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Interactive Brokers March DARTs Surge on Coronavirus Mayhem

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

Total client DARTs were 1,964,000, surging 46% from February 2020 and 127% from March 2019. On an annualized basis, the company recorded Cleared Average DARTs per customer accounts of 602,000. This reflects a jump of 42% sequentially and 94% year over year.

Further, total customer accounts grew 6% from the prior month and 22% from the year-ago month to 759,600. Also, net new accounts were 39,900, soaring 164% from February 2020 and 381% from March 2019.

Interactive Brokers’ total options contracts were 48.3 million, rising 16% from February 2020 and 70% year over year. Futures contracts grew 45% on a sequential basis and 100% from the year-ago month to 21.6 million.

At the end of March, client equity was $160.7 billion, down 6% sequentially but up 9% year over year. Moreover, Interactive Brokers recorded client credit balance of $65 billion, up 9% on a sequential basis and 25% from March 2019. The company’s customer margin loan balance of $19.8 billion declined 31% from February 2020 and 22% from the prior-year month.

Shares of Interactive Brokers have lost 7.2% so far this year compared with 29.1% fall of the industry it belongs to.

The stock currently carries a Zacks Rank #4 (Sell).

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 likely to report monthly performance metrics along with first-quarter 2020 results soon.

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