A Big Upgrade for Interactive Brokers Group

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Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks-- and the track records of the firms behind them -- so individuals can make better investing decisions.

In addition to following professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 135,000 members, many of whom demonstrate better investing insight than published analysts do.

More top-performing CAPS members are feeling bullish on Interactive Brokers Group (Nasdaq: IBKR) lately, enough, in fact, to upgrade it from the three- and four-star rank it has held for nearly a year to a more formidable five stars. A total of 361 members have given their opinion on the electronic trading firm, with many of them offering analysis and commentary explaining the recent optimism.

Despite a significant drop in revenue in the first quarter, many CAPS members see big potential for the electronic market maker and broker that some see as unfairly lumped in with banks and other financial institutions. While Interactive Brokers competes with large banks like Citigroup (NYSE: C), UBS (NYSE: UBS), and Morgan Stanley (NYSE: MS), it doesn't carry all the financial baggage as it simply provides access to more than 577,000 securities, options, and futures products. In June, the company had 18% more accounts than the previous year, with more than 121,000 now, and its ending customer equity grew 13% to $11.5 billion among fierce competition in the industry.

While E*TRADE (Nasdaq: ETFC) has been struggling with debt and losses, Interactive Brokers and peers like optionsXpress are still in the black. Large discount brokers like TD AMERITRADE (Nasdaq: AMTD) and Charles Schwab (Nasdaq: SCHW) have remained profitable also, even with discount services aimed at individuals. With Interactive Brokers' history of achieving strong returns on its equity and conservatively capitalized balance sheet, many CAPS members are warming up to the stock.

To see what the very best CAPS analysts are saying now about Interactive Brokers Group -- as well as other winning stocks they are picking -- head on over to CAPS and have a look. The community research and resources in CAPS are totally free, unlike analyst opinions reserved for paying clients.

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  • Report this Comment On July 09, 2009, at 6:49 PM, baileyn98 wrote:

    So what griinds my gears about the Fool??? Articles such as "Don't Miss This Cheap Stock", etc. promoting the value of an Etrade investment while at the same time putting out this sort of Etrade negativity... makes the repeated publication of "good" ETFC articles look like a classic pump 'n dump. So where do you really stand?

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