Interactive Brokers Group, Inc.’s (IBKR) Electronic Brokerage segment witnessed stable sequential brokerage metrics for Nov 2013. The segment clears and settles trade globally for both individual and institutional clients.
Total customer Daily Average Revenue Trades (DARTs) were 510,000, improving 16% from Nov 2012, but in line with Oct 2013. Further, total customer accounts climbed 13% from the prior-year month and 1% from the prior month to 236,800.
Interactive Brokers recorded Cleared Customer DARTs of 463,000, increasing 12% from Nov 2012 but flat with Oct 2013. Further, on an annualized basis, Cleared Average DARTs per customer account of 493,000 dropped 1% from the comparable prior-year period and the prior-month level.
Interactive Brokers’ total option contracts increased 1% from the year-ago month but declined 21% from the prior-month level to 19,950. Moreover, future contracts declined 6% from Nov 2012 and 17% from Oct 2013 to 7,731.
Interactive Brokers also provided data related to period-end statistics for customer equity, customer credit balances and customer margin loan balances. For the period ended Nov 2013, customer equity was $44.6 billion, rising 39% year over year and 3% from the prior month.
Further, Interactive Brokers recorded customer credit balances of $25.7 billion in the reported month, increasing 25% from Nov 2012 and 1% from Oct 2013. Additionally, the company’s customer margin loan balance of $12.6 billion at the end of Nov 2013 rose 31% from $9.6 billion at the end of Nov 2012 but was in line with the prior month figure.
The interest rate scenario, though still low, is expected to be stable and consequently aid the company’s profit making activities in the medium term. However, dependence on IBG LLC and its wide international exposure remain concerns.
Currently, Interactive Brokers carries a Zacks Rank #2 (Buy). Other investment brokers worth considering include Ladenburg Thalmann Financial Services Inc. (LTS), Evercore Partners Inc. (EVR) and Investment Technology Group Inc. (ITG). While Ladenburg Thalmann Financial Services carries a Zacks Rank #1 (Strong Buy), Evercore Partners and Investment Technology Group hold the same Zacks Rank as Interactive Brokers.
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