Interactive Brokers Group, Inc. (IBKR): Business Model Canvas [Dec-2025 Updated]

You're looking to understand how a technology-first broker like Interactive Brokers Group, Inc. (IBKR) actually prints money, especially when they advertise near-zero costs to clients. Honestly, after two decades analyzing firms, I see their model as a masterclass in scale: they use their proprietary tech to offer access to over 160 markets, but the real engine isn't just commissions. Look at the Q3 2025 numbers: Net Interest Income, driven by margin lending on that $83.3 billion in client loans, hit $967 million, dwarfing the $537 million from commissions. So, while they offer superior execution and high sweep interest, their core strategy hinges on efficiently managing that massive pool of client assets-currently $769.7 billion in equity as of November 2025-to generate interest. Dive into the full Business Model Canvas below to see exactly how they structure their key activities and resources to keep that cost advantage while funding their growth.

Interactive Brokers Group, Inc. (IBKR) - Canvas Business Model: Key Partnerships

You're hiring before product-market fit... wait, that's not right for Interactive Brokers Group, Inc. (IBKR). This is about the established network that keeps the engine running.

Introducing Brokers and Financial Advisors for client referral

Interactive Brokers Group, Inc. (IBKR) serves institutional clients including financial advisors and introducing brokers. The commission mix between retail and institutional clients was about 55%/45% as of early 2025. In September 2025, the reported account growth was impacted by a specific event related to this segment. The real account growth for September 2025 was 111.9 thousand accounts, but this included the withdrawal of one introducing broker which accounted for 38.8 thousand accounts and $413.5 million of customer assets. Interactive Brokers Group, Inc. (IBKR) affiliates are listed as serving Introducing Brokers and Money Managers. Commissions for the first quarter of 2025 rose 36% versus the prior year, reaching over a half-billion dollars for the first time.

Global exchanges and clearing houses for trade execution

Interactive Brokers Group, Inc. (IBKR) affiliates provide trade execution and custody of securities across over 160 markets in numerous countries and currencies. The total number of client accounts reached 4.127 million as of September 2025, up 32% year-over-year. Daily Average Revenue Trades (DARTs) for October 2025 were reported at 4.472 million, a 58% increase compared to the prior year. For March 2025, the average U.S. Reg-NMS stock trade value was $20,834.

Liquidity providers for the strengthened Alternative Trading System (ATS)

Interactive Brokers Group, Inc. (IBKR) operates the IBKR ATS (IATS) to execute client orders against each other or against professional liquidity providers who quote into the system. For trades executed with a non-marketable customer order on the IBKR ATS, market makers pay Interactive Brokers Group, Inc. (IBKR) $0.27 per 100 shares for execution prices greater than or equal to $1.00. For marketable customer orders, market makers pay Interactive Brokers Group, Inc. (IBKR) a rebate of 12% of the spread between the National Best Bid and Offer. The IBKR ATS is supplemented by connections to other venues, such as the Blue Ocean ATS, to support Overnight Trading liquidity.

Banking partners for Insured Bank Deposit Sweep Program

The Insured Bank Deposit Sweep Program offers significant FDIC insurance protection beyond the standard SIPC coverage. For individual accounts, the total coverage is $5,250,000, comprising $250,000 SIPC coverage and up to $5,000,000 in FDIC insurance. Joint accounts are eligible for up to $10,250,000 total coverage, with $10,000,000 from FDIC insurance. In September 2025, ending client credit balances included $6.2 billion held in insured bank deposit sweeps. This figure was $4.9 billion in March 2025 and $5.4 billion in May 2025. The program also generated a decrease of $12 million in risk exposure fees, partially offset by a $3 million increase in FDIC sweep fees in Q3 2025.

Institutional investors (e.g., Vanguard, JPMorgan) as major shareholders

Institutional investors hold a substantial portion of Interactive Brokers Group, Inc. (IBKR). As of September 30, 2025, the total number of institutional owners filing forms was 1,003, holding 385,390,080 shares. The total value of these institutional holdings was $25,035 million.

