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Interactive Brokers Jumps 56.2% YTD: Should You Buy, Hold or Sell?
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Key Takeaways
Interactive Brokers has gained 56.2% YTD, outpacing the broader market and the industry's growth.
IBKR's launches across markets and products strengthen its global reach and client engagement.
Despite growth drivers, IBKR's premium valuation suggests a cautious stance for new investors.
Shares of Interactive Brokers Group, Inc. (IBKR - Free Report) have gained 56.2% so far this year, outperforming the S&P 500 Index’s 12.2% rise and the industry’s 24.1% growth. Since the beginning of this year, IBKR has been benefiting from heightened market volatility and increased retail investor participation.
If we compare IBKR’s price performance with two of its closest peers, Robinhood Markets, Inc. (HOOD - Free Report) and Charles Schwab (SCHW - Free Report) , it appears that the company has outperformed Schwab’s 24.3% growth but underperformed Robinhood’s 272.9% rally in the same time frame.
YTD Price Performance
Image Source: Zacks Investment Research
Amid the evolving trading market, Interactive Brokers is expected to continue to gain from higher client engagement. Its initiatives to expand the product suite and the reach of its services will likely keep supporting financials.
Given IBKR’s robust performance, investors must be tempted to buy the stock now. But, before making any investment decision, it is better to examine the company’s fundamentals and growth prospects to understand whether the stock has any upside potential left.
Key Factors Supporting Interactive Brokers
Product Diversification Efforts: Interactive Brokers has continuously been making efforts to expand the product suite and reach of its services. In August 2025, it introduced Connections, a new feature designed to help investors discover trading opportunities and evaluate investments by highlighting related ideas across global markets. Also, it launched zero-commission U.S. stock trading in Singapore.
In July, IBKR launched NISA accounts to help Japanese investors build wealth tax-free. In May, it extended the trading hours for Forecast Contracts to nearly 24 hours a day and in April, it launched the prediction markets hub in Canada.
Last year, IBKR introduced Plan d’Epargne en Actions accounts to boost its offerings for its French clients. The launch of IBKR GlobalTrader has enabled investors worldwide to trade stocks through mobile applications. Moreover, IBKR was one of the first brokers to introduce Overnight Trading on U.S. stocks and ETFs nearly 24 hours a day, five days a week.
Likewise, the launch of Impact Dashboard, an innovative sustainable investing tool, has made the company the first major brokerage firm to allow investors to easily align their portfolio with their values. Also, IBKR launched cryptocurrency trading via Paxos Trust Company, charging commissions that are lower than those of other crypto exchanges. The introduction of IBKR Desktop, the next-generation desktop trading application for Windows and Mac, marks a new chapter for innovation.
Continued product diversification efforts will help the company expand market share and global footprint, thereby supporting top-line growth.
Technological Excellence: Interactive Brokers’ technological superiority is one of its strongest aspects. The company processes trades in stocks, digital assets, futures, options and forex on more than 160 exchanges across several countries and currencies.
Unlike many of its peers, IBKR has a very low level of compensation expenses relative to net revenues (10.9% in the first half of 2025). This helps the company generate solid growth.
Further, Interactive Brokers has been emphasizing developing proprietary software to automate broker-dealer functions, leading to a steady rise in revenues. Over the last five years (2019-2024), total net revenues witnessed a compound annual growth rate (CAGR) of 21.8%, with the upward momentum continuing in the first half of 2025.
IBKR also has a robust Daily Average Revenue Trades (DARTs) number, which, along with a favorable trading backdrop, is expected to keep driving the top line. The company’s technological superiority, combined with easier regulations to improve product velocity, will likely help its net revenues through higher client acquisitions.
The Zacks Consensus Estimate for IBKR’s 2025 and 2026 revenues is $5.69 billion and $6.06 billion, which indicates year-over-year growth of 9% and 6.5%, respectively.
