Latest news with #InteractiveBrokers
Yahoo
2 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
Android Authority
3 days ago
- Business
- Android Authority
5 apps I recommend to every savvy investor
Rita El Khoury / Android Authority I'm really into finance and have been investing for a long time. From stocks and crypto to swing trading and holding, I've done it all. Over the years, I've also tried out all sorts of investment apps in hopes of getting the proper data and setting up a system that works for me. Some were good, others not so much. In this post, I'll highlight the good ones and talk about why you should consider using them. Before we dive into the list, I want to clarify that these are investment-related data apps. This means they provide timely news, charts, and other crucial data you need to make informed investment decisions. I won't be discussing investment or trading apps used for buying and selling stocks, for example. If you're looking for a platform to execute trades, my top recommendation is to open an Interactive Brokers account. It's one of the most reliable brokers out there and offers a few different trading platforms that will suit both beginners and experienced investors. However, there are plenty of popular alternatives available, including WeBull, Robinhood, and Trading 212. How many investment apps do you use? 0 votes 1 NaN % 2 NaN % 3 NaN % 4 NaN % 5 NaN % More than 5 NaN % Koyfin Edgar Cervantes / Android Authority This is, in my opinion, the best app on this list, and what's funny is that it's not even very popular. I've been using it for years and don't plan on switching to an alternative. Koyfin is all about data. Not only can I see exactly how the markets are doing at a specific time, but I can also check a company's financial records in detail. That includes the income statement, balance sheet, and cash flow statement, alongside all the financial ratios. It also provides analyst opinions and analysis regarding where a stock's price might go in the next 12 months. To make an investment decision, I need data, and that's why I love Koyfin. There are other platforms out there that offer similar services, some of which are on this list, but Koyfin stands out due to its ease of use and a simple yet eye-catching design. It's free to use, but there are limitations you can remove with a subscription, which is the norm with these kinds of apps. Yahoo Finance Mitja Rutnik / Android Authority One of the most popular apps when it comes to investing, Yahoo Finance is a service I've used for quite some time. Just like with Koyfin, I'm able to check all sorts of financial data that helps me make a final investment decision. However, it's the news section of the app that truly makes it stand out. While most investment-related apps have a news section, Yahoo Finance puts it a lot more front and center. The market moves with the news. News is an important part of investing, especially for those who like to trade — buying and selling in a short period of time. The market moves with the news, so a service like Yahoo Finance is a handy one to use. It also has all the financial data most people need, although Koyfin's offering is a bit more robust. The data is also structured better on Koyfin, although Yahoo Finance is still a great tool overall. It's free to use, but a paid plan is available that gets you an ad-free experience, additional research reports, and much more. TradingView Calvin Wankhede / Android Authority Whereas Koyfin has the most robust fundamental data and Yahoo Finance is news-focused, TradingView excels in charting. So, if you're into technical analysis, this is the app to use. You have a lot of indicators to choose from that will help you make a decision on which company to invest in and when. The other big advantage of TradingView is its community, which allows users to discuss and share ideas. While you should always invest based on your personal goals and with your own system, hearing other people talk about their strategy can sometimes spark an idea or two. I dabbled with technical analysis a bit when day-trading, so I used TradingView because the charting tools are better than what Koyfin and Yahoo Finance offer. I don't use it anymore because I prefer to buy and hold and don't trade as actively, but if that's something you're into, TradingView is for you. Mitja Rutnik / Android Authority This app has everything you need, although it doesn't excel in one particular area. It covers everything from stocks and cryptos to ETFs and bonds, offering data from over 70 exchanges. There's even a handy alert feature available. I used it for a bit and was able to create a watchlist of my favorite companies, get most of the fundamental data I needed, and also stay on top of the latest news. There are charts available as well, as are various analyses to help with making a final investment decision. There's even a handy alert feature, allowing the app to let me know when, for example, a stock's price drops to a certain level. The app is free, but as with the rest of the entries on this list, a premium plan is available that gets rid of ads and offers extra functionality. Whether it's worth it depends on each person's goals and needs. MarketWatch Mitja Rutnik / Android Authority MarketWatch is an app that provides breaking news and analysis of the financial markets. It's part of News Corp, which also owns The Wall Street Journal and Barron's, among others. I really like their articles and analysis, and have been a reader for a long time. I especially like how fast they report on the latest earnings of specific companies, as that kind of data represents a great opportunity to buy or short stocks. In addition to news, MarketWatch provides financial data, charting, and the option of creating a watchlist. However, the data it provides and the overall experience are not as good as what you get with something like Koyfin, at least for me personally. MarketWatch is free, but there are limits to how many articles can be read in a specific time frame. To get full access, a premium subscription is required. These are my five favorite investment-related apps, although I've used plenty of other services over the years. These include FinViz, TIKR, and even Google Finance. However, none of these have a dedicated Android app, so I just used them on my PC. Do you have any favorite investment apps that I didn't mention? Let me know in the comments.
