Interactive Brokers Group, a leading global electronic brokerage firm, has recently announced its monthly performance metrics for February, highlighting significant increases in various key areas of its operations. The company recorded a 15% year-over-year surge in Daily Average Revenue Trades (DARTs), totaling 2.443 million. This figure also represents an 11% increase from the previous month, demonstrating a robust trading activity among clients. Moreover, client equity witnessed a substantial uptick, closing the month at $448.2 billion, reflecting a 35% growth compared to the same period last year and a 6% increase from the prior month.
In addition to the surge in trading activity, Interactive Brokers reported a 21% year-over-year rise in client margin loan balances, amounting to $47.4 billion at the end of February. This marks a 7% increase from January, indicating a higher level of client borrowing for trading purposes. Client credit balances, including $3.9 billion in insured bank deposit sweeps, also saw a modest uptick of 5% year-over-year, reaching a total of $102.9 billion. The firm noted a 24% annual increase in client accounts, with a total of 2.69 million accounts by the end of February, representing a 2% rise from January. On average, clients had 206 cleared DARTs per account annually.
Commission and Cost Analysis
The average commission per cleared Commissionable Order stood at $2.85, inclusive of exchange, clearing, and regulatory fees. The average order sizes for stocks, equity options, and futures were 847 shares, 6.6 contracts, and 3.2 contracts, respectively, with corresponding average commissions of $1.81, $4.01, and $4.59. Interactive Brokers also provided insights into the costs incurred by their IBKR PRO clients for trade execution, reporting an all-in cost of approximately 2.8 basis points of trade value for U.S. Reg-NMS stock trades in February, benchmarked against daily VWAP. This cost has averaged 2.6 basis points over the past twelve months.
The company’s currency diversification strategy, which involves maintaining its net worth in a basket of 10 major currencies known as the GLOBAL, experienced a slight decrease of 0.17% in U.S. dollar value during February. Despite this minor fluctuation, Interactive Brokers Group’s performance update showcases its growth in client activity and assets amidst volatile market conditions. The firm has solidified its position as a key player in the brokerage industry, offering automated trade execution and custody services across various asset classes to a diverse global clientele.
Interactive Brokers Group’s impressive February metrics underscore its resilience and growth in the face of market fluctuations. As the company continues to expand its client base and enhance its service offerings, it remains a formidable force in the electronic brokerage landscape.