Sales Estimates
Image Source: Zacks Investment Research
Efficient Capital Distributions: While Interactive Brokers was consistent with its dividend payment for a long time, it hiked its quarterly dividend 150% to 25 cents per share in April 2024. In April 2025, it once again announced a dividend hike of 28% and a four-for-one forward split of its common stock to make shares more accessible to investors.
IBKR uses insignificant debt to finance its operations. Thus, given a solid liquidity position, the company is expected to be able to sustain its dividend payments in the future, thus enhancing shareholder value.
Analyzing IBKR’s Earnings Estimates
Over the past 60 days, the Zacks Consensus Estimate for Interactive Brokers’ 2025 earnings has been unchanged at $1.95, whereas estimates for 2026 have been revised marginally upward to $2.08 per share. The estimated numbers indicate year-over-year growth rates of 10.8% and 6.5% for 2025 and 2026, respectively.
IBKR’s Earnings Estimates
Image Source: Zacks Investment Research
Interactive Brokers’ Valuation Analysis
In terms of valuation, the IBKR stock looks expensive compared with the industry at large. The stock is trading at a forward 12-month price/sales (P/S) ratio of 19.57X, above the industry average of 4.31X.
Price-to-Sales F12M
Image Source: Zacks Investment Research
Looking at its peers, Robinhood has a P/S (F12M) ratio of 26.01X and Schwab is currently trading at a P/S ratio of 6.65X. Thus, Interactive Brokers is trading at a premium compared with Schwab but it is relatively inexpensive compared with Robinhood.
How to Approach IBKR Stock Now?
Interactive Brokers remains well-positioned for growth in the current volatile operating environment, supported by its strong technological capabilities and diversified product offerings.
Heightened market volatility, increased client participation, efficient onboarding, global expansion and increased visibility via strategic moves like the stock split and the S&P 500 inclusion have been driving the company’s customer accounts.
Hence, IBKR looks like an attractive investment option now for investors focused on long-term growth potential. However, a premium valuation compared with the industry makes us apprehensive.
Thus, for valuation-aware and more conservative investors, it is advisable to maintain caution and look for any signs of slowing growth before making any investment decision. Those who already own the IBKR stock in their portfolios should hold on to it now since the company is not expected to disappoint in the long run.
Image: Shutterstock
Interactive Brokers Jumps 56.2% YTD: Should You Buy, Hold or Sell?
Key Takeaways
Shares of Interactive Brokers Group, Inc. (IBKR - Free Report) have gained 56.2% so far this year, outperforming the S&P 500 Index’s 12.2% rise and the industry’s 24.1% growth. Since the beginning of this year, IBKR has been benefiting from heightened market volatility and increased retail investor participation.
If we compare IBKR’s price performance with two of its closest peers, Robinhood Markets, Inc. (HOOD - Free Report) and Charles Schwab (SCHW - Free Report) , it appears that the company has outperformed Schwab’s 24.3% growth but underperformed Robinhood’s 272.9% rally in the same time frame.
YTD Price Performance
Image Source: Zacks Investment Research
Amid the evolving trading market, Interactive Brokers is expected to continue to gain from higher client engagement. Its initiatives to expand the product suite and the reach of its services will likely keep supporting financials.
Given IBKR’s robust performance, investors must be tempted to buy the stock now. But, before making any investment decision, it is better to examine the company’s fundamentals and growth prospects to understand whether the stock has any upside potential left.
Key Factors Supporting Interactive Brokers
Product Diversification Efforts: Interactive Brokers has continuously been making efforts to expand the product suite and reach of its services. In August 2025, it introduced Connections, a new feature designed to help investors discover trading opportunities and evaluate investments by highlighting related ideas across global markets. Also, it launched zero-commission U.S. stock trading in Singapore.
In July, IBKR launched NISA accounts to help Japanese investors build wealth tax-free. In May, it extended the trading hours for Forecast Contracts to nearly 24 hours a day and in April, it launched the prediction markets hub in Canada.
Last year, IBKR introduced Plan d’Epargne en Actions accounts to boost its offerings for its French clients. The launch of IBKR GlobalTrader has enabled investors worldwide to trade stocks through mobile applications. Moreover, IBKR was one of the first brokers to introduce Overnight Trading on U.S. stocks and ETFs nearly 24 hours a day, five days a week.
