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Is IBKR's Karta Visa Card a Step Toward Its Diversification Strategy?

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Key Takeaways

  • Interactive Brokers launches the Karta Visa card to advance its full-service financial platform.
  • The U.S.-dollar card offers no foreign transaction fees and links directly to IBKR brokerage accounts.
  • IBKR's revenues saw a 21.8% CAGR from 2019 to 2024, with continued gains seen through 2025.

In an effort to transition to a full-service financial platform from being just a broker, Interactive Brokers (IBKR - Free Report) is offering eligible clients the Karta Visa card, which is a U.S.-dollar card with no foreign transaction fees at launch. The card will be linked directly to clients’ IBKR brokerage accounts.

With key features like 24/7 luxury travel concierge services, reward points for travel and lifestyle purchases, AI-powered real-time support via WhatsApp, access to travel and exclusive events, global airport lounge entry, access to the Visa Luxury Hotel Collection and more, the card is part of IBKR’s larger cash management offering that allows trading, saving, investing and now spending from one account.

In addition to providing this new service, Interactive Brokers has long been making efforts to diversify its product suite to expand globally. These, along with the firm’s efforts to develop proprietary software to automate broker-dealer functions have been aiding top-line growth.

Over the last five years (2019-2024), the company’s total net revenues witnessed a compound annual growth rate of 21.8%. The upward momentum continued in the first nine months of 2025 as markets became highly volatile, supporting IBKR’s trading business.

Given Interactive Brokers’ technological superiority, its revenues are expected to continue to improve in the quarters ahead, supported by higher client acquisitions. The Zacks Consensus Estimate for the company’s 2025 and 2026 revenues is $5.80 billion and $6.12 billion, indicating year-over-year growth of 11.1% and 5.6%, respectively.

Sales Estimates

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

IBKR’s Competitors Expanding Product Suite

Interactive Brokers’ key competitors, TradeWeb Markets Inc. (TW - Free Report) and Robinhood Markets, Inc. (HOOD - Free Report) , have also been rolling out products to bolster their market share.

TradeWeb launched electronic portfolio trading for European government bonds, spanning U.K. Gilts, EUR and single currency notes. Tradeweb was also the first platform to launch portfolio trading for corporate bonds in 2019. Last month, TW announced the expansion of its dealer algorithmic execution capabilities for U.S. Treasuries to provide institutional clients with access to deeper liquidity and smarter execution strategies.

Likewise, Robinhood has been diversifying its offerings to capitalize on investor demands. Last month, HOOD launched futures trading in the U.K. In September, it rolled out Robinhood Ventures to expand retail access to the private markets. Also, Robinhood has introduced the “Asset Match” feature through TradePMR to expand into the registered investment advisers (RIA) market.

With the help of rapid product innovation through vertical integration, Robinhood will likely be able to expand its client base, enabling greater operating leverage, thus, paving the way for sustained profitability.

IBKR’s Price Performance, Valuation & Estimate Analysis

Shares of Interactive Brokers have rallied 58.6% over the past six months compared with the industry’s growth of 31%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

From a valuation standpoint, IBKR trades at a forward price-to-earnings (P/E) ratio of 32.72, well above the industry average of 14.81.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

The Zacks Consensus Estimate for Interactive Brokers’ 2025 and 2026 earnings indicates year-over-year growth of 14.8% and 8.4%, respectively. Over the past 30 days, earnings estimates for both years have been revised upward.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Interactive Brokers currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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