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Mixed December Metrics for Interactive Brokers

Zacks Equity Research

Interactive Brokers Group, Inc.’s (IBKR) Electronic Brokerage segment witnessed a mixed performance in brokerage metrics for Dec 2013. The segment clears and settles trade globally for both individual and institutional clients.

Total customer Daily Average Revenue Trades (DARTs) were 478,000, improving 21% from Dec 2012, but declining 6% . Further, total customer accounts climbed 14% from the prior-year month and 1% from the prior month to 239,300.

Interactive Brokers recorded Cleared Customer DARTs of 433,000, up 20% from Dec 2012 but down 6% from Nov 2013. Further, on an annualized basis, Cleared Average DARTs per customer account of 456,000 increased 6% from the comparable prior-year period while declining 8% from the prior-month level.

Interactive Brokers’ total option contracts increased 29% from the year-ago month and 12% from the prior-month level to 22.4 million. Moreover, future contracts rose 14% from Dec 2012 while declining 4% from Nov 2013 to 7.4 million.

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 $45.7 billion, rising 39% year over year and 2% from the prior month.

Further, Interactive Brokers recorded customer credit balances of $25.9 billion in the reported month, increasing 26% from Dec 2012 and 1% from Nov 2013. Additionally, the company’s customer margin loan balance of $13.5 billion at the end of Dec 2013 rose 38% from Dec 2012 and 7% from Nov 2013.

The interest rate scenario, though still low, is expected to be stable and consequently aid Interactive Brokers’ 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 #3 (Hold).

Other investment brokers worth considering include Ladenburg Thalmann Financial Services Inc. (LTS), Evercore Partners Inc. (EVR) and KCG Holdings, Inc. (KCG). All these stocks carry a Zacks Rank #1 (Strong Buy).

Read the Full Research Report on IBKR
Read the Full Research Report on KCG
Read the Full Research Report on LTS
Read the Full Research Report on EVR

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