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The **Charles Schwab** or **Fidelity** for professional and institutional investors, offering a global marketplace for virtually all financial instruments, from stocks to futures and crypto.

It's like the **Amazon** for financial trading, providing access to a vast, global selection of virtually every financial instrument—stocks, options, futures, forex, and even cryptocurrencies—all through one electronic platform.

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• Electronic Brokerage: Facilitates the execution, clearing, and settlement of trades across a wide range of financial instruments including stocks, options, futures, and cryptocurrencies.
• Custody Services: Provides secure holding and servicing of client assets for both institutional and individual investors.
• Prime Brokerage: Offers comprehensive services primarily to institutional clients such as hedge funds, encompassing trading, financing, and operational support.
• Securities Lending: Provides services for lending and borrowing securities, allowing clients to generate income or facilitate short selling strategies.
• Margin Lending: Extends credit to clients, allowing them to borrow funds against their investment portfolios for increased purchasing power or liquidity.

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Major Customers of Interactive Brokers (IBKR)

Interactive Brokers serves a diverse range of customers, which can be broadly categorized as:

• Funds and Asset Managers: This category includes institutional clients such as hedge funds, mutual funds, exchange-traded funds (ETFs), and registered investment advisors (RIAs). These entities utilize Interactive Brokers for executing, clearing, settling trades, and custody services as they manage investment portfolios for their own clients.
• Professional Trading Groups and Financial Intermediaries: This segment includes proprietary trading groups, which trade their own capital, and introducing brokers, who refer clients to Interactive Brokers and typically receive a share of the commissions. These clients often benefit from advanced trading tools and prime brokerage services.
• Individual Investors: These are retail clients who use Interactive Brokers' platform to manage their personal investments and execute trades across a wide range of asset classes, including stocks, options, futures, foreign exchange, bonds, and cryptocurrencies.

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• CME Group Inc. (CME)
• Intercontinental Exchange, Inc. (ICE)
• Nasdaq, Inc. (NDAQ)
• Cboe Global Markets, Inc. (CBOE)
• London Stock Exchange Group plc (LSEG)
• S&P Global Inc. (SPGI)
• AT&T Inc. (T)
• Verizon Communications Inc. (VZ)
• Amazon.com, Inc. (AMZN)

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Thomas Peterffy, Founder, Chairman of the Board of Directors

Thomas Peterffy emigrated to the U.S. from Hungary in 1965 and has been instrumental in applying computer technology to automate trading and brokerage functions. He purchased a seat on the American Stock Exchange in 1977 and formed T.P. & Co. the following year, which later became Timber Hill Inc. and eventually Interactive Brokers. He pioneered the development of computerized mathematical models for valuing equity options and built an automated market-making system for stocks, options, and futures. Mr. Peterffy was CEO until December 2019 and remains the founder and chairman.

Milan Galik, Chief Executive Officer, President and Director

Mr. Galik joined Interactive Brokers in 1990 as a software developer, recruited by founder Thomas Peterffy. He helped launch the company's German operations in Frankfurt in 1991, running the derivatives trading desk on the first electronic exchange there. Upon returning to the U.S. in 1992, he contributed to building Interactive Brokers' automated market-making systems and later focused on developing the firm's electronic brokerage segment. He was appointed President in 2014 and became Chief Executive Officer in 2019.

Paul J. Brody, Chief Financial Officer, Treasurer, Secretary and Director

Mr. Brody joined Interactive Brokers in 1987 as Treasurer, taking charge of all back-office operations, and was appointed Chief Financial Officer in 2003. He has also served as a director and member Vice Chairman of The Options Clearing Corporation and as a director of Quadriserv Inc., an electronic securities lending platform. Prior to Interactive Brokers, Mr. Brody held positions in marketing, new business development, and as Credit Manager for Mocatta Metals Corp., an international commodities trading firm.

