Latest news with #InteractiveBrokers
Business Wire
a day ago
- Business
- Business Wire
Interactive Brokers Redefines UK Trading: One Platform. Global Markets. Lower Costs.
LONDON--(BUSINESS WIRE)-- Interactive Brokers (U.K.) Limited (IBUK), a subsidiary of Interactive Brokers (NASDAQ: IBKR), has been serving UK investors for over 25 years and has enjoyed explosive growth over the past year. Investors are seizing the opportunity to trade like never before, with the number of client accounts in 2024 increasing 142% versus 2023 at IBUK. Gerry Perez, CEO of IBUK, commented: 'At IBUK, we're committed to a customer-first approach, built on innovation, smart technology, and low costs." Share Interactive Brokers offers a complete ecosystem that caters to investors, ISA savers and sophisticated options traders with global market access, institutional-grade tools, and industry-low pricing, all on one integrated platform. Gerry Perez, CEO of IBUK, commented: 'At IBUK, we're committed to a customer-first approach, built on innovation, smart technology, and low costs. We don't just provide affordable access to global markets; we empower investors with the tools, insights, free education, and responsive support they need to make confident decisions and grow their portfolios.' What UK Clients Get with Interactive Brokers Multiple Award-Winning Platforms IBKR Desktop: Advanced terminal for professionals Trader Workstation (TWS): Custom analytics and algo support IBKR GlobalTrader: Mobile-first for global investing IBKR Mobile & Client Portal: Manage and trade from anywhere Global Market Access: Trade across 160+ markets in 36 countries, including stocks, options, futures, currencies, bonds, funds, and crypto—all from one account. Broader Fractional Investing: Access over 10,500 fractional US, European and Canadian shares and ETFs, far more than most other brokers. Low US Stock Trading Cost: Commissions start at just $0.0005/share with IB SmartRouting℠, up to 95% lower than 'zero-commission' platforms that charge high FX fees and wider spreads. Multiple Account Types: Choose from ISAs, SIPPs, cash and margin accounts, all with access to UK and global options trading. Low-Cost Cryptocurrency Trading: Fees range from 0.12% to 0.18% of trade value, with no spreads, markups, or custody fees, up to 85% less than what competitors charge. Clients can trade and hold Bitcoin, Ethereum, Solana, and more, 24/7. 24/5 Overnight Trading: Access over 10,000 US stocks and ETFs, US index futures, bonds, UK gilts, and CFDs around the clock. Powerful Planning with PortfolioAnalyst: Benchmark performance, model retirement scenarios, track goals, and consolidate accounts into a single financial view. Comprehensive Education: IBKR Campus provides a variety of free financial educational resources to clients and the general public. With $17.5 billion in equity capital, Interactive Brokers Group of companies offers institutional-grade stability to all its clients. Its platform is backed by real-time automated risk controls and four decades of fintech innovation. Interactive Brokers offers UK investors one platform to grow from their first investments to building a diversified global portfolio. The best-informed investors choose Interactive Brokers About Interactive Brokers Group, Inc.: Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities, foreign exchange, and forecast contracts around the clock on over 160 markets in numerous countries and currencies from a single unified platform to clients worldwide. We serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation have enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Interactive Brokers has consistently earned recognition as a top broker, garnering multiple awards and accolades from respected industry sources such as Barron's, Investopedia, and many others.
Forbes
4 days ago
- Business
- Forbes
6 Minutes Of Retail Trader Research Drives 20% Of Stock Market Volume
New research reveals retail investors spend just six minutes researching stocks before trading, yet their collective behavior is increasingly driving market movements as trading volumes surge and buy-the-dip strategies become more aggressive. The stereotype of the hurried retail investor making split-second decisions based on little more than a hunch has been confirmed by groundbreaking academic research. A study by Jeffrey Wurgler, Nomura Professor of Finance at NYU Stern, and his colleagues found that the median retail investor spends just six minutes conducting internet-based research before making a stock trade. This finding takes on new significance as retail investors have become increasingly bold in their market behavior. Recent data from J.P. Morgan shows individual investors net bought a record $4.7 billion worth of equities in a single day during April's market selloff, the highest daily inflow in a decade. This "buy-the-dip" mentality has strengthened dramatically since 2022, marking a behavioral shift from the panic selling witnessed during the March 2020 market crash. The influence of individual investors has grown substantially, with retail trading now accounting for roughly 20% of total market volume. This is double the levels seen a decade ago. Trading app downloads surged during the pandemic, with platforms like Robinhood reporting millions of new accounts, while Interactive Brokers recently saw a 44% increase in options orders following market volatility. Wurgler's research, which analyzed eight million rows of browser data from individual investors, reveals troubling patterns in how retail traders conduct research. The study found that investors overwhelmingly focus on price charts rather than fundamental analysis, with the most common lookback period being just a single day. "It caters to the lowest common denominator of research ability," Wurgler explained in a recent podcast interview. "We understand stocks, we want them to go up. And if we see a picture in which the stock is going up today, well, that's more satisfying than something that's flat or something that's slightly down." This focus on short-term price movements is particularly striking given