Is IBKR's Karta Visa Card a Step Toward Its Diversification Strategy?

In an effort to transition to a full-service financial platform from being just a broker, Interactive Brokers IBKR is offering eligible clients the Karta Visa card, which is a U.S.-dollar card with no foreign transaction fees at launch. The card will be linked directly to clients’ IBKR brokerage accounts.With key features like 24/7 luxury travel concierge services, reward points for travel and lifestyle purchases, AI-powered real-time support via WhatsApp, access to travel and exclusive events, global airport lounge entry, access to the Visa Luxury Hotel Collection and more, the card is part of IBKR’s larger cash management offering that allows trading, saving, investing and now spending from one account.In addition to providing this new service, Interactive Brokers has long been making efforts to diversify its product suite to expand globally. These, along with the firm’s efforts to develop proprietary software to automate broker-dealer functions have been aiding top-line growth.Over the last five years (2019-2024), the company’s total net revenues witnessed a compound annual growth rate of 21.8%. The upward momentum continued in the first nine months of 2025 as markets became highly volatile, supporting IBKR’s trading business.Given Interactive Brokers’ technological superiority, its revenues are expected to continue to improve in the quarters ahead, supported by higher client acquisitions. The Zacks Consensus Estimate for the company’s 2025 and 2026 revenues is $5.80 billion and $6.12 billion, indicating year-over-year growth of 11.1% and 5.6%, respectively.Sales Estimates Image Source: Zacks Investment Research IBKR’s Competitors Expanding Product SuiteInteractive Brokers’ key competitors, TradeWeb Markets Inc. TW and Robinhood Markets, Inc. HOOD, have also been rolling out products to bolster their market share.TradeWeb launched electronic portfolio trading for European government bonds, spanning U.K. Gilts, EUR and single currency notes. Tradeweb was also the first platform to launch portfolio trading for corporate bonds in 2019. Last month, TW announced the expansion of its dealer algorithmic execution capabilities for U.S. Treasuries to provide institutional clients with access to deeper liquidity and smarter execution strategies.Likewise, Robinhood has been diversifying its offerings to capitalize on investor demands. Last month, HOOD launched futures trading in the U.K. In September, it rolled out Robinhood Ventures to expand retail access to the private markets. Also, Robinhood has introduced the “Asset Match” feature through TradePMR to expand into the registered investment advisers (RIA) market.With the help of rapid product innovation through vertical integration, Robinhood will likely be able to expand its client base, enabling greater operating leverage, thus, paving the way for sustained profitability.IBKR’s Price Performance, Valuation & Estimate AnalysisShares of Interactive Brokers have rallied 58.6% over the past six months compared with the industry’s growth of 31%. Image Source: Zacks Investment Research From a valuation standpoint, IBKR trades at a forward price-to-earnings (P/E) ratio of 32.72, well above the industry average of 14.81. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Interactive Brokers’ 2025 and 2026 earnings indicates year-over-year growth of 14.8% and 8.4%, respectively. Over the past 30 days, earnings estimates for both years have been revised upward. Image Source: Zacks Investment Research Interactive Brokers currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report Tradeweb Markets Inc. (TW): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks