Interactive Brokers Shares Surge 16.4% Amid Record Profit Margins
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy IBKR?
Source: Fool
- Client Account Growth: By the end of 2025, Interactive Brokers expects to reach 4.4 million customer accounts, reflecting a 32% year-over-year increase, significantly outpacing the overall trading population and indicating a growing market share in stock, options, and crypto trading.
- Commission Revenue Surge: Last quarter, commission revenue rose by 22% year-over-year, while net interest income increased by 20%, showcasing the company's robust performance in the global market and further solidifying its leading position in the industry.
- High Profit Margin Advantage: Interactive Brokers boasts a pre-tax profit margin of 79%, one of the highest globally, attributed to its decades-long investment in automated trading systems that allow for scalable operations with fewer employees, significantly enhancing profitability.
- Long-Term Investment Potential: Although the current P/E ratio stands at 33.2, which appears high, if the company can maintain a 32% annual growth rate in customers, Interactive Brokers' stock is likely to continue appreciating over the next decade, making it a worthwhile long-term investment.
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Analyst Views on IBKR
Wall Street analysts forecast IBKR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IBKR is 81.43 USD with a low forecast of 75.00 USD and a high forecast of 91.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 69.490
Low
75.00
Averages
81.43
High
91.00
Current: 69.490
Low
75.00
Averages
81.43
High
91.00
About IBKR
Interactive Brokers Group, Inc. is an automated global electronic broker. The Company custodies and services accounts for hedge and mutual funds, exchange-traded funds (ETFs), registered investment advisors, proprietary trading groups, introducing brokers and individual investors. It specializes in routing orders and executing and processing trades in stocks, options, futures, foreign exchange instruments (forex), bonds, mutual funds, ETFs, precious metals, and forecast contracts on more than 160 electronic exchanges and market centers in 36 countries and 28 currencies around the world. In addition, its customers can use its trading platform to trade certain cryptocurrencies through third-party cryptocurrency service providers that execute, clear and custody the cryptocurrencies. Its trading platforms include IBKR Desktop, IBKR Trader Workstation, IBKR Mobile, IBKR Client Portal and others. Its key product offerings include IBKR Pro, IBKR Lite, and IBKR Universal Account.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Volume Surge: The company recorded a trading volume of 53.8 million shares, approximately 97% higher than its three-month average of 27.4 million shares, reflecting renewed investor interest in crypto assets.
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- Client Account Growth: By the end of 2025, Interactive Brokers expects to reach 4.4 million customer accounts, reflecting a 32% year-over-year increase, significantly outpacing the overall trading population and indicating a growing market share in stock, options, and crypto trading.
- Commission Revenue Surge: Last quarter, commission revenue rose by 22% year-over-year, while net interest income increased by 20%, showcasing the company's robust performance in the global market and further solidifying its leading position in the industry.
- High Profit Margin Advantage: Interactive Brokers boasts a pre-tax profit margin of 79%, one of the highest globally, attributed to its decades-long investment in automated trading systems that allow for scalable operations with fewer employees, significantly enhancing profitability.
- Long-Term Investment Potential: Although the current P/E ratio stands at 33.2, which appears high, if the company can maintain a 32% annual growth rate in customers, Interactive Brokers' stock is likely to continue appreciating over the next decade, making it a worthwhile long-term investment.
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See More
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- Surge in Client Accounts: The total number of client accounts grew by 32% year-over-year, reaching nearly 4.54 million, reflecting the company's success in attracting new clients and enhancing its future revenue potential and market share.
- Significant Increase in Client Equity: Total client equity rose by 38% from January 2025, surpassing $814 billion, indicating increased client confidence in the market and providing the company with more capital utilization opportunities.
- Margin Loan Balances Rise: Client margin loan balances increased by 35% to nearly $163 billion, demonstrating heightened client activity in the market, which could lead to higher interest income for the company.
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- Volume Surge: The company recorded a trading volume of 53.8 million shares, approximately 97% higher than its three-month average of 27.4 million shares, reflecting renewed investor interest in crypto assets.
- Market Dynamics: In the financial services sector, peers Charles Schwab and Interactive Brokers Group also saw stock increases of 3.02% and 7.34%, respectively, indicating a broadening investor interest across retail brokerages that further supported Robinhood's stock price.