The share price as of November 28, 2025, was $65.02 per share. The company declared a quarterly cash dividend of $0.08 per share, payable on December 12, 2025, to shareholders of record as of December 1, 2025. Finance: draft 13-week cash view by Friday.

Interactive Brokers Group, Inc. (IBKR) - Canvas Business Model: Key Activities

Proprietary trading platform development and maintenance

Interactive Brokers Group, Inc. focuses on developing proprietary software to automate broker-dealer functions, a focus since its inception in 1977. Employees oversee the design, performance evaluation, and quality assurance of the software. The firm continuously rewrites and upgrades its software to achieve optimal performance and integrate with trading venues, data sources, securities lending platforms, and regulatory reporting facilities. Software development costs are relatively low because the employees who oversee development also design the application and evaluate its performance.

Automated trade execution and clearing across 160+ markets

Interactive Brokers Group, Inc. 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. In November 2025, the firm expanded market access by adding the Taipei Exchange to its platform. Trading activity in November 2025 saw 4.27 million Daily Average Revenue Trades (DARTs), a 29% increase compared with November 2024. The number of client accounts reached 4.311 million in November 2025, a 33% increase from the previous year. The annualized average cleared DARTs per client account in May 2025 was 196. The average commission per cleared Commissionable Order in May 2025 was $2.61 including exchange, clearing and regulatory fees.

You need to see the scale of activity to appreciate the platform's throughput:

• Ending client equity in November 2025: $769.7 billion.
• Ending client equity in May 2025: $628.2 billion.
• Total options contracts traded in November 2025: 138.4 million.
• Futures contracts traded in November 2025: 21 million.

Here are the key operational metrics from November 2025:

Continuous product innovation (e.g., Ask IBKR AI tool)

Interactive Brokers Group, Inc. launched the AI-powered tool Ask IBKR in October 2025, which delivers instant portfolio insights via natural language queries. The tool allows for Portfolio Metrics, Allocation Analysis, Holdings Exploration, and Activity Tracking. In a September 2025 survey of independent RIAs, 79% reported using generative AI tools in their workday, and 58% reported using them more than at the start of the year. Advisors at firms using Interactive Brokers Group, Inc. reported that 72% have confidence they will grow their businesses in 2025.

Securities financing and margin lending operations

The firm's operations include securities financing and margin lending. Ending client margin loan balances reached $83.3 billion in November 2025, up 38% year-on-year. Net interest income increased 21% in the third quarter of 2025 compared to the year-ago quarter, driven by stronger securities lending activity and higher average customer margin loans and customer credit balances. As of November 4, 2025, the Annual Percentage Rate (APR) on USD margin loan balances could be as low as 4.37%. For cash balances, the interest rate earned could be up to 3.37% for USD on accounts with a net asset value of $100,000.

Global regulatory compliance and risk management

The average commission per cleared Commissionable Order in September 2025 was $2.71, which includes exchange, clearing, and regulatory fees. For IBKR PRO clients, the total cost of executing and clearing U.S. Reg. -NMS stocks through IB in September 2025 was about 1.8 basis points of trade money against a daily VWAP benchmark. The mark to market on the U.S. governmental securities portfolio resulted in a loss of $195,000 for the quarter ended September 30, 2025. For the quarter ended March 31, 2025, the mark to market on the U.S. government securities portfolio was a gain of $462,000. The Board of Directors declared a quarterly cash dividend of $0.08 per share, payable on December 12, 2025, to shareholders of record as of December 1, 2025.

Interactive Brokers Group, Inc. (IBKR) - Canvas Business Model: Key Resources

The core of Interactive Brokers Group, Inc.'s (IBKR) value proposition rests on its technological superiority and massive scale, which underpins its low-cost structure. This is a key resource you rely on to maintain competitive pricing.

The firm's proprietary trading technology is central. This includes the flagship Trader Workstation (TWS) platform, the newer IBKR Desktop (Version 1.0 launched after two years of beta testing), and mobile applications, all designed to offer direct market access execution. Interactive Brokers Group, Inc. supports over 100+ order types, covering everything from simple limit orders to complex algorithmic trading strategies. The efficiency of this routing technology is quantified by the execution quality reported for IBKR PRO clients; in November 2025, the all-in cost of executing and clearing U.S. Reg-NMS stocks was about 3.0 basis points of trade money.

