Headquarters at One Pickwick Plaza
|Traded as||NASDAQ: IBKR|
(Founder, Chairman & CEO)
|Products||Direct market access to stocks, options, futures, forex, bonds, ETFs and CFDs|
|Services||Online brokerage, direct-access trading|
|Parent||Interactive Brokers Group|
Interactive Brokers LLC (IB) is a U.S.-based electronic brokerage firm. It is the largest U.S. electronic brokerage firm by number of daily average revenue trades; it also is the leading forex broker. The company is headquartered in Greenwich, Connecticut and has offices in Chicago, Hong Kong, Shanghai (a representative office), Sydney, and Zug. It is a subsidiary of Interactive Brokers Group, Inc., which has offices in thirteen countries.
In May 2016, client equity with the broker was $ 72 billion. According to Thomas Peterffy, CEO of Interactive Brokers Group, Inc., a majority of it is managed by IB's institutional client base: Hedge Funds, Proprietary Trading Groups, Advisors and Introducing Brokers/Banks.
According to research firm Preqin in 2015, Interactive Brokers figures in the list of top 10 prime brokers servicing Hedge Funds in the world.
IB is regulated by the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (FINRA), New York Stock Exchange, Financial Conduct Authority and foreign regulatory agencies. The company is a provider of fully disclosed and non-disclosed broker accounts and provides correspondent clearing services to 200 introducing brokers worldwide. It has offered direct market access on Australian contracts for difference since 2008.
Interactive Brokers was founded in 1993 by Thomas Peterffy, an early innovator in computer-assisted trading. He introduced electronic devices to options floor trading at the Chicago Board of Trade and went on to develop related trading technologies before entering the electronic brokerage business.
In 1983, the company created the first handheld computers used for trading. As Peterffy explained in a 2016 interview, the battery-powered units had touch screens for the user to input a stock price and it would produce the recommended option price, and it also tracked positions and continually repriced options on stocks.
Litigation and arbitration decisions
In July 2012, Interactive Brokers paid $700,000 to settle charges (by CFTC) that it has "violated reporting rules" and "failed to "diligently" supervise the handling of accounts".
In February 2015, a FINRA arbitration panel ruled that the firm must pay $667,000 for customer losses resulting from the way the firm handled margin calls.
In April 2015, the trading firm was required by an arbitrator to pay $1,200,000 in damages to a customer because the firm failed to stop “reckless trading” by a trust fund overseer which reduced $800,000 to $75,000.
- "Press Release: Interactive Brokers Adds IEX as an Electronic Trading Venue". The New York Times. Business Wire. April 3, 2014. Retrieved July 2, 2014.
- "Press Release: Interactive Brokers Leads Industry in Percentage of Profitable Customer Forex Accounts". The Wall Street Journal. Business Wire. February 6, 2013. Retrieved July 2, 2014.
- "Interactive Brokers". Retrieved 21 July 2015.
- "Interactive Brokers". Retrieved 30 May 2016.
- "Interactive Brokers Group's (IBKR) CEO Thomas Peterffy On Q1 2016 Results". Retrieved 22 April 2016.
- "Improving Prime Brokerage Market Share Should Lift Profits At Goldman, Morgan Stanley". Retrieved 28 May 2016.
- "IB Fact Sheet". Interactive Brokers. Interactive Brokers Group. Retrieved June 23, 2014.
- "Press Release: Interactive Brokers Rated #1 Online Broker by Barron's for the Third Year in a Row". The Wall Street Journal. Business Wire. March 19, 2014. Retrieved July 2, 2014.
- "Press Release: Interactive Brokers Launches Contracts for Difference in Australia". Bloomberg News. Business Wire. October 21, 2008. Retrieved July 2, 2014.
- McGee, Susan (November 10, 2005). "A Breed Apart". Institutional Investor Magazine (November 2005) (Institutional Investor LLC). Retrieved June 27, 2014.
- Electronic trading innovator predicts brokerage industry cull Financial Times, 17 May 2016
- Company Overview of Interactive Brokers LLC, Bloomberg.com; retrieved 22 May 2016
- Peterffy, Thomas (April 25, 2016). Pro Talks: Billionaire Wall Street Pioneer Peterffy. Interview with Mike Santoli. CNBC. Retrieved June 21, 2016.
- "About the Interactive Brokers Group". Interactive Brokers Group. January 1, 2016. Retrieved June 21, 2016.
- "UPDATE 2-Interactive Brokers to pay $700,000 to settle charges". Reuters. 2012-07-25. Retrieved 2016-05-20.
- Barlyn, Suzanne (2015-02-18). "Interactive Brokers must pay $667,000 for portfolio selloff mishap". Reuters.
- Barlyn, Suzanne (2015-04-28). "Interactive Brokers ordered to pay $1.2 million for trustee's 'reckless' trades". Reuters.
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