Interactive Brokers, one of the largest electronic trading platforms in the world, published its metrics for July 2023 today (Tuesday), reporting a year-over-year (YoY) increase of 19% in its client accounts. The accounts, which hit 2.33 million, only expanded 2% month-over-month (MoM).

Interactive Broker Sees Modest DARTs

In July, Interactive Broker reported a similar growth rate in its ending client equity, or the amount of money clients had in their trading accounts at the end month. The value climbed 23% to $386.2 billion when compared to the same period last year. However, compared to last month, the figure represents a modest growth of 2%.

Interactive Brokers also reported slight growth in other metrics. Ending client margin loan balances (the amount of money clients owed to the brokerage from leveraged trades) rose 2% year-over-year (YoY) and 3% MoM to $43.2 billion. Similarly, ending client credit balances (the amount of money clients left in their trading account after all trades have been settled and all fees and charges deducted) came in at $98.8 billion. The balances were nearly even with the figure from the prior month but surged 5% higher compared to last year.

Furthermore, Interactive Brokerage’s daily average revenue trades (DARTs) only grew 2% MoM in July, reaching 1.991 million. However, compared to the same month in 2022, the DARTs, which are the average trades per day that generated commissions or fees, increased 9%.

Previously, the total number of accounts managed by the brokerage reached 2.29 million, with client equity worth $365 billion at the end of June, Finance Magnates reported. Ending client margin loan balances and ending client credit balances were also documented at $41.9 billion and $98.9 billion, respectively, in June.

New Offerings

Last month, Interactive Brokers reported decreases quarter-over-quarter in its net revenue, income before tax, profit margin and earnings per share (EPS). The net revenue and income before tax dived 5% to $1 billion and 14% to $652 million.

Moreover, the brokerage has continued to focus on the growth of its business. On Tuesday, the firm expanded its fractional shares trading offering to Canada. Recently, the offering was introduced in Denmark for eligible shares listed on Nasdaq Copenhagen.

On top of this, Interactive Brokers in late July expanded its overnight trading offering to include 10,000 stocks and exchange-traded funds (ETFs) listed in the United States. It also integrated with Darwinex, a UK-based retail broker and asset manager.

Meta to launch 'Personas' AI bots; Conotoxia shows new feature; read today's news nuggets.