Electronic brokerage firm Interactive Brokers LLC (NASDAQ:IBKR) said its trading volumes rose sharply in August to print a new peak for the year, an indication that investor confidence in the financial market is rebounding after having been fairly mixed over the past few months.
Rising volatility has improved the trading volumes, with August data showing the best monthly reading throughout 2019. But it is not clear whether that will be enough to accelerate the revenue growth after the company reported a notable drop in the second quarter, or how it could affect margins for the multi-asset broker and market-maker.
During August 2019, the number of DARTs was reported at 930,000, the highest figure since December 2018 and a rise of 16 percent month-over-month from 800,000 in July 2019. Over a year-on-year basis, Interactive Brokers saw a more upbeat performance in its DARTs with August’s figure jumping by more than 26 percent relative to 741,000 reported in August 2018.
In terms of equity balance in customers’ accounts during August 2019, the figure totaled $154.6 billion, down by one percent on a monthly basis from $155.6 billion the previous month. However, Interactive Brokers bested its August 2018 equivalent, having notched a ten percent advance relative to the $141.1 billion of the prior year.
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Interactive Brokers’ ending client margin loan balances also came in at $25.6 billion in August 2019, lower three percent month-on-month from $26.5 billion in July 2019. Across a yearly interval, the figure also moved lower by 12 percent when weighed against $29.1 billion in August 2018.
Business highlights, according to the company’s press release, also showed that a total of 660,000 customer accounts were active at IB during August 2019. The figure was higher by one percent month-on-month when compared to July 2019 (652.100 accounts), and 17 percent higher year-on-year from 598,200 accounts.
On average, in August 2019 Interactive Brokers charged clients commission fees of $3.68 per order, including exchange, clearing and regulatory fees, with the key products metrics coming out at $2.22 for stocks, $5.48 for equity options and $5.52 for futures orders.