Interactive Brokers' June Metrics Soar: Daily Average Revenue Jumps 26%

Monday, 01/07/2024 | 17:21 GMT by Jared Kirui

The number of client accounts grew to 2.92 million, representing a 28% YoY jump.

Client equity reached $497.2 billion, marking a 36% YoY increase.

Interactive Brokers posted significant growth in its June 2024 performance metrics, highlighting a double-digit increase in daily average revenue trades (DARTs) and client equity. DARTs for the period were 2.469 million, representing a 26% increase from the previous year and a 5% rise from the prior month.

Client Equity and Margin Loan Balances

Client equity reached $497.2 billion, a 36% increase year-over-year and a 2% uptick from the previous month. Additionally, client margin loan balances rose to $55.1 billion, marking a 32% increase from the previous year and a 4% rise from the prior month.

Besides that, Interactive Brokers' number of client accounts grew to 2.92 million, a 28% increase year-over-year and a 2% rise from the previous month. On the other hand, client credit balances, including $4.1 billion in insured bank deposit sweeps, remained steady with an 8% year-over-year increase.

Interactive Brokers reported an average commission per cleared commissionable order of $2.99, including exchange, clearing , and regulatory fees. For stocks, the average order size of 910 shares was $1.99, while for equity Options, the average order size of 6.9 contracts was $4.28.

Still, the average order size for 3.2 contracts of futures was $4.61, and the commissions included options on futures. Exchange, clearing, and regulatory fees accounted for 57% of the total commissions.

Other Metrics

Interactive Brokers reported a mark-to-market gain of $489,000 on its US government securities portfolio for the quarter ended June 30. However, the value of the GLOBAL, reported in US dollars, decreased by 0.21% in June and by 0.22% for the quarter.

Meanwhile, Interactive Brokers faces a $48 million loss after a recent incident involving a technical glitch on the New York Stock Exchange that caused Berkshire Hathaway's shares to plunge and triggered a chain of events. The brokerage giant was forced to cover its customers' trades after the NYSE declined to offer any compensation for the mishap.

Berkshire Hathaway's class A shares, among others, plummeted from $622,000 to $185 per share due to a technical problem on the NYSE. This substantial drop reportedly halted trading and prompted significant buy orders from Interactive Brokers' customers, who anticipated a favorable fill price when trading resumed.