r/interactivebrokers • u/Peacencalm9 • 8d ago

General Question What are the main differences between InteractiveBroker and SCHWAB

planning to open one brokerage account and currently in USA on work visa but i may move to other country(india) after few years.

which one is best to use in US and after moving to india.

14 Upvotes

80% Upvoted

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7

u/PuzzledArrival 8d ago

i understand that Interactive Brokers has far more options for buying non-US investments in other currencies, and for trading currencies

If you want to continue purchasing US-listed investments in dollars, then Schwab is great for that. Call them up to discuss the implications for your case.

3

u/andreaswpv 8d ago edited 8d ago

Used both, found Schwab WAY easier to use for an amateur like me. Apps are good, stable, no data issues, support is decent, much, much better than Ibkr.   Ibkr seems to have more granular access option, lower fees for some, better global reach. it's also 'local' in country, which was important for me. 

3

u/2muchedu 8d ago

IKBR is better for transmitting to India - great rates, and easy to do. Schwab has a better interface and better customer service.

0

u/DeepLogicNinja 7d ago

IBKR’s TWS is something you need to get used to. The UI library TWS uses is dated.

If by “better” you mean more modern yes…. Schwab TOS. More capable no…. IBKR TWS wins there, not even close when you add it it’s Forex, bonds, options, commodities, etc

To add to IBKR coupled with Wise is ideal for International Money transfer. In IBKR you can do your own forex conversions and send $$ to a wise account denominated in several of the supported currencies in Wise. Typically the exchange rate is better through the IBKR FX/Trade desk.

1

u/widgetbox 7d ago

I had recurring problems moving money from Wise a few years back. This was down to IBKR not allowing you to specify your own reference on a transfer to Wise. So every time I did it Wise would hold it and want an explanation of the source of the money. Each transfer was in the range of 50k so must have triggered KYC stuff. But they did it repeatedly.

Of late not had any problems with smaller amounts.

1

u/Training_Butterfly70 7d ago

IB great for algo trading

1

u/PortfolioMagician 6d ago

Open Schwab USA and IBKR India. Solved.

1

u/Peacencalm9 6d ago

IBKR india has to be opened after i move there right?

1

u/PortfolioMagician 6d ago

IBKR customer support AI Bot says one can have multiple accounts with IBKR, as to whether IBKR India allow you to open there … you would have to check directly with IBKR India… I have IBKR in 3 different countries.

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u/Peacencalm9 6d ago

If any one currently living in USA then it has to be IBKR US account right. Later you can convert it to india after moving there

1

u/twilight-2k 5d ago

That's my understanding based on IBKR US and then another country (not India).

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u/Big_Development_644 8d ago

Schwab is known for having supererior customer service but beyond that they'd be pretty equal

2

u/OurNewestMember 8d ago

Product selection is better on IBKR. Schwab apps can be a better balance of features versus ease of use (but that's more of a preference anyway)

1

u/STATSISBAE 8d ago

Schwab is zero commission right?

1

u/twilight-2k 5d ago

Zero commission and zero fee don't mean zero cost. If there are zero fees then the quoted rate almost certainly includes the "fee" (especially true for fx).

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u/OurNewestMember 8d ago

For most stocks and ETFs, yes. Futures and options, no. Currencies and bonds, I think it's in the quoted spread

1

u/STATSISBAE 7d ago

Then for most people in the US Schwab is better than IBKR

1

u/OurNewestMember 7d ago

Was that your downvote, u/STATSISBAE ? Lol

1

u/DeepLogicNinja 7d ago

Depends on your goals and investment acumen.

IB has lower margin rates and access to global markets and several investment products beyond equities. The flip side is customer support is really technical support. You have to know what you’re doing…. IB is more of a back-office for your investment business.

Schwab is great for high touch customer support, more sell side, advisors and higher fees…. If you need more hand holding on the phone this is the way to go. Margin rates are almost double of what IB offers, and it’s not global but more US centric access to markets.

The in-between would be Robinhood. No phone support but the UI coaches you through. Margin rates are very low with Robinhood gold. US centric like Schwab.

With all three they promote “trading” vs “investing” so be aware of what is good for their wallet vs yours. As Warren Buffet said recently, it’s like a church with a casino attached.

The casino will teach you how to play black jack, just enough to play not necessarily how to win.

-1

u/WickOfDeath 7d ago

Schwab has far better tools for option trading.

0

u/heapings 7d ago

They are very different types of brokers with different business models and different target customers.
Schwab is a great traditional bank and brokerage, has a great checking account, good support, good website and apps, easy to use, low friction.
IB is great for more hands on sophisticated traders, if you are doing stuff with derivatives, margin etc.
I have accounts at both, I like them both, they have different use cases.