Can Interactive Brokers Repeat Another Big Year?

Interactive Brokers Group (NASDAQ: IBKR) had a standout 2025: more customers, more trading, and more profits. But will the momentum continue?

In a highly competitive sector, Interactive Brokers is a global online brokerage, serving active traders, financial advisors, and institutions. Its success has been built on two ideas: keeping trading costs low and giving investors tools normally used by professionals.

That technology-focused model helps explain why the company’s financial results have been so strong. In 2025, net income available to common shareholders rose 30% to $984 million, while diluted earnings per share climbed 28% to $2.22. Revenue rose 20% to $6.21 billion. Commission revenue jumped 27% to $2.15 billion as trading activity increased, while net interest income climbed 13% to $3.56 billion.

Because much of the company’s system runs automatically, a large share of that revenue turns into profit. Interactive Brokers reported a pretax profit margin of 77%, up 71% year over year and impressive for any bank or brokerage.

The Continuing Rise of Do-It-Yourself Investors

The results highlight the broad shift that’s been happening for years across markets, with more people managing their own investments and using online platforms. At Interactive Brokers, growth is occurring across several markets, including options, futures, and stocks. During the fourth quarter, daily average revenue trades increased 30% from the previous year.

That growth continued into this year, with the company reporting 4.4 million daily average revenue trades in February, a 21% jump. In all, the company had $820 billion in client assets, 40% more than a year earlier.

And the growth is not only coming from existing customers trading more often. The company reported 4.4 million customer accounts at year-end, up 32% from a year earlier. That figure climbed to 4.6 million accounts by February.

A Growth Play, Not a Yield Stock

The company does pay a dividend, though income is not the primary reason investors buy the stock. After a four-for-one stock split in June 2025, Interactive Brokers pays a quarterly dividend of 8 cents per share. 

At recent prices in the mid-60s, that works out to a yield of around half a percent. That’s not much, but the real attraction of the company lies in its growth rather than its payout.

Analysts on Wall Street generally view the company positively. Its stock is up about 60% over the past year. It has pulled back some since its 52-week high of $79.18 in February, but so have others in the sector.

Although the company’s overall rating is a Moderate Buy, seven out of nine firms rate the stock as a full-on Buy, with the average 12-month price target above $76 a share and the highest target at $91.

The Risk of Trading on Traders

Even with the growth in clients and activity, there are risks investors should keep in mind.

Market activity obviously plays a big role in the company’s results. When markets are active and investors are trading frequently, Interactive Brokers benefits through higher commissions and increased interest income from customer balances. So, if markets become quiet and trading volumes fall, commission revenue would likely decline as well.

Competition is another factor. Major firms such as Charles Schwab (NYSE: SCHW) and Fidelity Investments at the higher end continue to compete for investor accounts. Newer trading apps like Robinhood Markets (NASDAQ: HOOD) are also heavily invested in attracting younger users with clever designs and aggressive pricing. Although Interactive Brokers has some advantages with its low-cost structure, advanced trading technology, and global market access, it still must keep improving its platform to stay ahead.

Another important risk involves interest rates. In 2025, net interest income of $3.56 billion made up more than half of the company’s total net revenues. If the Fed cuts rates, that tailwind could fade, and earnings growth might slow.

For long-term investors, the question is whether they are comfortable with those risks. Interactive Brokers is not a slow, high-dividend financial stock designed for stability. It is a fast-growing brokerage that benefits from active and rising activity in financial markets.

Yet, with strong gains in profits, customer accounts, and assets, the company seems well-positioned for continued growth. While the stock could experience volatility if interest rates change or trading activity slows, Interactive Brokers still represents one of the clearest ways for investors to benefit from the global expansion of online investing.

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