Interactive Brokers Group, Inc. (IBKR): Among the Best Fintech Stocks to Buy in 2025

We recently compiled a list of the 12 Best Fintech Stocks to Buy in 2025. In this article, we are going to take a look at where Interactive Brokers Group, Inc. (NASDAQ:IBKR) stands against the other fintech stocks.

The terms finance and technology are combined to form the term fintech. This wide category includes companies that integrate modern technology into financial operations. Fintech companies include, for instance, those that create and run person-to-person payment applications and those that develop innovative digital payment processing solutions.

Many fintech stocks have recovered from the post-COVID-19 down market, but they are still well below their peak as we approach 2025. Nonetheless, the fintech industry has numerous opportunities for long-term potential.

In 2025, fintech is beginning to rebound. Global fintech funding rose to $8.5 billion in Q4 of 2024, a 12% increase from the previous quarter, according to CB Insights. While overall 2024 funding decreased 20% year on year, this is a significant improvement from the 48% and 44% declines in 2023 and 2022, respectively, showing that capital flows to the industry have stabilized.

The regulatory sentiment is also altering. For example, in a statement released on January 21, Travis Hill, acting chairman of the Federal Deposit Insurance Corporation, provided a list of priorities, including plans to

“adopt a more open-minded approach to innovation and technology adoption, which includes a more transparent approach to fintech partnerships and to digital assets and tokenization, and engagement to address growing technology costs for community banks.”

This suggests a more relaxed regulatory framework, which could stimulate a resurgence of fintech activity.

The fact that some of the biggest fintech companies, such as Swedish buy now, pay later unicorn Klarna and neobank Chime, are now indicating plans to go public is another significant clue that the industry is recovering from the blues. Furthermore, since financial monitoring is a crucial component of public markets, this probably signals profitability improvement, which has been a significant difficulty for the fintech industry.

Tyler Griffin, managing partner and cofounder of Restive Partners, stated to American Banker:

"I’d bet that the chief financial officer of every late-stage, privately funded company is at least exploring what an IPO in the near term looks like.”

The financial technology industry has never been static; rather, it thrives on challenging the status quo. Financial services have changed in recent years due to a combination of technological developments, regulatory changes, and economic disruptions. In 2024, fintech saw a massive spike in the usage of AI, mostly for internal use cases like operational efficiency and fraud detection. However, issues with accuracy and privacy continue to restrict consumer-facing applications. According to a Deloitte survey, the biggest obstacle to generative AI adoption in financial services, according to 35% of enterprises, is real-world errors. Financial organizations are hesitant to use AI tools directly with customers because of regulatory sensitivities. Nonetheless, enterprise adoption is speeding up. Within a year, Morgan Stanley introduced its "Debrief" assistant, which OpenAI powers. Meanwhile, BNY Mellon and OpenAI have partnered for several years.

Our Methodology

For this article, we sifted through the Fintech ETFs and online rankings to form an initial list of the 25 Fintech Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 1009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks.  We have used the stock's revenue growth year-over-year as a tie-breaker in case two or more stocks have the same number of hedge funds invested.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Interactive Brokers Group, Inc. (NASDAQ:IBKR)

Number of Hedge Fund Holders: 71  

Interactive Brokers Group, Inc. (NASDAQ:IBKR) is a fintech company that serves sophisticated traders, both retail and institutional, such as hedge funds and financial advisors. The majority of its users still pay for transactions, in contrast to zero-commission platforms, since they value its sophisticated trading tools, low margin rates, and high interest on unused funds. The firm draws active traders who employ more leverage and have larger balances, as evidenced by their clientele, which is composed of 45% institutional and 55% retail. It is a prominent fintech operator catering to high-frequency, high-value clients who seek cost-effectiveness and execution quality due to its strong, tech-driven platform and worldwide reach. About 30% of the company's net revenue comes from foreign markets, while 70% comes from the US. The stock was up by more than 41% in the past 12 months, including it on our list of the Best Fintech Stocks.

Interactive Brokers Group, Inc. (NASDAQ:IBKR) achieved record-breaking results in the first quarter of 2025, adding 279,000 new accounts and growing its total number of accounts by 32% year over year. This was the company's most significant growth rate since the meme stock era, and it had particularly impressive international momentum. The company achieved a new financial milestone for the 8th consecutive quarter with an adjusted pre-tax margin exceeding 70%, with quarterly commission revenue exceeding $500 million and a pre-tax margin of 74%. IBKR declared a 4-for-1 stock split and raised its dividend to $0.32 to increase shareholder value. The boost in trading volume was strong, with stock shares rising 47%, futures up 16%, and options up 25%. Overnight trading volume jumped by 250%, showing longer hours and more offerings.

Baron Focused Growth Fund stated the following regarding Interactive Brokers Group, Inc. (NASDAQ:IBKR) in its Q4 2024 investor letter:

“Interactive Brokers Group, Inc. (NASDAQ:IBKR) is a leading online brokerage house that serves customers in over 200 countries. Positive returns during the quarter reflected strong fundamental performance, including year-over-year growth of 30% in accounts, 33% in client assets, and 45% in margin loans. These increases were driven largely by Interactive Brokers’ strength in international markets, as non-U.S. investors looked to access U.S. markets and equities, which largely outperformed their global peers in 2024. The company also participated in the broader rally of financial stocks following the Republican elections sweep. Expectations of heightened capital markets activity, a more pro-business regulator, and the potential for increasing market volatility all bode well for the company’s volumes, account growth, and earnings. We believe Interactive Brokers has a compelling long-term growth path and remain investors.”

Overall IBKR ranks 12th among the best fintech stocks to buy in 2025. While we acknowledge the potential of IBKR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than IBKR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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