Interactive Brokers recently shared impressive performance data for 2025. Their individual and hedge fund clients outperformed the S&P 500 Index on average last year. The firm credits this success to low costs and global market access. Efficient execution also played a major role in these strong results.
Individual clients at the firm earned an average return of 19.20%. This beat the 17.9% return of the S&P 500 Index during that period. Hedge fund clients saw even higher gains. These professional investors achieved an average return of 28.91%. This surpassed the benchmark by roughly 11 percentage points.
Interactive Brokers provides access to over 160 global markets. Clients can trade stocks, options, and futures from one platform. They also earn high interest on uninvested cash balances. Low margin rates further improve capital efficiency for many users. The firm currently serves over 4 million clients worldwide.
Drivers of Investment Performance
Cost efficiency is a core part of the firm’s strategy. High fees can often hurt long-term investment gains. Interactive Brokers focuses on reducing these barriers for its users. This helps investors keep more of their profits.
“Investment returns are not just about picking the right trades. They are influenced by the costs you pay, the prices you get, and how efficiently your capital is put to work,” said Thomas Peterffy, Founder and Chairman of Interactive Brokers. “When investors pay less in fees and trade with efficient execution, those advantages add up and compound over time. All of this is more evidence that the best-informed investors choose Interactive Brokers,” said Peterffy.
The firm is a member of the S&P 500 Index itself. It manages more than $750 billion in client assets. Technology and automation remain the main focus for the company. These tools enable clients to manage their portfolios with high precision and low cost.
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News Source: Businesswire.com
