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Online broker Tiger to double Hong Kong headcount, targets offshore China wealth

Yahoo

3 days ago

Business
Yahoo

Online broker Tiger to double Hong Kong headcount, targets offshore China wealth

By Selena Li HONG KONG (Reuters) -Tiger Securities plans to double its headcount in Hong Kong over the next two to three years as the online brokerage targets a bigger share of the growing offshore Chinese wealth in the financial hub, its chief executive said. The Singapore-headquartered firm, founded in 2014 in Beijing, currently employs 60 people in Hong Kong, where it started operations in late 2022, founder and CEO Tinahua Wu told Reuters late Monday. "Hong Kong is a very important global financial centre and it's not only about the several million local residents," Wu said. Tiger's parent firm UP Fintech Holding listed in the U.S. in 2019. "It is because it's backed by China," the 40-year-old former tech veteran said, adding growing accumulation of Chinese wealth offshore needs investment services. Securities trading activities have risen in the offshore Chinese market since Beijing started to unveil a slew of stimulus last September, a trend which has not been dampened by the global trade tensions, according to Wu. Mainland investors have poured HK$651 billion ($83 billion) into Hong Kong-listed shares via the Southbound Stock Connect so far this year, more than double the HK$283 billion during the same period last year, CICC analysts said in a note on Tuesday. The capital inflows augurs well for local brokerages closely connected to clients in China, the world's second-largest economy, at a time when U.S. President Donald Trump's trade war weighs on investor appetite for U.S. assets. The buoyant Hong Kong market has attracted some companies such as Chinese e-commerce giant Alibaba-affiliate Ant Group to foray into Hong Kong by acquiring a 50.55% stake in local broker Bright Smart in April. As more Chinese high-net worth individuals set up family offices in Hong Kong and domestic companies increasingly seek to expand offshore, Wu said Tiger expects sizable growth in demand from both individual and corporate clients. Tiger holds more than $50 billion worth of assets globally and operates in markets beyond Hong Kong, including the U.S., Australia, New Zealand, and Singapore. The brokerage's assets under custody, a key measure of client holdings in Tiger's Hong Kong accounts, quadrupled in the first quarter of 2025 from the same period last year, according to UP Fintech's first quarter report. Strong pipeline of initial public listings in Hong Kong with "star" Chinese firms coming to raise funds in the city has also resulted in heightened interest in buying and trading new shares, he said. ($1 = 7.8435 Hong Kong dollars) Sign in to access your portfolio

Reuters

3 days ago

Business
Reuters

Online broker Tiger to double Hong Kong headcount, targets offshore China wealth

HONG KONG, June 3 (Reuters) - Tiger Securities plans to double its headcount in Hong Kong over the next two to three years as the online brokerage targets a bigger share of the growing offshore Chinese wealth in the financial hub, its chief executive said. The Singapore-headquartered firm, founded in 2014 in Beijing, currently employs 60 people in Hong Kong, where it started operations in late 2022, founder and CEO Tinahua Wu told Reuters late Monday. "Hong Kong is a very important global financial centre and it's not only about the several million local residents," Wu said. Tiger's parent firm UP Fintech Holding listed in the U.S. in 2019. "It is because it's backed by China," the 40-year-old former tech veteran said, adding growing accumulation of Chinese wealth offshore needs investment services. Securities trading activities have risen in the offshore Chinese market since Beijing started to unveil a slew of stimulus last September, a trend which has not been dampened by the global trade tensions, according to Wu. Mainland investors have poured HK$651 billion ($83 billion) into Hong Kong-listed shares via the Southbound Stock Connect so far this year, more than double the HK$283 billion during the same period last year, CICC analysts said in a note on Tuesday. The capital inflows augurs well for local brokerages closely connected to clients in China, the world's second-largest economy, at a time when U.S. President Donald Trump's trade war weighs on investor appetite for U.S. assets. The buoyant Hong Kong market has attracted some companies such as Chinese e-commerce giant Alibaba-affiliate ( opens new tab Ant Group to foray into Hong Kong by acquiring a 50.55% stake in local broker Bright Smart in April. As more Chinese high-net worth individuals set up family offices in Hong Kong and domestic companies increasingly seek to expand offshore, Wu said Tiger expects sizable growth in demand from both individual and corporate clients. Tiger holds more than $50 billion worth of assets globally and operates in markets beyond Hong Kong, including the U.S., Australia, New Zealand, and Singapore. The brokerage's assets under custody, a key measure of client holdings in Tiger's Hong Kong accounts, quadrupled in the first quarter of 2025 from the same period last year, according to UP Fintech's first quarter report. Strong pipeline of initial public listings in Hong Kong with "star" Chinese firms coming to raise funds in the city has also resulted in heightened interest in buying and trading new shares, he said. ($1 = 7.8435 Hong Kong dollars)

