Should You Invest in IBKR as It Continues Product Suite Expansion?

Interactive Brokers Group, Inc. IBKR, which launched Forecast Contracts in August 2024 for eligible clients in the United States and Hong Kong, has recently expanded it into Europe, giving investors across the globe more ways to act on their views and manage risk through its comprehensive platform. Growing investor demand for predictive risk management tools is the primary reason why the automated electronic brokerage firm is undertaking global expansion.

Forecast Contracts are those whose value is based on whether a specific event will occur at or before a particular time.

IBKR debuted Forecast Contracts via its wholly-owned, Commodity Futures Trading Commission regulated subsidiary ForecastEx LLC, initially offering contracts tied to U.S. economic and climate indicators. Then, in late 2024, ForecastEx added contracts related to political events, generating massive trading demand.

In April 2025, access was extended beyond the United States and Hong Kong to include Canadian clients. In May, IBKR extended the trading hours to nearly 24 hours per day, Sunday through Friday, enabling clients to act in real time across global releases.

Like IBKR, its close competitor Robinhood Markets, Inc. HOOD launched the prediction markets hub, allowing customers to trade on the outcomes of several major global events.

IBKR’s Other Product Diversification Efforts to Expand Globally

Interactive Brokers has continuously been making efforts to expand the product suite and reach of its services. In the first quarter of this year, IBKR added four new cryptocurrencies, bringing the total offering to 11. Last November, it introduced Plan d’Epargne en Actions accounts to boost its offerings for its French clients.

The launch of IBKR GlobalTrader has enabled investors worldwide to trade stocks through mobile applications. Moreover, IBKR was one of the first brokers to introduce Overnight Trading on U.S. stocks and ETFs nearly 24 hours a day, five days a week. IBKR Lite enables investors to trade commission-free. Further, the launch of Impact Dashboard, an innovative sustainable investing tool, has made the company the first major brokerage firm to allow investors to easily align their portfolio with their values.

It also launched cryptocurrency trading via Paxos Trust Company, charging commissions that are lower than those of other crypto exchanges. The introduction of IBKR Desktop, the next-generation desktop trading application for Windows and Mac, marks a new chapter for innovation.

Given IBKR’s technological superiority, its revenues are expected to improve in the quarters ahead, supported by higher client acquisitions. IBKR has been emphasizing on developing proprietary software to automate broker-dealer functions, which will drive the top line. Over the last five years (2019-2024), the company’s total net revenues witnessed a compound annual growth rate of 21.8%, with the momentum continuing in the first half of 2025.

Revenue Growth

Robinhood has also been diversifying its offerings to capitalize on investor demands. A couple of months ago, HOOD launched Robinhood Legend in the U.K. In March 2025, the company introduced Robinhood Strategies, Robinhood Banking and Robinhood Cortex to boost wealth management offerings and the prediction markets hub.

In February 2025, Robinhood launched options trading in the U.K. In January, it launched Futures.

IBKR’s peer TradeWeb Markets Inc. TW has also been rolling out products to bolster its 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.

Analyzing IBKR’s Price Performance

So far this year, IBKR shares have gained 45.5%, outperforming the industry and the S&P 500 Index’s 20.1% and 7.7% rallies, respectively. While the company’s performance compares unfavorably with that of HOOD, its performance has been better than that of TradeWeb.

TradeWeb shares have gained 5.6% and the Robinhood stock has skyrocketed 198.5% year to date.

YTD Price Performance

Final Thoughts on Interactive Brokers Stock

Interactive Brokers is well-positioned for growth in the current volatile operating environment. Rapidly evolving trends will benefit the company’s revenues and expand its market share. The company’s strong technological capabilities and diversified product offerings enhance its global reach, supporting long-term growth.

Over the past 30 days, the Zacks Consensus Estimate for IBKR’s 2025 and 2026 earnings has moved upward. The estimates reflect year-over-year growth rates of 11.4% and 6.1% for 2025 and 2026, respectively.

Earnings Estimate Revision Trend

Looking at its valuation, the IBKR stock appears inexpensive relative to the industry. The company is currently trading at a trailing 12-month price-to-tangible book (P/TBV) ratio of 1.53, below the industry’s 2.87.

Price-to-Tangible Book Ratio

Thus, the upward earnings estimate revisions reflect that analysts are optimistic regarding IBKR’s earnings growth potential. Also, from a valuation perspective, Interactive Brokers’ shares present a compelling buying opportunity. The stock is undervalued as the market has not yet fully recognized its growth prospects. Hence, IBKR presents an attractive buying opportunity for value investors.

At present, IBKR sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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