Interactive Brokers vs Charles Schwab Comparison: Fees, Features, and More (2026)
Interactive Brokers and Charles Schwab are two leading discount brokerages offering commission-free stock and ETF trading. Use this head-to-head comparison table to evaluate fees, features, trading tools, and account options to help you decide which broker is right for you in 2026.
| Feature | Interactive Brokers | Charles Schwab |
|---|---|---|
| Website | https://www.interactivebrokers.com/ | https://www.schwab.com/ |
| Broker Type | Self-directed online discount broker | Full-service |
| Trading: Stock & ETF? | Yes | Yes |
| ETF & Stock commission | IBKR Lite: $0 US-listed stocks/ETFs (US residents); IBKR Pro: $0.005/share fixed (min $1) or $0.0005–$0.0035/share tiered (min $0.35) | $0 online (listed stocks/ETFs) |
| Fractional Shares? | Yes (eligible US/CA/EU stocks & ETFs, from $1) | Yes (most U.S.-listed stocks/ETFs, from $1) |
| Percent Allocations? | Yes (TWS Rebalance Portfolio sets custom target %) | Yes (Personalized Portfolio Builder) |
| Crypto Trading? | Yes (spot crypto via Paxos/Zero Hash for eligible US IB LLC clients; permissions required; also futures/ETPs) | Yes, via Schwab Crypto (BTC/ETH currently; not NY/LA/territories) |
| Crypto Fees | 0.12%–0.18% of trade value (monthly volume tiers), USD 1.75 min/order (capped at 1% of value); no added spreads/markups/custody fees; possible $0.15/mo Paxos fee | 0.75% of notional value (min $0.01) per buy/sell |
| Options Trading? | Yes | Yes |
| Options Fee | US: Lite $0.65/contract ($1 min; Pro rates after 1k contracts/mo); Pro $0.15–$0.65/contract (volume/premium tiers), $1 min/order + exchange/reg/clearing fees | $0 online commission + $0.65 per contract |
| Bond Trading Available? | Yes (US Treasuries, corporates, munis, CDs, 1M+ global bonds) | Yes |
| Receives payment for order flow (PFOF)? | Sometimes (Lite receives PFOF on US stocks/options; Pro generally avoids via SmartRouting) | Yes (receives PFOF rebates) |
| Interface: Web trading? | Yes (Client Portal web; IBKR Mobile and GlobalTrader apps) | Yes |
| Desktop trading? | Yes; Trader Workstation (TWS) and IBKR Desktop. | Yes, thinkorswim desktop (Windows/Mac; free for brokerage clients) |
| API Trading? | Yes; TWS API and Web API for retail algorithmic trading. | Yes, Trader API (Individual) for self-directed retail accounts (orders, data; via developer.schwab.com) |
| Mutual Funds: Offered? | Yes | Yes |
| Total Mutual Funds | 50,000+ | ~14,500 from 600+ families (incl. 4,000+ NTF) |
| NTF Mutual Funds | 20,000+ | 4,000+ (no-load via OneSource & others) |
| Non-NTF Fund Fee | Lesser of 3% of trade value or USD 14.95 per transaction (US). | Up to $74.95/buy online ($0 sell); some $49.95; 8.5% cap, <$100 exempt |
| Early Redemption Fee? | Yes (no IBKR fee); fund companies may charge per prospectus. | No; $49.95 Schwab fee on NTF funds held ≤90 days (some exemptions) |
| Redemption Hold (Days) | None by IBKR (0 days); fund prospectus may impose. | 90 days (NTF/OneSource funds; some Schwab Funds exempt) |
| Early Redemption Fee | $0 from IBKR; funds may charge per prospectus. | $49.95 online/automated phone; $49.95 + $25 broker-assisted |
| Accounts: Margin Accounts? | Yes (Cash, Margin, or Portfolio Margin; typically $2,000 equity for margin). | Yes ($2,000 min. cash or marginable securities) |
| IRAs Offered? | Yes (Traditional, Roth, SEP, SIMPLE, Inherited, Rollover). | Yes (Traditional, Roth, SEP, Rollover, Inherited, Custodial, SIMPLE) |
| HSAs Offered? | No | Yes (HSBA via participating HSA providers; no standalone Schwab HSA) |
| Money Market Sweep? | Yes (Insured Bank Deposit Sweep Program). | Yes (Cash Features Program: Bank Sweep or Schwab One Interest) |
| CDs Offered? | Yes (brokered CDs). | Yes (brokered CDs via Schwab CD OneSource) |
| Robo-Advisor: Offered | Yes | Yes |
| Robo-Advisor Service | Interactive Advisors | Schwab Intelligent Portfolios® (Premium also offered) |
| Robo-Advisor Fees | 0.10%–0.75% AUM/year (varies by portfolio; IA 0.10%–0.20%, managers 0.25%–0.75%); no commissions | $0 advisory (standard); $300 one-time + $30/mo (Premium); ETF OERs 0.02–0.15%. Mins $5k/$25k. |
| Basics: Headquarters | Greenwich, CT | Westlake, TX |
| Year Founded | 1977 | 1971 |
| Clearing Firm | Self-clearing | Charles Schwab & Co., Inc. (self-clearing) |
| Local Branches? | No | Yes, more than 420 branches in 48 U.S. states |
| New Account Minimum | $0 | $0 |
Once you’ve chosen a broker, find high-performing, investable model portfolios at RecipeInvesting.com
Picked a Broker? Now Build Your Perfect Portfolio
Find high-performing, investable model portfolios (Tactical, Strategic, and Managed) at RecipeInvesting.com.
Compare Interactive Brokers to All Brokers
- Compare Interactive Brokers to Ally Invest
- Compare Interactive Brokers to Alpaca
- Compare Interactive Brokers to Axos Invest
- Compare Interactive Brokers to Charles Schwab
- Compare Interactive Brokers to E*Trade
- Compare Interactive Brokers to Fidelity
- Compare Interactive Brokers to Firstrade
- Compare Interactive Brokers to M1 Finance
- Compare Interactive Brokers to Merrill Edge
- Compare Interactive Brokers to Public.com
- Compare Interactive Brokers to Robinhood
- Compare Interactive Brokers to SoFi Invest
- Compare Interactive Brokers to SogoTrade
- Compare Interactive Brokers to Stash
- Compare Interactive Brokers to Tastytrade
- Compare Interactive Brokers to Tradestation
- Compare Interactive Brokers to Tradier
- Compare Interactive Brokers to Vanguard
- Compare Interactive Brokers to WeBull
- Compare Interactive Brokers to ZacksTrade