Interactive Brokers and TD Ameritrade (now part of Charles Schwab) are two of the most popular brokerages for active traders, but they serve different audiences. IBKR is the choice for professionals, algorithmic traders, and anyone who needs global market access at the lowest cost. TD Ameritrade’s thinkorswim platform (preserved under Schwab) is the choice for traders who want professional tools with a more approachable experience. Here’s the full breakdown.
TL;DR:Interactive Brokers wins for lowest costs (especially margin and high-volume options), international market access (150+ exchanges), and professional-grade execution. TD Ameritrade (Schwab/thinkorswim) wins for platform usability, education, customer support, and traders who don’t need global access.
Side-by-Side Overview
Feature
Interactive Brokers
TD Ameritrade (Schwab)
Stock commissions
$0 (Lite) / $0.005/share (Pro)
$0
Options per contract
$0.65 (Lite) / $0.15-$0.65 (Pro tiered)
$0.65
Margin rate ($25K)
5.33%-6.33%
11.00%-12.00%
Margin rate ($100K)
5.33%-5.83%
10.50%-11.50%
International markets
150+ in 34 countries
Limited (Schwab Global)
Futures commissions
$0.25-$0.85/contract
$2.25/contract
Forex trading
✓ (direct interbank)
✓ (limited pairs through Schwab)
Crypto
✓ (direct)
✗
Trading platform
Trader Workstation (TWS)
thinkorswim
Mobile app trading
✓ (IBKR Mobile)
✓ (thinkorswim Mobile)
Research
Limited free / paid add-ons
Extensive free research
Education
Basic
Best-in-class (Schwab)
Fractional shares
✓
✓
Customer support
Phone, chat, email
24/7 phone + 300+ branches
Account minimum
$0
$0
SIPC coverage
$500K (up to $250K cash)
$500K (up to $250K cash)
Commission and Fee Comparison
Stock Trading
Plan
Interactive Brokers
TD Ameritrade (Schwab)
Commission-free US stocks
✓ (IBKR Lite)
✓
Per-share pricing (Pro)
$0.005/share ($1 min)
N/A
Tiered volume discount
✓ (as low as $0.0005/share)
✗
Exchange/regulatory fees
Passed through (Pro)
Absorbed
Penny stocks
$0 (Lite) / per-share (Pro)
$6.95/trade (OTC)
Options Trading
Fee Component
IBKR Lite
IBKR Pro (Fixed)
IBKR Pro (Tiered)
TD Ameritrade
Per-contract fee
$0.65
$0.65
$0.15-$0.65
$0.65
Base commission
$0
$0
$0
$0
Exercise/assignment
$0
$0
$0
$0
Monthly cost (100 contracts)
$65
$65
$15-$65
$65
Monthly cost (1,000 contracts)
$650
$650
$150-$650
$650
For high-volume options traders, IBKR Pro’s tiered pricing can cut costs by 75%+.
Futures Trading
Feature
Interactive Brokers
TD Ameritrade
Per-contract fee
$0.25-$0.85
$2.25
Micro E-mini cost
$0.25
$2.25
E-mini S&P 500 cost
$0.85
$2.25
Exchange fees
Additional
Additional
IBKR is dramatically cheaper for futures — roughly 60-70% less per contract.
Margin Rates
This is IBKR’s biggest competitive advantage. No major US brokerage comes close.
Loan Amount
Interactive Brokers
TD Ameritrade (Schwab)
IBKR Savings
$25,000
5.33%-6.33%
11.00%-12.00%
~50%
$50,000
5.33%-6.33%
10.75%-11.75%
~50%
$100,000
5.33%-5.83%
10.50%-11.50%
~50%
$300,000
5.33%-5.83%
10.00%-11.25%
~48%
$1,000,000
5.08%-5.58%
9.50%-10.75%
~48%
Annual Margin Cost on $100,000
Brokerage
Rate
Annual Interest
Interactive Brokers
5.58%
$5,580
TD Ameritrade (Schwab)
11.00%
$11,000
Savings with IBKR
—
$5,420/year
If you use margin regularly, IBKR saves thousands annually.
Trading Platforms
Interactive Brokers — Trader Workstation (TWS)
Feature
Rating
Charting
★★★★☆
Order types
★★★★★ (100+)
Algo trading
★★★★★
Customization
★★★★★
Learning curve
Steep
Speed
Excellent
API access
★★★★★
TWS is the most powerful retail trading platform available. It supports 100+ order types, algorithmic trading, portfolio-level analytics, and direct API access. The trade-off is a steep learning curve.
TD Ameritrade — thinkorswim
Feature
Rating
Charting
★★★★★
Order types
★★★★☆
Options analysis
★★★★★
Customization
★★★★★
Learning curve
Moderate
Paper trading
★★★★★
thinkScript
★★★★★
thinkorswim is widely considered the best options analysis platform available to retail traders. Its charting, paper trading, and thinkScript custom studies are best-in-class.
