Why Do Interactive Brokers' Customers Hold So Much More Money Than Robinhood's?
It's around $173,000 an account versus about $13,400 a customer -- and the gap has been narrowing.
Overview
Interactive Brokers (NASDAQ:IBKR) and Robinhood Markets (NASDAQ:HOOD) are both online brokers. But the money sitting in their accounts looks nothing alike.
Interactive Brokers finished September with around $965 billion of client equity across about 5.6 million accounts. That comes out to around $173,000 an account. Robinhood, meanwhile, finished August (its latest monthly report) with $384 billion of platform assets and 28.6 million funded customers, or around $13,400 each.
Details
Put another way, Robinhood has about five times as many customers, but Interactive Brokers holds about 2.5 times as much money. The average Interactive Brokers account holds around 13 times as much as the average Robinhood customer.
Source
Originally published at www.fool.com.
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