Interactive Brokers Group, Inc.’s (IBKR) Electronic Brokerage segment recorded a sequential decrease in brokerage metrics for Nov 2014. However, on a year-over-year basis, brokerage metrics performed decently. The segment deals with clearance and settling of trades for both individual and institutional clients on a global basis.
Total customer Daily Average Revenue Trades (DARTs) were 576,000, up 13% from Nov 2013 but down 15% from Oct 2014. Total customer accounts grew 18% from the prior-year month and 1% from the preceding month to 278,500.
Interactive Brokers recorded Cleared Customer DARTs of 525,000, increasing 13% from Nov 2013 but decreasing 15% from Oct 2014. On an annualized basis, Cleared Average DARTs per customer account of 475,000 decreased 4% from the comparable prior-year period and 16% from the prior-month level.
Interactive Brokers’ total option contracts came in at 20 million, unchanged from the year-ago month level but down 38% from prior-month level. Future contracts decreased 2% from Nov 2013 and 40% from Oct 2014 to 7.6 million.
Interactive Brokers has also provided data related to period-end statistics for customer equity, credit balances and margin loan balances. For the period ended Nov 2014, customer equity was $57.3 billion, rising 28% year over year and 3% sequentially.
Further, Interactive Brokers recorded customer credit balances of $32.2 billion in the reported month, up 50% from Nov 2013 and 5% from Oct 2014. Moreover, the company’s customer margin loan balance of $18.7 billion rose 48% from the prior-year month and 11% from the previous month.
Results suffered mainly due to weak performance of the Market Making segment. The increasing competitive environment and the Market Making segment’s high sensitivity to the fluctuating volatility resulted in this sequential decline. However, the company’s healthy balance sheet, strong financials, focus on diversification and technological excellence will likely aid growth, going forward.
Currently, Interactive Brokers carries a Zacks Rank #3 (Hold).
Some better-ranked investment brokers include Piper Jaffray Companies (PJC), FXCM Inc. (FXCM) and The Goldman Sachs Group, Inc. (GS). While both Piper Jaffray and FXCM sport a Zacks Rank #1 (Strong Buy), Goldman Sachs holds a Zacks Rank #2 (Buy).
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