IG vs Interactive Brokers Which Offers More Value?

When it comes to investing in stocks, both IG and Interactive Brokers are popular choices for traders. IG is a well-established online trading platform known for its user-friendly interface and comprehensive research tools. On the other hand, Interactive Brokers is a global brokerage firm that offers a wide range of investment options and advanced trading technology. Both platforms have their own unique features and benefits, making them suitable for different types of investors. This comparison will help you decide which platform is best suited for your investment needs.

IG or Interactive Brokers?

When comparing IG and Interactive Brokers, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between IG and Interactive Brokers.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. IG has a dividend yield of 4.78%, while Interactive Brokers has a dividend yield of 0.47%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IG reports a 5-year dividend growth of 0.91% year and a payout ratio of 31.14%. On the other hand, Interactive Brokers reports a 5-year dividend growth of 0.00% year and a payout ratio of 10.89%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with IG P/E ratio at 6.42 and Interactive Brokers's P/E ratio at 28.09. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IG P/B ratio is 1.95 while Interactive Brokers's P/B ratio is 4.71.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IG has seen a 5-year revenue growth of 0.85%, while Interactive Brokers's is 0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IG's ROE at 30.53% and Interactive Brokers's ROE at 18.13%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £964.50 for IG and $179.17 for Interactive Brokers. Over the past year, IG's prices ranged from £671.00 to £995.25, with a yearly change of 48.32%. Interactive Brokers's prices fluctuated between $78.93 and $193.42, with a yearly change of 145.05%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.