Omaha, NE-based online brokerage firm TD Ameritrade Holding Corporation AMTD came out with its average client trades per day of 438,000 in its activity report for November 2015. This increased 1% from the prior month and 2% compared with the prior-year period.
Broker performance is generally measured through monthly average client trades per day. This represents the number of trades from which brokers earn commissions or fees.
As of Nov 30, 2015, TD Ameritrade reported $706.1 billion in total client assets, up 1% from the prior month and 5% year over year. Further, average spread-based balance of $102 billion was down 1% from the prior month but up 8% year over year. Additionally, average fee-based balances were $160.5 million, up 2% from the prior month and 5% year over year.
Quarterly Performance
Average client trades per day in fiscal fourth-quarter 2015 increased 18.9% year over year to 478,776. For full-year fiscal 2015, average client trades per day increased 8.1% year over year to 461,541.
Further, at the end of the quarter, net new client assets stood at $16.2 billion, up 20.9% from the prior-year quarter end. For full-year fiscal 2015, the company’s net new client assets were $63.0 billion, up 18% year over year. Notably, fiscal 2015 marked the “seventh consecutive year of double-digit asset gathering.”
At quarter end, TD Ameritrade reported total client assets of $667.4 billion, up 2.2% year over year.
Our Viewpoint
Innovations in online trading, long-term investment in products and services, delivery of advanced customer service and creative marketing and sales are TD Ameritrade’s key strategies to boost its trading and investing business. Further, we believe the company will benefit from the renewed interest of retail investors in the equity market.
Further, the company’s association with The Toronto-Dominion Bank TD provides an opportunity to cross sell its products. This is expected to significantly drive organic growth.
Amid a volatile operating environment, TD Ameritrade witnessed a continuous rise in organic client assets, which bode well going forward. However, we remain cautious as a continuous rise in expenses, a low interest rate environment and stringent regulations may weigh on the company’s financials in the upcoming quarters.
At present, TD Ameritrade carries a Zacks Rank #3 (Hold).
Among other investment brokers, Interactive Brokers Group, Inc.’s IBKR Electronic Brokerage segment reported a year-over-year improvement in its brokerage metrics for November 2015. Total client DARTs were 640,000, up 11% from November 2014, but down 2% from October 2015. Further, total customer accounts were 329,100, up 18% from the prior-year month and 1% from the preceding month.
The Charles Schwab Corporation SCHW is expected to report its monthly metrics later this week.
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