Straits Times
3 days ago
- Business
- Straits Times
Singapore stocks climb on overnight Wall Street rally; STI up 0.7%
Gainers outstripped losers 309 to 202 in the wider market. ST PHOTO: BRIAN TEO SINGAPORE – A buoyant session on Wall Street overnight gave local investors the signal to push shares higher on June 27 and end the week on a positive note. Robust trade of 1.8 billion securities worth $1.4 billion propelled the Straits Times Index (STI) up 0.7 per cent or 27.74 points to 3,966.2, with gainers outstripping losers 309 to 202. The Wall Street rally came as weaker-than-projected economic data coincided with news that President Donald Trump will announce a new US Federal Reserve chair earlier than expected, noted Interactive Brokers senior economist Jose Torres. 'The one-two punch of softer activity figures and the new leader of the central bank being named in September or October is bolstering rate cut wagers and sending the yield curve south,' he said. The optimism bolstered tech and finance shares and sent the S&P 500, Dow Industrials and Nasdaq up around 1 per cent but it failed to inspire all regional markets. Japan's Nikkei 225 gained 1.4 per cent and Malaysian stocks rose 0.6 per cent, but the Hang Seng in Hong Kong fell 0.2 per cent, the ASX 200 in Sydney declined 0.4 per cent and Seoul's Kospi was down 0.8 per cent. Meanwhile, software services provider Info-Tech Systems launched its initial public offering (IPO) of 24,856,000 shares at 87 cents apiece on June 27, marking the first Singapore mainboard listing in almost two years. Japanese telco Nippon Telegraph and Telephone also lodged an IPO prospectus to spin off some of its data centres into a Singapore-listed real estate investment trust that would likely be the largest S-Reit listing in a decade. Hongkong Land was the STI's top gainer, rising 3.4 per cent to US$5.84, while Sembcorp Industries was the biggest decliner, down 1 per cent to $6.83. The local banks ended higher: DBS gained 1 per cent to $44.86; OCBC rose 0.7 per cent to $16.35; and UOB added 0.4 per cent at $36. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
3 days ago
- Business
- Business Times
Singapore stocks track overnight Wall Street gains on Friday; STI up 0.7%
[SINGAPORE] Local stocks tracked overnight Wall Street gains to end higher on Friday (Jun 27). The benchmark Straits Times Index (STI) rose 0.7 per cent or 27.74 points to 3,966.2. Across the broader market, gainers outnumbered losers 309 to 202, after 1.8 billion securities worth S$1.4 billion changed hands. Regional markets were mixed. The Nikkei 225 gained 1.4 per cent, the FTSE Bursa Malaysia KLCI rose 0.6 per cent and the IDX Composite was up 1 per cent. Meanwhile, the Hang Seng Index fell 0.2 per cent and the Kospi was down 0.8 per cent. In the US, markets rallied as weaker-than-projected economic data coincided with news that President Donald Trump will announce a new US Federal Reserve chair earlier than expected, said Jose Torres, senior economist at Interactive Brokers. 'The one-two punch of softer activity figures and the new leader of the central bank being named in September or October is bolstering rate cut wagers and sending the yield curve south in bull steepening fashion,' he said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In Singapore, Ministry of Manpower data on Friday showed both job vacancies and unemployment rose in the first quarter of 2025, causing the ratio between them to stay unchanged. In the equities space, software services provider Info-Tech Systems on Friday launched its initial public offering (IPO) of 24,856,000 shares at S$0.87 each, marking the first Singapore mainboard listing in almost two years. Japanese telco Nippon Telegraph and Telephone also lodged an initial public offering prospectus to spin off some of its data centres into a Singapore-listed real estate investment trust (S-Reit), marking what is likely to be the largest S-Reit listing in a decade. On the STI, Hongkong Land is the top gainer, rising 3.4 per cent to US$5.84. Sembcorp Industries is the biggest decliner, falling 1 per cent to S$6.83. The local banks ended higher. DBS gained 1 per cent to S$44.86, OCBC rose 0.7 per cent to S$16.35, while UOB was up 0.4 per cent at S$36.
Business Recorder
4 days ago
- Business
- Business Recorder
US stocks rise after good Micron results
NEW YORK: Wall Street stocks opened higher early Thursday following solid results from chip company Micron as markets digested a weaker than expected US first-quarter growth report. Micron's profits were more than five times the level in the year-ago period as the tech company pointed to heavy growth in its data center business and signaled it expects record revenue. Micron was higher early Thursday, along with Nvidia, another big artificial intelligence winner. About 20 minutes into trading, the Dow Jones Industrial Average was up 0.5 percent at 43,201.07. Wall Street indexes mixed as ME tensions ease The broad-based S&P 500 gained 0.3 percent to 6,109.69, while the tech-rich Nasdaq Composite Index edged up 0.1 percent to 19,995.85. 'The market seems to like Micron's earnings and guidance,' said Steve Sosnick of Interactive Brokers. 'Barring some major piece of news right now, the mood in the market is it seems to be, you know, buy tech until it stops working.' Data meanwhile showed the US economy decreased at an annual rate of 0.5 percent in the first quarter, a bigger fall than in the previous GDP estimate. However, markets tend to take such data in stride because it is backward looking and the calendar is now approaching the end of the second quarter.
