sector and industry reports
Economic research: Macro-economic analysis and forecasts

Account Types

Interactive Brokers Accounts

Individual/Joint: Standard taxable accounts
IRA: Traditional and Roth IRAs
Trust accounts: Various trust structures
Corporate accounts: Business and institutional accounts
International accounts: Available in 200+ countries
Margin accounts: Portfolio margin available

Charles Schwab Accounts

Brokerage accounts: Individual, joint, and custodial
Retirement accounts: IRA, Roth IRA, 401(k) rollover
529 Education: College savings plans
Trust accounts: Various trust options
Business accounts: Corporate and partnership accounts
Bank accounts: Checking and savings with debit cards

Customer Service

Interactive Brokers Support

Phone support: 24/7 for urgent issues, business hours for general
Live chat: Available during business hours
Email tickets: Comprehensive ticket system
Knowledge base: Extensive online documentation
Webinars: Regular educational webinars
Branch visits: No physical branches

Charles Schwab Support

Phone support: 24/7 customer service
Branch network: 300+ physical locations
Live chat: Available on website and mobile app
Email support: Secure messaging system
Educational events: Local workshops and seminars
Financial consultants: Free consultations available

Pros and Cons

Interactive Brokers Pros

Excellent international market access
Low margin rates and competitive fees
Advanced trading platforms and tools
Multi-currency account capabilities
Strong API for algorithmic trading
Comprehensive options and futures trading
Low currency conversion costs

Interactive Brokers Cons

Complex platform can overwhelm beginners
Inactivity fees for smaller accounts
Limited educational resources
No physical branches
Customer service can be impersonal
No robo-advisor option

Charles Schwab Pros

Excellent customer service and support
User-friendly platforms for beginners
Extensive educational resources
No account minimums or inactivity fees
Free robo-advisor service
Full banking services integration
Large branch network

Charles Schwab Cons

Limited international market access
Higher margin rates
Expensive international trading
Higher currency conversion costs
Limited fractional share options
No direct cryptocurrency trading

Final Verdict

Choose Interactive Brokers If:

You want access to international markets
You're an active trader needing advanced tools
You trade on margin frequently
You need multi-currency capabilities
You want the lowest possible trading costs
You're comfortable with complex platforms

Choose Charles Schwab If:

You're a beginner investor
You value excellent customer service
You want comprehensive financial services
You prefer having physical branch access
You want a free robo-advisor
You primarily invest in US markets

Bottom Line

Both brokers offer commission-free US stock trading, but they serve different investor types. Interactive Brokers excels for international investing, active trading, and cost-conscious investors who want advanced tools. Charles Schwab is better for beginners, those wanting comprehensive financial services, and investors who value customer support and education.

For international diversification and advanced trading, choose IBKR. For simplicity, support, and comprehensive financial planning, choose Schwab.

Frequently Asked Questions

Which is better for international investing: IBKR or Schwab?: Interactive Brokers is generally better for international investing with access to 150+ markets worldwide, lower international fees, and multi-currency accounts. Schwab has limited international market access.
Does IBKR or Schwab have lower fees?: Both offer commission-free US stock trades. IBKR offers lower margin rates (starting at 5.83%) and more favourable international fees. Schwab has no account minimums and free domestic wire transfers.
Which platform is better for beginners: IBKR or Schwab?: Charles Schwab is more beginner-friendly with simpler platforms, extensive educational resources, and no account minimums. IBKR is more complex but offers advanced tools for experienced traders.
Can Europeans use both IBKR and Schwab?: Interactive Brokers is widely available in Europe with local entities. Charles Schwab International is available, but with limited services compared to those of US clients. IBKR is generally the better choice for Europeans.
Which broker has better customer service?: Charles Schwab is known for superior customer service with 24/7 phone support, 300+ branches, and highly rated customer satisfaction. IBKR's support is more technical but less personal.
Do both brokers offer fractional shares?: Yes, both offer fractional shares. IBKR offers fractional shares for US stocks, while Schwab offers them for S&P 500 stocks. Both allow you to invest with smaller amounts.