Interactive Brokers Clients Beat S&P 500 in 2025 as Strategist Details 2026 Outlook
Interactive Brokers said its individual and hedge fund clients outperformed the S&P 500 Index in 2025, according to a Business Wire announcement. Chief strategist Steve Sosnick outlined his 2026 market outlook and highlighted the key developments he is monitoring on CNBC’s Squawk on the Street.
1. Chief Strategist Sosnick Outlines 2026 Market Drivers
Steve Sosnick, chief strategist at Interactive Brokers, appeared on the financial news program to share his outlook for 2026. He projects that the U.S. Federal Reserve will maintain its policy rate in the 4.75–5.00% range through at least the first half of the year, citing resilient consumer spending and moderate inflation. Sosnick highlighted three key developments: increased adoption of machine-learning algorithms in retail execution, which he believes could boost order flow revenues by up to 10%; a potential rise in market volatility, with the Cboe Volatility Index (VIX) averaging near 17; and regulatory updates around margin requirements in Europe and Asia, which may drive cross-border trading volumes. He also noted that Interactive Brokers is enhancing its trading platform with new API features to support high-frequency and institutional clients, pointing to a 15% year-over-year increase in API-driven trades during the fourth quarter of 2025.
2. IBKR Clients Surpass S&P 500 in 2025 Performance
Interactive Brokers reported that its combined individual and hedge-fund client base outperformed the S&P 500 Index in 2025, with an average return of 18.3% for retail accounts and 12.5% for hedge-fund accounts versus the index’s 16.2% gain. The firm attributes these results to its low-cost commission structure, advanced risk-management tools and expanded international market access. Retail clients increased allocation to emerging-market equities, which returned 22.7% over the period, while hedge funds on the platform grew their average portfolio size by 8%, driven by higher allocations to fixed-income arbitrage and volatility strategies. Interactive Brokers also noted a record $2.4 trillion in client account equity at year-end and a 12% rise in new account openings compared to 2024.