Bloomberg Audio Studios, podcasts, radio news, plan, sitting by with Thomas Petrophy of Interactive Brokers, and a lot of things dominating the conversation, but none more than the next presidential administration. When you think about what President elect Trump, who you have given to for his prior campaign and the most recent one, what do you think the most impactful change will be to investors over the next four years.

Bloomberg Audio Studios, podcasts, radio news, plan, sitting by with Thomas Petrophy of Interactive Brokers, and a lot of things dominating the conversation, but none more than the next presidential administration. When you think about what President elect Trump, who you have given to for his prior campaign and the most recent one, what do you think the most impactful change will be to investors over the next four years.

Well, the most impactful aspect of the new administration will be less regulation and less interference with private enterprise. Having grown up in a socialist country, I've come to a conviction earlier in my life that a free market economy is the only way to efficiently run a society, and so I'm very happy that this is the outcome that we had this election time. I did not contribute as much to President Trump as I did to other candidates, other Republican candidates. I've always been a Republican all my life, because, as I said, a good economy can only be based on private entrepreneurship.

Well, the most impactful aspect of the new administration will be less regulation and less interference with private enterprise. Having grown up in a socialist country, I've come to a conviction earlier in my life that a free market economy is the only way to efficiently run a society, and so I'm very happy that this is the outcome that we had this election time. I did not contribute as much to President Trump as I did to other candidates, other Republican candidates. I've always been a Republican all my life, because, as I said, a good economy can only be based on private entrepreneurship.

Speaking of the Republican Party beyond Trump, I am very curious to hear what your thoughts are for Ron DeSantis political future at the end of his term. As Florida governor. Where do you think his career goes from here?

Speaking of the Republican Party beyond Trump, I am very curious to hear what your thoughts are for Ron DeSantis political future at the end of his term. As Florida governor. Where do you think his career goes from here?

Well, unfortunately, I think round the centers shut himself in the.

Well, unfortunately, I think round the centers shut himself in the.

Foot with this six week abortion.

Foot with this six week abortion.

Issue, and that I mean he could I don't know if he will change his politics on that or not. That is going to be a very difficult.

Issue, and that I mean he could I don't know if he will change his politics on that or not. That is going to be a very difficult.

Situation.

Situation.

I was a great supporter of run for many years up until he came up with this six week abortion thing because I don't believe in it.

I was a great supporter of run for many years up until he came up with this six week abortion thing because I don't believe in it.

I don't think it's a good thing.

I don't think it's a good thing.

Beyond round the scantis, who do you think he has put up for the Senate see for Marco Rubio? Who do you think takes that spot in Florida? Who would you like to see take that spot? Who would you be backing?

Beyond round the scantis, who do you think he has put up for the Senate see for Marco Rubio? Who do you think takes that spot in Florida? Who would you like to see take that spot? Who would you be backing?

Well, I think rundiscientists would probably be the best candidate for that Senate seat, and I hope that he will do that rather than being Secretary of Defense, because I mean, from a point of view of his political future, I think a senatorial seat would be a better place to jump off up than secretary of Defense.

Well, I think rundiscientists would probably be the best candidate for that Senate seat, and I hope that he will do that rather than being Secretary of Defense, because I mean, from a point of view of his political future, I think a senatorial seat would be a better place to jump off up than secretary of Defense.

What then, do you make of the reports that Lara Trump is being put up for that Senate spot? Do you think that she has a significant place there.

What then, do you make of the reports that Lara Trump is being put up for that Senate spot? Do you think that she has a significant place there.

Well, she certainly has done a good job this time, Iran, But I think she's I don't even know how she's Is she old enough to become a senator? She must be if they are talking about her, right, But I think she's still a very young woman.

Well, she certainly has done a good job this time, Iran, But I think she's I don't even know how she's Is she old enough to become a senator? She must be if they are talking about her, right, But I think she's still a very young woman.

So you know, of course, are a very prominent Florida resident yourself. Activity in Florida has been very heated, a lot of people from Wall Street moving down there, and of course with the president eleft at the Winter White House, what has it been like there? Have you seen much more increased activity, especially from the business community in what is now known as Wall Street South.

So you know, of course, are a very prominent Florida resident yourself. Activity in Florida has been very heated, a lot of people from Wall Street moving down there, and of course with the president eleft at the Winter White House, what has it been like there? Have you seen much more increased activity, especially from the business community in what is now known as Wall Street South.

Well, you see, it's actually from my point of view because I live only three houses away from from mar Lago. So many times I cannot get out of my house because there are so many cars waiting in line that it's very hard for me to go anywhere. So there is a hell le a lot of traffic there. The road is always closed up, and unfortunately, you know, these assassination attempts are are very difficult to cope. So, yes, it's not easy to live in Palm Beach nowadays.

