Interactive Brokers vs Light Which Is Stronger?

Interactive Brokers and Lightspeed are two popular online brokerage platforms that cater to active traders and investors. Interactive Brokers offers a wide range of trading tools and advanced features, making it a favorite among professional traders. On the other hand, Lightspeed is known for its lightning-fast execution and low commission rates, appealing to high-frequency traders. Both platforms have their strengths and weaknesses, so it's important to carefully consider your trading needs before choosing between Interactive Brokers and Lightspeed.

Interactive Brokers or Light?

When comparing Interactive Brokers and Light, 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 Light.

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 0.48%, while Light has a dividend yield of 0.0%. 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, Light reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 27.42 and Light's P/E ratio at -8.11. 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 4.60 while Light's P/B ratio is 0.57.

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 Light's is -0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Interactive Brokers's ROE at 18.13% and Light's ROE at -7.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $175.71 for Interactive Brokers and $0.75 for Light. Over the past year, Interactive Brokers's prices ranged from $78.93 to $193.42, with a yearly change of 145.05%. Light's prices fluctuated between $0.60 and $1.60, with a yearly change of 166.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.