A popular
American electronic trading platform Interactive Brokers reported single-digit month-over-month (MoM) growth in
its daily average revenue trades (DARTs) and client accounts in May. While
DARTs grew 5% to 1.86 million, the platform’s client accounts rose 2% to
2.26 million.
However,
when compared to the same period last year, DARTs descended 19% while client
accounts jumped by the same measure. Interactive Brokers disclosed the figures
on Thursday in its brokerage metrics for
May 2023.
Despite
growing the DARTs from 1.765 million in
April,
Interactive Broker’s performance last month stands below the 2.055 million
trades per day that generated revenue through commissions or fees earlier in
March.
Average Commission Drops in May
In terms of
other metrics, ending client equity, or the amount of money clients had in
their trading accounts at the end of the month, rose 1% MoM to $345.1
billion and picked up 10% compared to the same period last year.
Furthermore,
the amount of money owed to the brokerage by clients from leveraged trades also
rose 1% to $39.5 billion. However, the ending client margin loan
balance slumped 10% year-over-year.
Unlike the
ending client equity and margin loan balance, Interactive Broker’s ending
client credit balances, or the amount of money clients left in their trading
account after all trades have been settled and all fees and charges deducted,
decreased 1% to $98.7 billion, which is down from $99.2 billion in the prior month.
However, the figure, which includes $2.9 billion in insured bank deposit
sweeps, represents a gain of 8% over the balances from the same period a year
earlier.
Moreover,
Interactive Broker last month generated an average commission of $3.08 per
cleared commissionable order, which is a 3% drop from the previous month. The
figure includes exchange, clearing and regulatory fees.
Giving a
breakdown of its commissions across classes, the brokerage explained that it
turned out $1.95 commission from an average of 1,013 shares, $4.43 from an
average of 6.6 equity options contracts and $4.36 from an average of 3.3
futures contracts.
“Futures
include options on futures,” Interactive Brokers said in the report. “We
estimate exchange, clearing and regulatory fees to be 57% of the futures
commissions.”
Revolut hits 30M users; crypto trading on TP ICAP; read today’s news nuggets.
This article was written by Solomon Oladipupo at www.financemagnates.com.