Yahoo

3 days ago

Business
Yahoo

Online broker Tiger to double Hong Kong headcount, targets offshore China wealth

Yahoo

29-05-2025

Business
Yahoo

Futu Announces First Quarter 2025 Unaudited Financial Results

HONG KONG, May 29, 2025 (GLOBE NEWSWIRE) -- Futu Holdings Limited ('Futu' or the 'Company') (Nasdaq: FUTU), a leading tech-driven online brokerage and wealth management platform, today announced its unaudited financial results for the first quarter ended March 31, 2025. First Quarter 2025 Operational Highlights Total number of funded accounts1 increased 41.6% year-over-year to 2,673,119 as of March 31, 2025. Total number of brokerage accounts2 increased 30.0% year-over-year to 4,955,319 as of March 31, 2025. Total number of users3 increased 16.8% year-over-year to 26.3 million as of March 31, 2025. Total client assets increased 60.2% year-over-year to HK$829.8 billion as of March 31, 2025. Daily average client assets were HK$790.4 billion in the first quarter of 2025, an increase of 64.7% from the same period in 2024. Total trading volume in the first quarter of 2025 increased by 140.1% year-over-year to HK$3.22 trillion, in which trading volume for U.S. stocks was HK$2.25 trillion, and trading volume for Hong Kong stocks was HK$916.0 billion. Margin financing and securities lending balance increased 33.7% year-over-year to HK$50.3 billion as of March 31, 2025. First Quarter 2025 Financial Highlights Total revenues increased 81.1% year-over-year to HK$4,694.6 million (US$603.4 million). Total gross profit increased 85.9% year-over-year to HK$3,945.7 million (US$507.2 million). Net income increased 107.0% year-over-year to HK$2,142.7 million (US$275.4 million). Non-GAAP adjusted net income4 increased 97.7% year-over-year to HK$2,216.9 million (US$285.0 million). Mr. Leaf Hua Li, Futu's Chairman and Chief Executive Officer, said, 'We started 2025 on a strong note, adding approximately 262 thousand funded accounts in the first quarter, up 47.8% year-over-year and 21.9% quarter-over-quarter. Total funded accounts reached 2.7 million, representing a 41.6% increase year-over-year and a 10.9% increase quarter-over-quarter. Hong Kong remained the top contributor to new funded accounts, as our marketing initiatives effectively leveraged the Hong Kong market rally and IPO boom. We believe that brokers with leading brand equity, product experience and execution capabilities will gain outsized benefits from strong equity market performance. Malaysia posted the fastest sequential growth in new funded accounts among all seven markets. After a year of rapid market share gain in Malaysia, we think there is ample headroom for further growth and will continue to invest in our product and our brand. In Japan, new funded accounts enjoyed robust growth and reached a historic high, as we solidified our position as the go-to broker for U.S. stock trading. Funded account growth accelerated in the U.S. as we enhanced our offerings for active traders and our high-profile advertising campaigns boosted brand visibility. With one-third of our full-year target already achieved, we remain firmly on track to meet our guidance of 800 thousand net new funded accounts in 2025.' 'Total client assets reached HK$829.8 billion, up 60.2% year-over-year and 11.6% quarter-over-quarter, thanks to record net asset inflow. In Singapore, total client assets rose 11.4% quarter-over-quarter, sustaining its streak of double-digit sequential growth. Average client assets in Canada and Australia also logged five straight quarters of sequential increase. Margin financing and securities lending balance at quarter end remained largely stable at HK$50.3 billion, due to lower risk appetite in the second half of the quarter amid market pullback.' 'Total trading volume was HK$3.22 trillion, up 140.1% year-over-year and 11.4% quarter-over-quarter. U.S. stock trading volume grew 8.2% sequentially to HK$2.25 trillion, bolstered by clients' bottom fishing of technology and semiconductor names. Hong Kong stock trading volume increased 21.4% quarter-over-quarter to HK$916.0 billion, as DeepSeek-induced market rally reignited investor interest.' 'We continued to drive product innovation, empowering retail investors with cutting-edge investment tools and seamless investment experience. In Hong Kong, we unveiled Futubull AI, our proprietarily trained, AI-powered investment assistance, and revealed a new desktop version with more intuitive tools and advanced features. In Japan, we continued to enhance our U.S. stock offerings as we rolled out U.S. fractional shares trading in the first quarter and subsequently launched U.S. options trading in April.' 'Wealth management client assets were HK$139.2 billion as of quarter end, up 117.7% year-over-year and 25.6% quarter-over-quarter. 