TD Ameritrade’s August Volumes Sapped by Low Volatility

TD Ameritrade's latest figures were influenced by a tranquil market that bogged down volumes MoM.

TD Ameritrade (Nasdaq:AMTD), one of the largest brokers for retail clients in the United States, has reported its monthly metrics and turnover, which underwent a slight decline across a few different measures MoM.

Take the lead from today’s leaders. FM London Summit, 14-15 November, 2016. Register here!

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

Volumes have been suffering in August across virtually every venue on accounts of low volatility that managed to continue unabated. Sandwiched between the Brexit-induced volatility and a recent selloff in global equities, August 2016 ultimately proved to be a highly tranquil trading month as investors sat in wait-and-see mode, eying the US Federal Reserve’s rates strategy.

Suggested articles

How to Prepare for CySEC’s New Tiered LeverageGo to article >>

For the month ending August 2016, TD Ameritrade underwent an average of 425,000 client trades per day, which constitutes a decline MoM of -6.4% MoM from 454,000 trades per day in July 2016. The latest volumes performance is on par with other groups in the US, all of which seeing a decline in retail or institutional trading volumes from July 2016.

By extension, over a yearly timetable, August 2016’s average daily volumes are lower by a factor of -21.0% YoY from 537,000 trades per day in August 2015. Moreover, TD Ameritrade disclosed its total client assets as of August 31, 2016 at $765.4 billion, having inched higher by less than 1.0% MoM from $760.2 billion since July 31, 2016. This figure was much larger when measured against its 2015 counterpart, justifying a 13% YoY increase from $697.1 billion in the same period ending August 31, 2015.

Looking further, TD Ameritrade’s average spread-based balance managed to orchestrate a climb MoM to $111.0 billion in August 2016, moving higher from $108.1 billion in July 2016, or 2.7% MoM. YoY the latest figures also rose 11.8% higher from $99.3 billion in August 2015. Finally, the group’s average fee-based balances stood at $169.9 billion in August 2016, notching a 1.6% gain MoM from $167.2 billion in July 2016.

Got a news tip? Let Us Know