INTERACTIVE Company

　　

Interactive Company: A Comprehensive Overview

　　

1. Company Overview

　　

Founding Date and Background

　　Interactive Brokers Group, Inc. (IBKR) was founded in 1978 by Thomas Peterffy, initially as a market-making firm named T.P. & Co. The company transitioned into a brokerage service, focusing on providing electronic trading solutions to both individual and institutional investors.

　　

Parent Company/Ownership Structure

　　Interactive Brokers operates as a public company listed on the NASDAQ under the ticker symbol IBKR. Approximately 23.5% of the company is publicly held, with Thomas Peterffy serving as the chairman.

　　

Headquarters Location

　　The company is headquartered in Greenwich, Connecticut, USA, a strategic location that provides access to major financial markets.

　　

Global Business Scope

　　Interactive Brokers has established a significant global presence, operating in over 34 countries and offering services in 27 currencies. The firm caters to more than 2.6 million individual and institutional customers, managing total customer equity of approximately $426 billion as of December 31, 2023.

　　

Main Regulatory Bodies

　　Interactive Brokers is regulated by several key financial authorities, including:

• U.S. Securities and Exchange Commission (SEC)
• Commodity Futures Trading Commission (CFTC)
• Financial Industry Regulatory Authority (FINRA)
• Other regional regulators in countries where they operate

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2. Company History and Development

　　

Key Milestones

• 1978: Founded as T.P. & Co. focusing on market making.
• 1993: Incorporated as Interactive Brokers, providing technology for electronic trading.
• 2007: Became a public company through an IPO.
• 2019: Launched IBKR Lite, offering commission-free trading for casual investors.

　　

Business Expansion Journey

　　Interactive Brokers has consistently expanded its services and geographic reach. The firm has grown from a niche market maker to one of the largest electronic trading platforms in the world, processing an average of 3 million trades per day as of 2023.

　　

Customer Base Growth

　　Since its inception, Interactive Brokers has seen significant growth in its customer base. The firm had approximately 3.12 million daily average revenue trades in 2024, reflecting a substantial increase in user engagement and trading activity.

　　

Platform Development History

　　The company has developed several trading platforms, including the Trader Workstation (TWS) and IBKR Mobile, which offer advanced trading tools and analytics. The platforms have evolved significantly over the years, incorporating features like algorithmic trading, real-time data analytics, and comprehensive reporting tools.

　　

Important Awards or Recognitions Received

　　Interactive Brokers has received numerous accolades, including:

• #1 Best Online Broker for Advanced Traders
• Best International Trading Platform
• Recognition for low-cost trading and execution quality

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3. Trading Services Offered

　　

Forex Trading Options

　　Interactive Brokers offers a comprehensive forex trading service, providing access to over 100 currency pairs. This wide selection allows traders to engage in various global markets effectively.

　　

Stock Trading Options

　　The firm provides access to more than 10,000 U.S. stocks and ETFs, along with international stocks across multiple exchanges. Clients can trade with competitive commission structures, including commission-free trading for IBKR Lite users.

　　

CFD Trading Products

　　Interactive Brokers allows trading in Contracts for Difference (CFDs) across various asset classes, including stocks, indices, and commodities, enabling clients to speculate on price movements without owning the underlying assets.

　　

Other Financial Instruments

• Cryptocurrencies: Interactive Brokers offers trading in major cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
• Commodities: Clients can trade various commodities, including precious metals and energy products.
• Options and Futures: The platform supports trading in options and futures contracts, providing a comprehensive suite of derivatives for risk management and speculation.

　　

Special Services or Unique Advantages

　　Interactive Brokers provides several unique advantages, including:

• An advanced trading platform with a wide array of tools for analysis and execution.
• Low margin rates compared to industry standards, enhancing trading efficiency.
• Access to global markets and the ability to fund accounts in multiple currencies.

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4. Regulatory and Legal Background

　　

Detailed Regulatory Information

　　Interactive Brokers is subject to regulation by:

• U.S. Securities and Exchange Commission (SEC)
• Commodity Futures Trading Commission (CFTC)
• Financial Industry Regulatory Authority (FINRA)
• Canadian Investment Regulatory Organization (CIRO)
• Financial Conduct Authority (FCA) in the UK
• Other regional regulatory bodies depending on the jurisdictions of operation

　　

Legal Entity Structure by Region

　　The company operates through several legal entities, including:

• Interactive Brokers LLC (U.S.)
• Interactive Brokers Canada Inc.
• Interactive Brokers (UK) Limited
• Interactive Brokers Australia Pty Limited
• Interactive Brokers Hong Kong Limited
• Interactive Brokers India Pvt. Ltd.

　　

Client Fund Protection Measures

　　Interactive Brokers employs robust risk management and client fund protection measures, including:

• Segregation of client funds from company assets.
• Membership in the Securities Investor Protection Corporation (SIPC) in the U.S., which provides limited protection for securities and cash in the event of a brokerage failure.

　　

Countries/Regions Served

　　Interactive Brokers serves clients in over 200 countries and territories, making it one of the most accessible brokerage firms globally.

　　

Compliance History

　　The firm has faced regulatory scrutiny in the past, including fines related to compliance failures. Notably, in 2020, it was fined $38 million for failing to maintain an adequate anti-money laundering program.

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5. Competitive Landscape

　　

3-5 Main Competitors

　　Interactive Brokers faces competition from several major brokerage firms, including:

• Charles Schwab
• TD Ameritrade
• E*TRADE
• Fidelity Investments
• Robinhood

　　

Positioning in the Industry

　　Interactive Brokers is positioned as a leading broker for active and professional traders, known for its low-cost structure and advanced trading technology. The firm appeals to both individual and institutional clients looking for comprehensive trading solutions.

　　

Market Differentiation Factors

　　The key differentiators for Interactive Brokers include:

• Low commission rates and fees, especially for high-volume traders.
• Advanced trading platforms with sophisticated tools for analysis and execution.
• A global trading infrastructure that allows access to multiple markets and asset classes.

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　　This article provides a detailed overview of Interactive Brokers, covering its history, services, regulatory background, and competitive landscape. For further information on specific aspects of the company, please refer to the relevant sections above.