Thomas Peterffy (born September 30, 1944) is a Hungarian-born American billionaire businessman and the founder, chairman, and largest shareholder of Interactive Brokers. After emigrating to the United States, he initially worked as an architectural draftsman before transitioning into computer programming. In 1977, he acquired a seat on the American Stock Exchange (AMEX) and contributed to the development of one of the earliest electronic trading platforms for securities. As of March 2024, his net worth was estimated by Forbes at $34.4 billion, ranking him as the 46th wealthiest person in the world.
Early Life and Career
 | |
| Born | September 1944 (age 80) Budapest, Hungary |
| Citizenship | United States |
| Occupations | Founder and chairman of Interactive Brokers |
| Known for | Developing first electronic trading platform of securities |
| Spouse | Dale McDonald (divorced) |
| Children | 3 |
Thomas Peterffy was born in Budapest, Hungary, on September 30, 1944, in a hospital basement during a Russian air raid. His father emigrated to the United States following the Hungarian Revolution of 1956. In 1965, Peterffy left his engineering studies in Hungary and moved to New York to join his father, who was unable to accommodate him and gave him $100, encouraging him to become self-sufficient.
Upon arriving in New York City without speaking English, Peterffy began working as an architectural draftsman on highway projects for an engineering firm. During his time there, he volunteered to program the company's newly acquired computer, which sparked his interest in automation and programming. Reflecting on his approach to business, Peterffy stated, "Business is a collection of processes, and my job is to automate those processes for maximum efficiency."
Peterffy later shifted to financial markets, leaving his drafting career to purchase a seat on the American Stock Exchange (AMEX) where he traded equity options. Throughout his financial career, he prioritized replacing manual processes with automation. In the early 1980s, he pioneered the use of handheld computers on the trading floor, a move that drew significant attention from other traders. His work at AMEX eventually led to the founding of Interactive Brokers. Peterffy stepped down as the company's CEO in 2019.
European Expansion and Investments
In 2021, Interactive Brokers relocated its European headquarters from London, outsourcing operations to two new continental centers. Western European clients began being served from a subsidiary in Ireland, while Central European operations were managed from Budapest. Peterffy cited Hungary’s language and logical approach as key factors for choosing Budapest, aiming to contribute positively to his home country. The Budapest-based Interactive Brokers Central Europe Zrt. became a member of the Budapest Stock Exchange upon its incorporation.
In 2023, Peterffy joined Mark Penn, Victor Ganzi, Josh Harris, and James Tisch in contributing to a $50 million investment fund for The Messenger, a news website launched in May 2023.
Regulatory Influence and Political Views
In 1999, Thomas Peterffy played a key role in influencing the U.S. Securities and Exchange Commission (SEC) to support the electronic linkage of U.S. options markets, which aimed to ensure investors received the best possible options prices. He has also testified before the United States Senate Banking Subcommittee on Securities, Insurance, and Investment regarding banking regulations.
During the 2012 U.S. presidential campaign, Peterffy produced and funded a series of political ads supporting the Republican Party. He purchased millions of dollars in airtime on networks such as CNN, CNBC, and Bloomberg, with the ads directly financed by him rather than through a 527 group. The centerpiece of the campaign was a one-minute spot narrated by Peterffy, warning against the dangers of socialism in the United States. In the ad, he stated:
"America's wealth comes from the efforts of people striving for success. Take away their incentive with badmouthing success and you take away the wealth that helps us take care of the needy. Yes, in socialism the rich will be poorer, but the poor will also be poorer. People will lose interest in really working hard and creating jobs."
The advertisement received mixed reactions. Bloomberg Businessweek’s Joshua Green described it as "slightly ridiculous, but deeply sincere and affecting." Green questioned whether Peterffy's comparison between the U.S. and socialist Hungary was fair, noting that while the U.S. was not suppressing speech or jailing political opponents, Peterffy expressed concern that it felt like a step in that direction. Politico suggested that the ad could have been influential in Ohio due to its significant Hungarian American population.
Peterffy has been registered as an independent voter in Connecticut. He has made significant contributions to Republican causes, including over $60,000 to the Republican National Committee in 2011 and $100,000 to a pro-Donald Trump political group during the 2016 U.S. presidential election.
Interactive Brokers
Interactive Brokers Group, Inc. (IB) is an American multinational brokerage firm specializing in electronic trading platforms and financial services. The company originated in 1977 when Thomas Peterffy purchased a seat on the American Stock Exchange and established T.P. & Co., an individual market-making firm.
Interactive Brokers operates through multiple subsidiaries, providing services on most major stock, futures, bonds, forex, and options exchanges globally. The company went public on May 4, 2007, under the ticker symbol IBKR on the Nasdaq Stock Market. On October 5, 2018, it shifted its listing to the Investors Exchange (IEX), becoming the founding issuer on the exchange.
The firm is widely recognized for its cost-effective trading services. Barron's magazine described Interactive Brokers in 2009 as "the least expensive trading venue for investors." The platform has continued to receive accolades, being named both the "Lowest Cost Broker" and the "Best Online Broker" by Barron's in 2019.
OneChicago
OneChicago was an all-electronic futures exchange specializing in single-stock futures (SSF) trading. It was jointly owned by IB Exchange Group (IB), the Chicago Board Options Exchange (CBOE), and the CME Group. The exchange was privately held and regulated by both the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). OneChicago's headquarters were located in the Chicago Board of Trade Building in Chicago's financial district.
The exchange offered around 2,272 SSF products, including futures for companies such as IBM, Apple, and Google. All trading was cleared through the Options Clearing Corporation (OCC). At the time of its operation, OneChicago was the only U.S.-based securities futures marketplace.
Net Worth
Thomas Peterffy holds a 75% ownership stake in Interactive Brokers. As of March 2024, his net worth was estimated at $34.4 billion, ranking him as the 46th richest person in the world and the wealthiest Hungarian globally.
Personal Life
Peterffy was married to Dale McDonald, with whom he has three children, including his son, William Peterffy. The couple later divorced.
He is passionate about equestrian activities and resides in Palm Beach, Florida. In 2020, he sold his 80-acre estate in Connecticut for $21 million, significantly reduced from its original listing price of $65 million in 2015.
Awards
- Hungarian Order of Merit (2017)
References
- Goodreturn (no date) Thomas Peterffy: Thomas Peterffy Net Worth, biography, age, spouse, children & more, Goodreturn. Available at: https://www.goodreturns.in/thomas-peterffy-net-worth-and-biography-blnr83.html (Accessed: 09 January 2025).
- Thomas Peterffy (2024) Common Sense Society. Available at: https://www.commonsensesociety.org/our-people/thomas-peterffy/ (Accessed: 09 January 2025).
- Thomas Peterffy (2025) Wikipedia. Available at: https://en.wikipedia.org/wiki/Thomas_Peterffy (Accessed: 09 January 2025).
- Thomas Peterffy (no date) Forbes. Available at: https://www.forbes.com/profile/thomas-peterffy/?list=rtb%2F (Accessed: 09 January 2025).
