Key Takeaways
- Momentum in retail trading and advancements in digital technology led to substantial gains for HOOD, IBKR, and SCHW in 2025.
- Robinhood experienced remarkable growth from cryptocurrency, prediction markets, as well as increased volumes in equities and options.
- Interactive Brokers and Schwab saw benefits from growing trade volumes, new account openings, and enhanced global accessibility.
The brokerage sector has seen significant momentum this year, primarily propelled by technological innovations and increased market participation. As brokerage firms invested in digital trading platforms, mobile applications, and AI-driven services, they enhanced execution speed, tailored recommendations, and overall customer experience, making markets more efficient and accessible to both retail and institutional investors.
Commission-free trading models and a surge in account openings have driven higher trading volumes, boosting revenue through alternative income sources such as interest on cash balances and premium services. These trends have fostered broader market engagement and sustained interest in equity markets throughout 2025, benefitting companies such as Robinhood Markets (HOOD), Interactive Brokers Group (IBKR), and The Charles Schwab Corporation (SCHW).
While Schwab reported millions of daily trades and over 4.2 million new brokerage accounts in 2025, IBKR experienced a notable increase in Daily Average Revenue Trades (DARTs) due to renewed market volatility and increased trading activities in equities, options, and futures markets. Robinhood, on the other hand, thrived with significant growth in alternative trading areas, such as cryptocurrencies and prediction markets, alongside robust equities and options trading volumes.
These brokerage stocks distinctly outperformed the wider market in 2025, showcasing how trading performance has translated into gains in market valuation. Shares of Schwab and Interactive Brokers rose by 29.7% and 42.3% respectively, while Robinhood’s stocks surged by an impressive 222.1%, surpassing the S&P 500 Index’s 18% growth. However, Schwab underperformed compared to its peers, while HOOD and IBKR outperformed the industry’s 36.2% rise.
2025 Price Performance
Will Brokerage Stocks Continue to Benefit in 2026?
Looking ahead to 2026, several favorable trends are expected to persist, positively impacting the brokerage industry. Innovations in AI and automation are predicted to remain central to brokerage operations, enhancing trade execution, client personalization, fraud detection, and risk management, which should streamline costs and elevate client loyalty. Optimism in the broader stock market, fueled by anticipated earnings growth and economic resilience, is likely to maintain investor engagement and trading activity.
Furthermore, the continued democratization of financial markets through fractional shares, alternative assets, and deeper fintech integrations could draw in new investors and create additional revenue streams for brokerages. Innovations such as extended trading hours and improved international access may also enhance market participation. Therefore, companies like those mentioned above could continue to thrive in favorable trading conditions next year, making them worthy of attention now.
