Thomas Peterffy has surpassed Bill Gates to become the 18th richest person globally, with a net worth exceeding $113 billion after a $36 billion jump this year. This wealth surge is driven by the exceptional performance of Interactive Brokers (NASDAQ: IBKR), the electronic brokerage he founded in 1978. Peterffy owns about three-quarters of the company through IBG Holdings. His net worth is now $11 billion higher than Gates, who has lost $15 billion this year.

Interactive Brokers stock has jumped 41% this year, significantly outperforming the Nasdaq 100 Index, which rose 20%. Over the last five years, the stock has soared nearly 500%, pushing its market capitalization to over $162 billion. This rally places the company ahead of competitors like Robinhood (NASDAQ: HOOD), which is down 6% this year, as well as Charles Schwab, Webull, and Morgan Stanley.

Business Growth and Financials

Interactive Brokers reported robust financial results for the first quarter, with revenue climbing 17% year-over-year to $1.67 billion. This growth was fueled by a 19% increase in commissions to $613 million and a 17% rise in net interest income to $904 million. The company expanded its customer base by 31% to 4.13 million, while customer equity grew 38% to $789 billion.

Analysts project continued revenue expansion, estimating a 14.4% increase to $7.05 billion this year, followed by $7.93 billion next year.

Valuation and Technical Concerns

Despite the strong performance, valuation concerns have emerged. The stock trades at a forward price-to-earnings ratio of 38, well above its five-year average of 21 and the S&P 500 average of 22. Technically, the Relative Strength Index has reached 71, indicating overbought conditions, which could lead to profit-taking. The stock has also surpassed price targets set by analysts at Goldman Sachs, BMO Capital, and Barclays.

Interactive Brokers has introduced commission-free trading for more than 500 iShares ETFs from BlackRock through its Recurring Investment feature for eligible individual investors across the European Economic Area. This offering allows investors to access a broad range of asset classes and strategies, including bonds, equities, themes, and sectors, without incurring trading commissions. By eliminating these costs, investors can retain more capital for investment and compounding over time, while the extensive fund selection facilitates the construction and rebalancing of diversified portfolios.

The Recurring Investments feature enables clients to automate periodic ETF contributions by selecting individual ETFs or ETF portfolios, setting a contribution amount, and establishing a regular schedule. Investors can initiate positions in a wide range of iShares UCITS ETFs with a minimum investment of €10. This structure provides investors with the autonomy to manage recurring ETF investments independently, maintaining full control over the timing and method of their investment activities.

Market Context and Growth

According to BlackRock's People & Money 2025 study, ETFs have grown at an annualised rate of 19% since 2022. The study identifies ETFs as the third most-owned investment vehicle in Europe, reflecting an accelerating shift among individual investors toward low-cost and transparent investment solutions.

Executive Commentary

Kevin Keller, Chief Executive Officer of Interactive Brokers Ireland Limited, stated that investors should be able to build diversified, long-term portfolios without paying to do so. He noted that offering commission-free iShares ETFs alongside a full range of global markets on a single platform provides European investors with a cost-efficient way to deploy capital and keep it invested over time.

Christian Bimueller, Head of Digital Distribution Continental Europe at BlackRock, highlighted that the offering reflects a clear trend across Europe where more individual investors are turning to ETFs for their simplicity, diversification, and low cost. He emphasized that when used within recurring investment plans, ETFs change how people invest by making it easier to start, build a habit, and reduce the pressure of timing the market. Availability of the products varies by Interactive Brokers affiliate and the client's country of residence.