The sheer volume processed through this infrastructure highlights its robustness. In November 2025, Interactive Brokers Group, Inc. recorded 4.273 million Daily Average Revenue Trades (DARTs). This massive flow is managed across a rapidly growing client base, which reached 4.311 million client accounts by the end of November 2025. The operational efficiency is further evidenced by an annualized average of 214 cleared DARTs per client account.

A critical financial resource is the capital entrusted by clients. As of November 2025, the ending client equity totaled $769.7 billion, representing a 34% increase year-over-year. Furthermore, client margin loan balances were $83.3 billion, up 38% year-over-year. Client credit balances stood at $154.0 billion, which includes $6.2 billion in insured bank deposit sweeps.

Global reach is secured through an extensive network of regulatory approvals. Interactive Brokers Group, Inc. affiliates provide trade execution and custody across more than 160 markets in 36 countries, handling 28 currencies. This requires maintaining compliance with numerous global regulators, including the SEC, FINRA, the Financial Conduct Authority (FCA) in the U.K., the Central Bank of Ireland (CBI), the Australian Securities and Investments Commission (ASIC), and the Canadian Investment Regulatory Organization (CIRO).

The intellectual property is embedded in the proprietary algorithms and risk management systems that power the routing and execution quality. While specific IP asset values aren't public, the output of these systems is visible in the execution quality metrics and the breadth of products offered, such as access to over one million bonds and more than 43,000 mutual funds worldwide.

Here is a snapshot of the key quantitative resources as of November 2025:

The operational infrastructure supports a diverse product set, which is a resource in itself. You can see the breakdown of trading costs and activity below:

• Average commission per cleared Commissionable Order (all-in): $2.62.
• Average U.S. Reg-NMS stock trade size: $22,756.
• Average commission for cleared stock orders: $1.94.
• Average commission for cleared equity options orders: $3.84 (for 6.6 contracts).
• Average commission for cleared futures orders: $3.82 (for 2.8 contracts).

The firm's regulatory footprint is a necessary resource for global operation. For instance, Interactive Brokers (U.K.) Limited is authorized and regulated by the Financial Conduct Authority (FCA). Interactive Brokers Australia Pty. Ltd. is licensed by the Australian Securities and Investments Commission (AFSL: 453554).

Interactive Brokers Group, Inc. (IBKR) - Canvas Business Model: Value Propositions

You're looking at the core reasons why sophisticated traders choose Interactive Brokers Group, Inc. (IBKR) over the competition; it really boils down to cost, access, and technology. Here's the quick math on what they offer as of late 2025.

Lowest all-in cost for sophisticated global trading

• The average commission per cleared Commissionable Order in November 2025 was reported at $2.62, which includes exchange, clearing, and regulatory fees.
• For US stocks under the tiered pricing plan, you can see commissions as low as 0.05% with a minimum fee of $1.25 per trade.
• Currency conversion fees are transparently low, set at only 0.03% for Auto FX rate conversions.

Access to 160+ markets and diverse products from a single account

• Interactive Brokers Group affiliates provide access to trade across over 160 markets in numerous countries.
• You manage positions across these global markets and trade directly in 28 different currencies from one unified platform.
• The platform supports a wide range of products, including stocks, options, futures, foreign exchange, bonds, mutual funds, and ETFs.

Advanced trading tools and AI-powered portfolio insights

• You get access to proprietary technology like the IB SmartRoutingSM system, which continuously evaluates market conditions to seek the best available price electronically.
• The firm offers specialized platforms such as Trader Workstation (TWS) and the web-based IBKR ForecastTrader for expressing views on economic and government events.
• The platform's technology and automation focus is a core strength, enabling sophisticated portfolio management.

High interest paid on idle cash balances for clients

• For IBKR Pro clients with a Net Asset Value (NAV) exceeding $100,000, the annual interest rate on USD cash balances above $10,000 can reach up to 4.33%.
• As of November 4, 2025, the stated rate for this top tier was 3.37% on USD cash balances over $10,000.
• Interest is generally not payable on the first $10,000 (or equivalent) of uninvested cash in each currency holding.

