Interactive Brokers Group Inc
NASDAQ:IBKR
Interactive Brokers Group Inc
Interactive Brokers Group Inc., a powerhouse in the world of brokerage, began its journey in 1978, founded by Thomas Peterffy, a man whose vision reshaped trading with technology and automation. From its inception, the company has been at the forefront of electronic trading, a pioneering move that transformed the brokerage industry. Initially specializing in options market making, Interactive Brokers has consistently leveraged technology to offer sophisticated trading platforms that cater to a diverse clientele, ranging from individual retail investors to large institutions. These platforms, known for their speed and low cost, provide users access to over 150 market destinations worldwide, enabling them to trade a wide range of financial products, including stocks, options, futures, forex, bonds, and funds. By always being ahead of the curve technologically, the company has maintained an edge in a cutthroat industry, allowing it to provide cost-effective solutions that appeal to savvy traders.
The company's revenue model is intricately linked to its broad spectrum of offerings. It earns money primarily through commissions and fees, benefiting from high transaction volumes across various asset classes. Additionally, Interactive Brokers generates substantial interest income by loaning securities to clients participating in margin trading, a service that allows investors to borrow funds and increase their market exposure. This dual income stream is complemented by fees earned on clients' idle cash balances, which the firm invests conservatively but profitably. With a robust infrastructure built on automation, the company benefits from operational efficiencies that not only enhance profitability but also provide competitive pricing to its customers. This blend of technology, vast market access, and a diverse financial product suite has cemented Interactive Brokers as a powerhouse in global brokerage.
Interactive Brokers Group Inc., a powerhouse in the world of brokerage, began its journey in 1978, founded by Thomas Peterffy, a man whose vision reshaped trading with technology and automation. From its inception, the company has been at the forefront of electronic trading, a pioneering move that transformed the brokerage industry. Initially specializing in options market making, Interactive Brokers has consistently leveraged technology to offer sophisticated trading platforms that cater to a diverse clientele, ranging from individual retail investors to large institutions. These platforms, known for their speed and low cost, provide users access to over 150 market destinations worldwide, enabling them to trade a wide range of financial products, including stocks, options, futures, forex, bonds, and funds. By always being ahead of the curve technologically, the company has maintained an edge in a cutthroat industry, allowing it to provide cost-effective solutions that appeal to savvy traders.
The company's revenue model is intricately linked to its broad spectrum of offerings. It earns money primarily through commissions and fees, benefiting from high transaction volumes across various asset classes. Additionally, Interactive Brokers generates substantial interest income by loaning securities to clients participating in margin trading, a service that allows investors to borrow funds and increase their market exposure. This dual income stream is complemented by fees earned on clients' idle cash balances, which the firm invests conservatively but profitably. With a robust infrastructure built on automation, the company benefits from operational efficiencies that not only enhance profitability but also provide competitive pricing to its customers. This blend of technology, vast market access, and a diverse financial product suite has cemented Interactive Brokers as a powerhouse in global brokerage.
Record Growth: Interactive Brokers added over 1 million net new accounts in 2025, an annual record, with client equity rising 37% to $780 billion.
Financial Outperformance: The company reported over $6 billion in annual net revenues for the first time, with quarterly adjusted pretax income exceeding $1 billion for the fifth consecutive quarter.
Client Returns: Clients outperformed the S&P 500 in 2025, with individual investors, advisers, and hedge funds all reporting higher average returns than the index.
Product Expansion: New country and account types, expanded funding options, and major platform upgrades—including AI tools—were rolled out in 2025.
Prediction Markets: ForecastEx trading surged, with 286 million pairs traded in Q4, and over 10,000 listed instruments; management sees strong potential beyond sports contracts.
Expense Discipline: Compensation and benefit expense ratio declined, and headcount grew moderately by 6%; overall expense growth is expected to remain stable.
Positive Outlook: Management expects sustained account growth and continued investment in technology and AI, while exploring new licenses and regulatory opportunities.
Management
Thomas Peterffy is the founder and Chairman of Interactive Brokers Group Inc., a major player in the electronic trading industry. Born in Budapest, Hungary, in 1944, Peterffy immigrated to the United States in 1965. Originally an architectural draftsman, he transitioned into finance, starting his career as a computer programmer on Wall Street. In 1977, Peterffy purchased a seat on the American Stock Exchange and began trading options. His background in computer science allowed him to introduce the first fully automated algorithmic trading system to the financial markets, revolutionizing the industry. This innovation laid the groundwork for the founding of Interactive Brokers in 1978, a company known for its advanced trading platform and low-cost trading. Under Peterffy's leadership, Interactive Brokers grew to become a leading brokerage firm, serving a wide range of clients, including institutional investors and individual retail traders. The company is known for its commitment to technological innovation and cost-effective trading solutions, differentiating itself by providing sophisticated tools and platforms. Peterffy is viewed as a pioneer in the field of electronic trading and market making, and his contributions have significantly shaped the evolution of global securities markets. Beyond his business ventures, he is also recognized for his philanthropic efforts and involvement in political causes.
In 1977, Peterffy purchased a seat on the American Stock Exchange and began trading options. His background in computer science allowed him to introduce the first fully automated algorithmic trading system to the financial markets, revolutionizing the industry. This innovation laid the groundwork for the founding of Interactive Brokers in 1978, a company known for its advanced trading platform and low-cost trading.
Under Peterffy's leadership, Interactive Brokers grew to become a leading brokerage firm, serving a wide range of clients, including institutional investors and individual retail traders. The company is known for its commitment to technological innovation and cost-effective trading solutions, differentiating itself by providing sophisticated tools and platforms.
Peterffy is viewed as a pioneer in the field of electronic trading and market making, and his contributions have significantly shaped the evolution of global securities markets. Beyond his business ventures, he is also recognized for his philanthropic efforts and involvement in political causes.
