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Interactive Brokers' July DARTs Rise Y/Y on Volatile Markets

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Interactive Brokers Group (IBKR - Free Report) recently released the Electronic Brokerage segment’s performance metrics for July 2020. The segment, which deals with clearance and settlement of trades for individual and institutional clients globally, reported a substantial surge in Daily Average Revenue Trades (DARTs) on a year-over-year basis. This can be attributed to a significant rise in trading activities owing to concerns over coronavirus.

Total client DARTs were 1,795,000, surging 124% from July 2019 but declining 4% from June 2020. On an annualized basis, the company recorded Cleared Average DARTs per customer accounts of 451,000. This reflects a jump of 63% year over year but 7% sequential decline.

Total customer accounts surged 40% from the prior-year month and 4% from June 2020 to 912,700. Net new accounts were 36,800, increasing 404% from July 2019 but inching down 1% from June 2020.

Interactive Brokers’ total option contracts were 49.1 million, rising 72% from July 2019 but falling 9% from the prior month. Futures contracts grew 32% on a year-over-year basis but declined 10% from the last month to 13.5 million.

At the end of July, client equity was $218.6 billion, up 40% year over year and 8% sequentially. Also, Interactive Brokers recorded a client credit balance of $72.5 billion, up 30% from July 2019 and 2% on a sequential basis. The company’s customer margin loan balance of $28.4 billion grew 7% from July 2019 and 14% from the prior month.

Shares of Interactive Brokers have gained 8.8% so far this year against 14% fall of the industry it belongs to.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other discount brokers, LPL Financial Holdings Inc. (LPLA - Free Report) , Charles Schwab (SCHW - Free Report) and E*TRADE Financial (ETFC - Free Report) will report monthly performance metrics in the coming days.

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