Superior trade execution quality (price improvement)

For professional traders, the commitment to superior execution quality is key, especially since IBKR Pro does not accept Payment for Order Flow (PFOF). This focus results in measurable price improvement. For instance, in November 2025, the total cost for IBKR PRO clients executing U.S. Reg.-NMS stocks was approximately 3.0 basis points of the trade value when benchmarked against the daily VWAP. The net cost over the prior twelve months was slightly better at 2.8 basis points. If onboarding takes 14+ days, churn risk rises, but the execution speed here helps mitigate that. Here is a look at some key November 2025 metrics:

Interactive Brokers Group, Inc. (IBKR) - Canvas Business Model: Customer Relationships

You're looking at how Interactive Brokers Group, Inc. (IBKR) manages its vast and diverse client base as of late 2025. The relationship strategy is clearly bifurcated: heavy automation for the self-directed masses and high-touch, specialized service for professional intermediaries.

Highly automated and self-service digital platforms

The foundation of Interactive Brokers Group, Inc.'s customer relationship is its technology, which drives extreme operational leverage. The core experience is designed for self-service, allowing the firm to scale its client base without a proportional increase in support staff. This is evident in the sheer volume of activity handled through digital channels. As of the third quarter of 2025, Interactive Brokers Group, Inc. served 4.13 million customer accounts, holding total customer equity of $757.5 billion. The platform's automation supports this scale through features like recurring investments and fractional share purchases, which allow for hands-off management by the client.

The self-service model is supported by a clear segmentation of the retail base:

• Access to the powerful Trader Workstation (TWS) platform is a hallmark of the Pro segment.
• The IBKR Lite offering, exclusively for US residents, prioritizes simplicity via the Client Portal and Mobile app.
• IBKR Lite utilizes Payment for Order Flow (PFOF) for its commission-free US stock/ETF trades, contrasting with the SmartRouting system used by the Pro segment.

Dedicated support and tools for Financial Advisors (RIAs)

For the professional segment, Interactive Brokers Group, Inc. shifts from low-touch automation to dedicated, high-utility support. The firm explicitly states it does not have an advisory team to compete with its RIA clients, positioning itself as a pure custodian. Support includes providing complimentary websites with custom graphic design through the IBKR Advisor Client Sites. Furthermore, they facilitate compliance and auditing through tools like Bulk Download of Client Documents. The firm also hosts quarterly Advisor Roundtables, which are advisor-led discussions on utilizing the platform's robust features for wealth management and estate planning.

Tiered service models for advisors (Streamlined to Full-Service)

Interactive Brokers Group, Inc. tailors the level of advisor control and client communication handling through three distinct service models. This tiered approach lets advisors select the operational partnership that best fits their practice structure. The models are:

• Streamlined All-Client Enrollment: This is the default for eligible professional advisor applicants, automatically enrolling clients who then use a simplified approval process for advisor-initiated actions like funding requests.
• Streamlined Plus All-Client Enrollment: Offers the base Streamlined features with additional configuration options for the advisor.
• Full-Service Per-Client Enrollment: Requires individual client enrollment and grants the advisor the power to perform more extensive administrative tasks, including the ability to move funds or assets on behalf of the client, though this may trigger explicit custody notifications.

These models feature an Enhanced Dashboard with a Client Pending Items tab, aggregating communications from Interactive Brokers Group, Inc. to avoid unnecessary direct client contact, routing them to the advisor first.

Educational content via the IBKR InvestMentor app for beginners

To cultivate the next generation of self-directed investors, Interactive Brokers Group, Inc. launched the IBKR InvestMentor mobile microlearning app in July 2025, developed by Interactive Academy LLC. This is a direct effort to improve financial literacy among aspiring investors. The app is free and available for iOS, focusing on foundational knowledge in economics and investing through short, interactive lessons and quizzes. This initiative directly supports the influx of newer investors who may not have formal financial training, reflecting the Chairman's philosophy that success comes from learning on the job.

