Latest news with #IBKR
Yahoo
a day ago
- Business
- Yahoo
Interactive Brokers Group Reports Brokerage Metrics and Other Financial Information for June 2025, includes Reg.-NMS Execution Statistics
GREENWICH, Conn., July 01, 2025--(BUSINESS WIRE)--Interactive Brokers Group, Inc. (Nasdaq: IBKR) an automated global electronic broker, today reported its Electronic Brokerage monthly performance metrics for highlights for the month included: 3.448 million Daily Average Revenue Trades (DARTs)1, 40% higher than prior year and 2% higher than prior month. Ending client equity of $664.6 billion, 34% higher than prior year and 6% higher than prior month. Ending client margin loan balances of $65.1 billion, 18% higher than prior year and 6% higher than prior month. Ending client credit balances of $143.7 billion, including $5.8 billion in insured bank deposit sweeps2, 34% higher than prior year and 7% higher than prior month. 3.866 million client accounts, 32% higher than prior year and 2% higher than prior month. 195 annualized average cleared DARTs1 per client account. Average commission per cleared Commissionable Order3 of $2.54 including exchange, clearing and regulatory fees. Key products: June 2025 Average Average Commission per Order Size Cleared Commissionable Order Stocks 941 shares $1.86 Equity Options 6.1 contracts $3.59 Futures 2.9 contracts $4.04 Futures include options on futures. We estimate exchange, clearing and regulatory fees to be 58% of the futures commissions. Other financial information for Interactive Brokers Group: Mark to market on U.S. governmental securities portfolio4 was a gain of $324,000 for the quarter ended June 30th. GLOBAL5: The value of the GLOBAL, reported in U.S. dollars, increased by 0.61% in June and increased by 2.380% for the year to date. In the interest of transparency, we quantify our IBKR PRO clients' all-in cost of trade execution below. For the full multimedia release with graph see link: Average U.S. Reg-NMS stock trade was $20,123 in June (dividing 2c by 1a in table below). In June, IBKR PRO clients' total cost of executing and clearing U.S. Reg.-NMS stocks through IB was about 2.6 basis points of trade money6, as, measured against a daily VWAP7 benchmark (3.6 basis points net cost for the rolling twelve months). IBKR PRO Clients' Reg.-NMS Stock Trading Expense Detail All amounts are in millions, except % Previous Jul '24 Aug '24 Sep '24 Oct '24 Nov '24 Dec '24 Jan '25 Feb '25 Mar '25 Apr '25 May '25 June '25 12 Months #1a - Number of orders Buys 10.09 9.84 8.38 10.93 11.40 13.32 12.74 12.40 12.19 13.79 12.15 12.36 139.59 Sells 7.55 7.53 6.54 8.33 8.62 9.66 8.97 9.08 8.71 10.16 9.49 9.57 104.21 Total 17.64 17.37 14.92 19.26 20.02 22.98 21.71 21.48 20.90 23.95 21.65 21.94 243.80 #1b - Number of shares purchased or sold Shares bought 3,855 4,154 3,614 4,645 4,744 5,517 5,223 4,946 5,047 6,008 5,659 5,422 58,833 Shares sold 3,767 3,960 3,436 4,390 4,497 5,232 4,868 4,738 4,804 5,850 5,212 5,100 55,853 Total 7,622 8,114 7,050 9,035 9,241 10,749 10,090 9,683 9,851 11,858 10,871 10,522 114,686 #2 - Trade money including price, commissions and fees 2a Buy money $189,920 $182,908 $155,758 $190,627 $204,300 $214,806 $208,418 $200,026 $216,767 $254,062 $222,977 $222,050 $2,462,619 2b Sell money $191,745 $186,274 $154,825 $188,444 $201,932 $215,520 $203,359 $204,689 $218,670 $259,783 $219,486 $219,444 $2,464,171 2c Total $381,664 $369,182 $310,583 $379,071 $406,232 $430,326 $411,778 $404,715 $435,437 $513,845 $442,463 $441,494 $4,926,789 #3 - Trade value at Daily VWAP 3a Buy value $189,851 $182,849 $155,692 $190,537 $204,249 $214,660 $208,258 $199,957 $216,676 $254,052 $223,005 $222,033 $2,461,818 3b Sell value $191,812 $186,440 $154,890 $188,493 $201,995 $215,621 $203,305 $204,744 $218,725 $259,985 $219,608 $219,540 $2,465,160 3c Total $381,663 $369,289 $310,582 $379,030 $406,243 $430,281 $411,563 $404,702 $435,401 $514,038 $442,613 $441,573 $4,926,979 #4 - Total trade expense, including commissions and fees, relative to Daily VWAP 4a Buys (2a-3a) $68.8 $58.6 $66.6 $90.7 $51.4 $145.7 $160.6 $68.5 $90.6 $9.6 ($28.0) $17.0 $800.1 4b Sells (3b-2b) $67.5 $166.0 $65.7 $49.6 $62.3 $100.9 ($54.3) $55.2 $55.2 $202.8 $122.0 $96.5 $989.5 4c Total trade expense $136.3 $224.6 $132.3 $140.3 $113.8 $246.6 $106.4 $123.7 $145.8 $212.4 $94.0 $113.5 $1,789.5 Trade expense as percentage of trade money 4c/2c 0.036% 0.061% 0.043% 0.037% 0.028% 0.057% 0.026% 0.031% 0.033% 0.041% 0.021% 0.026% 0.036% #5 - Trade expense categories 5a Total commissions & fees $37.1 $38.1 $33.2 $41.9 $43.5 $47.4 $46.2 $45.5 $45.7 $52.7 $44.5 $41.5 $517.3 5b Execution cost (4c-5a) $99.2 $186.5 $99.1 $98.4 $70.3 $199.2 $60.2 $78.2 $100.0 $159.7 $49.5 $72.0 $1,272.3 #6 - Trade expense categories as percentage of trade money Total commissions & fees (5a/2c) 0.010% 0.010% 0.011% 0.011% 0.011% 0.011% 0.011% 0.011% 0.010% 0.010% 0.010% 0.010% 0.010% Execution cost (5b/2c) 0.026% 0.051% 0.032% 0.026% 0.017% 0.046% 0.015% 0.020% 0.023% 0.031% 0.011% 0.016% 0.026% Net Expense to IB Clients 0.036% 0.061% 0.043% 0.037% 0.028% 0.057% 0.026% 0.031% 0.033% 0.041% 0.021% 0.026% 0.036% The above illustrates that the rolling twelve months' average all-in cost of an IBKR PRO client U.S. Reg.-NMS stock trade was 3.6 basis points. ________________ Note 1: Daily Average Revenue Trades (DARTs) – customer orders divided by the number of trading days in the period. Note 2: FDIC insured client bank deposit sweep program balances with participating banks. These deposits are not reported in the Company's statement of financial condition. Note 3: Commissionable Order – a customer order that generates commissions. Note 4: Mark to market gains and losses on investments in U.S. government securities and associated hedges are included in Other Income. In the general course of business, we hold these investments to maturity. As a result, accumulated mark to market gains or losses should converge to zero at maturity. Accounting conventions require broker-dealers, unlike banks, to mark all investments to market. Note 5: In connection with our currency diversification strategy, we have determined to base our net worth in GLOBALs, a basket of 10 major currencies in which we hold our equity. The total effect of the currency diversification strategy is reported in Comprehensive Income and the components are reported in (1) Other Income and (2) Other Comprehensive Income ("OCI") on the balance sheet. The effect of the GLOBAL on our comprehensive income can be estimated by multiplying the total equity for the period by the change in the U.S. dollar value of the GLOBAL during the same period. Note 6: Trade money is the total amount of money clients spent or received, including all commissions and fees. Note 7: Consistent with the clients' trading activity, the computed VWAP benchmark includes extended trading hours. _________________ More information, including historical results for each of the above metrics, can be found on the investor relations page of the Company's corporate web site, About Interactive Brokers Group, Inc.:Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities, foreign exchange, and forecast contracts around the clock on over 160 markets in numerous countries and currencies, from a single unified platform to clients worldwide. We serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Interactive Brokers has consistently earned recognition as a top broker, garnering multiple awards and accolades from respected industry sources such as Barron's, Investopedia, and many others. Cautionary Note Regarding Forward-Looking Statements:The foregoing information contains certain forward-looking statements that reflect the company's current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the company's operations and business environment which may cause the company's actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the company on the date of this release. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission. View source version on Contacts Contacts for Interactive Brokers Group, Inc.: media@ Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Should You Buy This Stock-Split Stock Disrupting the Brokerage Market?
