How do the stocks of broker platforms compare? RobinHood (HOOD), IBKR, IG (IGG.L)

The broker platforms that you trade or invest upon can actually be pretty strong companies to consider owning a part of. In a market which has a hugely shifting demographic dynamic, we take a look at three listed brokers, and how they compare over recent times.

Under the microscope are RobinHood (NASDAQ: HOOD), Interactive Brokers (NASDAQ: IBKR), and London listed IG Group stocks (LON: IGG).

Robinhood, known for attracting a young and novice investor demographic, faced a considerable decrease in its stock's value, plummeting 70% from its peak at $85 to around $21. Similarly, this established online brokerage reported Q1 2024 user activity levels of 13.7 million monthly users, marking a 35% decline from its peak numbers. Despite these downward trends, the HOOD share price has begun to show signs of growth once again.

The last 12 months demonstrates such a shift in sentiment for RobinHood stock that the price appreciation of 135.66% puts it way clear of the competition in this regard.

In contrast, Interactive Brokers, which caters to a more sage investor and financial advisor clientele, showcases impressive financial vitality. The company is more mature and has already been through it's growth phase, but with its stock currently trading very close to all-time highs, there is a lot to like. The brokerage oversees 2.75 million customers and manages a substantial $465.9 billion in client assets as of Q1 2024. Additionally, Interactive Brokers reported a stout $175 million in net income in Q1 2024, cumulating to $627 million over the past 12 months.

IBKR stock price has added 57.37% over the past 12 months, which is no mean feat for a company that has had to stave off a new breed of competitors more than eager to eat into market share.

IG Group operates with a broad stroke across regions and instruments, with US, UK, Australian, and Asian presence. The platform at IG depending on where in the world you are gives access to Options, stocks, forex, and more, and attracts a broad base of users from the established trader, down to the beginner.

Shares in IG (LON: IGG) trade around 15% below all time highs, and after the bump in price following the retail trading frenzy that hit during Covid caused a run up in 2021, shares had stumbled a little before retuning to growth. 18.27% appreciation over the past 12 months is indicative of this return to favour. With the stock having recently hit new 52 week highs, the trend could be with this one for a while.

The diverging paths of Robinhood, IG, and Interactive Brokers paint a picture of contrasting fortunes. Interactive Brokers' robust financial health, proven profitability, and revenue potential stemming from managed assets establish it as a more established long term stock, where the growth potential of RobinHood still has many questions about a limit.

While Robinhood offers the allure of higher growth potential, Interactive Brokers' and IG trade far closer to all-time high stock values coupled with strong balance sheets and customer base affords the stability and reliability that may be more attractive to long-term investors. As brokers continue to navigate the dynamic market conditions, their evolving strategies and performance will remain an interesting point of debate.