29% of funded accounts held wealth management products, a further climb from 28% in the previous quarter. Money market funds remained the primary driver of asset inflow given the seek for stable returns amid market volatility. In Hong Kong and Singapore, we broadened our structured product suite with FX-linked notes in the first quarter. We also onboarded equity funds in Malaysia and money market funds in Japan.' 'We had 498 IPO distribution and IR clients as of quarter end, up 15.8% year-over-year. During the quarter, we served as joint lead manager for several high-profile Hong Kong IPOs, including those of Bloks Group and Guming Holdings. For both of these transactions, we were the exclusive online broker for IPO distribution. Notably, in the MIXUE Group IPO, more than 70 thousand clients contributed to over HK$1 trillion in subscription amount, putting us first among all brokers in number of subscribers and total subscription amount.' First Quarter 2025 Financial Results Revenues Total revenues were HK$4,694.6 million (US$603.4 million), an increase of 81.1% from HK$2,592.5 million in the first quarter of 2024. Brokerage commission and handling charge income was HK$2,310.2 million (US$296.9 million), an increase of 113.5% from the first quarter of 2024. This was mainly due to higher trading volume, partially offset by the decline in blended commission rate. Interest income was HK$2,070.5 million (US$266.1 million), an increase of 52.9% from the first quarter of 2024. The increase was mainly driven by higher interest income from securities borrowing and lending business, margin financing and bank deposits. Other income was HK$313.9 million (US$40.4 million), an increase of 101.0% from the first quarter of 2024. The increase was primarily attributable to higher fund distribution service income and currency exchange income. Costs Total costs were HK$749.0 million (US$96.3 million), an increase of 59.3% from HK$470.2 million in the first quarter of 2024. Brokerage commission and handling charge expenses were HK$143.5 million (US$18.4 million), an increase of 138.0% from the first quarter of 2024. This increase was roughly in line with the growth of our brokerage commission and handling charge income. Interest expenses were HK$469.3 million (US$60.3 million), an increase of 50.0% from the first quarter of 2024. The increase was primarily due to higher expenses associated with our securities borrowing and lending business and higher margin financing interest expenses. Processing and servicing costs were HK$136.1 million (US$17.5 million), an increase of 40.2% from the first quarter of 2024. The increase was primarily due to higher market information and data fee for enhanced market data coverage. Gross Profit Total gross profit was HK$3,945.7 million (US$507.2 million), an increase of 85.9% from HK$2,122.2 million in the first quarter of 2024. Gross margin was 84.0%, as compared to 81.9% in the first quarter of 2024. Operating Expenses Total operating expenses were HK$1,260.4 million (US$162.0 million), an increase of 35.6% from HK$929.5 million in the first quarter of 2024. Research and development expenses were HK$386.0 million (US$49.6 million), an increase of 15.1% from the first quarter of 2024. This increase was primarily driven by investment in AI capabilities and related technology initiatives. Selling and marketing expenses were HK$459.2 million (US$59.0 million), an increase of 56.9% from HK$292.7 million in the first quarter of 2024. This was mainly driven by strong growth of new funded accounts. General and administrative expenses were HK$415.2 million (US$53.4 million), an increase of 37.8% from the first quarter of 2024. The increase was primarily due to an increase in general and administrative personnel to support overseas market development. Income from Operations Income from operations increased by 125.1% to HK$2,685.3 million (US$345.2 million) from HK$1,192.7 million in the first quarter of 2024. Operating margin increased to 57.2% from 46.0% in the first quarter of 2024 mainly due to strong topline growth and operating leverage. Net Income Net income increased by 107.0% to HK$2,142.7 million (US$275.4 million) from HK$1,035.1 million in the first quarter of 2024. Net income margin for the first quarter of 2025 increased to 45.6% from 39.9% in the year-ago quarter. Non-GAAP adjusted net income increased by 97.7% to HK$2,216.9 million (US$285.0 million) from the first quarter of 2024. Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses. For further information, see 'Use of Non-GAAP Financial Measures' at the bottom of this press release. Net Income per ADS Basic net income per American Depositary Share ('ADS') was HK$15.44 (US$1.98), compared with HK$7.53 in the first quarter of 2024. Diluted net income per ADS was HK$15.28 (US$1.96), compared with HK$7.46 in the first quarter of 2024. Each ADS represents eight Class A ordinary shares. Conference Call and Webcast Futu's management will hold an earnings conference call on Thursday, May 29, 2025, at 7:30 AM U.S. Eastern Time (7:30 PM on the same day, Beijing/Hong Kong Time). Please note that all participants will need to pre-register for the conference call, using the link It will automatically lead to the registration page of 'Futu Holdings Ltd First Quarter 2025 Earnings Conference Call', where details for RSVP are needed. Upon registering, all participants will be provided in confirmation emails with participant dial-in numbers and personal PINs to access the conference call. Please dial in 10 minutes prior to the call start time using the conference access information. Additionally, a live and archived webcast of this conference call will be available at About Futu Holdings Limited Futu Holdings Limited (Nasdaq: FUTU) is an advanced technology company transforming the investing experience by offering fully digitalized financial services. Through its proprietary digital platforms, Futubull and moomoo, the Company provides a full range of investment services, including trade execution and clearing, margin financing and securities lending, and wealth management. The Company has embedded social media tools to create a network centered around its users and provide connectivity to users, investors, companies, analysts, media and key opinion leaders. The Company also provides corporate services, including IPO distribution, investor relations and ESOP solution services. Use of Non-GAAP Financial Measures In evaluating the business, the Company considers and uses non-GAAP adjusted net income, a non-GAAP measure, as a supplemental measure to review and assess its operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines non-GAAP adjusted net income as net income excluding share-based compensation expenses. The Company presents the non-GAAP financial measure because it is used by the management to evaluate the operating performance and formulate business plans. Non-GAAP adjusted net income enables the management to assess the Company's operating results without considering the impact of share-based compensation expenses, which are non-cash charges. The Company also believes that the use of the non-GAAP measure facilitates investors' assessment of its operating performance. Non-GAAP adjusted net income is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using non-GAAP adjusted net income is that it does not reflect all items of expense that affect the Company's operations. Share-based compensation expenses have been and may continue to be incurred in the business and is not reflected in the presentation of non-GAAP adjusted net income. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. For more information on this non-GAAP financial measure, please see the table captioned 'Unaudited Reconciliations of Non-GAAP and GAAP Results' set forth at the end of this press release. Exchange Rate Information This announcement contains translations of certain HK dollars ('HK$') amounts into U.S. dollars ('US$') at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from HK$ to US$ were made at the rate of HK$7.7799 to US$1.00, the noon buying rate in effect on March 31, 2025 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the HK$ or US$ amounts referred could be converted into US$ or HK$, as the case may be, at any particular rate or at all. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as 'will,' 'expects,' 'anticipates,' 'future,' 'intends,' 'plans,' 'believes,' 'estimates' and similar statements. Among other things, the quotations from the management team of the Company, contain forward-looking statements. Futu may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Futu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Futu's goal and strategies; Futu's expansion plans; Futu's future business development, financial condition and results of operations; Futu's expectations regarding demand for, and market acceptance of, its credit products; Futu's expectations regarding keeping and strengthening its relationships with borrowers, institutional funding partners, merchandise suppliers and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Futu's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Futu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor inquiries, please contact: Investor RelationsFutu Holdings Limitedir@ ___________________________ 1 The number of funded accounts refers to the number of brokerage accounts with Futu that have a positive account balance. Multiple funded accounts by one client are counted as one funded account.2 Multiple brokerage accounts by one client are counted as one brokerage account.3 The number of users refers to the number of user accounts registered with Futu.4 Non-GAAP adjusted net income is defined as net income excluding share-based compensation HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except for share and per share data) As of December 31, As of March 31, 2024 2025 2025 HK$ HK$ US$ ASSETS Cash and cash equivalents 11,688,383 6,495,155 834,864 Cash held on behalf of clients 68,639,816 88,246,095 11,342,832 Restricted cash 1,121 7,857 1,010 Term deposit 