Comparison Guide

Interactive Brokers (IBKR) vs TD Ameritrade (now Schwab/thinkorswim)

Interactive Brokers vs TD Ameritrade compared. Note: TD Ameritrade was acquired by Charles Schwab in 2020 and merged in 2023. Here's how IBKR stacks up against the merged platform.

Side-by-Side Comparison

Interactive Brokers (IBKR)

Pros

+Lowest margin rates in the industry — consistently 50-70% cheaper than the Schwab/TDA merged entity
+Access to 150+ global exchanges — international reach that neither TD Ameritrade nor Schwab could match
+Professional-grade order routing and execution through TWS with real-time risk analytics
+IBKR Lite offers free trades with no payment for order flow on qualifying accounts
+Comprehensive asset coverage including futures, forex, bonds, and complex options strategies

Cons

-thinkorswim (the old TD Ameritrade platform, now on Schwab) is arguably more intuitive for retail options traders
-IBKR TWS platform requires more upfront learning time than thinkorswim
-No physical branches — the old TD Ameritrade had hundreds of locations before Schwab consolidated them
-Customer service not as accessible as the Schwab/TDA combined entity

Best For

Professional traders, margin users, and international investors who need the best execution and lowest borrowing costs.

TD Ameritrade (now Schwab/thinkorswim)

Pros

+thinkorswim is still one of the best active trading platforms available — paper trading, backtesting, and advanced charts
+Schwab's acquisition means 350+ branches and expanded banking services are now available
+$0 commissions on stocks and ETFs with a straightforward pricing structure
+Exceptional educational content inherited from both TD Ameritrade and Schwab libraries
+Robust options trading tools on thinkorswim rival any platform for retail traders

Cons

-The TD Ameritrade brand is fully absorbed into Schwab — accounts have migrated, and the transition had growing pains
-Margin rates at Schwab are significantly higher than IBKR
-International market access remains limited compared to IBKR's global footprint
-Post-merger integration issues have frustrated some long-time TD Ameritrade users

Best For

Active retail traders who love thinkorswim, investors who want Schwab banking integration, and anyone who valued TD Ameritrade's research ecosystem.

Feature	Interactive Brokers (IBKR)	TD Ameritrade (now Schwab/thinkorswim)
Top Advantage	Lowest margin rates in the industry — consistently 50-70% cheaper than the Schwab/TDA merged entity	thinkorswim is still one of the best active trading platforms available — paper trading, backtesting, and advanced charts
Biggest Drawback	thinkorswim (the old TD Ameritrade platform, now on Schwab) is arguably more intuitive for retail options traders	The TD Ameritrade brand is fully absorbed into Schwab — accounts have migrated, and the transition had growing pains
Best For	Professional traders, margin users, and international investors who need the best execution and lowest borrowing costs.	Active retail traders who love thinkorswim, investors who want Schwab banking integration, and anyone who valued TD Ameritrade's research ecosystem.

Glen's Verdict

Former hedge fund manager, current index fund enthusiast

TD Ameritrade no longer exists as a standalone broker — it merged fully into Charles Schwab in 2023. The best of TDA lives on through thinkorswim on Schwab. IBKR wins on margin rates and global access; the Schwab/thinkorswim combination wins for retail active traders who want excellent tools without institutional complexity. If you were a TD Ameritrade customer happy on thinkorswim, stay on Schwab. If you trade on margin or internationally, switch to IBKR.

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Frequently Asked Questions

Which is better, Interactive Brokers (IBKR) or TD Ameritrade (now Schwab/thinkorswim)?

It depends on your situation. Interactive Brokers (IBKR) is best for: Professional traders, margin users, and international investors who need the best execution and lowest borrowing costs. TD Ameritrade (now Schwab/thinkorswim) is best for: Active retail traders who love thinkorswim, investors who want Schwab banking integration, and anyone who valued TD Ameritrade's research ecosystem.

What are the main differences between Interactive Brokers (IBKR) and TD Ameritrade (now Schwab/thinkorswim)?

The key differences come down to their strengths. Interactive Brokers (IBKR) advantages include lowest margin rates in the industry — consistently 50-70% cheaper than the schwab/tda merged entity and access to 150+ global exchanges — international reach that neither td ameritrade nor schwab could match. TD Ameritrade (now Schwab/thinkorswim) advantages include thinkorswim is still one of the best active trading platforms available — paper trading, backtesting, and advanced charts and schwab's acquisition means 350+ branches and expanded banking services are now available.

Can I have both Interactive Brokers (IBKR) and TD Ameritrade (now Schwab/thinkorswim)?

In many cases, yes. Having both can provide diversification and flexibility. Evaluate your specific needs, goals, and eligibility requirements to determine if using both makes sense for your situation.

What are the downsides of Interactive Brokers (IBKR)?

thinkorswim (the old TD Ameritrade platform, now on Schwab) is arguably more intuitive for retail options traders IBKR TWS platform requires more upfront learning time than thinkorswim No physical branches — the old TD Ameritrade had hundreds of locations before Schwab consolidated them Customer service not as accessible as the Schwab/TDA combined entity

What are the downsides of TD Ameritrade (now Schwab/thinkorswim)?

The TD Ameritrade brand is fully absorbed into Schwab — accounts have migrated, and the transition had growing pains Margin rates at Schwab are significantly higher than IBKR International market access remains limited compared to IBKR's global footprint Post-merger integration issues have frustrated some long-time TD Ameritrade users

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