Milan Galik is a prominent executive known for his leadership role at Interactive Brokers Group Inc., a leading global electronic brokerage firm. He joined the company in 1990 and has served in various capacities, significantly influencing its technology-driven approach and operational strategies. Galik was born in Czechoslovakia and is a trained engineer, holding a degree from the Technical University of Budapest in electrical engineering. His background in engineering and computer science played a crucial role in his ability to drive the firm’s technological innovations. Under his leadership, Interactive Brokers has continued to enhance its trading platform, offering sophisticated trading tools and comprehensive services to institutional and retail traders worldwide. In October 2019, Galik took on the role of CEO, succeeding Thomas Peterffy, the founder of Interactive Brokers. As CEO, Galik has focused on expanding the company's global reach and maintaining its edge in algorithmic and high-frequency trading technologies. Galik's tenure at Interactive Brokers has been marked by a commitment to integrating advanced technologies and maintaining competitive pricing, which have been key factors in the firm’s growth and reputation within the financial services industry. His vision continues to guide the company towards innovation and client-focused solutions in the rapidly evolving trading landscape.
Galik was born in Czechoslovakia and is a trained engineer, holding a degree from the Technical University of Budapest in electrical engineering. His background in engineering and computer science played a crucial role in his ability to drive the firm’s technological innovations.
Under his leadership, Interactive Brokers has continued to enhance its trading platform, offering sophisticated trading tools and comprehensive services to institutional and retail traders worldwide. In October 2019, Galik took on the role of CEO, succeeding Thomas Peterffy, the founder of Interactive Brokers. As CEO, Galik has focused on expanding the company's global reach and maintaining its edge in algorithmic and high-frequency trading technologies.
Galik's tenure at Interactive Brokers has been marked by a commitment to integrating advanced technologies and maintaining competitive pricing, which have been key factors in the firm’s growth and reputation within the financial services industry. His vision continues to guide the company towards innovation and client-focused solutions in the rapidly evolving trading landscape.
Mr. Paul Jonathan Brody serves as the Chief Financial Officer (CFO) of Interactive Brokers Group Inc. With a robust background in finance and management, he plays a key role in overseeing the financial operations and strategies of the company. Brody is instrumental in financial planning, risk management, and ensuring the company's fiscal health, aligning financial and business strategies to drive growth and efficiency. He joined Interactive Brokers in 1987 and has contributed through various significant positions, which cemented his deep understanding of the brokerage industry and company specificities. His leadership skills and financial acumen have been pivotal in steering Interactive Brokers through its growth and transformation in the competitive financial services sector. In addition to his professional endeavors, Paul Jonathan Brody is also involved in several other leadership roles within Interactive Brokers Group and its affiliated companies, contributing to shaping the company's strategic direction and innovations in brokerage technology and services.
He joined Interactive Brokers in 1987 and has contributed through various significant positions, which cemented his deep understanding of the brokerage industry and company specificities. His leadership skills and financial acumen have been pivotal in steering Interactive Brokers through its growth and transformation in the competitive financial services sector.
In addition to his professional endeavors, Paul Jonathan Brody is also involved in several other leadership roles within Interactive Brokers Group and its affiliated companies, contributing to shaping the company's strategic direction and innovations in brokerage technology and services.
Dr. Thomas A. J. Frank is an executive at Interactive Brokers Group Inc., serving as the Executive Vice President and Chief Information Officer (CIO). He holds a Ph.D. in theoretical physics, which complements his extensive experience in the financial and technology sectors. Dr. Frank is responsible for overseeing the company’s information technology strategy and operations, leveraging his expertise to ensure robust and efficient IT infrastructures that support the company's brokerage and market-making services. Under his leadership, the firm has continued to advance its technological capabilities, maintaining its competitive edge in the financial industry.
Denis Mendonca is the Chief Information Officer and Chief Technology Officer at Interactive Brokers Group Inc. He has played a significant role in shaping the technological strategies of the company. With a solid background in engineering and financial technology, Mendonca oversees the development of the cutting-edge trading platforms and technology infrastructure that serve the needs of Interactive Brokers' global client base. Leveraging his expertise, Mendonca ensures the seamless operation of systems that provide reliability and efficient trade execution, helping maintain the company's competitive edge in the financial services industry. He holds a degree in engineering, which underpins his technical leadership at the company.
David Eric Friedland is a key executive at Interactive Brokers Group Inc., where he serves as the Managing Director of the Asia Pacific region. In this role, he oversees the company’s business operations and strategic growth initiatives within the Asia Pacific markets. Friedland's focus is on expanding the firm’s footprint and enhancing its brokerage services in the region by leveraging technology and innovation. Before joining Interactive Brokers, Friedland was deeply involved in the financial services industry with a wealth of experience, focusing on electronic trading and financial technology. His expertise in market structure and regulation has been instrumental in navigating the complex financial landscapes of the Asian markets. Under his leadership, Interactive Brokers continues to strengthen its position in Asia, catering to individual and institutional investors with its technology-driven trading platforms. Friedland's contributions to the firm include implementing strategies that align with local market dynamics and cultural nuances, ensuring that Interactive Brokers meets the diverse needs of its clients across Asia.
Before joining Interactive Brokers, Friedland was deeply involved in the financial services industry with a wealth of experience, focusing on electronic trading and financial technology. His expertise in market structure and regulation has been instrumental in navigating the complex financial landscapes of the Asian markets.
Under his leadership, Interactive Brokers continues to strengthen its position in Asia, catering to individual and institutional investors with its technology-driven trading platforms. Friedland's contributions to the firm include implementing strategies that align with local market dynamics and cultural nuances, ensuring that Interactive Brokers meets the diverse needs of its clients across Asia.