4,990 5,240 674 Short-term investments 2,411,074 2,659,746 341,874 Securities purchased under agreements to resell 316,301 468,788 60,256 Loans and advances-current (net of allowance of HK$85,252 thousand and HK$133,380 thousand as of December 31, 2024 and March 31, 2025, respectively) 49,695,691 48,552,818 6,240,802 Receivables: Clients 534,077 717,361 92,207 Brokers 17,224,387 17,913,085 2,302,483 Clearing organizations 3,277,063 8,189,215 1,052,612 Fund management companies and fund distributors 1,210,472 1,773,358 227,941 Interest 597,483 624,324 80,248 Amounts due from related parties 61,200 - - Prepaid assets 63,497 68,993 8,868 Other current assets 160,330 753,181 96,811 Total current assets 155,885,885 176,475,216 22,683,482 Operating lease right-of-use assets 253,212 390,760 50,227 Long-term investments 573,190 698,183 89,742 Loans and advances-non-current 18,805 18,843 2,422 Other non-current assets 2,025,841 3,055,412 392,730 Total non-current assets 2,871,048 4,163,198 535,121 Total assets 158,756,933 180,638,414 23,218,603LIABILITIES Amounts due to related parties 79,090 154,011 19,796 Payables: Clients 72,379,135 95,452,151 12,269,072 Brokers 43,697,746 38,246,431 4,916,057 Clearing organizations 503,396 357,842 45,996 Fund management companies and fund distributors 507,076 1,509,340 194,005 Interest 86,964 69,180 8,892 Borrowings 5,702,259 9,897,658 1,272,209 Securities sold under agreements to repurchase 2,574,659 929,084 119,421 Lease liabilities-current 144,357 132,750 17,063 Accrued expenses and other current liabilities 4,936,805 3,316,253 426,259 Total current liabilities 130,611,487 150,064,700 19,288,770 Lease liabilities-non-current 132,924 275,538 35,418 Other non-current liabilities 8,061 8,058 1,035 Total non-current liabilities 140,985 283,596 36,453 Total liabilities 130,752,472 150,348,296 19,325,223 SHAREHOLDERS' EQUITY Class A ordinary shares 72 72 9 Class B ordinary shares 27 27 3 Additional paid-in capital 18,807,369 18,885,107 2,427,423 Treasury stock (5,199,257 ) (5,199,257 ) (668,294 ) Accumulated other comprehensive loss (249,916 ) (184,687 ) (23,739 ) Retained earnings 14,652,946 16,798,269 2,159,188 Total shareholders' equity 28,011,241 30,299,531 3,894,590 Non-controlling interest (6,780 ) (9,413 ) (1,210 ) Total equity 28,004,461 30,290,118 3,893,380 Total liabilities and equity 158,756,933 180,638,414 23,218,603FUTU HOLDINGS LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(In thousands, except for share and per share data) For the Three Months Ended March 31,2024 March 31,2025 March 31,2025 HK$ HK$ US$ Revenues Brokerage commission and handling charge income 1,082,107 2,310,220 296,947 Interest income 1,354,166 2,070,469 266,131 Other income 156,186 313,948 40,354 Total revenues 2,592,459 4,694,637 603,432 Costs Brokerage commission and handling charge expenses (60,301 ) (143,505 ) (18,446 ) Interest expenses (312,842 ) (469,333 ) (60,326 ) Processing and servicing costs (97,103 ) (136,115 ) (17,496 ) Total costs (470,246 ) (748,953 ) (96,268 ) Total gross profit 2,122,213 3,945,684 507,164 Operating expenses Research and development expenses (335,487 ) (385,979 ) (49,612 ) Selling and marketing expenses (292,664 ) (459,202 ) (59,024 ) General and administrative expenses (301,335 ) (415,245 ) (53,374 ) Total operating expenses (929,486 ) (1,260,426 ) (162,010 ) Income from operations 1,192,727 2,685,258 345,154 Others, net 31,741 (20,598 ) (2,648 ) Income before income tax expense and share of loss from equity method investments 1,224,468 2,664,660 342,506 Income tax expense (185,641 ) (490,959 ) (63,106 ) Share of loss from equity method investments (3,694 ) (30,997 ) (3,984 ) Net income 1,035,133 2,142,704 275,416 Attributable to: Ordinary shareholders of the Company 1,038,138 2,145,323 275,753 Non-controlling interest (3,005 ) (2,619 ) (337 ) 1,035,133 2,142,704 275,416Net income per share attributable to ordinary shareholders of the Company Basic 0.94 1.93 0.25 Diluted 0.93 1.91 0.24 Net income per ADS Basic 7.53 15.44 1.98 Diluted 7.46 15.28 1.96 Weighted average number of ordinary shares used in computing net income per share Basic 1,102,929,775 1,113,426,758 1,113,426,758 Diluted 1,114,429,420 1,126,352,076 1,126,352,076 Net income 1,035,133 2,142,704 275,416 Other comprehensive (loss)/income, net of tax Foreign currency translation adjustment (29,441 ) 65,215 8,382 Total comprehensive income 1,005,692 2,207,919 283,798 Attributable to: Ordinary shareholders of the Company 1,008,732 2,210,552 284,136 Non-controlling interests (3,040 ) (2,633 ) (338 ) 1,005,692 2,207,919 283,798FUTU HOLDINGS LIMITEDUNAUDITED RECONCILIATIONS OF NON-GAAP AND GAAP RESULTS(In thousands) For the Three Months Ended March 31,2024 March 31,2025 March 31,2025 HK$ HK$ US$ Net income 1,035,133 2,142,704 275,416 Add: Share-based compensation expenses 85,938 74,199 9,537 Adjusted net income 1,121,071 2,216,903 284,953 Non-GAAP to GAAP reconciling items have no income tax effect.

