Back to top

Analyst Blog

Interactive Brokers Group, Inc. (IBKR - Analyst Report) Electronic Brokerage segment witnessed a year-over-year improvement in brokerage metrics for Apr 2013. The segment clears and settles trade globally for both individual and institutional clients.

Total customer Daily Average Revenue Trades (DARTs) hiked 17% from Apr 2012 and 7% from Mar 2013 to 480,000. Further, total customer accounts climbed 12% from the prior-year month and 1% from the prior month to 219,700.

Interactive recorded Cleared Customer DARTs of 442,000, increasing 15% from Apr 2012 and 9% from Mar 2013. Moreover, on an annualized basis, Cleared Average DART per customer account of 508,000 increased 3% from the comparable prior-year period and 7% from the previous month.

Additionally, Interactive’s total option contracts increased 15% from the prior-year month and 18% from the prior month level to 22,867 in the month under review. Moreover, future contracts surged 38% from Apr 2012 and 12% from Mar 2013 to 9,531.

Interactive also reported period-end statistics for customer equity, customer credit balances and customer margin loan balances. For the period ended Apr 2013, customer equity stood at $36.4 billion, augmenting 25% year over year and 2% from the prior month.

Further, Interactive recorded customer credit balances of $22.6 billion in the month, increasing 20% from the Mar 2012 level and came almost in line with the prior-month levels. Also, the company’s customer margin loan balances of $11.0 billion at the end of Apr 2013 surged 26% from $8.7 billion at the end of Apr 2012, and declined 1% from $11.1 billion at the end of Mar 2013.

Although overall brokerage metrics improved, lower trading activities and fluctuating interest rates are expected to mar the financials of the company going forward. Further, Interactive’s dependence on IBG LLC and its widespread exposure in the international market remain concerns.

Among other investment brokers, Knight Capital Group, Inc. (KCG - Snapshot Report) is expected to announce its April metrics in the first half of this month.

Currently, Interactive carries a Zacks Rank #3 (Hold). Other investment brokers that are worth considering include LPL Financial Holdings Inc. (LPLA - Snapshot Report) with a Zacks Rank #1 (Strong Buy) and Arlington Asset Investment Corp. (AI - Snapshot Report) with a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%