Interactive Brokers vs SelfWealth

Interactive Brokers and SelfWealth are two popular online trading platforms that cater to different types of investors. Interactive Brokers is known for its advanced tools and extensive range of investment options, making it a top choice for active traders and professionals. On the other hand, SelfWealth appeals to less experienced investors with its simple and user-friendly interface. Both platforms offer competitive fees and strong security measures, making them worth considering for those looking to venture into the stock market.

Interactive Brokers or SelfWealth?

When comparing Interactive Brokers and SelfWealth, 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 SelfWealth.

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 0.46%, while SelfWealth has a dividend yield of -%. 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 4.83%. On the other hand, SelfWealth 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 13.61 and SelfWealth's P/E ratio at 8.23. 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 1.03 while SelfWealth's P/B ratio is 2.04.

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 SelfWealth's is 12.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Interactive Brokers's ROE at 17.89% and SelfWealth's ROE at 26.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $152.01 for Interactive Brokers and A$0.12 for SelfWealth. Over the past year, Interactive Brokers's prices ranged from $72.60 to $154.75, with a yearly change of 113.15%. SelfWealth's prices fluctuated between A$0.10 and A$0.18, with a yearly change of 76.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.