HOOD vs. IBKR: Which Fintech Broker is Poised for More Growth?

Globe and Mail

19-05-2025

Business
Globe and Mail

HOOD vs. IBKR: Which Fintech Broker is Poised for More Growth?

HOOD and Interactive Brokers Group IBKR are prominent online brokerage players offering commission-free trading platforms. Robinhood appeals to newer, mobile-first retail investors, while Interactive Brokers serves more advanced traders with its comprehensive tools. With the stock markets witnessing massive volatility and client activity, HOOD and IBKR are expected to benefit from increased trading activities. As such, investors are bullish on both. This year, shares of HOOD have soared 65.8%, while Interactive Brokers is up 18.4%. Also, stocks have fared better than the industry, the Zacks Finance sector and the S&P 500 Index in the same time frame. HOOD & IBKR YTD Price Performance So, the question arises: which brokerage stock — Robinhood or Interactive Brokers — offers greater upside in the evolving trading market? Let's break down their fundamentals, financial performance, growth prospects and more before taking any decision. The Case for Robinhood Robinhood became extremely popular among younger generations in early 2021, riding on the meme stock wave. Nonetheless, since its IPO in July 2021, a lot has happened on the business front. It has evolved from a brokerage firm primarily trading in digital assets to a more mature and diversified entity, striving to become a one-stop shop for building generational wealth. In this context, HOOD has launched several initiatives to attract more clients and strengthen its market share. Some notable ones are Robinhood Strategies, Robinhood Banking and Robinhood Cortex to boost the wealth management offerings; the prediction markets hub; a credit card and a desktop trading platform. Additionally, Robinhood is expanding via strategic acquisitions, which are helping it foray into new businesses and complement existing ones. On Tuesday, it announced an agreement to buy Canada-based WonderFi Technologies Inc. in a C$250 million all-cash deal, which will help deepen its presence in the Canadian digital asset market. In February 2025, it completed the $300 million acquisition of TradePMR, a custodial and portfolio management platform specializing in services for Registered Investment Advisors. Also, in July 2024, Robinhood acquired Pluto Capital Inc. With the integration of Pluto's advanced capabilities, the company has revolutionized the investment experience for its users. Further, the impending buyout of Bitstamp (announced in June 2024), a globally recognized cryptocurrency exchange (featuring more than 85 tradable assets and popular in Europe and Asia), will significantly enhance the company's crypto offerings. Hence, these efforts reflect HOOD's ambition to become a full-spectrum financial services provider. HOOD Sales Estimates The Case for Interactive Brokers Interactive Brokers' technological superiority remains one of its strongest aspects. The company processes trades in stocks, futures, options and forex on more than 150 exchanges across several countries and currencies. Superior technology usage has kept IBKR's compensation expense relative to net revenues (10.8% in the first quarter of 2025) below its industry peers. Further, the company has been emphasizing developing proprietary software to automate broker-dealer functions, leading to a steady rise in revenues. Interactive Brokers is expanding globally with a series of strategic moves. Earlier this month, it extended trading hours for Forecast Contracts to nearly 24 hours, after having launched them in Canada. In the U.K., it added mutual funds to its ISA offerings, enhancing