The history of Interactive Brokers is a classic example of how a technological advantage created by one person becomes a global financial empire. The company grew from a small trading firm founded by a mathematician and programmer to one of the largest online brokers in the world.

Thomas Peterffy: from programmer to empire builder

The history of IBKR is inextricably linked to its founder, Thomas Peterffy. In 1977, he bought a seat on the American Stock Exchange (AMEX) and began working as an individual options market maker. Peterffy had a unique combination of skills for his time: he understood market mathematics and could program. This allowed him to see what others did not: trading could be automated.

Timber Hill: a technological breakthrough in the 1980s

In 1982, Peterffy founded Timber Hill Inc., which became the trading division of the future group. The main challenge at the time was: \"How to read the option prices posted on the exchange electronically?\". The solution found by Peterffy and his team changed Wall Street.

In 1983, Timber Hill created the first pocket computers used for trading. These devices tracked positions and continuously recalculated option prices, giving the company's traders a huge advantage over competitors who were still using paper tables updated once or twice a day. In 1985, the company launched a centralized computer system allowing for risk management of portfolios of derivative instruments traded in different places. And in 1987, Timber Hill developed a fully automated system that connected directly with the central computer of NASDAQ. This was the first automated trader on Wall Street that operated without human intervention.

The birth of Interactive Brokers: entering the retail market

For a long time, Timber Hill remained an internal kitchen for professional trading. A turning point occurred in 1993 when Interactive Brokers Inc. (later IB LLC) was founded as a broker-dealer to provide clients with access to the very electronic network and execution services that Timber Hill had honed for itself. From this point on, the technology created for themselves became a product for external clients.

In subsequent years, the company expanded actively. In 2000, the IBKR customer base grew almost 500%. In the same year, Timber Hill became the primary market maker on the first fully electronic options exchange in the US — ISE (International Securities Exchange), accounting for more than 50% of its volume. In 2002, IBKR launched the mobile platform MobileTrader and API for third-party integration.

Our days: global scale and recognition

Today, Interactive Brokers Group is a public company (ticker IBKR on NASDAQ) that has been part of the S&P 500 index since August 2025. As of the beginning of 2026:

• The company has been operating for 49 years (since Peterffy's activities began in 1977).
$22.3 billion.
• It provides access to more than 170 markets worldwide.
• About 4.82 million transactions pass through the IBKR network daily.
• Custodial assets reached $779.9 billion at the end of 2025.

The company has won numerous awards as the best online broker. For example, the magazine Barron's awarded IBKR first place in the category \"Best Internet Broker\" six times in a row.

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Conclusion

Interactive Brokers is not just a broker. It is a company that has been building its empire since the 1970s on the belief that speed, automation, and direct technology solve everything. Starting with pocket computers on the trading floor, it has become a global platform through which millions of transactions are processed every day for clients worldwide.

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