Likewise, the launch of Impact Dashboard, an innovative sustainable investing tool, has made the company the first major brokerage firm to allow investors to easily align their portfolio with their values. Also, IBKR launched cryptocurrency trading via Paxos Trust Company, charging commissions that are lower than those of other crypto exchanges. The introduction of IBKR Desktop, the next-generation desktop trading application for Windows and Mac, marks a new chapter for innovation.
Continued product diversification efforts will help the company expand market share and global footprint, thereby supporting top-line growth.
Technological Excellence: Interactive Brokers’ technological superiority is one of its strongest aspects. The company processes trades in stocks, digital assets, futures, options and forex on more than 160 exchanges across several countries and currencies.
Unlike many of its peers, IBKR has a very low level of compensation expenses relative to net revenues (10.9% in the first half of 2025). This helps the company generate solid growth.
Further, Interactive Brokers has been emphasizing developing proprietary software to automate broker-dealer functions, leading to a steady rise in revenues. Over the last five years (2019-2024), total net revenues witnessed a compound annual growth rate (CAGR) of 21.8%, with the upward momentum continuing in the first half of 2025.
IBKR also has a robust Daily Average Revenue Trades (DARTs) number, which, along with a favorable trading backdrop, is expected to keep driving the top line. The company’s technological superiority, combined with easier regulations to improve product velocity, will likely help its net revenues through higher client acquisitions.
The Zacks Consensus Estimate for IBKR’s 2025 and 2026 revenues is $5.69 billion and $6.06 billion, which indicates year-over-year growth of 9% and 6.5%, respectively.
Sales Estimates
Image Source: Zacks Investment Research
Efficient Capital Distributions: While Interactive Brokers was consistent with its dividend payment for a long time, it hiked its quarterly dividend 150% to 25 cents per share in April 2024. In April 2025, it once again announced a dividend hike of 28% and a four-for-one forward split of its common stock to make shares more accessible to investors.
IBKR uses insignificant debt to finance its operations. Thus, given a solid liquidity position, the company is expected to be able to sustain its dividend payments in the future, thus enhancing shareholder value.
Analyzing IBKR’s Earnings Estimates
Over the past 60 days, the Zacks Consensus Estimate for Interactive Brokers’ 2025 earnings has been unchanged at $1.95, whereas estimates for 2026 have been revised marginally upward to $2.08 per share. The estimated numbers indicate year-over-year growth rates of 10.8% and 6.5% for 2025 and 2026, respectively.
IBKR’s Earnings Estimates
Image Source: Zacks Investment Research
Interactive Brokers’ Valuation Analysis
In terms of valuation, the IBKR stock looks expensive compared with the industry at large. The stock is trading at a forward 12-month price/sales (P/S) ratio of 19.57X, above the industry average of 4.31X.
Price-to-Sales F12M
Image Source: Zacks Investment Research
Looking at its peers, Robinhood has a P/S (F12M) ratio of 26.01X and Schwab is currently trading at a P/S ratio of 6.65X. Thus, Interactive Brokers is trading at a premium compared with Schwab but it is relatively inexpensive compared with Robinhood.
How to Approach IBKR Stock Now?
Interactive Brokers remains well-positioned for growth in the current volatile operating environment, supported by its strong technological capabilities and diversified product offerings.
Heightened market volatility, increased client participation, efficient onboarding, global expansion and increased visibility via strategic moves like the stock split and the S&P 500 inclusion have been driving the company’s customer accounts.
Hence, IBKR looks like an attractive investment option now for investors focused on long-term growth potential. However, a premium valuation compared with the industry makes us apprehensive.
Thus, for valuation-aware and more conservative investors, it is advisable to maintain caution and look for any signs of slowing growth before making any investment decision. Those who already own the IBKR stock in their portfolios should hold on to it now since the company is not expected to disappoint in the long run.
At present, IBKR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.