Interactive Brokers has released monthly performance metrics for April 2024, highlighting a 33% surge in daily average revenue trades (DARTs) compared to the previous year. Despite this notable growth, the company posted a 3% decline in DARTs compared to the preceding month.
Growth in Client Accounts
Interactive Brokers reported a 26% year-over-year rise in client accounts totaling 2.81 million. This figure represents an uptick of 2% from the previous month. Ending client equity soared 34% YoY to $457.8 billion, but it experienced a 2% drop from the prior month. Similarly, ending client margin loan balances experienced a 28% YoY upsurge, totaling $50.7 billion, yet showed a 1% decrease from the prior month.
Client credit balances, including insured bank deposit sweeps, stood at $105.8 billion, a rise of 7% YoY and a modest 1% increase compared to the prior month. On the other hand, the average commission per cleared commissionable order, inclusive of exchange, clearing , and regulatory fees, was $3.
Interactive Brokers’ average stock order size was 964 shares, with an average commission of $1.9. Equity options had an average order size of 6.5 contracts with an average commission of $4.14, while futures recorded an average order size of 3.1 contracts and an average commission of $4.37.
Recent Developments
Meanwhile, Interactive Brokers recently reached a settlement with Nasdaq after agreeing to pay a fine worth $475,000. The settlement involves charges of supervisory failures leading to erroneous trades and improper sales.
Between January 2020 and June 2021, Interactive Brokers allegedly failed to properly process several corporate actions, such as reverse stock splits, due to deficiencies in its supervisory systems. This resulted in orders with incorrect prices and instances where customers sold shares they did not own.
The brokerage firm has faced fines and penalties from regulatory authorities in recent years, including a substantial $5.5 million fine from FINRA in 2018 and a penalty worth $38 million for anti-money laundering breaches in 2020.