Interactive Brokers is gaining steam in its disruption of the stock brokerage sector. The company has world-class profit margins because of its lean operating structure and focus on automation and technology. IBKR stock looks like a buy after its latest stock split. 10 stocks we like better than Interactive Brokers Group › Smartphones have enabled investing to reach the masses, driven by the viral growth of the Robinhood Markets trading application. It now has over 25 million customers and was only incorporated in 2013. Everyone knows about Robinhood, but another disruptive stock brokerage platform is gaining rapid share of the investment community, coming at the industry from a different angle: Interactive Brokers (NASDAQ: IBKR). Known as IBKR for short, the company has grown its client equity at a rapid rate over the last decade as sophisticated investors flock to the platform. Its stock price has soared in response to these gains, leading management to split its stock on June 16. Does this make IBKR the perfect stock-split stock to add to your portfolio today? Here's why the gains for the advanced brokerage platform should continue in the years ahead. Usage of Robinhood and other simplified trading applications soared during the pandemic's height before stalling in the bear market of 2022. At the end of 2021, Robinhood had 22.7 million customer accounts, only slightly below the number of accounts it has today, and that's with aggressive marketing spend and promotional programs. Many of these customers were initially beginners, but have since turned into investors looking for a more advanced brokerage platform. This was a perfect situation for IBKR to take this small but highly valuable customer base away from Robinhood-type brokerages. Growth of active accounts on IBKR has been steady for the last decade, hitting 300,000 in 2015, 1.1 million in 2020, and 3.6 million as of its latest first-quarter update. Why is IBKR gaining market share? It's offering individuals a wide breadth of assets to trade that were historically only reserved for professional investment funds. This includes easy international trading in over 100 markets, foreign currency trading, bonds, and options, all with affordable fees and commissions. In recent years, it has tried to move both up and down market from its first core customers. It launches the IBKR Lite trading application with commission-free trades and IBKR's white glove services for large advisory firms and hedge funds. IBKR Lite is going for Robinhood customers who are just getting into investing, while the white glove service is for large professional funds that typically use legacy brokerages for trading. With 3.6 million active accounts, IBKR is nowhere near the market leader in brokerage services. This is a good thing. Over the next decade, it can take its historical playbook and keep taking market share from competitors because of its breadth of services at affordable prices. For reference, Charles Schwab has 37 million active accounts, or more than 10x IBKR's number today. This is a huge opportunity for IBKR to steadily convince investors to switch to its platform, with its wider breadth of trading capabilities. IBKR's growth has been incredible. It had client equity -- which is the total net asset value of all its customers' portfolios -- of $32.9 billion in 2012. Today, that figure has grown to $573.5 billion, or an annual growth rate of 26.3%. This not only shows that IBKR is able to convince investors to switch to its platform, but that it's more valuable revenue-wise than the average trader. Using its total client equity and total active accounts, the average IBKR account has client equity of $159,000, which is much higher than Robinhood's average account level of under $10,000. What makes this growth even more impressive is how efficiently the company operates from an expense and advertising basis. Last quarter, IBKR had a pre-tax profit margin of 74%, making it one of the most profitable businesses in the world by margin. It's able to do so because of its advanced technology capabilities that let it run automated brokerage functions, such as making margin calls on customers. It doesn't have to spend a boatload on marketing like Robinhood because of its superior product. This efficiency and growth add up to $793 million in net income generated for IBKR over the last 12 months, up over 200% in the last three years. Today, IBKR has a market cap of $22 billion. That measures the value of IBKR for its non-controlling interests that sit with the founder Thomas Peterffy and his family. It's this market value that you're buying as an outside investor. While a stock split doesn't change anything about the fundamental analysis of IBKR, I believe now is as good a time as any to buy shares of this disruptive brokerage platform. The stock currently trades at a price-to-earnings ratio (P/E) of 28, which does look expensive at first glance. However, investors should remember that IBKR has impressive track records of earnings growth and of acquiring clients to the platform. Today, IBKR's net income applied to common shareholders is $793 million. If that figure triples again over the next five years -- just as it has in the past three -- it will grow to around $2.4 billion, bringing the trailing P/E ratio to under 10. For those with a longer time horizon, IBKR stock looks like a wonderful buy at these prices. Buy shares, hold on tight, and wait patiently for wealth to build in your portfolio. Before you buy stock in Interactive Brokers Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Interactive Brokers Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Charles Schwab is an advertising partner of Motley Fool Money. Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends Charles Schwab and recommends the following options: long January 2027 $175 calls on Interactive Brokers Group, short January 2027 $185 calls on Interactive Brokers Group, and short June 2025 $85 calls on Charles Schwab. The Motley Fool has a disclosure policy. Should You Buy This Stock-Split Stock Disrupting the Brokerage Market? was originally published by The Motley Fool
Time Business News
6 days ago
- Business
- Time Business News
Ranking the Best Trading Apps for Active Day Traders
By Rajiv Sethi Day trading is a fast-paced, high-stakes game where every second counts. To succeed, traders need tools that deliver speed, precision, and real-time data. That's where choosing the best trading apps becomes critical. In today's highly mobile world, professional and amateur day traders alike rely on smart apps that offer lightning-fast execution, live charts, and instant market updates. In this article, we'll rank the best trading apps for active day traders and explore what features make them stand out in today's competitive financial landscape. For active day traders, even a momentary delay can result in a missed opportunity or unexpected loss. Whether you're scalping small moves or riding intraday momentum, the best trading apps give you the power to act instantly and decisively. Real-time price tracking One-tap trade execution Customizable alerts and indicators Low or zero commissions Advanced charting tools Instant news and sentiment feeds These aren't just luxuries—they're necessities in the high-speed world of day trading. Still a top choice for forex and CFD traders, MetaTrader offers excellent charting, algorithmic trading capabilities, and low latency execution. Its mobile app is intuitive and allows custom indicators and expert advisors. Why It's Great: Fast execution Great for forex traders Customizable indicators Thinkorswim is known for its depth of tools, real-time scanning, and built-in paper trading. While its interface is packed with features, it remains user-friendly for day traders. Why It's Great: Advanced technical tools Real-time scanning and alerts Strong community and support Perfect for serious traders, IBKR offers ultra-low commissions, access to global markets, and institutional-grade tools. Its mobile app supports all asset classes and integrates professional-level functions. Why It's Great: Global asset access Real-time news integration Smart routing for fast trades Webull is one of the best trading apps for beginners and experienced traders alike. It's commission-free and has advanced technical charts, multiple order types, and customizable widgets. Why It's Great: Zero-commission trades In-app trading community Technical analysis tools For traders who like social elements, eToro offers copy trading, community insights, and a sleek interface. While ideal for swing traders too, its real-time trade features support fast executions. Why It's Great: Social/copy trading Simple interface Crypto, forex, and stocks TradeStation offers powerful tools for professional day traders. With direct market access, strategy testing, and smart order routing, it's designed for speed and accuracy. Why It's Great: High-speed execution Algorithmic trading support Integrated news and data When ranking the best trading apps, these features matter the most for day traders: Fast trade execution is crucial. Apps must support low latency and smart routing. Access to live, customizable charts with multiple timeframes and indicators is a must. Traders need instant alerts for price movements, volume spikes, and news events. Delays in data can kill trades. Live feeds and integrated sentiment tools offer a major edge. In day trading, complexity can slow you down. A clean, customizable interface helps you act quickly. To make the most of these best trading apps, day traders also need to monitor the trading pulse—the real-time flow of market data, sentiment, and macro events that influence short-term moves. A synced setup between a trading pulse feed and your mobile app can: Trigger alerts faster Improve timing on trade entries Help you stay ahead of breaking news Increase win rates during volatile hours As a trader who has tested dozens of platforms over the years, I believe that having the right mobile tools is just as important as your strategy. The best trading apps don't just offer features—they offer flexibility, precision, and an edge that's vital for consistent intraday profits. If you're serious about day trading in 2025, invest in tools that empower you to act instantly and think ahead. Whether you prefer technical setups or fast news-based scalping, there's a trading app on this list that can take your performance to the next level. TIME BUSINESS NEWS
Yahoo
26-06-2025
- Business
- Yahoo
Interactive Brokers' Stock Split: Time to Buy Shares?
