Brokers

Interactive Brokers Sees 23% Uptick in Client Accounts, Appoints New Board Member

Interactive
Brokers Group, Inc. (Nasdaq: IBKR), an automated global electronic broker, has released
its monthly performance metrics for December 2023, showing continued growth
across key areas, including daily average revenue trades (DARTs) and number of new
accounts.

DARTs,
which refers to the number of revenue-generating trades placed by customers on
Interactive Brokers’ platform, reached 1.972 million, up 13% year-over-year
(YoY) and 4% over November. Ending client equity hit $426 billion, a 39% annual
increase and a 5% monthly increase. Client margin loan balances grew 14% versus
last December to $44.4 billion, while client credit balances rose 10% to $104.5
billion.

The
brokerage also added clients, ending December with 2.56 million accounts, which
was 23% more YoY. This translated into 172 annualized average DARTs per client
account. Compared to November 2023, the number of total accounts rose by 2%.

Interactive
Brokers continued to offer competitive commissions in December, with cleared
commissionable orders costing $3.17 on average, including fees. This averaged
$2.02 per order for stocks, while equity options stood at $4.36 per contract
and futures at $4.86.

Other Financial
Information Also Positive

On other
financial metrics, the company saw a $0.3 million quarterly loss but an $8.4
million annual gain on its US government securities portfolio. The GLOBAL
currency benchmark gained 0.47% for December and 0.41% for the full year.

Interactive
Brokers highlighted the total cost for its IBKR PRO clients to execute and
clear US Reg NMS stocks on its platform. This came out to an estimated 2.4
basis points of trade money in December and 2.5 basis points for the past 12
months.

The
positive monthly metrics showcase Interactive Brokers’ growth trajectory headed
into 2024, building on its automated global electronic brokerage model and
ability to offer competitive pricing to clients.

In a separate
update, IBKR has appointed veteran analyst Rich Repetto as an independent
director. Repetto retired last June after a 25-year career as a managing
director and senior research analyst at Piper Sandler. He covered electronic
trading and financial technology firms and received numerous honors, including the
Financial Times “Analyst of the Year” award in 2010.

“We are
pleased to welcome Rich to our board following his distinguished career
pioneering research on electronic brokers and exchanges,” said Thomas Peterffy,
the Founder and Chairman at Interactive Brokers founder. “His deep knowledge
and understanding of our industry brings an important perspective that we
expect will benefit our company.”

Before
joining Piper Sandler, Repetto spent around 20 years as a principal at Sandler
O’Neill. He has also worked for Lehman Brothers, where he founded coverage of
the online financial services sector, and spent a decade in sales and marketing
roles at Mobil.

Updates in Hong Kong and The
UK

Interactive
Brokers Hong Kong recently obtained a license for retail crypto trading in Hong
Kong, marking a significant expansion in the region’s cryptocurrency sector. This
development positions the firm as a pivotal player in the rapidly evolving
crypto landscape of Hong Kong, a region experiencing a notable surge in
crypto-related activities and interest.

In a
parallel development, Interactive Brokers has launched a new offer for
investors in the UK. The brokerage firm is encouraging UK residents to open
stocks and share investment savings accounts (ISAs) with them. ISAs in the UK
provide access to diverse investment options, including stocks, bonds, and
exchange -traded funds, both domestically and internationally.

Interactive
Brokers Group, Inc. (Nasdaq: IBKR), an automated global electronic broker, has released
its monthly performance metrics for December 2023, showing continued growth
across key areas, including daily average revenue trades (DARTs) and number of new
accounts.

DARTs,
which refers to the number of revenue-generating trades placed by customers on
Interactive Brokers’ platform, reached 1.972 million, up 13% year-over-year
(YoY) and 4% over November. Ending client equity hit $426 billion, a 39% annual
increase and a 5% monthly increase. Client margin loan balances grew 14% versus
last December to $44.4 billion, while client credit balances rose 10% to $104.5
billion.

The
brokerage also added clients, ending December with 2.56 million accounts, which
was 23% more YoY. This translated into 172 annualized average DARTs per client
account. Compared to November 2023, the number of total accounts rose by 2%.

Interactive
Brokers continued to offer competitive commissions in December, with cleared
commissionable orders costing $3.17 on average, including fees. This averaged
$2.02 per order for stocks, while equity options stood at $4.36 per contract
and futures at $4.86.

Other Financial
Information Also Positive

On other
financial metrics, the company saw a $0.3 million quarterly loss but an $8.4
million annual gain on its US government securities portfolio. The GLOBAL
currency benchmark gained 0.47% for December and 0.41% for the full year.

Interactive
Brokers highlighted the total cost for its IBKR PRO clients to execute and
clear US Reg NMS stocks on its platform. This came out to an estimated 2.4
basis points of trade money in December and 2.5 basis points for the past 12
months.

The
positive monthly metrics showcase Interactive Brokers’ growth trajectory headed
into 2024, building on its automated global electronic brokerage model and
ability to offer competitive pricing to clients.

In a separate
update, IBKR has appointed veteran analyst Rich Repetto as an independent
director. Repetto retired last June after a 25-year career as a managing
director and senior research analyst at Piper Sandler. He covered electronic
trading and financial technology firms and received numerous honors, including the
Financial Times “Analyst of the Year” award in 2010.

“We are
pleased to welcome Rich to our board following his distinguished career
pioneering research on electronic brokers and exchanges,” said Thomas Peterffy,
the Founder and Chairman at Interactive Brokers founder. “His deep knowledge
and understanding of our industry brings an important perspective that we
expect will benefit our company.”

Before
joining Piper Sandler, Repetto spent around 20 years as a principal at Sandler
O’Neill. He has also worked for Lehman Brothers, where he founded coverage of
the online financial services sector, and spent a decade in sales and marketing
roles at Mobil.

Updates in Hong Kong and The
UK

Interactive
Brokers Hong Kong recently obtained a license for retail crypto trading in Hong
Kong, marking a significant expansion in the region’s cryptocurrency sector. This
development positions the firm as a pivotal player in the rapidly evolving
crypto landscape of Hong Kong, a region experiencing a notable surge in
crypto-related activities and interest.

In a
parallel development, Interactive Brokers has launched a new offer for
investors in the UK. The brokerage firm is encouraging UK residents to open
stocks and share investment savings accounts (ISAs) with them. ISAs in the UK
provide access to diverse investment options, including stocks, bonds, and
exchange -traded funds, both domestically and internationally.

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