Interactive Brokers Group [NASDAQ: IBKR] declared that the company has entered into a contract with Folio Investment to obtain its self-directed retail brokerage division. The acquisition is anticipated to close in January 2021. The company is looking ahead to embracing Folio’s 70,000 existing clients to Interactive Brokers.
Interactive Brokers have currently 52% more user accounts than it had last year. The number of current user accounts it has is 1.037 million. The purchase will contribute nearly 3 Billion in customer equity while providing Folio’s customers with more benefits.
Previously Folios customers had a limited approach to stocks. It only had an approach to US-listed stock and commission-free trading. But now with this acquisition Folio’s customers will have so much more investment choices such as in stocks, bonds, currencies, etc. Furthermore, at Interactive Brokers, the clients will have access to the lowest possible margin loan rates and revenue enhancers.