Interactive Brokers Has Posted a Pre-Tax Margin Above 70% for 7 Straight Quarters. Why Rivals Struggle to Copy It

Interactive Brokers (NASDAQ: IBKR) keeps setting records in the financial asset trading space. The online brokerage catering to global traders posted a pre-tax profit margin of 77% in its latest quarterly earnings, marking seven straight quarters with a bottom-line margin above 70%.

This makes it one of the most profitable companies in the world in relation to profit margins, which is why it now has a market cap of $155 billion. Here's the magic behind these absurd margins, and whether it makes the stock a buy right now.

Stock trading is now almost entirely digital worldwide. For Interactive Brokers -- otherwise known as IBKR -- this has been a tailwind, as it is one of the best platforms for connecting global traders. Through decades of technology and regulatory investments, IBKR can connect investors who want to buy stocks, bonds, and foreign currencies in 170 markets worldwide.Continue reading