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Online brokerage firm TD Ameritrade Holding Corporation (AMTD - Analyst Report) reported an 8% rise in average client trades per day in its Activity Report for the month of Oct 2013. Further, the U.S. trades increased 27% on a year-over-year basis.

For the reported month, average client trades per day were 420,000, up from 390,000 in the prior month and 330,000 in the prior year.

For the month, TD Ameritrade reported $573.9 billion in total client assets, up 22% year over year and 3% from the prior month. Moreover, average spread-based balances rose 16% year over year to $790.0 billion. Further, these balances remained flat as compared with the prior quarter.

At the end of October this year, average fee-based balances were recorded at $128.1 billion, which surged 31% year over year and 3% from the last month.

Quarterly Performance

Average client trades per day in the fiscal fourth quarter (ended Sep 30) increased 16% year over year to 381,657. Net new client assets were $10.1 billion, stable from the past year.

At the quarter-end, TD Ameritrade reported total client assets worth $555.9 billion, up 18% year over year. Moreover, average spread-based balance was $88.8 billion, up 17% from $76.2 billion in the prior-year quarter. Average fee-based balance was $122.3 billion, up 31% year over year.

Our Viewpoint

Innovations in online trading, long-term investment in products and services, delivery of advanced customer service, creative as well as cost-effective marketing and sales, along with prudent expense management are TD Ameritrade’s key strategies to boost its trading and investing business.

Further, the company’s association with The Toronto-Dominion Bank (TD - Snapshot Report) provides an opportunity to cross sell its products. This is expected to be a significant growth driver for TD Ameritrade’s organic assets.

Amid a volatile operating environment, TD Ameritrade witnessed a rise in both organic client assets and trading volumes, which bode well going forward. However, a low interest rate environment and stringent regulations pose challenges.

At present, TD Ameritrade carries a Zacks Rank #3 (Hold). Among other investment brokers, The Charles Schwab Corporation (SCHW - Analyst Report) and E*TRADE Financial Corporation (ETFC - Analyst Report) are expected to report their monthly metrics by the end of this week.

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