Earl H. Nemser, Vice Chairman and Director

Mr. Nemser became Vice Chairman in November 2006, having served as a director and/or officer for various Interactive Brokers affiliates since 1988. He is an Independent Advisor to the law firm Dechert LLP, where he previously served as Special Counsel. His earlier career includes being a Partner at law firms Swidler Berlin Shereff Friedman and Cadwalader, Wickersham & Taft, specializing in commercial counseling and litigation with an emphasis on securities and commodities law.

Steven Sanders, Executive Vice President of Marketing and Product Development

Mr. Sanders serves as the Executive Vice President of Marketing and Product Development at Interactive Brokers. He focuses on enhancing the company's global offerings and expanding the suite of tradeable products, driven by customer demand and a steering committee, with a strong emphasis on advanced technology. Before joining Interactive Brokers LLC in 2001, he held positions at Salomon Smith Barney Inc. and Citicorp Securities, Inc.

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1. Sensitivity to Interest Rate Fluctuations: Interactive Brokers' profitability is significantly influenced by interest rates, as a substantial portion of its revenue comes from net interest income on client cash balances and margin lending. A decline in interest rates would compress the spread between what the company earns and pays out, directly impacting its earnings.
2. Regulatory and Compliance Burden: Operating across approximately 150 electronic exchanges and market centers in numerous countries exposes Interactive Brokers to a complex and evolving web of global regulatory regimes. Changes in capital requirements, margin lending regulations, investor protection rules, or new compliance mandates (such as Anti-Money Laundering programs) in major markets could increase operational costs, constrain growth, or reduce profitable revenue streams.
3. Geopolitical Fragmentation and Cross-Border Restrictions: Interactive Brokers' global infrastructure and its ability to facilitate cross-border capital movement are key competitive advantages. However, increasing geopolitical tensions, trade conflicts, sanctions regimes, and tighter capital controls or data-residency rules could introduce friction into cross-border flows. This could lead to higher compliance costs, reduced accessibility to certain markets, lengthened settlement timelines, and diverging liquidity conditions, thereby complicating the scalability of its global business model.

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Interactive Brokers (IBKR) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Continued Growth in Customer Accounts and Client Equity: Interactive Brokers has demonstrated strong net new account growth and rapid global customer expansion. The company added over 1 million net new accounts in 2025, reaching 4.4 million active client accounts. Management continues to emphasize sustaining growth through attracting new clients internationally, which leads to increased client equity and assets under custody.
2. Increased Trading Activity and Daily Average Revenue Trades (DARTs): A growing client base naturally translates into higher trading volumes across various financial instruments, including stocks, options, and futures. Interactive Brokers has observed robust gains in commission revenue driven by increased trading activity and significant year-over-year increases in Total Customer DARTs.
3. Robust Net Interest Income from Client Balances: The company benefits from net interest income generated from larger client cash and margin lending balances. While there is a potential sensitivity to declining benchmark interest rates, substantial customer credit balances and securities lending opportunities from an expanding account base contribute significantly to revenue.
4. Product Innovations and Platform Enhancements: Interactive Brokers continuously introduces new products and enhances its trading platform to attract and retain clients. Recent initiatives include expanding cryptocurrency trading options, launching new futures contracts, and developing AI-powered tools such as "Ask IBKR" within platforms like GlobalTrader 2.0. These technological advancements and product expansions are crucial for driving future growth.
5. Strategic Global and Market Expansion: Management is actively pursuing global expansion by entering new geographic markets and offering new tax-advantaged accounts. The company expanded market access to regions like Brazil, Taiwan, the UAE, and Slovenia, and introduced new account types in Sweden, Japan, and Canada in 2025, with further international expansion planned for 2026. This broadens its client reach and revenue streams.

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Share Issuance

• Interactive Brokers Group, Inc. announced a four-for-one forward stock split in April 2025, with trading on a split-adjusted basis commencing in June 2025, to enhance accessibility for investors.
• The company expanded its authorized share counts in 2025.
• From 2011 through 2025, Interactive Brokers issued 165,613,780 shares of common stock, with a fair value of $2.2 billion, to Holdings in exchange for an equivalent number of member interests in IBG LLC.