There aren't many truly unstoppable stocks, but take a look at the recent performance of Interactive Brokers (IBKR 1.03%):
|
Time period |
Interactive Brokers |
|---|---|
|
Past 3 years |
54.05% |
|
Past 5 years |
33.56% |
|
Past 10 years |
24.17% |
|
Past 15 years |
20.71% |
Source: Data from Morningstar.com as of Jan. 20, 2026.
See? That certainly looks unstoppable -- and the stock's gains have generally been accelerating, too. As I write this, the stock is already up around 11% so far in 2026.
Image source: Getty Images.
If you're intrigued and are considering snapping up some shares, you might be wondering whether the stock is crash-proof.
Meet Interactive Brokers
This good brokerage has been around for close to 50 years and offers electronic trading services for stocks, options, futures, currencies, bonds, gold, crypto, and more. The company and its affiliates were recently executing more than 3,600,000 trades per day. Interestingly, some 84% of its customers are outside the U.S., positioning it well for international growth and leaving a lot of room for growth in the U.S.
NASDAQ: IBKR
Key Data Points
While many brokerages have numerous brick-and-mortar locations, Interactive Brokers operates mainly electronically. This helps keep down its costs, letting it offer low prices to customers while generating fat profit margins.
Is Interactive Brokers crash-proof?
I don't think any stock is really crash-proof, but the best companies seem to be able to recover from pullbacks and to adapt and change as needed.
Like any company, Interactive Brokers does face some risks. For example:
- If interest rates drop, as many expect them to over the coming years, that will put pressure on companies like Interactive Brokers that earn interest on cash sitting in customers' accounts.
- If there is a recession in the near future, or any kind of economic slowdown, there will likely be less stock-trading activity, as investors will be less enthusiastic.
For just about any company you're interested in, you can find its own long list of risks it faces in its annual 10-K report. Here are some from Interactive Brokers' 2024 report:
- "Macroeconomic, geopolitical and other challenges and uncertainties could have a negative impact on our business."
- "Our business could be harmed by a systemic market event."
- "The impact of a public health emergency may have a material adverse impact on our business and results of operations."
- "Our future success will depend on our response to the demand for new services, products and technologies."
- "The loss of our key employees would materially adversely affect our business."
- "We may not pay dividends on our common stock at any time in the foreseeable future."
Should you buy?
Overall, the company's risks wouldn't keep me from investing in Interactive Brokers -- because it's growing like gangbusters. But there's something that could: Its valuation.
Interactive Brokers' shares seem overvalued at recent levels, with a forward-looking price-to-earnings (P/E) ratio of 30 (well above the five-year average of 20), and a price-to-sales ratio of 3.1 (well above the five-year average of 1.9).
So depending on your risk tolerance, you may want to hold off, too. Maybe just add the stock to your watch list, hoping for a lower price, or perhaps buy into it gradually over time.
