Interactive Brokers LLC (NASDAQ:IBKR) today reported its best trading volumes since March when fears over the impact of the spreading coronavirus sent almost all tradable assets reeling.
The electronic brokerage segment at Interactive Brokers, which deals with clearance and settlement of trades for individual and institutional clients globally, experienced a rush of activity with volumes rising by 131 percent year-over-year and nearly 13 percent on a monthly basis.
During June 2020, the number of Daily Average Revenue Trades (DARTs) were reported at 1.86 million transactions from 1.65 million in May and a record 1.96 million in March. On a year-on-year basis, Interactive Brokers saw a brighter performance in its DARTs as June’s figure was more higher two times than the 907k transactions reported in the same month last year.
Interactive Brokers has also won more clients, with total June’s active accounts up to 875,900, or four percent higher from 838,700 accounts the previous month. The figure was higher by 36 percent year-over-year when compared to June 2019 (644,800 accounts).
Interactive Brokers charges fewer fees
In terms of equity balance in customers’ accounts during June 2020, the figure totaled $203.2 billion, up seven percent on a monthly basis from $190 billion the previous month. Further, Interactive Brokers bested its June 2019 equivalent, having notched a 33 percent advance relative to $55 billion in the prior year.
Interactive Brokers’ ending client margin loan balances also came in at $24.9 billion in June 2020, up seven percent month-on-month from $23.3 billion in May 2020. Across a yearly interval, the figure moved lower by three percent when weighed against $26.5 billion in June 2019. This figure reflects that IB has eased restrictions on borrowed margins after it hit record lows over the last few months when the company sought to curb client’s bets amid Corona-spurred volatility.
But while volumes were buzzing in June, Interactive Brokers charged clients lower commission fees, namely $2.83 per order on average. This compares to the $3.67 per order it collected in February. The figure includes exchange, clearing, and regulatory fees, with the key product metrics coming out at $2.03 for stocks, $4.40 for equity options, and $4.06 for futures orders.
(Photo: Interactive Brokers)