FUTU vs IBKR: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
IBKR is the larger of the two ($149.25B market cap): the incumbent the market prices for continued execution (27.57x forward earnings, beta 1.33). FUTU is the smaller challenger ($14.74B), cheaper on forward earnings (8.60x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
FUTU vs IBKR: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | FUTU | IBKR | What it tells you |
|---|---|---|---|
| Market cap | $14.74B | $149.25B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 8.60 | 27.57 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 11.62 | 34.92 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.38 | 1.33 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 20% of range | 75% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 2.81 | 6.68 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: FUTU is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how FUTU and IBKR affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. FUTU and IBKR share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined FUTU and IBKR exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Futu Holdings Limited (FUTU) do?
Futu Holdings Limited is a technology company that operates a digital brokerage and wealth-management platform, best known for its Futubull app (serving Hong Kong and Chinese-language users) and its international moomoo app. It offers low-friction access to trading in stocks, ETFs, options, and other securities, primarily across Hong Kong, US, and mainland China-related markets, and it has expanded into markets like Singapore, Australia, Japan, and beyond. Revenue comes from brokerage commissions, interest income (including margin financing), and wealth-management and platform fees. It lists in the US as an ADR.
What does Interactive Brokers Group (IBKR) do?
Interactive Brokers Group operates one of the largest electronic brokerage platforms in the world, offering trading in stocks, options, futures, currencies, bonds, funds, and prediction markets across more than 170 markets from a single unified account. Its edge is automation and cost: the firm runs on lean technology, passes through low commissions and margin rates, and serves a global mix of active individual traders, hedge funds, proprietary trading groups, financial advisors, and introducing brokers. Revenue comes mainly from two engines, transaction commissions and net interest income earned on customer cash balances and margin loans.
FUTU vs IBKR: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- FUTU drivers: Funded-account and client-asset growth; International expansion via moomoo.
- IBKR drivers: Account and client-asset growth; Net interest income on customer balances.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The dominant risk is China regulatory exposure. For IBKR, the biggest swing factor is interest rates, since a large share of profit is net interest income that would compress if rates fall.
FUTU or IBKR: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick FUTU if you believe its drivers more; IBKR if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the FUTU and IBKR guides.
FUTU vs IBKR: the full fundamentals
FUTU. Figures are approximate and tied to the asOf date; verify live numbers before acting. Futu is valued as a growth fintech, but its multiple reflects both rapid account growth and a China-linked risk discount. Because commissions and margin income move with trading volumes, earnings can be cyclical, and a single regulatory headline out of China can reprice the stock quickly. Weigh the growth metrics against the policy and market-sentiment risks.
IBKR. As of July 2026, IBKR trades at roughly 40 times trailing earnings, a premium to its own history after the stock roughly doubled over the prior year. Growth has been strong, with record quarterly revenue and pre-tax margins above 70 percent, but the elevated multiple leaves less room for error if rates fall or trading volumes slow.
Headline figures (approximate, Jul 2026): FUTU shows business model Technology-driven online brokerage and wealth management via Futubull and moomoo apps; US-listed ADR, account growth Full-year 2025 funded accounts up nearly 40% to about 3.37 million, still climbing in Q1 2026, client assets Total client assets rose roughly 66% year over year to around HK$1.23 trillion at end-2025, revenue growth Full-year 2025 revenue up more than 45%; Q1 2026 revenue up about 25% year over year; IBKR shows revenue (ttm net revenues) ~$6.5B, q1 2026 net revenues ~$1.67B, net interest income (q1 2026) ~$904M, commissions (q1 2026) ~$613M.
The bottom line: FUTU vs IBKR
FUTU and IBKR are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined FUTU and IBKR exposure against your real portfolio. It is not an investment adviser.
Wondering how FUTU or IBKR fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Futu Holdings Limited with AI
Connect the broker you already use and ask Walnut's AI how FUTU fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between FUTU and IBKR?
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Futu Holdings Limited is a technology company that operates a digital brokerage and wealth-management platform, best known for its Futubull app (serving Hong Kong and Chinese-language users) and its international moomoo app. Interactive Brokers Group operates one of the largest electronic brokerage platforms in the world, offering trading in stocks, options, futures, currencies, bonds, funds, and prediction markets across more than 170 markets from a single unified account. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is FUTU or IBKR the better stock?
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Neither is universally better. IBKR is the larger incumbent; FUTU is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, FUTU or IBKR?
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On forward P/E (as of August 2026), FUTU trades at 8.60x and IBKR at 27.57x, so FUTU is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both FUTU and IBKR?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of FUTU vs IBKR?
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FUTU: The dominant risk is China regulatory exposure. Chinese authorities have scrutinized cross-border online brokerages serving mainland investors, and past actions (such as restrictions on new mainland-China client onboarding) show how policy can abruptly change Futu's growth trajectory. Results are also cyclical and tied to Asian market sentiment: trading commissions and margin income rise in bull markets and fall in downturns, so earnings can be volatile. Currency risk matters because Futu reports in Hong Kong dollars while its shares trade as a US ADR, adding a translation layer for US holders. Competition is intensifying from other digital brokers, including regional rivals and larger incumbents expanding online. International expansion carries execution and local-regulatory risk in each new market. Broader geopolitical tension between the US and China, and any moves affecting US-listed Chinese ADRs, add a layer of risk outside the company's control. This combination makes Futu a higher-growth but distinctly higher-risk holding. IBKR: The biggest swing factor is interest rates, since a large share of profit is net interest income that would compress if rates fall. Commission revenue depends on trading volumes, which can drop sharply in calm or fearful markets. The company carries counterparty and margin risk if clients or clearing houses fail to meet obligations, and it operates under many regulators across dozens of countries, so rule changes or enforcement actions are an ongoing exposure. The unusual ownership structure, where public shareholders hold a minority interest in the operating partnership, and a premium valuation after a large price run mean the stock can be volatile if growth or margins disappoint.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell FUTU or IBKR; figures are approximate and dated (as of August 2026). Verify current data before investing.