Platform Comparison by Use Case
Trading Style
Better Platform
Why
Options analysis
thinkorswim
Risk graphs, probability analysis, options chains
Algorithmic/API trading
TWS
Full API, 100+ order types, algo support
International markets
TWS
150+ exchanges, multi-currency
Paper trading
thinkorswim
Best paper trading simulation
Charting
Tie
Both excellent
Forex
TWS
Direct interbank access
Day trading
Tie
Both fast execution
International Market Access
Feature
Interactive Brokers
TD Ameritrade (Schwab)
Countries
34
~12 (through Schwab Global)
Exchanges
150+
~30
Currency pairs (forex)
100+
~70 through Schwab
Foreign stock trading
Direct market access
ADRs + Schwab Global
Multi-currency accounts
✓ (hold 27 currencies)
✗
Currency conversion fees
0.002% (2 basis points)
Higher
European markets
✓ (all major exchanges)
Limited
Asian markets
✓ (Japan, HK, Australia, etc.)
Limited
Fractional international shares
✓
✗
IBKR is the undisputed leader for international investing. No other US brokerage offers this breadth of access.
Research and Education
Feature
Interactive Brokers
TD Ameritrade (Schwab)
Free research reports
Limited (some Refinitiv)
Morningstar, Argus, Schwab Equity Ratings
Screeners
✓ (advanced)
✓ (excellent stock/ETF/mutual fund)
Educational content
Basic articles
Schwab Learning Center (extensive)
Webinars
Occasional
Daily live events
Paper trading
✓
✓ (best-in-class via thinkorswim)
News
Reuters, Dow Jones
Reuters, Schwab Network
Analyst ratings
✓
✓ (Schwab Equity Ratings)
TD Ameritrade (Schwab) wins decisively on research and education — more free content, better organized, and live learning events.
Account Types and Features
Account Type
Interactive Brokers
TD Ameritrade (Schwab)
Individual brokerage
✓
✓
Joint accounts
✓
✓
Traditional IRA
✓
✓
Roth IRA
✓
✓
SEP IRA
✓
✓
SIMPLE IRA
✓
✓
529 plan
✗
✓
Trust accounts
✓
✓
Custodial (UGMA/UTMA)
✓
✓
Business/entity accounts
✓ (LLC, Corp, Partnership)
✓
Friends & Family management
✓
✗
Customer Support
Channel
Interactive Brokers
TD Ameritrade (Schwab)
Phone support
Business hours
24/7
Chat
✓
✓
Email/ticket
✓
✓
Branches
✗
300+ Schwab branches
Response quality
Technical, expert
Friendly, thorough
Wait times
Moderate
Generally short
Who Should Choose Each
Choose Interactive Brokers If You…
Scenario
Why IBKR Wins
Trade on margin
50% lower margin rates ($5K+ savings/year on $100K)
Trade futures
60-70% lower per-contract fees
Need global market access
150+ exchanges in 34 countries
Are a high-volume options trader
Tiered pricing down to $0.15/contract
Want API/algorithmic trading
Best retail API, 100+ order types
Hold multiple currencies
Multi-currency accounts, cheap FX conversion
Manage other people’s money
Friends & Family account management
Choose TD Ameritrade (Schwab/thinkorswim) If You…
Scenario
Why TDA/Schwab Wins
Want the best options analysis platform
thinkorswim is unmatched for options
Value education and learning
Best-in-class free education
Need in-person support
300+ Schwab branches
Want excellent paper trading
thinkorswim paper trading is the best
Trade primarily US markets
No reason to pay for global access
Prefer simpler account management
Schwab’s interface is more approachable
Need 24/7 support
Phone available around the clock
Decision Matrix
Your Priority
Best Choice
Confidence
Lowest margin rates
IBKR
Very High
Best options platform
thinkorswim
Very High
International markets
IBKR
Very High
Lowest futures fees
IBKR
Very High
Best education
TDA (Schwab)
Very High
Customer support
TDA (Schwab)
High
API/algo trading
IBKR
Very High
Paper trading
TDA (Schwab)
High
Simplest experience
TDA (Schwab)
High
High-volume options
IBKR
High
The Bottom Line
Factor
Winner
Stock commissions
Tie ($0 for casual traders)
Options (high volume)
IBKR (tiered pricing)
Futures fees
IBKR
Margin rates
IBKR (by a wide margin)
Trading platform
Tie (both best-in-class for different needs)
International access
IBKR
Research
TD Ameritrade (Schwab)
Education
TD Ameritrade (Schwab)
Customer support
TD Ameritrade (Schwab)
Ease of use
TD Ameritrade (Schwab)
Overall: Professional/active traders
Interactive Brokers
Overall: Intermediate traders
TD Ameritrade (Schwab)
For an individual review of Interactive Brokers, see Interactive Brokers review. For the full brokerage market comparison including Fidelity, Schwab, and Webull, see brokerage accounts guide. Both platforms cater to active traders — for options-specific strategies, see covered calls explained.
WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy
