Interactive Brokers Posts Strong April Metrics, Daily Average Revenue Trades Soar 33%
Interactive Brokers has released monthly performance metrics for April 2024, highlighting a 33% surge in daily average revenue trades (DARTs) compared to the previous year. Despite this notable growth, the company posted a 3% decline in DARTs compared to the
preceding month.
Interactive Brokers reported a 26%
year-over-year rise in client accounts totaling 2.81 million. This figure
represents an uptick of 2% from the previous month. Ending client equity soared
34% YoY to $457.8 billion, but it experienced a 2% drop from the prior
month. Similarly, ending client margin loan balances
experienced a 28% YoY upsurge, totaling $50.7 billion, yet
showed a 1% decrease from the prior month.
Client credit balances, including insured bank deposit
sweeps, stood at $105.8 billion, a rise of 7% YoY and a modest 1% increase
compared to the prior month. On the other hand, the average commission per
cleared commissionable order, inclusive of exchange, clearing , and regulatory
fees, was $3.
Interactive Brokers’ average stock
order size was 964 shares, with an average commission of $1.9. Equity options
had an average order size of 6.5 contracts with an average commission of $4.14, while
futures recorded an average order size of 3.1 contracts and an average commission
of $4.37.
Recent Developments
Meanwhile, Interactive Brokers recently reached a settlement with Nasdaq after agreeing to pay a fine worth $475,000. The
settlement involves charges of supervisory failures leading to erroneous trades
and improper sales.
Between January 2020 and June 2021, Interactive
Brokers allegedly failed to properly process several corporate actions, such as
reverse stock splits, due to deficiencies in its supervisory systems. This
resulted in orders with incorrect prices and instances where customers sold
shares they did not own.
The brokerage firm has faced fines and penalties from
regulatory authorities in recent years, including a substantial $5.5 million
fine from FINRA in 2018 and a penalty worth $38 million for anti-money laundering breaches in 2020.
Interactive Brokers has released monthly performance metrics for April 2024, highlighting a 33% surge in daily average revenue trades (DARTs) compared to the previous year. Despite this notable growth, the company posted a 3% decline in DARTs compared to the
preceding month.
Interactive Brokers reported a 26%
year-over-year rise in client accounts totaling 2.81 million. This figure
represents an uptick of 2% from the previous month. Ending client equity soared
34% YoY to $457.8 billion, but it experienced a 2% drop from the prior
month. Similarly, ending client margin loan balances
experienced a 28% YoY upsurge, totaling $50.7 billion, yet
showed a 1% decrease from the prior month.
Client credit balances, including insured bank deposit
sweeps, stood at $105.8 billion, a rise of 7% YoY and a modest 1% increase
compared to the prior month. On the other hand, the average commission per
cleared commissionable order, inclusive of exchange, clearing , and regulatory
fees, was $3.
Interactive Brokers’ average stock
order size was 964 shares, with an average commission of $1.9. Equity options
had an average order size of 6.5 contracts with an average commission of $4.14, while
futures recorded an average order size of 3.1 contracts and an average commission
of $4.37.
Recent Developments
Meanwhile, Interactive Brokers recently reached a settlement with Nasdaq after agreeing to pay a fine worth $475,000. The
settlement involves charges of supervisory failures leading to erroneous trades
and improper sales.
Between January 2020 and June 2021, Interactive
Brokers allegedly failed to properly process several corporate actions, such as
reverse stock splits, due to deficiencies in its supervisory systems. This
resulted in orders with incorrect prices and instances where customers sold
shares they did not own.
The brokerage firm has faced fines and penalties from
regulatory authorities in recent years, including a substantial $5.5 million
fine from FINRA in 2018 and a penalty worth $38 million for anti-money laundering breaches in 2020.
