Charles Schwab vs Interactive Brokers
Business model, scale, and a side-by-side Litmus framework score — which model wins, and for whom.
Schwab wins for mainstream US investors wanting advice and banking; IBKR wins decisively for active, global, and margin-using traders on cost and market access.
At a glance
| Metric | Charles Schwab | Interactive Brokers |
|---|---|---|
| Revenue | ~$24B (FY2025, est. from quarters) | $6.2B (FY2025) |
| Profit | ~$9B+ (Net Income, est.) | ~$4.4B net income (FY2025) |
| Active users | 38.5M Active Brokerage Accounts | 4.1M+ accounts |
| Employees | 32,000+ | ~3,000 |
| Founded | 1971 | 1978 |
| HQ | Westlake, TX | Greenwich, Connecticut |
LLitmus Framework Score
Overall: Charles Schwab 93 · Interactive Brokers 91
Customer Segment
97
90
Value Proposition
96
95
Marketing Channel
92
80
Engagement
89
91
Income Source
98
98
Asset Validation
94
93
Core Operations
90
91
Strategic Alliance
87
81
Expense Validation
93
96
Charles Schwab leads 5 modules, Interactive Brokers leads 3. Overall edge: Charles Schwab.
Head to head
| Dimension | Charles Schwab | Interactive Brokers |
|---|---|---|
| Client assets / equity | ~$11.9T client assets | $780B+ client equity |
| Accounts | 38.5M brokerage accounts | 4.1M+ accounts |
| Global market access | Largely US-focused | 150+ markets, 34 countries |
| Margin rates | Flat, double-digit | Fed funds + ~0.5–1.5% |
| Pretax margin | Lower, advice/banking-heavy | ~75% |
FAQ
Is Charles Schwab or Interactive Brokers a better business?
Schwab wins for mainstream US investors wanting advice and banking; IBKR wins decisively for active, global, and margin-using traders on cost and market access. It depends on what you optimise for — see the module-by-module breakdown above.
What is the difference between Charles Schwab and Interactive Brokers's business model?
Charles Schwab operates in Fintech / Banking (Own your tomorrow), while Interactive Brokers is Fintech (The Professional's Gateway to the World's Markets). Their revenue, scale and Litmus scores are compared in detail above.
Which is more profitable, Charles Schwab or Interactive Brokers?
Charles Schwab: ~$9B+ (Net Income, est.). Interactive Brokers: ~$4.4B net income (FY2025).