Interactive Brokers vs IG Which Outperforms?

Interactive Brokers and IG stocks are two popular online trading platforms that offer a wide range of investment options for traders. While both platforms provide access to global markets, they have distinct differences that cater to different types of investors. Interactive Brokers is known for its advanced trading tools and low fees, making it ideal for active traders. On the other hand, IG stocks is an easy-to-use platform with a strong emphasis on educational resources, making it suitable for beginners and casual investors.

Interactive Brokers or IG?

When comparing Interactive Brokers and IG, 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 Interactive Brokers and IG.

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. Interactive Brokers has a dividend yield of 0.47%, while IG has a dividend yield of 4.78%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Interactive Brokers reports a 5-year dividend growth of 0.00% year and a payout ratio of 10.89%. On the other hand, IG reports a 5-year dividend growth of 0.91% year and a payout ratio of 31.14%.

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 Interactive Brokers P/E ratio at 28.09 and IG's P/E ratio at 6.42. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Interactive Brokers P/B ratio is 4.71 while IG's P/B ratio is 1.95.

Growth Investors:

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

Retail Investors:

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