The Daily Average Revenue Trades
(DARTs) of popular American electronic trading platform, Interactive Brokers,
declined 14% to 1.765 million in April 2023. The average trades per day that
generated commissions or fees also slumped 20% last month, the online broker
disclosed in its brokerage metrics for April 2023 released on Monday.Interactive Brokers had ended
March 2023 with 2.055 million DARTs, which was 3% lower than the prior month and
16% lower than trades made during the same period in the previous year.Interactive Brokers’ Client
Accounts Increase SlightlyMeanwhile, in April, the number
of accounts trading with Interactive Brokers’ electronic platform increased
slightly by 1% to 2.22 million. However, compared to the same period last year,
the number of accounts jumped significantly by 20%. In terms of other metrics,
ending client equity, or the amount of money clients had in their trading
accounts at the end of the month, totaled $342.1 billion, which is about the
same amount from the previous month. However, compared to the prior year
period, the figure increased 5%. Furthermore, Interactive
Brokers’ ending client margin loan balance, or the amount of money owed the
brokerage by clients from leveraged trades, stood at $39.5 billion, which is
about the same as what was posted in March. However, the figure is 16% lower compared
to the balance generated in April 2022. However, unlike both the ending
client equity and margin loan balance, Interactive Brokers’ ending client
credit balances reached $99.2 billion in April, representing an increase of 3% month-over-month and an increase of 9% year-over-year. The balance includes $2.4 billion in insured
bank deposits sweeps, Interactive Brokers noted.Furthermore, Interactive Brokers
said it generated an average commission of $3.18 per cleared commissionable
orders. This amount includes exchange, clearing and regulatory fees. Giving the breakdown,
Interactive Brokers outlined that it generated an average commission of $2.02 per cleared
commissionable order on stocks, with each order carrying an average of 1,105
shares. For equity options and futures, the average order size stood at 6.8 and
3.2 contracts with $4.64 and $4.25 average commission per cleared
commissionable order, respectively.Interactive Brokers Report Record RevenueMeanwhile, Interactive Brokers reported record revenue of $1.05 billion during the first quarter of 2023, with the adjusted figure standing at $1.01 billion. The numbers jumped significantly from $976 billion and $958 million, respectively, generated at the end of 2022.In addition, the trading platform’s adjusted earnings per share increased from $1.30 per share from the previous quarter to $1.35 during Q1 2023, missing market estimates by about $0.06.Early last month, in terms of business development, Interactive Brokers introduced Wise payment to its clients. In February, the American firm became the first platform to offer algorithmic trading in Taiwan. Furthermore, Interactive Brokers in February introduced Stock Yield Enhancement Programme (SYEP) Derivatives to its traders in Australia. However, the service was temporarily halted in March by Australia’s financial regulator.
This article was written by Solomon Oladipupo at www.financemagnates.com.
