Interactive Brokers Reports $439 Million Revenues for Q3 2018

Shortly after the close of the US trading session, Interactive Brokers LLC (NASDAQ:IBKR), a global electronic Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Read this Term broker and market-maker listed on Nasdaq, disclosed its financial results for Q3 2018, revealing that its metrics managed to slightly improve year-on-year.

The Greenwich, Connecticut-based company said its net revenues for Q3 2018 amounted to $439 million, higher by 3.5 percent compared with $426 million in the same period last year. Income before tax totaled $276 million, up 2.9 percent year-over-year (from $268 million).

The increase in net revenue was primarily due to strong growth in net interest income, which jumped 34 percent year-on-year, as did commissions and Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term fees. However, the positive figures were partially offset by the negative impact of the company’s currency diversification strategy which decreased its earnings by $27 million compared to a $26 million gain in the year-ago quarter.

Delving further into financial metrics, Interactive Brokers reported diluted earnings per share (EPS) on a comprehensive basis at $0.51 for the quarter ended September 30, 2018, reflecting an 18 percent year-over-year uptick from a profit of $0.43 per share during Q3 2017.

Business highlights, according to the company’s press release, included a pretax profit margin of 66 percent which was higher from 61 percent in 2017. During the three month period through September 2018, customer equity grew 23 percent from 2017 to $142.5 billion, while customer debits increased 22 percent to $30.7 billion.

Finally, customer accounts at IB increased 26 percent from a year ago to 576,000, while total daily average revenue trades (DARTs) jumped 10 percent year-over-year to 763,000.

Interactive Brokers, which went public a decade ago, has been trying to tap the brokerage market, which has a relatively steady source of revenue. Relative to last year’s figures, IB reported a climb in brokerage segment equity which totaled $5.5 billion while total equity registered $6.9 billion during the third quarter.