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• Charles Schwab for professional and global traders.
• The Bloomberg Terminal of online brokerages.
• J.P. Morgan's global trading desk, made accessible to individual investors.

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Major Products and Services of Interactive Brokers (IBKR)

• Brokerage Accounts: Offers access to trade a wide range of financial instruments globally across numerous exchanges. (Financial Brokerage)
• Trading Platforms: Provides advanced desktop, web, and mobile trading platforms with sophisticated tools for order execution and analysis. (Financial Technology)
• Margin Lending: Allows clients to borrow funds against their eligible securities at competitive interest rates for increased purchasing power or other needs. (Lending Services)
• Cash Management: Sweeps uninvested cash into FDIC-insured bank accounts, enabling clients to earn interest on their idle funds. (Cash Management Services)
• Investment Advisory Services: Offers tools and services for financial advisors and sophisticated investors to manage portfolios and research opportunities. (Investment Advisory)
• Securities Lending (Stock Yield Enhancement Program): Allows clients to lend out their fully paid shares to earn additional income from lending fees. (Securities Lending Services)

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Interactive Brokers (IBKR) serves a diverse range of clients globally. While it caters to both individual and institutional clients, its offerings are particularly appealing to sophisticated individual investors and the financial professionals who serve them, making a category-based description most appropriate for its clientele. The company primarily serves the following categories of customers:

• Individual Investors and Traders: This is a significant segment for IBKR, comprising active individual traders, long-term investors, and sophisticated individuals who leverage the platform for its low costs, extensive range of global financial products (stocks, options, futures, forex, bonds, funds), advanced trading tools, and research capabilities.
• Financial Advisors and Wealth Managers: Interactive Brokers provides a robust platform tailored for independent financial advisors, registered investment advisors (RIAs), and wealth managers. These professionals use IBKR's services to manage their clients' portfolios, execute trades, and offer comprehensive financial advice. While these advisors operate as businesses, their primary function is to serve individual clients.
• Hedge Funds, Proprietary Trading Groups, and Institutions: This category includes professional money managers, hedge funds, mutual funds, proprietary trading firms, and other institutional clients. They utilize Interactive Brokers for its sophisticated technology, global market access, competitive commission rates, and advanced execution services to implement complex trading and investment strategies.

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• Intercontinental Exchange, Inc. (ICE)
• Nasdaq, Inc. (NDAQ)
• CME Group Inc. (CME)
• JPMorgan Chase & Co. (JPM)
• Bank of America Corporation (BAC)
• Citigroup Inc. (C)

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Thomas Peterffy Founder, Chairman of the Board of Directors

Mr. Peterffy emigrated to the U.S. from Hungary in 1965 and is recognized as a pioneer in applying computer technology to automate trading and brokerage functions. In 1977, he purchased a seat on the American Stock Exchange and was among the first to utilize a computerized mathematical model to continuously value equity option prices. He founded T.P. & Co. in 1978, which evolved into Timber Hill, an automated market-making firm. In 1983, he developed the first tablet computer for use by traders on exchange floors, and by 1986, he had developed a fully integrated, automated market-making system for stocks, options, and futures. Interactive Brokers was formed in 1993, building upon this global capacity for transaction processing. He served as CEO until December 2019, continuing as Chairman of the Board.

Milan Galik Chief Executive Officer, President and Director

Mr. Galik joined Interactive Brokers in 1990 as a software developer, recruited by Thomas Peterffy. In 1991, he helped launch the company's German operations and managed the derivatives trading desk on Frankfurt's first electronic exchange. Upon returning to the United States 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 assumed the role of Chief Executive Officer in October 2019. Mr. Galik holds an M.S. in Electrical Engineering from Technical University of Budapest. He has also served as Vice President of Timber Hill LLC, a subsidiary of IBG LLC, and as a director at the Boston Options Exchange.

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

Mr. Brody joined Interactive Brokers in 1987 as Treasurer, overseeing all back-office operations, and became Chief Financial Officer in 2003. Earlier in his career, he served as Treasurer for Timber Hill and held positions in marketing, new business development, and as Credit Manager for Mocatta Metals Corp., an international commodities trading firm. He has served as a director and Vice Chairman of The Options Clearing Corporation and as a director of Quadriserv Inc., an electronic securities lending platform provider. Mr. Brody earned a B.A. in Economics from Cornell University.

