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TD Ameritrade's (AMTD) Client Trades Dips 3% in July
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Omaha, NE-based online brokerage firm TD Ameritrade Holding Corporation (AMTD - Free Report) reported average client trades of 454,000 per day in its activity report for Jul 2016. This was almost in line with the prior-year period but down 3% from the previous month.
Broker performance is usually measured through monthly average client trades per day. This represents the number of trades from which brokers earn commission or fees.
As of Jul 31, 2016, TD Ameritrade reported $760.2 billion in total client assets, up 8% from the prior-year period and 3% from the preceding month. Average spread-based balance of $108.1 billion displayed an increase of 10% year over year and 1% from the prior-month figure.
Further, average fee-based balance was $167.2 billion, up 4% from the prior-year period and 2% from the preceding month.
Quarterly Performance
During fiscal third-quarter 2016 (ended Jun 30), average client trades per day increased 6.5% year over year to 461,941. Notably, net new client assets totaled $13.6 billion, up 16.2% year over year. Also, total client assets came in at $736.3 billion, up 4.8% year over year.
While average spread-based balance was $106.1 billion, increasing 11.3% year over year, average fee-based investment balance edged up slightly to $162.1 billion.
Our Viewpoint
Innovations in online trading, long-term investment in products and services, delivery of advanced customer service and creative marketing and sales are TD Ameritrade’s key strategies to boost its trading and investment business. Further, we believe the company will benefit from the renewed interest of retail investors in the equity market.
Further, the company’s association with The Toronto-Dominion Bank (TD - Free Report) provides an opportunity to cross sell its products. This is anticipated to significantly drive organic growth.
Amid a volatile operating environment, TD Ameritrade witnessed a continuous rise in organic client assets, which augurs well for the future. However, we remain cautious as a continuous rise in expenses, margin pressure and stringent regulations may weigh on the company’s financials in the upcoming quarters.
At present, TD Ameritrade carries a Zacks Rank #3 (Hold).
Among other investment brokers, Interactive Brokers Group, Inc.’s (IBKR - Free Report) Electronic Brokerage segment reported total client Daily Average Revenue Trades (DARTs) of 602,000 for Jul 2016, down 8% from Jul 2015 and 6% from Jun 2016. However, total customer accounts were 360,100, up 15% from the prior-year month and 1% from the preceding month.
The Charles Schwab Corporation (SCHW - Free Report) is expected to report its monthly metrics later this week.
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TD Ameritrade's (AMTD) Client Trades Dips 3% in July
Omaha, NE-based online brokerage firm TD Ameritrade Holding Corporation (AMTD - Free Report) reported average client trades of 454,000 per day in its activity report for Jul 2016. This was almost in line with the prior-year period but down 3% from the previous month.
Broker performance is usually measured through monthly average client trades per day. This represents the number of trades from which brokers earn commission or fees.
As of Jul 31, 2016, TD Ameritrade reported $760.2 billion in total client assets, up 8% from the prior-year period and 3% from the preceding month. Average spread-based balance of $108.1 billion displayed an increase of 10% year over year and 1% from the prior-month figure.
Further, average fee-based balance was $167.2 billion, up 4% from the prior-year period and 2% from the preceding month.
Quarterly Performance
During fiscal third-quarter 2016 (ended Jun 30), average client trades per day increased 6.5% year over year to 461,941. Notably, net new client assets totaled $13.6 billion, up 16.2% year over year. Also, total client assets came in at $736.3 billion, up 4.8% year over year.
While average spread-based balance was $106.1 billion, increasing 11.3% year over year, average fee-based investment balance edged up slightly to $162.1 billion.
Our Viewpoint
Innovations in online trading, long-term investment in products and services, delivery of advanced customer service and creative marketing and sales are TD Ameritrade’s key strategies to boost its trading and investment business. Further, we believe the company will benefit from the renewed interest of retail investors in the equity market.
Further, the company’s association with The Toronto-Dominion Bank (TD - Free Report) provides an opportunity to cross sell its products. This is anticipated to significantly drive organic growth.
Amid a volatile operating environment, TD Ameritrade witnessed a continuous rise in organic client assets, which augurs well for the future. However, we remain cautious as a continuous rise in expenses, margin pressure and stringent regulations may weigh on the company’s financials in the upcoming quarters.
At present, TD Ameritrade carries a Zacks Rank #3 (Hold).
Among other investment brokers, Interactive Brokers Group, Inc.’s (IBKR - Free Report) Electronic Brokerage segment reported total client Daily Average Revenue Trades (DARTs) of 602,000 for Jul 2016, down 8% from Jul 2015 and 6% from Jun 2016. However, total customer accounts were 360,100, up 15% from the prior-year month and 1% from the preceding month.
The Charles Schwab Corporation (SCHW - Free Report) is expected to report its monthly metrics later this week.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>