Interactive Brokers (IBKR) to acquire Folio Investments Retail Brokerage Business from Goldman Sachs (GS)

December 4, 2020 9:06 AM

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, 52% higher than the prior year. Client equity climbed to $268.7 billion, a 61% increase from the prior year. The acquisition is expected to add approximately $3 billion in client equity. It will also provide Folio Investments’ clients with many new benefits.

“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.

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