Interactive Brokers Grows Amid Stock Rally And Launch Of New Offerings
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Thomas Peterffy, the Founder and Chairman of Interactive Brokers, commented on the stock market’s rise after Donald Trump’s election win. Broker stocks, including Interactive Brokers, went up during this rally.
Peterffy said the rise might not be fair, but he believes that easier rules from regulators could help the market grow.
He also talked about the rise of night trading, noting that trading at night will soon be as smooth as trading during the day. Peterffy explained that in a few years, there will be no difference between day and night trading. Liquidity will be the same 24 hours a day.
The Firm Speculates Its New Products Will Outsize Stock Markets Within 16 Years
Peterffy also spoke about prediction markets, a new product from Interactive Brokers. These markets could grow bigger than stock markets in the future, though liquidity is still a challenge. He noted that this will be a huge market, maybe bigger than the stock market in 16 years because it will grow very fast.
Interactive Brokers recently opened a new office in the Dubai International Financial Center to help traders and investors in the UAE and Gulf region connect to global markets.
The Dubai office will serve many clients, such as active traders, wealthy people, hedge funds, and family offices. Through one platform, clients can access more than 150 global markets and trade in different asset types. The company also has a Category 4 license from the Dubai Financial Services Authority.
In September, Interactive Brokers reported strong trading numbers. The company shared that client activity and financial results improved.
The Company Now Has 3.12 Million Accounts, 28% More Than Last Year
Interactive Brokers said it handled 2.634 million trades per day on average in September, which is 46% higher than the same time last year, though slightly lower than in August. Client equity grew to $541.5 billion, up 46% from last year and 5% from August.
The company has 3.12 million accounts, 28% more than last year. Client margin loan balances reached $55.8 billion, showing a 28% rise over the year and a 2% rise from the previous month. Client credit balances, including $4.6 billion in insured deposits, reached $116.7 billion, marking a 19% rise from last year and a 4% rise from August.
The average cost per trade was $2.88, with stocks costing $2.04, options $3.92, and futures $4.34 per trade. Interactive Brokers said trading U.S. stocks through its platform remains affordable, showing the company’s focus on fair and clear pricing.