Direct, low-touch interaction for the IBKR Lite segment

The IBKR Lite segment is inherently designed for a low-touch relationship, catering to US residents who trade US stocks and ETFs occasionally. This segment receives commission-free trades in exchange for routing orders via Payment for Order Flow (PFOF), meaning they do not benefit from the SmartRouting system used by Pro clients. The interaction is simplified to the user-friendly Client Portal and IBKR Mobile, avoiding the complexity of the Trader Workstation (TWS) platform. This setup ensures that the relationship remains transactional and cost-effective for the casual investor, requiring minimal direct intervention from Interactive Brokers Group, Inc. support staff.

Interactive Brokers Group, Inc. (IBKR) - Canvas Business Model: Channels

You're looking at how Interactive Brokers Group, Inc. (IBKR) gets its sophisticated platform and services into the hands of its diverse client base, spanning from individual traders to large institutions. The channels are heavily technology-driven, which is key to their low-cost structure.

Proprietary trading platforms (Trader Workstation, IBKR Mobile, IBKR Desktop)

The core delivery mechanism remains the proprietary software suite. The Trader Workstation (TWS) is the flagship, but the mobile and desktop versions are critical for accessibility. These platforms are the gateway for the massive client base growth seen through 2025.

Consider the scale: by November 2025, Interactive Brokers Group, Inc. (IBKR) served 4.311 million client accounts. This activity flows through these channels, evidenced by the 4.273 million Daily Average Revenue Trades (DARTs) reported for November 2025. The platform's technological sophistication is what keeps the more active users engaged; for instance, the annualized average cleared DARTs per client account was 214 in November 2025. The platform also supports trading across over 160 markets in numerous countries.

Direct online account opening and web portal

The direct digital channel is where most new clients start. The ability to onboard digitally is a major driver of growth. For context, the company added 96,100 net new accounts in August 2025 alone, a 44% increase year over year. The platform's success in attracting new users is clear: customer accounts increased by 32% year-on-year to reach 4.13 million as of September 2025.

The integration of cash management features directly into the spending channel is a recent, significant development. The Karta Visa Card, launched in October 2025, directly links spending to the brokerage account. This cash management offering allows clients to earn interest up to 3.62% on idle cash or borrow at rates between 4.62% and 5.62%.

Application Programming Interfaces (APIs) for institutional integration

For institutional clients, hedge funds, and sophisticated retail programmers, the Application Programming Interfaces (APIs) are the primary channel for high-volume, automated access. Interactive Brokers Group, Inc. (IBKR) offers several interfaces to embed their execution capabilities into external systems.

The API offerings include:

• Web API (modern REST API for account opening, management, and trading).
• TWS API (trading-oriented for C++, C#, Java, Python development).
• FIX connection (industry standard for institutions needing direct, scalable trading systems).
• Excel API (for managing accounts and automating strategies using Excel).

These tools help Interactive Brokers Group, Inc. (IBKR) serve proprietary trading groups and financial advisors who build custom technology stacks on top of the Interactive Brokers Group, Inc. (IBKR) infrastructure.

Introducing Broker network for client acquisition

The Introducing Broker (IB) network is a vital channel for client acquisition, especially internationally, where Interactive Brokers Group, Inc. (IBKR) partners with local entities to onboard clients. This channel serves financial advisors and other brokers who use the Interactive Brokers Group, Inc. (IBKR) back-end for execution and custody.

The scale of this channel is significant, though subject to change. In September 2025, the withdrawal of one introducing broker resulted in the loss of 38.8 thousand accounts and $413.5 million of customer assets. This single event highlights the concentration risk and the sheer volume that can flow through a major IB partner. The commission mix for Interactive Brokers Group, Inc. (IBKR) generally sees retail and institutional clients (which includes IBs) at about 55% and 45%, respectively.

Karta Visa Card linked to brokerage accounts

The Karta Visa Card, introduced in late 2025, is a direct-to-consumer channel that blurs the line between brokerage and everyday finance. It allows eligible clients to spend directly from their USD brokerage balances globally with no foreign transaction fees. This move is part of a broader strategy to transition toward a full-service financial platform.

