Interactive Brokers Profits When Trading Is Hot. What Happens When It Cools?

Interactive Brokers has delivered exceptional returns (525% over 5 years) driven by a bull market, growing customer base, and strong profitability. However, the stock trades at a premium P/E ratio of 38.5, making it vulnerable to a market downturn. The author recommends waiting for a better entry point rather than buying at current valuations, as bear markets historically reduce trading volume, customer engagement, and net interest income for brokerages.