Liberty Posted September 20, 2017 Share Posted September 20, 2017 http://www.businesswire.com/news/home/20170920005805/en/ Interactive Brokers Announces Strategic Investment in Tiger Brokers Link to comment Share on other sites More sharing options...
kab60 Posted September 20, 2017 Share Posted September 20, 2017 I hate "strategic investments" which usually means one pays too much, but this does sound interesting even though it's impossible to gauge how material it is. I suppose it isn't really material since they don't disclose anything. Anybody knows anything about Tiger? Link to comment Share on other sites More sharing options...
Libs Posted October 23, 2017 Share Posted October 23, 2017 That was a good quarter. Revenue up ~25% Y/Y. They now break out the public shareholders' income, at $31MM after tax. Barrons had a write-up, pointing out that IBKR will benefit greatly by increased volatility, which seems inevitable. Here's the CC transcript: https://finance.yahoo.com/news/edited-transcript-ibkr-earnings-conference-041102607.html Link to comment Share on other sites More sharing options...
benhacker Posted November 30, 2017 Share Posted November 30, 2017 In the long history of IB, they seem to keep chipping away at the "cons" list of reasons to use them. This year: 1) Fixed two factor login (IB Key) -- usability is amazingly simple, even with many accounts. Had a new client compliment the simplicity / sophistication of setup and login immediately after signing up. Haven't ever had IB interface be considered a "pro" from a client before. 2) Fixed basic interface / web interface. This just was upgraded yesterday across my accounts. Upon 15 minutes of playing seems a dramatic UI improvement to solidly middle of the pack for US retail brokers. 3) Added central European stock exchange trading. 4) I've noticed support getting better too... chip chip chip... IB can be like other brokers through a clearly defined path (if they want to). Other brokers will never gain the advantages IB has (IMO). Stock still expensive... I've been paring down again, still top 3 though. Link to comment Share on other sites More sharing options...
rb Posted November 30, 2017 Share Posted November 30, 2017 which central European exchange? Is this recently? Link to comment Share on other sites More sharing options...
benhacker Posted November 30, 2017 Share Posted November 30, 2017 Poland (stocks), Czech Republic (stocks), Hungary (CFDs). Somewhat recently.... I think ~6-9 months ago. Link to comment Share on other sites More sharing options...
rb Posted November 30, 2017 Share Posted November 30, 2017 Poland (stocks), Czech Republic (stocks), Hungary (CFDs). Somewhat recently.... I think ~6-9 months ago. Hmm.... I got Poland and Hungary stocks and Czech CFDs but those have been available for years Link to comment Share on other sites More sharing options...
benhacker Posted November 30, 2017 Share Posted November 30, 2017 Hmm.... I got Poland and Hungary stocks and Czech CFDs but those have been available for years Hmmm... really? Only showed up for me this year... but maybe I didn't notice the change before than... Link to comment Share on other sites More sharing options...
Hielko Posted November 30, 2017 Share Posted November 30, 2017 Hmm.... I got Poland and Hungary stocks and Czech CFDs but those have been available for years Hmmm... really? Only showed up for me this year... but maybe I didn't notice the change before than... I'm pretty sure it's new (like added this year). I had to add the trading permissions to use those stock exchanges, and I used to have simply every country selected. Link to comment Share on other sites More sharing options...
kab60 Posted December 2, 2017 Share Posted December 2, 2017 In the long history of IB, they seem to keep chipping away at the "cons" list of reasons to use them. This year: 1) Fixed two factor login (IB Key) -- usability is amazingly simple, even with many accounts. Had a new client compliment the simplicity / sophistication of setup and login immediately after signing up. Haven't ever had IB interface be considered a "pro" from a client before. 2) Fixed basic interface / web interface. This just was upgraded yesterday across my accounts. Upon 15 minutes of playing seems a dramatic UI improvement to solidly middle of the pack for US retail brokers. 3) Added central European stock exchange trading. 4) I've noticed support getting better too... chip chip chip... IB can be like other brokers through a clearly defined path (if they want to). Other brokers will never gain the advantages IB has (IMO). Stock still expensive... I've been paring down again, still top 3 though. Agreed. A lot of the flaws can be viewed as options. November numbers just out and looking really good. Impressive how growth is speeding up but not sure why it has run up so much. By far my largest position now at around 25 pct. of portfolio but paying 27-42 pct. taxes I'll just let it ride. Will be interesting to see what margins look like in 5-10 years. Link to comment Share on other sites More sharing options...