Interactive Brokers is a fast-growing brokerage service that professionals love to use. Its fast customer growth has led to impressive earnings growth for the stock. Even though the stock has soared, it still looks cheap for investors who plan to hold for the long term. 10 stocks we like better than Interactive Brokers Group › A stock split does not change anything about the underlying business fundamentals of a stock, and yet, stock-split stocks tend to outperform over the 12 months following a split. This makes them interesting to pay attention to. One under-the-radar stock split that occurred this month is Interactive Brokers (NASDAQ: IBKR), performing a 4-to-1 split on its common shares. The technology-focused investing brokerage has grown users, revenue, and earnings at an impressive rate in the last 10 years, with customers drawn to its advanced trading platform. Does this make the stock a perfect buy for investors right now? Let's take a closer look at why Interactive Brokers is a winning stock to add to your portfolio. Interactive Brokers is an advanced trading platform that brings professional service to the masses. By enabling its customers to trade virtually any foreign market, currency, bonds, futures, and more, the brokerage has built up a better value proposition than traditional brokerages, even online-focused ones. It has an easy-to-use mobile application as well as more advanced trading tools, helping it cater to the more sophisticated individual investor as well as professional investors and hedge funds. It does all this at a reasonable price, including free stock trading on its IBKR Lite platform. This consistent focus on a wide swath of trading capabilities at a reasonable price has helped Interactive Brokers convince investors to switch to its brokerage platform. Back in 2012, Interactive Brokers only had 200,000 active customers, a minnow in the brokerage world. Today, it has 3.6 million customers that skew toward wealthier, advanced, and professional traders. This is a valuable set of customers with high lifetime values. To keep furthering its brokerage offering, Interactive Brokers is now offering more cryptocurrency trading and the fast-growing prediction marketplace, which allows users to bet on things such as the outcome of a country's election. The more types of trades you can make on Interactive Brokers, the more valuable it is for customers. This is why investors are switching from legacy players to Interactive Brokers. Typically, fast-growing companies are not very profitable because of how much they need to spend on advertising, marketing, and technological development. Not Interactive Brokers. The company has built up a culture of efficiency and product-led growth combined with a highly automated brokerage platform that needs fewer employees to manage. Last quarter, Interactive Brokers had a pre-tax profit margin of 74%, which is one of the best profit margins of any company globally. The average profit margin for the S&P 500 index has ranged from 10% to 15%. Interactive Brokers has used this increasing operating leverage to put up impressive earnings growth in the last few years. Net income is up 400% in the last five years, hitting $793 million over the last 12 months. With only a small portion of investors using Interactive Brokers, the company has plenty of room to keep growing in the years to come; it is nowhere near one of the largest players in the brokerage market today. Investors who are backward-looking may think they have missed out on owning Interactive Brokers stock. It is up 67% in the last 12 months and just went through a stock split. I believe these investors are missing the forest for the trees. At today's stock price, Interactive Brokers trades at a price-to-earnings ratio (P/E) of 28. Most value investors would look at this high earnings ratio and scoff at investing in this company. However, we need to remember that Interactive Brokers has put up impressive levels of user, revenue, and earnings growth in the last five years and still has a long runway to keep stealing market share of brokerage customers. Its superior platform is not going to be replicated overnight, and it keeps improving its breadth of products and services every year. If Interactive Brokers can keep growing its earnings at a fast clip (which I think it can), the stock is a great buy after its recent stock split. Before you buy stock in Interactive Brokers Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Interactive Brokers Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy. Interactive Brokers' Stock Split: Time to Buy Shares? was originally published by The Motley Fool
Globe and Mail
25-06-2025
- Business
- Globe and Mail
Interactive Brokers' Stock Split: Time to Buy Shares?
