Charles Schwab vs Interactive Brokers

Charles Schwab and Interactive Brokers are compared on this page, focusing on their business models, financial performance, and the market context in which they operate. The content aims to be neutral and accessible, detailing how each company approaches services, pricing, and client considerations without advocacy. Educational content, not financial advice.

Charles Schwab and Interactive Brokers are compared on this page, focusing on their business models, financial performance, and the market context in which they operate. The content aims to be neutral...

Comparison Snapshot

Key Financial Metrics

SCHW

Metric

IBKR

$166.53B

Market Cap

$126.78B

20.00%

Potential Profit

3.05%

Buy

Analyst Rating

Buy

Why It's Moving

Charles Schwab Shines with Analyst Upgrades and Dividend Boost Amid Insider Sales

Q4 earnings topped estimates with FY-2026 EPS guidance of $5.70–$5.80, highlighting execution strength and revenue growth potential into 2027.
Quarterly dividend jumps 19% to $0.32 per share, payable February 27, reinforcing shareholder returns amid balance sheet normalization.
Analysts upbeat: UBS, Truist, and TD Cowen lift targets, citing net interest income gains and competitive edge, while Schwab earns #1 broker ranking.

Sentiment:

🐃Bullish

IBKR Shares Surge on Strong Institutional Buying and Positive Sector Momentum

State of Michigan Retirement System added IBKR shares, highlighting institutional appetite for the broker's growth trajectory in a volatile market.
CFO Paul Brody's upcoming UBS conference appearance on February 9 underscores leadership engagement as monthly brokerage metrics stay resilient.
Financial sector benefits from 12.1% y/y EPS growth consensus in ongoing earnings, with improving economic signals like rising ISM manufacturing PMI boosting trading volumes.

Sentiment:

🐃Bullish

Charles Schwab Shines with Analyst Upgrades and Dividend Boost Amid Insider Sales

Q4 earnings topped estimates with FY-2026 EPS guidance of $5.70–$5.80, highlighting execution strength and revenue growth potential into 2027.
Quarterly dividend jumps 19% to $0.32 per share, payable February 27, reinforcing shareholder returns amid balance sheet normalization.
Analysts upbeat: UBS, Truist, and TD Cowen lift targets, citing net interest income gains and competitive edge, while Schwab earns #1 broker ranking.

Sentiment:

🐃Bullish

IBKR Shares Surge on Strong Institutional Buying and Positive Sector Momentum

State of Michigan Retirement System added IBKR shares, highlighting institutional appetite for the broker's growth trajectory in a volatile market.
CFO Paul Brody's upcoming UBS conference appearance on February 9 underscores leadership engagement as monthly brokerage metrics stay resilient.
Financial sector benefits from 12.1% y/y EPS growth consensus in ongoing earnings, with improving economic signals like rising ISM manufacturing PMI boosting trading volumes.

Sentiment:

🐃Bullish

Investment Analysis

Charles Schwab

SCHW

Pros

Charles Schwab has a dominant market position with $10.8 trillion in client assets, strengthened by its 2020 acquisition of TD Ameritrade enhancing retail and institutional reach.
The company benefits from a diversified revenue base including net interest income, asset management, and advisory fees, with higher interest rates boosting net interest margins.
Schwab is modernising its platform to appeal to younger investors with improved digital tools and plans for spot Bitcoin and Ethereum trading by mid-2026.

Considerations

Schwab's stock exhibits higher historical drawdown at -86.79%, indicating potential vulnerability to significant market declines.
Margin interest rates are relatively high compared to competitors, which could be a disadvantage for clients using leverage extensively.
Deposit and withdrawal processes are considered more complicated than some competitors, potentially impacting user experience.

Interactive Brokers

IBKR

Pros

Interactive Brokers offers lower ongoing costs, particularly with significantly cheaper margin rates across multiple tiers than Charles Schwab.
It provides a sophisticated trading platform designed for professional and institutional traders, with extensive research and educational resources.
Interactive Brokers has a smaller maximum historical drawdown (-63.66%) compared to Schwab, suggesting potentially better downside risk management.

Considerations

The platform’s complexity and volume of information can be overwhelming for retail investors or those less experienced in trading.
Its stock price shows higher volatility (9.17%) compared to Charles Schwab, reflecting greater risk and potentially larger price swings.
Client assets and overall market share remain smaller than Charles Schwab, limiting scale advantages and recurring revenue streams.

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