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.

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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.

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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.

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