tax-efficient investing. IBKR also introduced PEA accounts in France and expanded mobile trading via GlobalTrader. Other innovations include almost 24 hours of Overnight Trading on U.S. stocks and ETFs, crypto trading through Paxos with low fees and the launch of IBKR Desktop, a next-gen trading platform for Windows and Mac, underscoring its focus on advanced, global trading solutions. The company's technological superiority, combined with easier regulations to improve product velocity, will support its net revenues through higher client acquisitions. Net revenues are also expected to strengthen further in the quarters ahead, given the solid Daily Average Revenue Trades (DARTs) numbers and robust trading backdrop driven by higher market participation. IBKR Sales Estimates Image Source: Zacks Investment Research How Do Estimates Compare for HOOD & IBKR? The Zacks Consensus Estimate for HOOD's 2025 and 2026 earnings indicates an 11.9% and 19.4% rise for 2025 and 2026, respectively. Over the past month, earnings estimates for 2025 have remained unchanged, while for 2026, the same have been revised upward. Earnings Trend Image Source: Zacks Investment Research On the contrary, analysts are less optimistic about IBKR's prospects. The consensus mark for earnings suggests 0.4% and 7% growth for 2025 and 2026, respectively. Earnings estimates for both years have been revised lower over the past 30 days. Earnings Trend Image Source: Zacks Investment Research Hence, on earnings growth prospects, HOOD clearly has an edge over Interactive Brokers. Robinhood & Interactive Brokers: Valuation & Other Comparisons Valuation-wise, HOOD is currently trading at the 12-month forward price-to-earnings (P/E) of 47.17X. The IBKR stock, on the other hand, is currently trading at the 12-month trailing P/TB of 28.86X. Further, both are trading at a premium to the industry average of 13.82X. P/E F12M While Robinhood commands a premium over Interactive Brokers, its valuation is justified, given its superior growth trajectory. Additionally, HOOD's return on equity (ROE) of 15.42% is way above IBKR's 4.97%. HOOD also outscores the industry ROE of 11.97%. This reflects Robinhood's efficient use of shareholder funds to generate profits. ROE HOOD & IBKR: Which Stock Indicates Long-Term Gains? HOOD has undergone a significant transformation since its IPO, evolving from a disruptive trading app into a comprehensive financial services platform. Through strategic acquisitions, it is aggressively expanding its product suite and global reach. It's also investing in advanced tools like Robinhood Cortex and Robinhood Strategies, targeting a broader investor base. These innovations, paired with a robust ROE and accelerating earnings and sales growth estimates through 2026, suggest strong long-term upside potential. On the other hand, Interactive Brokers remains a dominant, tech-driven brokerage favored by professional and institutional investors. Its global reach, low-cost model and powerful trading tools continue to support consistent revenue growth. However, while the company's innovation in areas like Forecast Contracts, GlobalTrader and IBKR Desktop is impressive, its earnings outlook is more muted, with only modest growth expected in the next two years. Combined with a lower ROE and downward revisions to earnings estimates, this suggests that while IBKR is a stable, well-run business, it may not match HOOD's upside potential in a growth-focused portfolio. Thus, Robinhood appears to be the better long-term investment for solid returns. At present, Robinhood and Interactive Brokers carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report

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