Interactive Brokers Surges 110% on 31% Volume Jump Hits 410th in Trading Activity Despite 1.93% Drop

On August 19, 2025, Interactive Brokers (IBKR) traded with a volume of $0.24 billion, ranking 410th in market activity. Despite a 1.93% decline in its share price, the stock remains under strong analyst scrutiny as a potential outperformer.

Analyst sentiment for IBKR has improved significantly, with Zacks Investment Research assigning it a #1 (Strong Buy) rating. The stock’s performance over the past year has surged nearly 110%, far outpacing the S&P 500. This growth is attributed to robust trading volumes across stocks, options, and futures, which increased by 31%, 24%, and 18%, respectively, during the latest reporting period. Commission revenue for the period reached $516 million, reflecting a 27% year-over-year increase.

Customer adoption has also driven momentum, with account growth reaching 32% year-over-year to 3.9 million. However, valuation metrics suggest elevated expectations. The stock trades at a 31.1X forward earnings multiple, well above its five-year median of 18.9X, and a PEG ratio of 2.5X, compared to a five-year median of 0.8X. These metrics highlight a premium valuation relative to historical averages.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The 1-day return was 0.98%, with a total return of 31.52% over 365 days. This indicates the strategy captured some short-term momentum but also reflected market volatility and potential timing risks.