Interactive Brokers Group, Inc.’s (IBKR) Electronic Brokerage segment witnessed a rise in brokerage metrics for Aug 2013. The segment clears and settles trade globally for both individual and institutional clients.
Total customer Daily Average Revenue Trades (DARTs) improved 32% from Aug 2012, and 1% from Jul 2013 to 471,000. Further, total customer accounts climbed 12% from the prior-year month and 1% from the prior month to 229,000 in the reported month.
Interactive Brokers recorded Cleared Customer DARTs of 425,000, increasing 25% from Aug 2012 and 1% from Jul 2013. Moreover, on an annualized basis, Cleared Average DARTs per customer account of 468,000 rose 11% from the comparable prior-year period and was almost at par with the prior-month level.
Additionally, Interactive Brokers’ total option contracts increased 5% from the year-ago month and 4% from the prior-month level to 20,617. Moreover, future contracts surged 21% from Aug 2012 and 6% from Jul 2013 to 8,739.
Interactive Brokers also provides data related to period-end statistics for customer equity, customer credit balances and customer margin loan balances. For the period ended Aug 2013, customer equity was $39.7 billion, rising 31% year over year and 1% from the prior month.
Further, Interactive Brokers recorded customer credit balances of $23.8 billion in the reported month, increasing 23% from Aug 2012 and 1% from the prior month. Additionally, the company’s customer margin loan balances of $11.9 billion at the end of Aug 2013 rose 35% from $8.8 billion at the end of Aug 2012 and 3% from $11.5 billion at the end of Jul 2013.
Rising trading activities and stabilizing interest rates are expected to be positives for Interactive Brokers’ financials. However, the company’s dependence on IBG LLC and its wide international exposure remain plausible concerns.
Currently, Interactive Brokers carries a Zacks Rank #3 (Hold). Some better performing investment brokers include GAIN Capital Holdings, Inc. (GCAP), TD Ameritrade Holding Corporation (AMTD) and E*TRADE Financial Corporation (ETFC). While GAIN Capital and TD Ameritrade both carry a Zacks Rank #1 (Strong Buy), E*TRADE has a Zacks Rank #2 (Buy).
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