Interactive Brokers' July Metrics Improve Y/Y, DARTs Rise - Analyst Blog
Interactive Brokers Group, Inc.’s IBKR Electronic Brokerage segment reported a year-over-year improvement in its brokerage metrics for Jul 2015. The segment deals with clearance and settling of trades for both individual and institutional clients on a global basis.
Total client DARTs were 652,000, increasing 23% from Jul 2014 and 9% from Jun 2015. Further, total customer accounts were 313,700; up 18% from the prior-year month and 1% from the preceding month.
Interactive Brokers recorded Cleared Client DARTs of 591,000, up 22% from Jul 2014 and 8% from Jun 2015. On an annualized basis, Cleared Average DARTs per customer account of 476,000 rose 4% from the year-ago period and 6% from the prior-month level.
Interactive Brokers’ total option contracts were 28.3 million, up 15% from the year-ago month and 19% from the prior-month level. Future contracts climbed 35% from Jul 2014 but declined 6% from Jun 2015 to 11.2 million.
Interactive Brokers also provides data related to period-end statistics for client equity, credit balances and margin loan balances. For the period ended Jul 2015, client equity was $65.8 billion, rising 23% year over year, but remaining flat with the prior-month level.
Further, Interactive Brokers recorded client credit balances of $34.6 billion in the reported month, up 21% from Jul 2014 and 3% from Jun 2015. Also, the company’s customer margin loan balance of $18.1 billion rose 14% from the prior-year month but fell 5% from the preceding month.
We expect Interactive Brokers to see improvement in its monthly metrics, as the company remains well poised to gain from volatility of the equity market. Further, if such a market scenario prevails, strong trading activities are expected to accelerate the company’s top-line growth.
Currently, Interactive Brokers sports a Zacks Rank #1 (Strong Buy). Other investment brokerage firms worth considering include Arlington Asset Investment Corp. AI, BGC Partners, Inc. BGCP and Stifel Financial Corp. SF. All these stocks hold a Zacks Rank #2 (Buy).
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