Interactive Brokers (UK) Posts 21% Jump in 2020 Revenue


The broker generated a pre-tax profit of £15.3 million in that period.

Interactive Brokers (UK) Limited, the British subsidiary of the American brokerage giant, has published its annual financials for the year 2020, ending December 31, showing an impressive jump in yearly revenue and in other key metrics.

The FCA-regulated entity reported a total turnover of £42.3 million for the period, compared to the previous year’s £35 million. The brokerage generated its revenue by charging commissions on all executed trades.

In addition, the company returned a profit by the end of the year. However, there was some decline. Its pre-tax profits decreased to £15.3 million last year from £17.9 million the year before. That was a yearly decline of 14.5 percent. Moreover, the after-tax profit for the year stood at £13.8 million.

The profits took a hit mostly due to the increased administrative expanse and the lessened income from other finances.

Impressive Client Figures

Interactive Brokers (UK) offers execution and clearing broking services in equity and other derivative products to private and institutional clients. In addition, its operations extend as a client-carrying broker-dealer, offering unallocated spot gold and silver, contracts for differences, safe custody of stocks, index futures and options.

The latest Companies House filing detailed that the UK-registered company was the carrying broker for 53,895 clients by the end of 2020, compared to 2019’s 44,216 clients, thus increasing 21.9 percent. In 2021, the brokerage aims to expand the number of clients further and increase the ‘usage of services currently offered’.

However, a mass migration of clients occurred from the UK entity to other sister entities, resulting in a drop of 44 percent in clients’ numbers.

Meanwhile, the US-based headquarters of the broker is reporting record DARTs for several months now. Furthermore, it has expanded services with the introduction of spot gold trading and is now aiming to add cryptocurrency trading by the end of this summer. The US entity has a total of 1.33 million customer accounts by the end of Q1 of 2021.

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