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LPL Financial's (LPLA) October Assets Down From Prior Month

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LPL Financial Holdings Inc.’s (LPLA - Free Report) total brokerage and advisory assets of $807.6 billion at the end of October 2020 fell marginally from the prior month but increased 10.4% year over year. Of the total assets, brokerage assets were $401.6 billion and advisory assets totaled $406 billion.

The sequential decline was mainly due to not so impressive performance of the equity markets in the month of October. Notably, compared to September 2020, the S&P 500 Index fell 2.8%.

Total net new assets were $6.5 billion for the reported month. This compared favorably with the September 2020 level of $5.1 billion as well as $3.4 billion in October 2019.

Notably, LPL Financial completed the acquisition of San Diego, CA-based Lucia Securities, LLC in August 2020 and onboarded assets in October. Thus, prior to the addition of assets of Lucia Securities, LPL Financial’s total net new assets were $5 billion for October 2020.

LPL Financial reported $48.3 billion of total client cash balance, up 3.6% from September 2020 and 52.8% from October 2019. Of the total, $36 billion was insured cash and $8.6 billion was deposit cash, while the remaining was money market balance.

Shares of LPL Financial have gained 42.8% over the past six months, outperforming the 33.5% growth recorded by the industry.

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

Other Brokerage Firms

Interactive Brokers Group (IBKR - Free Report) released its Electronic Brokerage segment’s performance metrics for October 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.

Tradeweb Markets Inc. (TW - Free Report) reported total trading volume of $19.4 trillion in October 2020. Average daily volumes were $910.8 billion, up 28.8% year over year.

Among other brokers, Charles Schwab (SCHW - Free Report) is set to report monthly performance metrics in the coming days.

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