Interactive Brokers Acquiring Folio Investments Retail Brokerage Business from Goldman Sachs
Interactive Brokers Group (Nasdaq: IBKR) announced its agreement to acquire the self-directed retail brokerage segment of Folio Investments Inc., following Goldman Sachs' acquisition of Folio Financial. The deal, set to close in January 2021, will integrate approximately 70,000 Folio customers into Interactive Brokers, boosting client accounts to 1.037 million and client equity to $268.7 billion, a 61% increase year-over-year. The acquisition is projected to add around $3 billion in client equity, enhancing services and providing access to global investment opportunities.
- Acquisition expected to increase client equity by approximately $3 billion.
- Integration of 70,000 new self-directed retail clients, expanding market reach.
- Enhanced service offerings for Folio clients, including access to global markets.
- None.
GREENWICH, Conn.--(BUSINESS WIRE)--Interactive Brokers Group (Nasdaq: IBKR), a global brokerage firm, today announced it has signed an agreement with Folio Investments Inc. to acquire its self-directed retail brokerage segment. The deal follows Goldman Sachs’ (NYSE: GS) purchase of Folio Financial on September 18, 2020. Goldman will retain the clearing and custody services Folio Investments created for investment advisors. Terms of the Interactive Brokers’ account purchase, which is expected to close in January 2021, were not disclosed.
Interactive Brokers looks forward to welcoming the approximately 70,000 current Folio Investments’ self-directed customers to Interactive Brokers. As of November 30, 2020, Interactive Brokers had 1.037 million client accounts,
“Interactive Brokers has long been recognized for its advanced technology, superior pricing, and breadth of product,” said Interactive Brokers CEO Milan Galik. “With the transition to our firm, Folio Investments’ former clients now will be able to invest in stocks, options, futures, currencies, bonds and funds worldwide from a single, integrated account.”
Folio’s retail clients only had access to US-listed stocks and commission-free trading at scheduled times. With the transition to Interactive Brokers, Folio Investments individual clients can select from the IBKR Lite service plan, which offers unlimited commission-free trades on US exchange-listed stocks and ETFs and low commissions on other asset classes, or the IBKR Pro plan designed for more sophisticated investors and active traders. At Interactive Brokers, they will gain access to the industry’s lowest margin loan interest rates and income enhancers, such as the ability to earn extra income lending out fully paid shares.
About Interactive Brokers Group, Inc.:
Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities, and foreign exchange around the clock on over 135 markets in numerous countries and currencies, from a single IBKR Integrated Investment Account to clients worldwide. We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its February 24, 2020, Best Online Broker Review.
About the Goldman Sachs Group, Inc.
The Goldman Sachs Group is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments, and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