The financial metrics supporting the cash management aspect of this channel show strong underlying balances as of late 2025. Ending client credit balances stood at $154.0 billion in November 2025, up 30% year over year. The card itself offers premium amenities, including 24/7 luxury travel concierge services.

Here are some key figures related to the cash management ecosystem that the Karta Card leverages:

Interactive Brokers Group, Inc. (IBKR) - Canvas Business Model: Customer Segments

You're looking at the core client base that drives the engine at Interactive Brokers Group, Inc. (IBKR) as of late 2025. The strategy here is clearly about breadth and depth, serving everyone from the most demanding professional to the everyday retail investor globally. This multi-faceted approach is what keeps their platform sticky.

The overall scale of the client base shows massive growth. As of the third quarter of 2025 (3Q2025), Interactive Brokers Group, Inc. had 4,127 thousand total customer accounts, which is a 32% increase year-over-year from 3Q2024. Customer Equity, which is the total value held in client accounts, reached $757.5 billion, marking a 40% jump from the prior year. By September 2025, the average account size settled around ~$183,400.

Sophisticated, high-volume individual traders and investors

This group represents the traditional core of Interactive Brokers Group, Inc.'s business, drawn by the platform's execution quality and low costs across a vast array of products. These clients are the ones driving the high Daily Average Revenue Trades (DARTs). Total client DARTs hit 3.62 million in 3Q2025, up 34% year-over-year. Their trading activity is significant; for instance, stock trading volume was up 67% and options volume was up 27% in 3Q2025 compared to the year-ago quarter.

The platform supports their complex needs with access to over 160 markets and a unified master account structure.

Financial Advisors and Wealth Managers (RIAs)

Interactive Brokers Group, Inc. actively courts Registered Investment Advisors (RIAs) with technology-driven brokerage and custodial solutions. An April 2025 survey indicated that the financial advisors using their platform have substantial responsibility, with the average respondent managing $56 million in client assets. Furthermore, the firms these advisors work for oversee an average of $120.2 million in client assets.

• The platform offers a Web-based Advisor Portal with integrated CRM and PortfolioAnalyst®.
• A notable 72% of surveyed advisors expressed confidence in growing their businesses in 2025.
• 28% of advisor firms surveyed manage an average of $350 million in client assets.

Hedge Funds and Proprietary Trading Groups

This segment relies on Interactive Brokers Group, Inc.'s sophisticated technology for superior execution and risk management tools. The firm has cemented its position in this space, rising to #4 in Preqin's hedge fund rankings based on the number of hedge funds serviced as of 3Q2025. These groups contribute to the high-volume trading metrics seen across the platform.

Global retail investors (IBKR Lite for zero-commission US stocks)

While the sophisticated segment drives high-margin activity, the global retail segment, including those using the IBKR Lite offering for zero-commission US stock trades, is crucial for account growth. The total account base grew 32% year-over-year to 4.13 million in 3Q2025. The influx of new investors, potentially attracted by offerings like IBKR Lite, has been a major driver of this growth, though the average account size is lower than the historical peak.

Institutional clients requiring outsourced trading services

Beyond direct hedge fund relationships, Interactive Brokers Group, Inc. serves broader institutional needs, including introducing brokers. The platform's ability to handle diverse asset classes and global access appeals to institutions needing outsourced execution. The commission revenue for the entire client base was $537 million in 3Q2025.

Here's a quick look at the scale of assets and activity supporting these segments as of 3Q2025:

The platform's ability to service these diverse groups is underpinned by its technology, which allows for trading on over 160 markets from a single account.

Finance: draft 13-week cash view by Friday.

Interactive Brokers Group, Inc. (IBKR) - Canvas Business Model: Cost Structure

The cost structure for Interactive Brokers Group, Inc. (IBKR) is heavily weighted toward technology infrastructure, which is a necessary high fixed cost to support its automated, global electronic brokerage platform.

