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TD Ameritrade (AMTD) February Daily Client Trades Rise 2%

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Omaha, NE-based online brokerage firm, TD Ameritrade Holding Corporation (AMTD - Free Report) came up with average client trades per day of 534,000 in its activity report for Feb 2017. The reported figure increased 2% from the prior month and 5% compared with the year-ago period.

Broker performance is generally measured through monthly average client trades per day. This represents the number of trades from which brokers earn commissions or fees.

As of Feb 28, 2017, TD Ameritrade reported $837.8 billion in total client assets, up 3% from the prior month and 24% year over year. Average fee-based balances were $181.2 billion, up 3% from the prior month and 21% from the prior-year period. Average spread-based balance of $119.3 billion was stable compared with the prior month, but was up 14% year over year.

Improved Quarterly Performance

During first-quarter fiscal 2017 (ended Dec 31, 2016), average client trades per day climbed 11% year over year to 487,000.

As of Dec 31, 2016, net new client assets totaled $18.7 billion, up 6.9% year over year. Total client assets came in at $797 billion, up 15% year over year.

Average spread-based balance was $117.7 billion, jumping 14.8% year over year and average fee-based investment balance climbed 7.4% to $170.4 billion.

TD Ameritrade Poised for Growth

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 for boosting the trading and investing business.

Further, the company’s association with The Toronto-Dominion Bank (TD - Free Report) provides an opportunity to cross sell its products. This is expected to significantly drive organic growth. Also, its deal in Oct 2016, to acquire Scottrade, is likely to be accretive to EPS in double-digit figure. The deal is also anticipated to drive annual expense savings of $450 million, with additional $300 million of savings over the long run.

However, we remain cautious as a persistent rise in expenses and stringent regulations may hurt the company’s financials in the upcoming quarters.

Among other investment brokers, Interactive Brokers Group, Inc.’s (IBKR - Free Report) Electronic Brokerage segment reported total client Daily Average Revenue Trades of 678,000 for Feb 2017, reflecting a 12% decline from Feb 2016. However, the figure increased 5% from Jan 2017. Total customer accounts were 398,000, up 17% from the prior-year month and 2% from the preceding month.

The Charles Schwab Corporation (SCHW - Free Report) is expected to report its monthly metrics earlier next week.

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