An IB client is worth 8 Schwab clients? How come?
Look at the relative market caps of the 4 big brokers.
| Broker | Value | Clients | Value per client |
|---|---|---|---|
| E*Trade | $9.9bn | 3.5m | $2.8k |
| Interactive Brokers | $15.8bn | 385k | $41k |
| Schwab | $54.3bn | 10.1m | $5.4k |
| TD Ameritrade | $24.4bn | 7.0m | $3.5k |
Perhaps even more stark is that E*Trade has 10x the clients of $IBRK but it's worth 40% less.
| Broker | Forecast PE | Daily trades | Client assets |
|---|---|---|---|
| E*Trade | 20x | 208k | $273bn |
| Interactive Brokers | 24x | 592k | $86bn |
| Schwab | 32x | 1.2m | $2,735m |
| TD Ameritrade | 27x | 540k | $782bn |
Okay... the IB clients trade like crazy (disclaimer: I've an IB account) but I'm having difficulty squaring the circle here... anyone else?
Posted Jan 5, 2017, 11:37 PM UTC
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