Regulatory and compliance expenses manifest through various fees and penalties. For the quarter ended September 30, 2025, Execution, clearing and distribution fees were $92 million, a decrease of 21% from the year-ago quarter, driven by lower regulatory fees as the SEC Section 31 transaction fee rate was reduced to zero on May 14, 2025. This followed $116 million in these fees for the quarter ended June 30, 2025, which included a new FINRA Consolidated Audit Trail ("CAT") fee initiated in the fourth quarter of 2024. Separately, Interactive Brokers LLC consented to a $650,000 fine from the Financial Industry Regulatory Authority (FINRA) in August 2025 regarding options approval failures, and agreed to a $125,000 fine in September 2025 for municipal bond disclosure violations.

Compensation and benefits reflect a lean, specialized workforce. The headcount at June 30, 2025, was 3,087 employees. For the quarter ended June 30, 2025, employee compensation and benefits increased to $163 million from $146 million in the prior year, reflecting a modest staff increase of 3% over the prior year. Another report indicated Compensation and Benefits Expense was $154 million with a 3% staff increase over the prior year.

Exchange, clearing, and distribution fees are variable based on trading volumes. These fees were $116 million for the second quarter of 2025 and decreased to $92 million for the third quarter of 2025.

Advertising and marketing expenses showed an increase in the second quarter of 2025. General and administrative expenses for Q2 2025 were $61 million, driven primarily by an increase of $8 million in advertising expenses, representing a 17% rise in G&A expenses year-over-year. For the quarter ended September 30, 2025, there was an increase of $10 million in advertising expenses, though total General and administrative expenses decreased to $62 million due to non-recurrences related to legal and regulatory matters.

Here is a summary of key expense line items from recent quarters:

The cost structure is also influenced by the following operational factors:

• Average commission per cleared Commissionable Order for Stocks was $1.94 in May 2025.
• Average commission per cleared Commissionable Order for Equity Options was $3.61 in May 2025.
• The estimated exchange, clearing and regulatory fees as a percentage of futures commissions was 58% in May 2025.
• Total assets ended Q3 2025 at $181,000,000,000 (or $181 billion).

Interactive Brokers Group, Inc. (IBKR) - Canvas Business Model: Revenue Streams

You're looking at the engine room of Interactive Brokers Group, Inc. (IBKR)'s profitability, and frankly, the numbers coming out of Q3 2025 show a well-oiled machine, especially when you see how they monetize client assets.

Net Interest Income remains the heavyweight champion, clocking in at $967 million for the third quarter of 2025. That's a solid 21% increase year-over-year. This income stream is directly fueled by the growth in client lending and cash balances. You see, Interactive Brokers Group, Inc. is effectively using its massive client asset base to generate returns, which is key for any modern brokerage.

Next up is Commission revenue, which hit $537 million in Q3 2025, a 23% jump from the prior year. This growth came despite a 7% dip in futures trading; the real juice was in stocks, which saw trading volumes surge by 67%, and options, up 27%. That shows you where the client focus was this past quarter.

Here's a quick look at how these top two streams stack up against other reported revenue components for the quarter ended September 30, 2025:

When we drill down into the interest-bearing activities, you can see the direct link to client leverage and cash holdings. Interactive Brokers Group, Inc. reported that Customer margin loans increased 39% to $77.3 billion as of September 30, 2025. This higher average loan balance directly contributed to the rise in Net Interest Income.

The securities lending income component is also a significant, though often less visible, part of that interest income story. If you were to aggregate the revenue from securities lending-where Interactive Brokers Group, Inc. lends out clients' fully paid shares-under a single line item, the estimated total for the quarter would have been $314 million. That's double the $156 million earned in the year-ago quarter, showing a major uptick in securities lending opportunities.

Finally, you have the miscellaneous bucket of other fees, which totaled $66 million, an 8% decrease overall. This category is a mix of charges and credits, so you have to look at the components:

• The decrease was led by a $12 million drop in risk exposure fees.
• This was partially offset by a $3 million increase in FDIC sweep fees.
• The FDIC sweep program itself averaged $5.96 billion in the quarter, quietly adding to net interest income.

Also, don't forget the Other income line, which jumped 52% to $85 million, largely thanks to $42 million from investing activities, though a $21 million lower gain on currency diversification tempered the total.

Finance: draft 13-week cash view by Friday.