Well, you see, it's actually from my point of view because I live only three houses away from from mar Lago. So many times I cannot get out of my house because there are so many cars waiting in line that it's very hard for me to go anywhere. So there is a hell le a lot of traffic there. The road is always closed up, and unfortunately, you know, these assassination attempts are are very difficult to cope. So, yes, it's not easy to live in Palm Beach nowadays.

You were talking earlier about the pro growth agenda, but nothing to say yet of the tariff agenda. That is something that has spooked a significant portion of the business community. Do you think that if they are put on as aggressively as had been postured during the campaign, that there could be ramifications inflation that pervades the US economy.

You were talking earlier about the pro growth agenda, but nothing to say yet of the tariff agenda. That is something that has spooked a significant portion of the business community. Do you think that if they are put on as aggressively as had been postured during the campaign, that there could be ramifications inflation that pervades the US economy.

Yes, it's certainly it's it's certainly possible. But I agree with Trump that that is probably the best tool to get to the point where eonan I get to. And I think the opposite side will see that and we will agree with it and they will.

Yes, it's certainly it's it's certainly possible. But I agree with Trump that that is probably the best tool to get to the point where eonan I get to. And I think the opposite side will see that and we will agree with it and they will.

Give in What does this all mean at the end of the day for you at Interactive Brokers? If you are looking at a pro growth agenda and stock markets now record highs, another day of gains in the Nasdaq one hundred, just soaring equities, what does it mean for business for you, your clients and your ability to grow.

Give in What does this all mean at the end of the day for you at Interactive Brokers? If you are looking at a pro growth agenda and stock markets now record highs, another day of gains in the Nasdaq one hundred, just soaring equities, what does it mean for business for you, your clients and your ability to grow.

Well, it's extremely good for our business.

Well, it's extremely good for our business.

But I'm afraid that the markets are becoming over extended and that you know, sometime in the future we will have a downturn in the markets. But I don't think it's going to be very violent and very far. It will not go very far. So I'm extremely optimistic about the next four years and maybe when thereafter.

But I'm afraid that the markets are becoming over extended and that you know, sometime in the future we will have a downturn in the markets. But I don't think it's going to be very violent and very far. It will not go very far. So I'm extremely optimistic about the next four years and maybe when thereafter.

What do you think this means for the potential to grow inorganically? Have you considered mergers and acquisitions for interactive brokers?

What do you think this means for the potential to grow inorganically? Have you considered mergers and acquisitions for interactive brokers?

Oh? For yeah, yes, yes we have.

Oh? For yeah, yes, yes we have.

It is it is difficult for us to engage in any of that because most firms we look up that we would we would buy are charging more for their services than what we do, and they and they would uh price themselves based on those revenues and incomes. And of course if we were to take them over and we reduce the charges to our level, then they those profits would go down, so we we would we would buy a firm that where they where. I don't think that the that their cost reductions would be equally at least as high as as what the revenue reductions would be.

It is it is difficult for us to engage in any of that because most firms we look up that we would we would buy are charging more for their services than what we do, and they and they would uh price themselves based on those revenues and incomes. And of course if we were to take them over and we reduce the charges to our level, then they those profits would go down, so we we would we would buy a firm that where they where. I don't think that the that their cost reductions would be equally at least as high as as what the revenue reductions would be.

So it is difficult. A lot of people be better off.

So it is difficult. A lot of people be better off.

I think building our own reinvesting in our own business rather than going out and buying others.

I think building our own reinvesting in our own business rather than going out and buying others.

A lot of people believe that in the next administration you would have much looser antitrust regulations as well lighter antitrust enforcement. Does that mean you said you would build yourself, but would you ever consider a transformative deal, something that would be a merger of equals or even larger.

A lot of people believe that in the next administration you would have much looser antitrust regulations as well lighter antitrust enforcement. Does that mean you said you would build yourself, but would you ever consider a transformative deal, something that would be a merger of equals or even larger.

This is not a question I was prepared to deal with today. But well, of course, I mean, we look at everything, but it doesn't mean that this is not something I ever thought about, to tell you frankly.

This is not a question I was prepared to deal with today. But well, of course, I mean, we look at everything, but it doesn't mean that this is not something I ever thought about, to tell you frankly.

So the other thing where a lot of investors are expecting much lighter regulation is in the world of cryptocurrencies. How do you feel about cryptocurrencies from where you stand? And do you think that when your clients are going to interactive workers, it's going to be something they're asking about more and more and more.

So the other thing where a lot of investors are expecting much lighter regulation is in the world of cryptocurrencies. How do you feel about cryptocurrencies from where you stand? And do you think that when your clients are going to interactive workers, it's going to be something they're asking about more and more and more.

Two Currencies are a very interesting area. We have been into cryptocurrencies for about three years. We charge less commission and a crypto currency trade than any other firm other than robin Hood, but robbin Hood has a lot a wider spread because they get their commissions paid by the market maker who they send their orders to. So I think unbalanced, our platform is probably the most efficient one for a crypto trader. And otherwise I am to tell you, frankly, I'm sort of scared of cryptos because you know, they can go to any price, because it's basically just a figment of imagination, so it doesn't have any any underlying value. The only value it has is the same as the paper dollar, which is nothing.

Two Currencies are a very interesting area. We have been into cryptocurrencies for about three years. We charge less commission and a crypto currency trade than any other firm other than robin Hood, but robbin Hood has a lot a wider spread because they get their commissions paid by the market maker who they send their orders to. So I think unbalanced, our platform is probably the most efficient one for a crypto trader. And otherwise I am to tell you, frankly, I'm sort of scared of cryptos because you know, they can go to any price, because it's basically just a figment of imagination, so it doesn't have any any underlying value. The only value it has is the same as the paper dollar, which is nothing.

But you've seen people pull in nonetheless through ETFs. You saw the price of bitcoin get to one hundred thousand dollars. Will the investor of tomorrow be more likely to buy bitcoin or a US stock?

But you've seen people pull in nonetheless through ETFs. You saw the price of bitcoin get to one hundred thousand dollars. Will the investor of tomorrow be more likely to buy bitcoin or a US stock?

Well, it depends.

Well, it depends.

Well. For a bitcoin, you can buy US stocks right.

Well. For a bitcoin, you can buy US stocks right.

For a US stock, it's more difficult to buy bitcoin, right. So I think that anybody who does not have bitcoin should have some bitcoin, but not too much. I would recommend that people put maybe their two to three percent of their network into bitcoin. And we, for example, will not allow anyone to invest more than ten percent of their as into bitcoin because I think that would be very dangerous.

For a US stock, it's more difficult to buy bitcoin, right. So I think that anybody who does not have bitcoin should have some bitcoin, but not too much. I would recommend that people put maybe their two to three percent of their network into bitcoin. And we, for example, will not allow anyone to invest more than ten percent of their as into bitcoin because I think that would be very dangerous.

And if you have one area that investors should look at for next year, the biggest risk on the horizon. Everyone is talking about so much growth and soar and stock markets. You mentioned you're worried that you could actually see a downturn, which is contrary to what everybody else is out there saying. Right Many people are out there saying right now, what's the biggest risk on the horizon so.

And if you have one area that investors should look at for next year, the biggest risk on the horizon. Everyone is talking about so much growth and soar and stock markets. You mentioned you're worried that you could actually see a downturn, which is contrary to what everybody else is out there saying. Right Many people are out there saying right now, what's the biggest risk on the horizon so.

A downturn is a very big risk because margin balances have been growing very very quickly, and especially if you take a thing like bitcoin. I mean, you know, margins on bitcoin futures for example, charged by the CME are extremely low. So I am very worried that people over extend themselves. A sudden hit comes into the market and bitcoin.

A downturn is a very big risk because margin balances have been growing very very quickly, and especially if you take a thing like bitcoin. I mean, you know, margins on bitcoin futures for example, charged by the CME are extremely low. So I am very worried that people over extend themselves. A sudden hit comes into the market and bitcoin.

For save thirty forty fifty.

For save thirty forty fifty.

Percent from one day to the next, there'll be many bankruptcies. The clearing house will be unable to pick up the pieces and it basically will or that the bad that will be transferred to the clearing members. So this is a difficult situation. If it happens now, the probability is not very high that it will happen, but it certainly it could happen. So I wish that everybody please pay attention to these situations and try to take preventive measures and do not extend margin so easily.

Percent from one day to the next, there'll be many bankruptcies. The clearing house will be unable to pick up the pieces and it basically will or that the bad that will be transferred to the clearing members. So this is a difficult situation. If it happens now, the probability is not very high that it will happen, but it certainly it could happen. So I wish that everybody please pay attention to these situations and try to take preventive measures and do not extend margin so easily.

It's a good reminder to in the middle of all the exuberants keep an eye out.

It's a good reminder to in the middle of all the exuberants keep an eye out.

For those risks.

For those risks.

That is Thomas Pedrophy. Of course, tremen of interactive brokers

That is Thomas Pedrophy. Of course, tremen of interactive brokers