A stock split does not change anything about the underlying business fundamentals of a stock, and yet, stock-split stocks tend to outperform over the 12 months following a split. This makes them interesting to pay attention to. One under-the-radar stock split that occurred this month is Interactive Brokers (NASDAQ: IBKR), performing a 4-to-1 split on its common shares. The technology-focused investing brokerage has grown users, revenue, and earnings at an impressive rate in the last 10 years, with customers drawn to its advanced trading platform. Does this make the stock a perfect buy for investors right now? Let's take a closer look at why Interactive Brokers is a winning stock to add to your portfolio. Comprehensive offering for the masses Interactive Brokers is an advanced trading platform that brings professional service to the masses. By enabling its customers to trade virtually any foreign market, currency, bonds, futures, and more, the brokerage has built up a better value proposition than traditional brokerages, even online-focused ones. It has an easy-to-use mobile application as well as more advanced trading tools, helping it cater to the more sophisticated individual investor as well as professional investors and hedge funds. It does all this at a reasonable price, including free stock trading on its IBKR Lite platform. This consistent focus on a wide swath of trading capabilities at a reasonable price has helped Interactive Brokers convince investors to switch to its brokerage platform. Back in 2012, Interactive Brokers only had 200,000 active customers, a minnow in the brokerage world. Today, it has 3.6 million customers that skew toward wealthier, advanced, and professional traders. This is a valuable set of customers with high lifetime values. To keep furthering its brokerage offering, Interactive Brokers is now offering more cryptocurrency trading and the fast-growing prediction marketplace, which allows users to bet on things such as the outcome of a country's election. The more types of trades you can make on Interactive Brokers, the more valuable it is for customers. This is why investors are switching from legacy players to Interactive Brokers. An impressive run of earnings growth Typically, fast-growing companies are not very profitable because of how much they need to spend on advertising, marketing, and technological development. Not Interactive Brokers. The company has built up a culture of efficiency and product-led growth combined with a highly automated brokerage platform that needs fewer employees to manage. Last quarter, Interactive Brokers had a pre-tax profit margin of 74%, which is one of the best profit margins of any company globally. The average profit margin for the S&P 500 index has ranged from 10% to 15%. Interactive Brokers has used this increasing operating leverage to put up impressive earnings growth in the last few years. Net income is up 400% in the last five years, hitting $793 million over the last 12 months. With only a small portion of investors using Interactive Brokers, the company has plenty of room to keep growing in the years to come; it is nowhere near one of the largest players in the brokerage market today. IBKR PE Ratio data by YCharts Should you buy IBKR stock? Investors who are backward-looking may think they have missed out on owning Interactive Brokers stock. It is up 67% in the last 12 months and just went through a stock split. I believe these investors are missing the forest for the trees. At today's stock price, Interactive Brokers trades at a price-to-earnings ratio (P/E) of 28. Most value investors would look at this high earnings ratio and scoff at investing in this company. However, we need to remember that Interactive Brokers has put up impressive levels of user, revenue, and earnings growth in the last five years and still has a long runway to keep stealing market share of brokerage customers. Its superior platform is not going to be replicated overnight, and it keeps improving its breadth of products and services every year. If Interactive Brokers can keep growing its earnings at a fast clip (which I think it can), the stock is a great buy after its recent stock split. Should you invest $1,000 in Interactive Brokers Group right now? Before you buy stock in Interactive Brokers Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Interactive Brokers Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor 's total average return is809% — a market-crushing outperformance compared to175%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.
