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Interactive Brokers
Interactive Brokers

Financial services / Global online brokerage services

At a Glance | Core Facts | Company | Industry | Competitors | Stock Swings | News | Income | Balance | Cash Flow | Growth | Enterprise | Ratios | Metrics | Dividends | Risks | SWOT | Porter's Five Forces | PEST | Score Positive | Clusters | Reports | Web
Overview

Interactive Brokers is a US-based online brokerage firm that was founded in 1977 by Thomas Peterffy. The company offers trading in stocks, options, futures, forex, bonds, and mutual funds through its proprietary trading platform called Trader Workstation (TWS).
Interactive Brokers also offers services for professional and institutional traders, including access to global markets, direct market access, and prime brokerage services. The company has a strong presence in the global market, with offices in major financial centers around the world, including the United States, Australia, Canada, Hong Kong, Japan, and the United Kingdom.
As of 2021, Interactive Brokers is a publicly-traded company on the Nasdaq exchange, with a market capitalization of over $32 billion. It is regulated by several financial authorities, including the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
The company is known for its low trading fees and advanced trading technology, making it a popular choice among active and professional traders. Additionally, Interactive Brokers provides educational resources and analysis tools to help traders make informed decisions.

What is special about the company?

1. Technology-driven platform: Interactive Brokers is known for its highly advanced and efficient trading platform. The company invests heavily in technology to ensure fast execution of trades and access to real-time market data.
2. Low trading fees: Interactive Brokers offers one of the lowest trading fees among online brokers. Their tiered pricing structure and commission-based model allows traders to choose the most cost-effective option.
3. Wide range of investment offerings: From stocks, options, futures, and forex to bonds and mutual funds, Interactive Brokers offers a diverse range of investment products for traders.
4. Global reach: Interactive Brokers is a multinational company with a presence in over 135 markets. This allows traders to access global markets and diversify their investment portfolios.
5. Professional trading tools: The platform offers a wide range of professional-grade trading tools, including algorithmic trading, risk management tools, and advanced charting and analytics, making it a popular choice among professional traders.
6. Regulated and reputable: Interactive Brokers is a publicly-traded company with a strong reputation and is regulated by multiple financial authorities, including the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
7. Low minimum deposit requirements: Interactive Brokers has low minimum deposit requirements, making it accessible to a wide range of investors.
8. Quality customer service: The company is known for its responsive and helpful customer service, with support available in multiple languages.
9. Educational resources: Interactive Brokers provides a range of educational resources and tools for traders of all levels, including webinars, video tutorials, and online courses.
10. Prime brokerage services: For institutional clients, Interactive Brokers offers prime brokerage services, including securities lending, trading technology, and financing options.

What the company's business model?

Interactive Brokers (IB) is an online discount brokerage company that offers low-cost trading services for stocks, options, futures, currencies, and bonds in over 100 markets worldwide.
The company’s business model is based on providing advanced trading technology, sophisticated trading tools, and ultra-low commission rates to individual and institutional investors. IB also offers a wide range of trading platforms, including desktop and mobile applications, to cater to the needs of different types of traders.
IB generates revenue primarily through trade commissions and fees charged to its clients for the execution of their trades. The company’s commission structure is based on a tiered system, where clients who trade more frequently and in larger volumes receive lower commission rates.
In addition to trading commissions, IB also earns income from margin lending to clients, interest on clients’ cash balances, and fees for additional services such as data subscriptions and market research.
IB’s business model also includes a focus on cost efficiency, with a lean and automated operational structure, which allows the company to offer low-cost trading services to its clients.
Overall, IB’s business model centers around providing traders with comprehensive, low-cost, and technologically advanced trading services, which has helped the company maintain a strong and stable position in the highly competitive online brokerage industry.

Interesting facts about the company

1. Interactive Brokers was founded in 1977 by Thomas Peterffy, who pioneered the use of computer technology in options trading.
2. The company’s headquarters are located in Greenwich, Connecticut, but it has offices in numerous countries around the world, including the United Kingdom, Australia, Hong Kong, and India.
3. Interactive Brokers is one of the largest electronic brokerage firms in the world, with over 1.5 million client accounts and $170 billion in customer equity as of 2021.
4. The company offers a wide range of financial products and services, including stocks, options, futures, bonds, forex, and mutual funds.
5. Interactive Brokers is known for its advanced trading technology and low-cost commissions. It was one of the first brokers to offer direct access to global stock exchanges and to implement a commission-based pricing model.
6. In 2019, Interactive Brokers became the first broker-dealer to offer direct access to cryptocurrency trading.
7. The company has been consistently ranked as one of the top brokers in the industry. In 2020, it was named the top online broker by Barron’s for the tenth consecutive year.
8. Interactive Brokers has a strong emphasis on international markets, with over 120 market destinations available for trading.
9. The company is publicly traded on the Nasdaq under the ticker symbol IBKR.
10. Interactive Brokers has a strong commitment to education and offers a variety of resources to help traders improve their skills, including webinars, online courses, and a trading simulator.

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