While most of the market chatter centers around artificial intelligence (AI) stocks these days, one under-the-radar player has been wooing investors, and it’s not even a tech company. Interactive Brokers (IBKR), an online brokerage firm, has delivered strong stock performance in recent years, powered by solid fundamentals, steady customer growth, and robust trading activity.
And its next big milestone arrives at the opening of trading on Aug. 28, when IBKR officially joins the S&P 500 Index ($SPX), replacing Walgreens Boots Alliance (WBA), which is being taken private by Sycamore Partners. This inclusion is a meaningful catalyst for IBKR thanks to the “index effect.” When a stock enters the S&P 500, passive funds like ETFs and mutual funds that mirror the index scoop up shares, creating a surge in demand that often lifts the stock price.
Beyond that immediate impact, being part of the benchmark index boosts a company’s visibility and credibility with institutional investors, potentially attracting more capital and higher valuations down the road. So, with these tailwinds in play, it’s worth taking a fresh look at IBKR stock right now.
Founded in 1977 and based in Connecticut, Interactive Brokers operates as a global brokerage through its affiliates. The company provides automated trade execution and custody services across securities, commodities, foreign exchange, and futures, giving clients access to more than 160 markets worldwide. Its technology-driven approach has shaped a platform used by individual investors, hedge funds, trading firms, financial advisors, and introducing brokers alike.
Valued at about $107.6 billion by market capitalization, shares of this brokerage firm appear to have attracted considerable attention from investors. Over the past year, shares have skyrocketed 94%, leaving the SPX’s 15.1% gain in the dust. The rally hasn’t stopped in 2025 either. IBKR is already up 40% year-to-date (YTD), handily outperforming the benchmark index’s 9.9% return. In fact, the stock reached a fresh high of $68.07 on Aug. 12 and is currently down only 9% from this level.
