E*TRADE's DARTS Continue to Advance in May, Accounts Set 2017 Highs

E*TRADE Financial Corporation (NASDAQ: ETFC) has just released its monthly metrics report for May 2017. Despite isolated pockets of 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 throughout 2017, last month featured several market drivers that collectively bolstered trading volumes and Daily Average Revenue Trades (DARTs).

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Indeed, May 2017 was not short of market moving events, with North American markets experiencing one of the more active periods all year. In the US, the financial markets digested a string of political scandals and self-inflicted drama brought by the Trump administration. Consequently, stock markets that had previously recoiled to monthly lows managed to bounce upwards by months’ end en route to establishing fresh all-time highs.

E*TRADE’s May 2017 volumes followed a well-established trend, at least in terms of US venues and exchanges during the month. The majority of brokerages all saw volumes pointed higher as markets shook off a tranquil April. Also helping the case was an increase of trading days in the month of May - 22 compared to just 19 in April - which further added to growing volumes.

Looking at its latest statistics in May 2017, E*TRADE’s DARTs were reported at 211,516, rising by a factor of 7.9 percent month-over-month from 196,022 in April 2017 – incidentally, a 2017 low. April proved to be one of the slowest trading months of the calendar year, also hurt by having a shortened trading schedule of only 19 days. Over a yearly interval, E*TRADE’s May 2017 DARTs were also on the uptick, as indicated by a surge of 41.5 percent year-over-year, compared to a figure of 149,475 DARTs set back in May 2016.

Increased Account Growth

Delving into this yearly trend, the US brokerage scene as a whole have been experiencing a solid 2017, helped by a general retreat in trading commissions that has steadily reeled in more clients. TD Ameritrade, Fidelity Investments, and other venues have all looked to lower the costs of trading – the results being a rise of new accounts as many newer investors have been enticed by eroding fees. This reflected a gain of 20,415 net new brokerage accounts in May 2017, easily besting a figure of 8,448 net new brokerage accounts in May 2016, or 141.6 percent gain year-over-year.

The group’s large number of new accounts has also been a recurring trend in 2017. Even on a monthly basis, E*TRADE recorded a strong month in this segment, securing a total of 67,099 total gross new accounts (aggregating brokerage, stock plan, and banking accounts) – this registered a gain of 7.5 percent month-over-month from 62,432 accounts in April 2017.

E*TRADE’s customer margin balances trended higher in May 2017, as indicated by a reading of $7.7 billion, up 2.6 percent month-over-month from $7.5 billion in April 2017. A more pronounced gain was seen relative to 2016, with the latest figures signaling an advance of 18.4 percent year-over-year from $6.5 billion in May 2016. Finally, E*TRADE’s customer security holdings Yield Yield A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a Read this Term a figure of $253.4 million during May 2017, up 2.1 percent month-over-month against $248.3 million set in April 2017.

Looking ahead to the month of June, financial markets in the US have already had a plethora of events to help steer their trajectory. A decision from the US Federal Reserve looms as the marquee event of the month, though markets have also already endured a pullback in the technology sector across US stocks, as well as a testimony from James Comey that could yet spark a reaction from President Trump, whose administration is already embattled in multiple probes.