KCLarkin Posted December 15, 2017 Share Posted December 15, 2017 Interactive Brokers said that it handled just over half of the bitcoin futures trading volume the day of their launch. Updated figures were not yet available as of Friday morning. https://www.cnbc.com/2017/12/15/the-day-bitcoin-futures-dropped-was-when-many-traders-could-begin-betting-against-it.html Link to comment Share on other sites More sharing options...
whiterose Posted January 14, 2018 Share Posted January 14, 2018 Does anyone have an opinion on (or defense of) the current valuation? Many thanks in advance! Link to comment Share on other sites More sharing options...
scorpioncapital Posted January 14, 2018 Share Posted January 14, 2018 They are rolling out mastercards without forex fee, 0.50 cent atm withdrawal fees globally to Canada and Europe this year and available already for the US. Given their low cost structure, borrowing costs, you can see this as a kind of bank. I don't see why in the future brokers and banks can't be one and the same. Now in the past the government tried to separate banking and investing because of the very same reason bitcoin isn't used as a currency - volatility and risk. But what if the management of the company is so disciplined - as Peterffy's team is - that they voluntarily do a better job? I see big things for IB, especially if they start adding services beyond just taking commissions for investments. Link to comment Share on other sites More sharing options...
bizaro86 Posted January 14, 2018 Share Posted January 14, 2018 Does that mean of I use it to withdraw euros in Europe it will debit my IB account in euros? If so, when combined with their very cheap currency exchange, this would make an IB account worthwhile for travel purposes alone for many people. I definitely seethed when I converted CAD to MXN for a trip to Mexico at a bogus retail exchange rate when I had pesos in my IB account already. Link to comment Share on other sites More sharing options...
scorpioncapital Posted January 14, 2018 Share Posted January 14, 2018 I am not sure about this feature but that would be awesome. I suspect it depends on whether the Mastercard region supports multi-currency cards like UK or some Euro issued VISAs/MCs...On their website for the US card they say, "Mastercard converts the currency to US dollars and this is how it appears on your statement." So possibly cad will bill in CAD$ and euro card in EUR$ or GBP$...I suppose it could create a short position.. But either way, no more moving money around or foreign exchange fees, although you may have to do forex trade internally every once in a while. Link to comment Share on other sites More sharing options...
compoundinglife Posted January 14, 2018 Share Posted January 14, 2018 They are rolling out mastercards without forex fee, 0.50 cent atm withdrawal fees globally to Canada and Europe this year and available already for the US. Given their low cost structure, borrowing costs, you can see this as a kind of bank. I don't see why in the future brokers and banks can't be one and the same. Now in the past the government tried to separate banking and investing because of the very same reason bitcoin isn't used as a currency - volatility and risk. But what if the management of the company is so disciplined - as Peterffy's team is - that they voluntarily do a better job? I see big things for IB, especially if they start adding services beyond just taking commissions for investments. I have debit cards and can write checks on all my taxable brokerage accounts. Schwab reimburses all ATM fees, charges no forex fees either on my brokerage ATM card. So this is really nothing new. I have been using a brokerage account like a bank account for the past 10 years. One nice thing about IB though is their margin rates. I agree that this could be big for them however if it is nothing new and not a differentiator vs other brokerage houses. Link to comment Share on other sites More sharing options...