that most investors in the study held their positions for several weeks. The disconnect between research timeframe and holding period suggests a fundamental misalignment in investment approach. The research uncovered another significant finding: Yahoo Finance dominates retail investor research, serving as the primary information source for millions of traders. This concentration creates what Wurgler calls a feedback loop, where the information presented on the platform's default pages drives collective investor behavior. "By far the most commonly used investment data website is Yahoo Finance," Wurgler noted. "So depending on what is served to you on Yahoo Finance, that's served to pretty much everybody, or at least millions of people." This phenomenon has profound implications for market dynamics. When millions of investors rely on the same information source and default settings, it can amplify certain market trends and create herd-like behavior. The study also confirmed what many market observers have long suspected: retail investors are heavily influenced by news events and brand recognition. Major corporate announcements, like Apple's iPhone launch during the study period, generated massive spikes in investor research activity. This pattern has only intensified with the rise of social media. While Wurgler's data predates platforms like Reddit and TikTok, the underlying behavior (following salient news and recognizable brands) remains consistent. The 2021 meme stock phenomenon with GameStop and AMC as well as the meteoric rise of Pump Fun demonstrated how social media can amplify these tendencies. Perhaps most concerning is what retail investors don't research: risk statistics, financial fundamentals, and proper diversification metrics. The study found that sophisticated risk measures like beta, cash flow analysis, and balance sheet examination are "almost nonexistent" among individual investor research habits. "Most people come into an investment with a rough assessment of risk based on how much upside they see in some kind of informal way," Wurgler observed. This informal approach to risk assessment can lead to poorly diversified portfolios and unexpected losses. The growing influence of retail trading has forced institutional investors to adapt their strategies. Professional money managers now must consider not just fundamental analysis but also what might capture retail investor attention. This dynamic echoes John Maynard Keynes' famous observation about markets being a beauty contest where participants try to predict what others will find attractive. Today's version involves predicting what will trend on financial social media or appear prominently on retail trading platforms. The evolution of retail investor behavior is perhaps most evident in how they respond to market volatility. During the March 2020 crash, individual investors largely sold off their positions, showing a 75% correlation between their flows and negative market performance. Today's retail investors display the opposite behavior. The April 2024 market selloff, triggered by sweeping tariff announcements, saw retail investors split their record $4.7 billion in purchases almost evenly between individual stocks ($2.3 billion) and ETFs ($2.4 billion). Nvidia alone attracted $913 million in net buying, while S&P 500-tracking ETFs received $900 million in inflows. This shift suggests retail investors have grown more confident in their ability to time market bottoms, despite spending minimal time on research. The combination of quick decision-making and aggressive dip-buying creates a powerful force that can amplify both market recoveries and potential losses. The surge in retail trading represents both opportunity and challenge for market efficiency. On one hand, increased participation democratizes investing and provides more capital to growing companies. On the other hand, the research suggests many retail investors may lack the tools and knowledge for effective investment decision-making. The question for regulators and platform providers is whether to nudge investors toward more comprehensive research or accept that quick, intuitive decisions are simply part of modern market behavior. Wurgler's ongoing research aims to determine whether more research actually leads to better investment outcomes. The preliminary indication suggests the relationship may be flat or even negative, potentially because investors who research more also trade more frequently, a pattern associated with underperformance. As retail trading continues to grow, understanding these behavioral patterns becomes crucial for market stability and investor protection. The six-minute research window may be brief, but its collective impact on markets is anything but small. The rise of retail trading represents a fundamental shift in market dynamics, one where traditional fundamental analysis competes with social media trends and brand recognition for investor attention. For better or worse, the six-minute investor is here to stay.
CNBC
6 days ago
- Business
- CNBC
Lightning Round: Leidos is a good opportunity in homeland security, says Jim Cramer
'Mad Money' host Jim Cramer weighs in on stocks including: Leidos, Interactive Brokers, and Nuscale Power.
CNBC
6 days ago
- Business
- CNBC
Cramer's Lightning Round: Leidos is a buy
Leidos: "I like it...I am worried that the defense budget may be cut, but this is homeland security. I think it's a good opportunity, the stock's come down a great deal. Let's pull the trigger." Interactive Brokers: "I say buy." NuScale Power: "Why don't we just buy GE been straight up and so has GE Vernova, but GE Vernova's got a book of business. That's what I like." Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest The CNBC Investing Club Charitable Trust owns shares of GE Vernova.
CNBC
27-05-2025
- Business
- CNBC
Interactive Brokers' Steve Sosnick: Market has started to see through tariff noise
Steve Sosnick, Interactive Brokers chief strategist, joins CNBC's 'Squawk on the Street' to discuss how markets are responding to tariffs news, how much some stocks are driven by momentum, and more.
