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Ibkr

  1. If these guys are so great then how come their stock has four consecutive quarters of lower earnings and a negative money flow.

    Are their clients moving on to a better place or are they getting out all together, or what?
     
  2. All responses appreciated.
     
  3. You need to read the IBKR financial reports. IBKR has two businesses: market making and brokerage.

    The market making business has fluctuating results and hence a negative influence on the stock price.

    The brokerage business is doing very well. Pretax profit margin was 49% in 2009 up from 44% in 2008. Total accounts were 134K in 2009 up 21% from 111K in 2008. Customer equity was $15.2 billion in 2009 up 71% from $8.9 billion in 2008.

    Please list all the other brokerage firms with numbers like that.
     
  4. That said, is IBKR something you would want to own for the long term? Ive been thinking about adding IBKR and a couple exchanges to my long term portfolio (NYX and ICE specifically), thats why I ask, and picking long term plays is not something Im particularly good at right now.
     
  5. Thanks for the reply Jeb. Have you got a reference for that?
     
  6. I very clearly stated "You need to read the IBKR financial reports."

    Where else would I get the relevant financial information other than the IBKR financial reports? :confused:
     
  7. IBKR is in the trading business and looks to me to be a stock for swing trading.
     
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  9. i think ib has limited growth potential. they only take experienced traders,dont pay interest, and their monthly fees are too high for mom and pop investor.
    while that is good for us traders that use ib there is a limited pool of traders that can use their service.
     
  10. I disagree. You use a rational logic to something (personal finance) that most people are irrational about. The real question is how many wannabes are there who believe they are experienced. Practically everyone who opens a brokerage account believes that at the very least he is above average, thus qualifies for 'experienced' and 'trader'. Thus he opens an account with ib for confirmation. Look around here (on ET): how many consider themselves 'elite' 'trader'. People who obviously don't trade and don't know even the basics... Look at the post before yours, confusing a business model for a derogatory term. Or look at the new threads: 90% is ridiculously uninformed. Then they come back and start bashing their broker, the market, anyone but themselves.

    It's like performance sports cars: people with clearly meager driving skills buy those, and if they drift off the road, it was the fault of the manufacturer or the municipality who didn't maintain the road properly, whatever. Never is the case that they are driving too fast with a tool that they clearly cannot handle properly.

    But the appeal of 'cool' by association (sports cars, high end retail brokerage accounts, etc.) is there. If anything, 'catering for experienced traders' is a great marketing tool to attract the masses.
     
  11. I've been building a position for some time. Unfortunately my cost average is like $17.50.

    I believe IB has superior technology. Looking for someone to buy them out. Could be worth 30-50% bump in price. Time horizon is hopefully 2 years.

    I agree that going after professional traders has limited growth potential. Requires too much dedication.

     
  12. the real growth story might be independent financial advisors. The cost of running a clientele through IB has got to be a fraction of the full service firms.
     
  13. Looks like the thread is finally picking up steam. Maybe the truth will out.

    Negative earnings trend and negative money flow is my my main criteria for not picking a firm. Financial report be damned.

    Do we have some shills here?:D
     
  14. ib doesnt take wannabees anymore. they have put in some strong rules about past experience before they take you.
     
  15. That is assuming Peterffy allows it to be sold? Reading about his history, I'm not sure but maybe everyone has their price.
     
  16. Peterfly has sold a small percentage but if he sells out all of his ownership, I might look for another brokerage house for my IB account. I have had several brokers and banks, where I have had accounts, sell out and it has most often resulted in a down grade in the security of my funds and higher fees and commissions. Peterfly is who and what makes IB the broker I think they are.
     
  17. Yes, I agree. From what I've read about him, I can't imagine him selling IB, but you never know.
     
  18. What are those rules? Do they require proof of experience?