Interactive Brokers and Charles Schwab Show Strong Client Growth Ahead of October Earnings Reports
Interactive Brokers (IBKR) has seen significant client account growth, with a 35% increase year-over-year in September to reach 5.58 million accounts. Client equity rose by 27%, reaching $964.7 billion, and margin loans increased by 36%. However, trading activity slowed slightly compared to the second quarter. The company's profitability remains strong with a net revenue growth of 28% in Q2 and an earnings per share increase of 35%. Charles Schwab (SCHW) also reported robust client inflows, bringing $64.8 billion in new money during August alone—up 46% from the same period last year. Combined with July's figures, this brings total third-quarter net assets to nearly $123 billion, approaching its entire Q3 2025 performance. Both brokers are set to report their quarterly results or updates in mid-October: Interactive Brokers on October 15 and Schwab via a webcast the same morning. While both stocks trade below their respective 52-week highs, they continue to show strong underlying business momentum driven by client growth and profitability. Investors are paying premium valuations for these firms—Interactive Brokers trades at around 27 times next year's expected earnings—which reflects confidence in continued account expansion.
Tickers: $IBKR $SCHW $SCHW PRD
Topics: brokerage accounts Charles Schwab client equity growth earnings reports Interactive Brokers