- Investor Sentiment: Despite the rebound in cryptocurrency prices, investors remain cautious about whether this short-term volatility can translate into sustained trading activity, leading to increased stock price fluctuations for Robinhood, which reflects the market's heightened focus on trading engagement.
See More
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- Market Performance: The S&P 500 index declined for the third consecutive day, dropping by 1.2%.
- Year-to-Date Status: This decline has pushed the index into negative territory for the year.
See More
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- Client Account Growth: By the end of 2025, Interactive Brokers expects to reach 4.4 million customer accounts, reflecting a 32% year-over-year increase, significantly outpacing the overall trading population and indicating a growing market share in stock, options, and crypto trading.
- Commission Revenue Surge: Last quarter, commission revenue rose by 22% year-over-year, while net interest income increased by 20%, showcasing the company's robust performance in the global market and further solidifying its leading position in the industry.
- High Profit Margin Advantage: Interactive Brokers boasts a pre-tax profit margin of 79%, one of the highest globally, attributed to its decades-long investment in automated trading systems that allow for scalable operations with fewer employees, significantly enhancing profitability.
- Long-Term Investment Potential: Although the current P/E ratio stands at 33.2, which appears high, if the company can maintain a 32% annual growth rate in customers, Interactive Brokers' stock is likely to continue appreciating over the next decade, making it a worthwhile long-term investment.
See More
Interactive Brokers Launches Innovative RRIF for Canadian Clients
- Launch of RRIF: Interactive Brokers has introduced the Registered Retirement Income Fund (RRIF) in Canada, providing residents with a flexible retirement fund management solution that complies with government regulations, aimed at enhancing clients' retirement income management efficiency.
- Seamless Conversion Feature: The newly launched RRIF allows clients to convert from existing Registered Retirement Savings Plans (RRSP) without the need to transfer assets, simplifying the management process of retirement funds and enhancing user experience.
- Diverse Investment Products: The RRIF offers a variety of investment products including stocks, options, bonds, and ETFs, enabling clients to efficiently manage their RRIF, RRSP, Tax-Free Savings Account (TFSA), and First Home Savings Account (FHSA) from a single platform, achieving portfolio diversification.
- Low-Cost Trading Advantage: Interactive Brokers provides competitive commissions and no account maintenance fees for low-cost trading, combined with advanced portfolio analytics tools and automated minimum withdrawal calculations, helping clients effectively achieve their retirement and investment objectives.
See More
Interactive Brokers Stock Sees Moderate Gain Following Positive Metrics
- Trading Volume Growth: Interactive Brokers reported a 27% year-over-year increase in daily average revenue trades (DARTs) for January 2026, surpassing December figures by 30%, indicating a significant uptick in market activity that enhances profitability.
- Increase in Client Accounts: The total number of client accounts rose by 32% year-over-year to nearly 4.54 million as of January 2026, demonstrating substantial progress in attracting new customers and solidifying market position.
- Client Equity Growth: Total client equity increased by 38% from January 2025 to exceed $814 billion, reflecting a rise in client wealth that may drive future trading activity and revenue growth for the company.
- Margin Loan Balance Rise: Margin loan balances for clients grew by 35% to nearly $163 billion, indicating heightened demand for leveraged trading, which could lead to increased interest income for the firm.
See More
Interactive Brokers Reports Strong January Growth Metrics
- DARTs Growth: Interactive Brokers' daily average revenue trades (DARTs) rose by 27% year-over-year and increased by 30% from December, indicating strong performance in an active trading environment and reinforcing its market position.
- Surge in Client Accounts: The total number of client accounts grew by 32% year-over-year, reaching nearly 4.54 million, reflecting the company's success in attracting new clients and enhancing its future revenue potential and market share.
- Significant Increase in Client Equity: Total client equity rose by 38% from January 2025, surpassing $814 billion, indicating increased client confidence in the market and providing the company with more capital utilization opportunities.
- Margin Loan Balances Rise: Client margin loan balances increased by 35% to nearly $163 billion, demonstrating heightened client activity in the market, which could lead to higher interest income for the company.
See More
