TDInteractive Brokers

TD vs Interactive Brokers

TD and Interactive Brokers are compared on this page, examining their business models, financial performance, and market context. The discussion provides neutral, accessible analysis of client service...

Why It's Moving

TD

TD Bank surges on earnings beat and analyst upgrades signaling resilient growth amid banking rally.

  • Q4 earnings crushed forecasts at C$2.18 EPS, underscoring robust performance across Canadian and U.S. retail segments despite macro headwinds.
  • Bank of America hiked price target to C$132 on December 5, implying 8% upside and reflecting optimism on TD's operational streamlining.
  • Stock jumped C$1.90 to C$121.99 with elevated volume, extending a 4.9% weekly gain amid sector rotation into undervalued banks.
Sentiment:
πŸƒBullish
Interactive Brokers

IBKR Chairman Peterffy Heads to Goldman Sachs Conference as Brokerage Metrics Signal Steady Momentum

  • November electronic brokerage metrics released December 1 highlight sustained client engagement, reflecting operational strength in a volatile environment.
  • Peterffy's upcoming conference appearance on December 10 positions IBKR to showcase its global electronic brokerage leadership to top financial audiences.
  • Financials lead Q3 earnings with 13% EPS growth, bolstering sector tailwinds that support IBKR's automated trading platform amid Fed policy anticipation.
Sentiment:
βš–οΈNeutral

Which Baskets Do They Appear In?

Banking On Shareholder Returns

Banking On Shareholder Returns

Bank of America's new $40 billion stock buyback program highlights a broader trend of major financial institutions returning capital to shareholders. This theme identifies other large banks that may follow suit, offering similar buyback or dividend-based value.

Published: July 24, 2025

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Investment Analysis

TD

TD

TD

Pros

  • Toronto-Dominion Bank benefits from a diversified business mix across retail, commercial, and wealth management in both Canada and the United States.
  • The bank offers a stable and relatively high dividend yield, supported by consistent profitability and a long history of shareholder returns.
  • TD has a strong capital position and liquidity profile, with a well-managed balance sheet and low dependence on volatile wholesale funding.

Considerations

  • Regulatory scrutiny and potential penalties related to anti-money-laundering issues could lead to higher compliance costs and operational disruptions.
  • Growth prospects in core markets appear modest, with loan growth and net interest income expected to rise only modestly in the near term.
  • Valuation multiples such as P/E and price/book are broadly in line with peers, offering limited relative upside based on current consensus estimates.

Pros

  • Interactive Brokers is a global leader in electronic brokerage, with a scalable, low-cost platform that attracts both retail and institutional clients.
  • The company has demonstrated consistent growth in client accounts and assets, supported by competitive pricing and advanced trading technology.
  • Interactive Brokers maintains a strong balance sheet with high levels of regulatory capital and low leverage, enhancing financial resilience.

Considerations

  • Revenue is highly sensitive to interest rates and trading volumes, exposing earnings to cyclical market conditions and potential volatility.
  • Intense competition from both traditional brokers and newer fintech entrants may pressure margins and client acquisition costs.
  • Regulatory requirements in multiple jurisdictions increase operational complexity and compliance risks, particularly as the firm expands globally.

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