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

$182.92B

Market Cap

$127.80B

8.36%

Potential Profit

2.01%

Buy

Analyst Rating

Buy

Why It's Moving

Charles Schwab Delivers Record Q4 Results and Strategic AI, Forge Advances Fueling Post-Earnings Rally

Q4 core net new assets hit $163.9 billion while active brokerage accounts reached 38.5 million, signaling robust client growth and engagement.
Forge Global deal approval paves the way for expanded private market access, set to close in H1 2026 pending regulators, bolstering Schwab's alternatives offerings.
Zacks upgraded SCHW to Buy on rising earnings estimates, up 5.5% in three months, reflecting optimism for steady 2026 EPS at $5.73.

Sentiment:

🐃Bullish

Interactive Brokers Surges to Record Highs on Q4 Earnings Beat and Trading Boom.

Commissions revenue leaped 37% to $477 million, driven by 65% surge in stock trading and 32% in high-margin options, signaling robust market participation.
Client equity hit $779.9 billion (up 37% YoY) and margin loans reached $90.2 billion, boosting interest income and underscoring deeper capital commitment from traders.
Analysts at BMO and Barclays hiked price targets post-earnings, citing solid pretax beats, confident management tone, and constructive 2026 market outlook for brokers.

Sentiment:

🐃Bullish

Charles Schwab Delivers Record Q4 Results and Strategic AI, Forge Advances Fueling Post-Earnings Rally

Q4 core net new assets hit $163.9 billion while active brokerage accounts reached 38.5 million, signaling robust client growth and engagement.
Forge Global deal approval paves the way for expanded private market access, set to close in H1 2026 pending regulators, bolstering Schwab's alternatives offerings.
Zacks upgraded SCHW to Buy on rising earnings estimates, up 5.5% in three months, reflecting optimism for steady 2026 EPS at $5.73.

Sentiment:

🐃Bullish

Interactive Brokers Surges to Record Highs on Q4 Earnings Beat and Trading Boom.

Commissions revenue leaped 37% to $477 million, driven by 65% surge in stock trading and 32% in high-margin options, signaling robust market participation.
Client equity hit $779.9 billion (up 37% YoY) and margin loans reached $90.2 billion, boosting interest income and underscoring deeper capital commitment from traders.
Analysts at BMO and Barclays hiked price targets post-earnings, citing solid pretax beats, confident management tone, and constructive 2026 market outlook for brokers.

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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