Interactive Brokers (NASDAQ:IBKR) has agreed to make a strategic investment in Chinese online brokerage firm Tiger Brokers, the first such by the US multi-asset broker and market-maker in a Chinese fintech startup.
Founded in June 2014, Beijing-based Tiger Brokers is an online brokerage that allows mainland investors to buy stocks from the US and Hong Kong. The company provides an app to Chinese retail and institutional clients to invest in big local firms that are listed overseas.
The stock brokerage firm has attracted decent amounts of financing and amassed high-profile investors such as Wall Street billionaire Jim Rogers, Xiaomi Technology, China Growth Capital, Greenwoods Investment and Zhen Fund and Citic Securities. The company has recently disclosed its third funding round ($14.5 million) since it was founded three years ago.
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Interactive Brokers didn’t disclose the financial terms of the deal, but the US brokerage is obviously betting on growing demand for more offshore investment choices from Chinese investors.
Commenting on the deal, Thomas Peterffy, Chairman and CEO of Interactive Brokers said: “Interactive Brokers enthusiastically supports newly developing enterprises in the capital markets in Asia Pacific. Tiger has established one of the best initiatives that has come to our attention. They have superb management and technological knowhow. We had an excellent experience working with their developers and believe that they are building a sound platform.”
IB Managing Director for Asia Pacific David Friedland added, “Tiger has proven to be innovative, driven and most capable of providing their clients with tools to ease access into global markets. They recognize the importance of best execution, a global offering and doing what is best for the end client. What they are building is quite exciting.”
Wu Tianhua, founder of Tiger Brokers noted: “with support from IB since 2014, Tiger has been able to focus on building an exceptional user experience. It is reassuring to know that Interactive Brokers recognizes our technical strengths and potential. We are looking forward to a long and mutually rewarding relationship. By expanding and strengthening the collaboration with Interactive Brokers, we will continually secure a leading position in the Fintech market to provide U.S. stock brokerage service to the global Chinese community.”