Interactive Brokers Client Base Jumps 19% in a Year to 2.29 Million

Tuesday, 04/07/2023 | 09:23 GMT by Damian Chmiel

Interactive Brokers reported an increase in client equity year-over-year in June.

Key metrics indicate a significant rise in DARTs and client accounts.

Interactive Brokers Group (NASDAQ: IBKR), an automated global electronic broker, has released its monthly performance metrics for June, reflecting robust growth in its electronic brokerage segment. The report illustrates a surge of 24% in ending client equity compared to the same period last year and an increase of 6% over the previous month.

Interactive Brokers Reports Robust Financial Metrics in June

The metrics in focus for June were daily average revenue trades (DARTs), ending client margin loan balances, ending client credit balances, and the total number of client accounts. Each of these indicators showed a promising trend, suggesting strong client engagement and the financial health of the platform.

The Daily Average Revenue Trades (DARTs) achieved a higher result of 5% on a monthly basis. However, they fell 3% year-over-year (YoY). The ending client equity indicator came in at $365 billion, which was higher monthly and annually.

Ending client margin loan balances dropped 2% YoY to a level of $41.9 billion, but they increased 5% on a monthly basis. At the same time, ending client credit balances were 7% higher on an annual basis, reaching the level of $98.9 billion.

IBKR also reported an increase in the number of customers for another month in a row. The total number of accounts reached 2.29 million, increasing 19% YoY and 1% month-over-month.

On the cost front, executing and clearing the US Regulation National Market System (NMS) stocks through Interactive Brokers represented roughly 3.4 basis points of the trade money. In the past year, an Interactive Brokers PRO client's average all-in cost for the US Regional NMS stock trade stood at 2.2 basis points.

However, not all figures in the report were positive. A mark-to-market adjustment on Interactive Brokers' US government securities portfolio culminated in a loss of $1.6 million for the quarter that ended in June.

Interactive Brokers’ Expansion in Europe and Asia

The recent efforts by Interactive Brokers underscore the company’s commitment to broadening its services in Asia and Europe and have strengthened its global market presence.

The American-based electronic trading platform has secured a significant position as the primary international broker for Sinopac Securities, a prominent trading firm from Taiwan. Sinopac caters to both retail and institutional clients with a broad range of trading options.

Simultaneously, Interactive Brokers is extending its footprint in the digital asset space. The firm has broadened its cryptocurrency offerings in Asia, specifically launching these services in Hong Kong in response to increasing client demand.

In the most recent move to diversify its global offerings, Interactive Brokers has unveiled plans to augment the number of markets it covers. The electronic broker intends to offer clients the opportunity to trade shares on two new European exchanges – Nasdaq Copenhagen (CPH) and the Prague Stock Exchange (PSE). This expansion extends to fractional trading of eligible Nasdaq Copenhagen shares.

Interactive Brokers Reports Robust Financial Metrics in June

IBKR also reported an increase in the number of customers for another month in a row. The total number of accounts reached 2.29 million, increasing 19% YoY and 1% month-over-month.

Interactive Brokers’ Expansion in Europe and Asia

The recent efforts by Interactive Brokers underscore the company’s commitment to broadening its services in Asia and Europe and have strengthened its global market presence.