Interactive Brokers Stock Outperforms S&P 500 Over Past 5 Years

Interactive Brokers (IBKR) has delivered exceptional returns over the past five years, far surpassing the performance of the S&P 500. A $1,000 investment in IBKR stock five years ago WOULD have grown to $5,075 as of August 7, 2025, reflecting an average annual return of 38.38%. In contrast, the SPDR S&P 500 ETF (SPY) returned just 15.21% annually over the same period.

The brokerage's strong performance is attributed to its efficient operations and high degree of automation, which have resulted in fat profit margins. While the stock market as a whole has enjoyed above-average gains over the past decade, Interactive Brokers' consistent outperformance highlights its competitive edge in the financial services sector.

Despite its promising future, investors are advised to carefully evaluate the stock's current valuation before making any decisions. The company's ability to maintain its growth trajectory in an increasingly competitive landscape remains a key consideration.