Multi-asset brokerage firm Interactive Brokers has reported its trading volumes for the month of November. The Greenwich-based firm saw mixed results as trader behavior recovered from the October volatility spike, with traders pumping in better than expected deposits. However, the broker’s earnings per trade dropped from figures reported in October.
According to the broker’s statement, its Daily Average Revenue Trades (DARTs) decreased on a month-on-month basis by 15%. However, it saw an increase of 13% from 2013 figures. At the same time, the firm reported that the value of client funds increased significantly on an annualized basis, ending up with customer equity of $57.3 billion, 28% higher than the prior year and 3% higher than the prior month. The firm also saw an uptake in its customer margin balances and customer credit balances.
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Interactive Brokers is a leading multi-asset firm that deals with both retail and institutional clients. The firm’s figures provide an excellent gauge of market activity from an on-exchange perspective. Interactive Brokers is recognized as the largest US electronic broker as measured by revenue of trades. The firm has taken advantage of e-trading solutions and, according to a recent presentation, each employee generates 1.2 million of revenue for the firm. The bulk of the firm’s 272,000 clients reside in the US with 42% of clients from this region, Europe in second place with 27%. The firm has a number of key introducing brokers in Germany that resell its trading software and connectivity to global exchanges.
The firm prides itself as being one of the highest brokers with clients that make money in the popular FX markets. According to the NFA’s client profitability data in the third quarter of this year, the firm ranked highest with 46.9% of clients making money. The firm commented about the statistics in its November investor presentation, it said: “Everybody says they provide best executions but only one can be best and only we can provide it.”