US Broker Interactive Brokers Reports Strong 2014 Earnings, 49% Pre-Tax Profit

US multi-asset financial services firm Interactive Brokers has reported 2014 earnings. The listed provider welcomed Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term in the second half of the year which saw market activity increase. The broker stated that net revenue was $1,043 million and income before taxes was $506 million for the year, compared to net revenue of $1,076 million and income before taxes of $451 million in 2013. The firm will be paying a dividend to shareholders of $0.10.

The Greenwich-based broker, that offers users access to global financial instruments including stocks, Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, futures and options, saw an overall increase in its pre-tax profit margin for 2014 (49% year-over-year). Figures were positive across its different segments; In its electronic brokerage unit pre-tax profit margin for 2014 was 62%, with a 40% rise noted in its market making division.

Figures were strong in its client numbers and funding metrics. New accounts increased to 281,000, thus signifying an 18% increase year-on-year. The total value of funds held also increased to $5 Billion, with the firm seeing a 24% rise from figures reported in 2013.

Total DARTs(1), for cleared and execution-only customers, increased 16% to 566 thousand in 2014, compared to 486 thousand during 2013. Cleared DARTs were 515 thousand in 2014, 17% higher than in 2013.

The latest news comes on the back of a recent loss reported by the firm amid the Swiss Franc chaos, the firm issued a notification which states that its client lost $120 million during the epidemic, on Friday the firm’s share price dipped 10.4%.

Although the 2014 figures were positive, the company did miss its Q4 EPS of $0.02. The NASDAQ traded firm saw a slight impact on its share price which closed 5.9% in the red zone in after-hours trading.

Interactive Brokers is one of the largest and most established brokers in the US, it was established in 1977 as a market maker and consequently became a broker in 1993. The firm hails itself as a provider of best execution, as the firm’s order routers dynamically route and re-route all or parts of orders for optimal execution.