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E*TRADE's (ETFC) August 2019 DARTs Increase 12% From July

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E*TRADE Financial (ETFC - Free Report) has reported a rise in Daily Average Revenue Trades (DARTs) for August. According to its monthly market activity, the company’s DARTs came in at 284,828, up 12% from the previous month as well as year over year. Notably, derivatives comprised 35% of DARTs in August.

Broker performance is generally measured through DARTs that represent the number of trades from which brokers can expect commission or fees. The rise in DARTs largely reflects investors’ willingness to invest in equity markets.

At the end of the reported month, E*TRADE’s total number of accounts were approximately 7.2 million, comprising about 5.1 million retail accounts, 1.9 million corporate services accounts, and 0.2 million advisor services accounts.

E*TRADE’s total accounts included 27,358 net new accounts for August. Total number of brokerage accounts highlights the company’s ability to gain and retain customers who trade and invest.

Moreover, E*TRADE’s net new retail assets came in at $1.2 billion compared with the $0.2 billion reported in the last month. There were no net new advisor service assets compared with the prior month’s $0.1 billion.

At the end of August, E*TRADE’s customer security holdings were $283.1 billion, down from the $289.2 billion reported in July. The company’s brokerage-related cash came in at $63.2 billion compared with the previous month’s $63.1 billion. In addition, bank-related cash and deposits for the company totaled $9.4 billion, up from the $9.1 billion recorded in July.

Peer Performance

Interactive Brokers Group, Inc.’s (IBKR - Free Report) Electronic Brokerage segment reported a sequential increase in DARTs for August 2019. Total client DARTs were 930,000, up 16% from July 2019 and 26% from August 2018. Total customer accounts inched up 1% from the previous month and 17% from the prior-year month to 659,500.

The Charles Schwab Corporation (SCHW - Free Report) has also released the monthly activity report for August, which shows a decline from the prior month. Net new assets of $19.9 billion improved 3% from July 2019. Nonetheless, it declined 4% year over year. Total client assets came in at $3.7 trillion, down 1% from the prior month but up 5% from the year-ago month.

Among others, LPL Financial Holdings Inc. (LPLA - Free Report) will likely release its August monthly activity report soon.

Our Viewpoint

Though the uncertain macroeconomic environment might result in lesser trading activities, growth in DARTs and new brokerage accounts will prove beneficial for the company.

E*TRADE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company’s shares have gained around nearly 4.5%, year to date, compared with the 13.3% growth recorded by the industry.



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