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Schwab's (SCHW) January Metrics Improve on Upbeat Markets
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Charles Schwab (SCHW - Free Report) released its activity report for January 2021. Total client assets were $6.76 trillion, up 1% from December 2020 and 67% from January 2020.
Client assets receiving ongoing advisory services were $3.31 trillion, up marginally from the prior month and 57% year over year.
Further, net new assets were $34.2 billion, down from $61.7 billion recorded in December, but up from $20.9 billion recorded at the end of the prior-year month.
Schwab’s average interest-earning assets were $517.3 billion, up 7% from December 2020 and 85% year over year. Additionally, average bank deposit account assets totaled $168 billion, up 3% from the previous month.
Schwab opened 1,095,000 new brokerage accounts in the reported month, up 75% from the prior month. In the year-earlier month, the company reported 167,000 new accounts.
Schwab’s active brokerage accounts totaled 30.5 million at January-end, up 3% sequentially and 146% from the year-ago month. Further, clients’ banking accounts were 1.5 million, rising 1% from December 2020 and 8% from January 2020. The number of retirement plan participants was 2.1 million, up 1% sequentially and 19% year over year.
Notably, Schwab’s acquisition of TD Ameritrade in October 2020 led to the creation of a behemoth in the online brokerage space. Moreover, its previous acquisitions, which have strengthened its position as a leading brokerage player, will be accretive to earnings. Further, by offering commission-free trading, Schwab has been able to witness a rise in client assets and brokerage accounts, which, in turn, is improving its market share.
Over the past six months, shares of Schwab have rallied 68.1% compared with 53.4% growth recorded by the industry.
Interactive Brokers Group (IBKR - Free Report) released its Electronic Brokerage segment’s performance metrics for January 2021. The segment reported a substantial surge in Daily Average Revenue Trades (DARTs) on a year-over-year basis. Total client DARTs were 3,295,000, surging 223% from January 2020 and increasing 43% from December 2020.
Tradeweb Markets Inc. (TW - Free Report) reported total trading volume of $20.0 trillion in January 2021. Average daily volumes were a record $1 trillion, up 29.5% year over year.
LPL Financial Holdings Inc. (LPLA - Free Report) is likely to come out with January figures soon.
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Schwab's (SCHW) January Metrics Improve on Upbeat Markets
Charles Schwab (SCHW - Free Report) released its activity report for January 2021. Total client assets were $6.76 trillion, up 1% from December 2020 and 67% from January 2020.
Client assets receiving ongoing advisory services were $3.31 trillion, up marginally from the prior month and 57% year over year.
Further, net new assets were $34.2 billion, down from $61.7 billion recorded in December, but up from $20.9 billion recorded at the end of the prior-year month.
Schwab’s average interest-earning assets were $517.3 billion, up 7% from December 2020 and 85% year over year. Additionally, average bank deposit account assets totaled $168 billion, up 3% from the previous month.
Schwab opened 1,095,000 new brokerage accounts in the reported month, up 75% from the prior month. In the year-earlier month, the company reported 167,000 new accounts.
Schwab’s active brokerage accounts totaled 30.5 million at January-end, up 3% sequentially and 146% from the year-ago month. Further, clients’ banking accounts were 1.5 million, rising 1% from December 2020 and 8% from January 2020. The number of retirement plan participants was 2.1 million, up 1% sequentially and 19% year over year.
Notably, Schwab’s acquisition of TD Ameritrade in October 2020 led to the creation of a behemoth in the online brokerage space. Moreover, its previous acquisitions, which have strengthened its position as a leading brokerage player, will be accretive to earnings. Further, by offering commission-free trading, Schwab has been able to witness a rise in client assets and brokerage accounts, which, in turn, is improving its market share.
Over the past six months, shares of Schwab have rallied 68.1% compared with 53.4% growth recorded by the industry.
Currently, Schwab carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Brokers
Interactive Brokers Group (IBKR - Free Report) released its Electronic Brokerage segment’s performance metrics for January 2021. The segment reported a substantial surge in Daily Average Revenue Trades (DARTs) on a year-over-year basis. Total client DARTs were 3,295,000, surging 223% from January 2020 and increasing 43% from December 2020.
Tradeweb Markets Inc. (TW - Free Report) reported total trading volume of $20.0 trillion in January 2021. Average daily volumes were a record $1 trillion, up 29.5% year over year.
LPL Financial Holdings Inc. (LPLA - Free Report) is likely to come out with January figures soon.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>