TD Ameritrade’s August Volumes Sapped by Low Volatility

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 Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term that managed to continue unabated. Sandwiched between the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term-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.

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.