Interactive Brokers Group (IBKR - Free Report) recently released the Electronic Brokerage segment’s performance metrics for August 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 the coronavirus pandemic.
Total client DARTs were 1,749,000, surging 88% from August 2019 but declining 3% from July 2020. On an annualized basis, the company recorded Cleared Average DARTs per customer accounts of 420,000. This reflects a jump of 29% year over year but 7% sequential decline.
Total customer accounts surged 44% from the prior-year month and 4% from July 2020 to 947,800. Net new accounts were 35,100, increasing 374% from August 2019 but declining 5% from July 2020.
Interactive Brokers’ total option contracts were 51 million, rising 51% from August 2019 and 9% from the prior month. Futures contracts declined 21% on a year-over-year basis and 17% from the last month to 11.2 million.
At the end of August, client equity was $237.8 billion, up 54% year over year and 9% sequentially. Also, Interactive Brokers recorded a client credit balance of $73.1 billion, up 34% from August 2019 and 1% on a sequential basis. The company’s customer margin loan balance of $30.4 billion grew 17% from August 2019 and 7% from the prior month.
Shares of Interactive Brokers have gained 14.4% so far this year against 8.1% 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) are set to report monthly performance metrics in the coming days.
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