rb Posted January 14, 2018 Share Posted January 14, 2018 Does that mean of I use it to withdraw euros in Europe it will debit my IB account in euros? If so, when combined with their very cheap currency exchange, this would make an IB account worthwhile for travel purposes alone for many people. I definitely seethed when I converted CAD to MXN for a trip to Mexico at a bogus retail exchange rate when I had pesos in my IB account already. I haven't looked too much at how they structure the cards. But there may be some issues with security. I just like many people have had cards duplicated. With a regular Visa worst case scenario is I get dinged to the limit of the card. If someone steals/duplicates the IB card and gets access to all my IB funds, then I'll gladly pay the usurious FX commissions charge by the banks. Link to comment Share on other sites More sharing options...
scorpioncapital Posted January 14, 2018 Share Posted January 14, 2018 some banks in eu have limits for various types of purchases you can set min/max for waveless, pos, over the phone , atm withdrawals. You can set a low limit or change it temporarily but it's not perfect. Also while there is Schwab in the US, I'm not aware of such a product existing in Canada and in Europe I do not know but imagine it would be more competitive than USA. Link to comment Share on other sites More sharing options...
whiterose Posted January 17, 2018 Share Posted January 17, 2018 The numbers are out: https://investors.interactivebrokers.com/ir/main.php?file=latestEarningsPR Am I looking at this wrong or did they make 1.07 in diluted eps in 2017 (vs. 1.25 in 2016) ? Link to comment Share on other sites More sharing options...
KCLarkin Posted January 17, 2018 Share Posted January 17, 2018 Am I looking at this wrong or did they make 1.07 in diluted eps in 2017 (vs. 1.25 in 2016) ? Most people would make a few adjustments to GAAP earnings to get a better view of the real earnings power. On a GAAP basis, diluted EPS is lower YoY. But on an adjusted basis, it is higher YoY. At first glance, the changes in the U.S. tax code seem to be the main culprit. Link to comment Share on other sites More sharing options...
atbed Posted January 18, 2018 Share Posted January 18, 2018 Am I looking at this wrong or did they make 1.07 in diluted eps in 2017 (vs. 1.25 in 2016) ? Most people would make a few adjustments to GAAP earnings to get a better view of the real earnings power. On a GAAP basis, diluted EPS is lower YoY. But on an adjusted basis, it is higher YoY. At first glance, the changes in the U.S. tax code seem to be the main culprit. Agree. Financials are very messy, so I prefer to look at: (1) Trading gains + commission & execution fees + net interest income + recurring other income minus (2) total non-interest expense Then adjust for taxes Link to comment Share on other sites More sharing options...
whiterose Posted January 18, 2018 Share Posted January 18, 2018 Most people would make a few adjustments to GAAP earnings to get a better view of the real earnings power. I know, but then you would only arrive at around 1.4 pre-tax diluted eps. Even though it's a growing business and has high margins+operating leverage, can the valuation be justified at this point? Link to comment Share on other sites More sharing options...
KCLarkin Posted January 18, 2018 Share Posted January 18, 2018 I know, but then you would only arrive at around 1.4 pre-tax diluted eps. Even though it's a growing business and has high margins+operating leverage, can the valuation be justified at this point? I don't think your number is right but I'm going to wait for the 10k. Still, it is hard to justify the current valuation. Link to comment Share on other sites More sharing options...
flesh Posted January 18, 2018 Share Posted January 18, 2018 I know, but then you would only arrive at around 1.4 pre-tax diluted eps. Even though it's a growing business and has high margins+operating leverage, can the valuation be justified at this point? I don't think your number is right but I'm going to wait for the 10k. Still, it is hard to justify the current valuation. Whatever method you're using you should at least be annualizing q4 adjusted numbers and adding whatever growth you expect plus margin expansion plus coming off one of the least volatile years in history. For me, it's a hold. Link to comment Share on other sites More sharing options...
KCLarkin Posted January 19, 2018 Share Posted January 19, 2018 For me, it's a hold. I'm holding too. I don't think the price is crazy. Yet. Link to comment Share on other sites More sharing options...
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