Interactive Brokers vs Plus500 Which Is More Promising?

Interactive Brokers and Plus500 are two popular choices for trading stocks online. Interactive Brokers offers a wide range of trading tools and platforms for experienced investors, with competitive pricing and advanced features. Plus500, on the other hand, is known for its user-friendly interface and simplicity, making it a great option for beginners. Both platforms have their own unique strengths and weaknesses, so it's important to carefully consider your own trading style and needs before making a decision.

Interactive Brokers or Plus500?

When comparing Interactive Brokers and Plus500, 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 Plus500.

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 Plus500 has a dividend yield of 3.06%. 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, Plus500 reports a 5-year dividend growth of -25.76% year and a payout ratio of 32.81%.

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 Plus500's P/E ratio at 9.81. 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 Plus500's P/B ratio is 3.83.

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 Plus500's is 0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Interactive Brokers's ROE at 18.13% and Plus500's ROE at 39.06%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $175.71 for Interactive Brokers and £2572.00 for Plus500. Over the past year, Interactive Brokers's prices ranged from $78.93 to $193.42, with a yearly change of 145.05%. Plus500's prices fluctuated between £1565.00 and £2684.00, with a yearly change of 71.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.