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Over the previous yr, the FTSE 100 is up 17%. That is spectacular and effectively above the long-term common. Nonetheless, there are particular person shares throughout the pond which have generated greater returns, with some having momentum that I consider might proceed into 2026.
Right here’s one S&P 500 inventory that’s a great instance of what I imply!
Causes for outperformance
I’m speaking about Interactive Brokers (NASDAQ:IBKR). The worldwide investing platform gives retail {and professional} shoppers with the flexibility to purchase and promote shares, bonds, commodities and different belongings. Over the previous yr, the share value is up 34%, double that of the FTSE 100.
The enterprise has carried out very effectively just lately, pushed by a number of components. First, rates of interest within the US and the UK have stayed greater in 2025 than most of us anticipated. This has meant the online curiosity margin for Interactive Brokers has remained greater for longer. Web curiosity earnings is the enterprise’s largest income driver, as shoppers usually maintain massive idle balances of their accounts.
One other profit got here from the upper volatility in monetary markets this yr. It’s true that this has been one of many craziest years within the inventory market I can keep in mind. Consequently, it has earned greater commissions and costs from buying and selling exercise.
Lastly, not like another funding platforms, the US agency generates cash from market information charges, platform charges, income from clearing and different providers for institutional clients. Just lately, these merchandise have elevated in demand.
The highway forward
For traders who didn’t purchase the US inventory a yr in the past, I don’t suppose the social gathering’s over. Looking forward to 2026, Interactive Brokers has a number of causes the inventory might maintain rallying.
The corporate has substantial worldwide development potential, significantly in Asia, Europe, and Latin America, the place market penetration stays low. Amid issues in regards to the stability of US regional banks, the enterprise can also be pushing to develop its institutional shopper base.
Given the corporate’s present dimension, it will probably genuinely compete at this stage to offer international entry and decrease financing prices than some banks. If it will probably additional faucet into this market, it might yield vital monetary advantages.
Moreover, Interactive Brokers has a extremely automated value construction. The web platform does a lot of the heavy lifting, which means it will probably scale with out massive labour value will increase. As income grows, total revenue can improve quicker.
Some flag as a threat the potential for decrease rates of interest. That is legitimate and is a priority going ahead. Nonetheless, even when rates of interest decline, curiosity earnings could stay above pre-2022 ranges (earlier than rates of interest began to rise after the pandemic) as a result of massive shopper money balances.
Total, I believe this US inventory has plenty of potential to maintain the momentum going. Even for UK traders, I believe it’s a inventory price contemplating.