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 currently serves as an Independent Advisor to the law firm Dechert LLP, where he was Special Counsel from 2005 to 2018. Prior to this, he was a Partner at the law firms Swidler Berlin Shereff Friedman (1995-2004) and Cadwalader, Wickersham & Taft (before 1995). Mr. Nemser specializes in commercial counseling and litigation, with a focus on securities and commodities law.

Thomas A.J. Frank Executive Vice President

Mr. Frank has been an Executive Vice President of Interactive Brokers since 1999. His previous roles include serving as Chief Information Officer of the company and as a Director of OCC (formerly, The Options Clearing Corporation). Before becoming an Executive Vice President, he was the Vice President of IBKR Securities Services LLC in 1990.

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1. Exposure to Interest Rate Fluctuations: Interactive Brokers' profitability is significantly influenced by interest rate movements. The company earns substantial income from the difference between what it earns on customer cash balances and what it pays out. A decline in interest rates, as central banks may implement, could compress these profit spreads, potentially leading to a decrease in earnings even if other business aspects perform well.
2. Market Cyclicality and Trading Activity: Interactive Brokers' revenue is closely tied to overall market activity, including trading volumes, investment levels, and margin borrowing. During periods of market lulls or prolonged bear markets, reduced investor and trader activity can lead to slower growth and narrower profit margins. While the company's efficiency and recurring revenue streams help mitigate this, they do not eliminate the impact of a cooling market.
3. Regulatory Complexity and Compliance: Operating across more than 160 markets provides Interactive Brokers with a broad client base but also exposes it to a complex and ever-changing global regulatory environment. Each country has its own rules regarding capital requirements, leverage, and investor protection. Any tightening of these regulations or new compliance mandates in major markets could increase operational costs, necessitate expensive system upgrades, or restrict growth by limiting client activities.

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The rise of Decentralized Finance (DeFi) and broader blockchain-based financial markets presents a clear emerging threat.

DeFi platforms enable peer-to-peer trading, lending, and other financial activities directly on blockchains, significantly reducing or eliminating the need for traditional intermediaries like brokerage firms. As this ecosystem matures in terms of liquidity, user experience, and regulatory clarity, it poses a direct challenge to Interactive Brokers' core business model. A portion of sophisticated traders and institutional clients, who value low costs and direct market access, could shift some of their activities to decentralized venues for asset trading, derivatives, and lending. Furthermore, the increasing tokenization of traditional assets on blockchains could lead to direct peer-to-peer trading of securities, potentially bypassing conventional exchange and brokerage infrastructure that IBKR relies on and provides.

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Interactive Brokers (IBKR) operates as a leading automated electronic broker, offering a wide array of products and services primarily through its online trading platform. The company provides direct global access to trade various financial instruments and also caters to institutional clients with wealth management and clearing services.

The addressable markets for Interactive Brokers' main products and services, with global market sizes, are as follows:

• Online Trading Platform Market: The global online trading platform market was valued at approximately USD 10.15 billion in 2024. This market is projected to grow to about USD 16.71 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.4% during the forecast period. North America held a dominant share of 40.79% in this market in 2024.
• E-brokerage Market: The global e-brokerage market size was valued at USD 14.1 billion in 2024 and is projected to grow to USD 34.6 billion by 2034, at a CAGR of 9.4%. Another source indicates the electronic (E) brokerages market size reached $12.01 billion in 2024 and is expected to grow to $19.7 billion in 2029 with a CAGR of 10.5%.
• Securities Brokerage Market: The global securities brokerage market is estimated to be approximately USD 65.4 billion in 2024. It is anticipated to grow at a CAGR of 2.92% from 2025 to 2035, reaching an estimated USD 89.7 billion by 2035.
• Wealth Management Market: The global wealth management market reached a value of nearly USD 1.8 trillion in 2023. It is expected to grow to USD 2.5 trillion by 2028 and further to USD 3.5 trillion by 2033.
• Wealth Management Platform Market: The global wealth management platform market was valued at USD 2.95 billion in 2023. This market is projected to grow to USD 8.50 billion by 2032, at a CAGR of 12.5% during the forecast period.

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Expected Drivers of Future Revenue Growth for Interactive Brokers (IBKR)

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

1. Continued Growth in Customer Accounts and Client Equity: Interactive Brokers has demonstrated consistent and strong growth in its customer base and client equity. For example, in Q4 2024, the company added 775,000 accounts, a record annual number, with 217,000 added in the fourth quarter alone. Client equity also increased by 33% to $568 billion, surpassing half a trillion dollars for the first time. This expansion of its client base, particularly from international regions, is a fundamental driver as more customers lead to increased trading activity and higher balances generating interest income. The company noted strong net new account growth from all regions and client types, attracting clients through its products, pricing, and execution quality without relying on temporary bonuses or incentives. In Q3 2025, client accounts surpassed the 4 million mark, reaching 4.127 million, a 32% increase year-over-year, and customer equity grew 40% to over $750 billion.
2. Increased Trading Volumes and Commissions: A "risk-on" market environment and investor optimism are leading to higher trading volumes across various asset classes, directly boosting commission revenue. In Q4 2024, commission revenues rose to a record $477 million, up 25% for the full year, driven by higher trading volumes across major product categories and a 24% increase in Daily Average Revenue Trades (DARTs) per account. In Q3 2024, commissions reached a record $435 million, with options and futures volumes hitting new quarterly highs due to active customer participation globally. Q3 2025 saw commissions reach $537 million, a 23% year-over-year increase, mainly from customer trading in stocks and options, with equity volumes surging 67% year-over-year.
3. Growth in Net Interest Income from Margin Loans and Customer Cash Balances: Net interest income continues to be a significant revenue component. Interactive Brokers benefits from higher margin loan balances and customer credit balances, which generate interest income. Despite rate cuts in several countries, net interest income reached a quarterly record of $802 million in Q3 2024, up 9% year-over-year. In Q4 2024, net interest income hit another quarterly record of $807 million and a yearly record of $3.1 billion, partly due to a significant increase in margin borrowing and strong net customer deposits. This trend continued in Q3 2025, with net interest income achieving a record $967 million, benefiting from higher segregated cash and margin loan balances, and increased securities lending. The high interest rates paid on customer cash (e.g., 4.33% on qualified US dollar balances) also serve as a significant attraction for new customers.
4. Expansion of Product Offerings and Technology Enhancements: Interactive Brokers consistently enhances its platform and introduces new products and services to attract and retain clients. Recent initiatives include the introduction of recurring buy orders for cryptocurrency and the addition of Solana to its Hong Kong crypto platform, which contributed to an 87% quarter-over-quarter surge in crypto trading volumes in Q3 2025. The company also enhanced its Advisor Portal with features for improved portfolio management and client communication for Financial Advisor clients. The launch of the IBKR Desktop trading platform in 2024 and tools like "Investment Themes" further demonstrate a commitment to technological innovation and enriched customer experience. The company has also expressed interest in expanding crypto functionality pending regulatory clarity.
5. International Expansion and Focus on Sophisticated Investors: Interactive Brokers is a global broker with over 85% of new client applicants coming from outside the US. This international reach provides a structural growth runway beyond U.S. markets. The company's focus on sophisticated investors, active traders, and institutions, coupled with a growing retail segment through offerings like IBKR Lite (zero-commission trading), allows it to cater to a broad yet targeted client base across more than 150 markets and numerous currencies. This strategy helps attract serious investors and institutions seeking a comprehensive, one-stop platform.

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Share Repurchases

• Interactive Brokers has not repurchased any of its shares from 2019 through the first half of 2025.

Outbound Investments

• Interactive Brokers has made investments across sectors including Investment Tech, Cryptocurrencies, and Data as a Service.
• The company's most recent investment was a Series D round in Zero Hash on June 30, 2025.
• Strategic investments include holdings in electronic trading exchanges such as BOX Options Exchange, LLC, and a 7.6% beneficial ownership in Tiger Brokers.