Interactive Brokers (IBKR) Records Decline in November DARTs
Interactive Brokers Group, Inc. IBKR released the Electronic Brokerage segment’s performance metrics for November 2023. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported a decline in client Daily Average Revenue Trades (DARTs) on a sequential and year-over-year basis.
Total client DARTs for the month were 1,898,000, declining 2% from the October 2023 level and 3% year over year.
Cleared client DARTs for the month were 1,695,000, which decreased 2% from October 2023 and 3% from November 2022. On an annualized basis, IBKR recorded a Cleared Average DARTs per customer account of 170. The metric declined 3% sequentially and 21% from the prior-year period.
IBKR’s total customer accounts rose 2% from the prior month and 22% from November 2022 to 2.52 million. Net new accounts were 42,000, a decline of 13% from October 2023 and a rise of 63% from the prior-year period.
Interactive Brokers’ total options contracts were 87.4 million in November 2023, decreasing 6% from the prior month but growing 14% from the prior-year period. Futures contracts declined 17% on a sequential basis but remained stable from the prior-year period at 16.9 million.
At the end of November 2023, client equity was $404.3 billion, which increased 10% sequentially and 27% year over year. Interactive Brokers recorded client credit balances of $101.3 billion, up 5% from the October 2023 level and rising 6% from November 2022. The company's customer margin loan balance of $42.2 billion remained unchanged from the previous month and rose 8% year over year.
Over the past six months, shares of Interactive Brokers have lost 2.9% against the industry’s 6% rally.
Image Source: Zacks Investment Research
Currently, IBKR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Two other brokerage firms, Charles Schwab SCHW and LPL Financial Holdings Inc. LPLA, will come out with the monthly performance metrics in the coming days.
At present, Schwab carries a Zacks Rank #3 (Hold) and LPL Financial has a Zacks Rank #4 (Sell).
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