Global electronic brokerage firm Interactive Brokers (NASDAQ: IBKR) had a solid 2025 with its stock soaring over 45%. By executing, clearing, and settling trades across diverse global asset classes, investors get the ability to trade in stocks, options, and cryptocurrencies with just an Interactive Brokers brokerage account. In addition, Interactive is known for offering relatively low interest rates on margin loans (money investors borrow to trade).
All of these catalysts have ensured a smooth sailing into 2026 as well, with the fintech stock already up an impressive 15% year-to-date. However, there may be a better option: a faster-growing competitor in the middle of a market correction, Robinhood Markets (NASDAQ: HOOD).
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Robinhood is growing faster than Interactive Brokers while boosting profit margins. That’s the winning combination for any growth stock, especially for a fintech company like Robinhood, which doubled revenue in the third quarter of 2025.
Every part of the business has been booming. Transaction-based revenue, including stocks, options, and crypto, jumped 129% year over year. Net interest revenue increased by 66% year over year as more Robinhood customers tapped into margin to boost their portfolios. The fintech also has an “Other revenues” segment, which more than doubled year over year, largely due to Robinhood Gold.
The success of these products shows that Robinhood continues to innovate beyond leading the way toward commission-free stock trades more than a decade ago. This growth also came with a 271% year-over-year increase in overall profits, indicating it is sustainable.
Robinhood doesn’t just have high growth rates from existing customers spending more, but it also continues to bring in new users. Roughly 2.5 million people joined Robinhood in Q3, bringing the total number of funded customers to 26.8 million.
That growth coincided with the average revenue per user increasing by 82% year over year. Increased trading activity played a role, but Robinhood has also successfully expanded its prediction market segment, which is delivering substantial sequential growth.
Prediction markets can bring more people to the Robinhood platform and introduce them to stocks, options, and crypto. Robinhood customers who have already used the app will have another market to allocate some of their cash.
