IB up in premarket:
Pre-Market: 22.06 +2.74 (14.18%) - Sep 18, 7:52AM EDT
Any news?
Pre-Market: 22.06 +2.74 (14.18%) - Sep 18, 7:52AM EDT
Any news?
IBKR falling
- Thread starter moo
- Start date
they aren't a retail broker, they are a market making operation.
The retail brokerage side is NOTHING.
The retail brokerage side is NOTHING.
Yeah. Atty was buyin'!
Looks like a nice trade right now...
I cant remember what the exact mix was, i think it was 80% market making and 20% brokerage.
But Petterfly was saying that they can grow the brokerage at 50% a year for years and years. Where as the market maker operation is more like 15% a year. At that rate in a few years the brokerage revenues will exceed those from market making.
Theres nothing wrong with retail brokerage, Charles Schwab have a market cap of almost 30billion.
They put an ad in the wsj saying no cdo,cds,mbs exposure. How are the new short selling rules going to affect the market making operation? If competitors back away from making a market it is good, spreads will widen. If they cannot hedge by naked short selling it is bad as they may have to reduce the number of markets they make or be left open to more risk.
Assuming that's true, which it might be do the math.
How many customers does IB have? What is the average revenue per client?
If they grow the business 50% a year, which on it's face seems impossible, they will have to grow the retail business exponentially to make up for the market making revenues.
Consider this environment, investors are going to walk away in droves because of these incompetant idiots on wall street. The piece of the pie of clients just got much much smaller.
Consider also that IB isn't equipped to handle the traditional retail client either.
That being said, if the question of IB's growth depended on the MM operations winding down and growing the retail client base by 50% a year, I would not be a buyer.
Ask anyone in any industry if they can grow their client base in a mature industry that is shrinking by 50% a year with no customer service and let me know what they say.
How many customers does IB have? What is the average revenue per client?
If they grow the business 50% a year, which on it's face seems impossible, they will have to grow the retail business exponentially to make up for the market making revenues.
Consider this environment, investors are going to walk away in droves because of these incompetant idiots on wall street. The piece of the pie of clients just got much much smaller.
Consider also that IB isn't equipped to handle the traditional retail client either.
That being said, if the question of IB's growth depended on the MM operations winding down and growing the retail client base by 50% a year, I would not be a buyer.
Ask anyone in any industry if they can grow their client base in a mature industry that is shrinking by 50% a year with no customer service and let me know what they say.