Interactive Brokers Group Reports Brokerage Metrics and Other Financial Information for September 2024, includes Reg.-NMS Execution Statistics

Rhea-AI Summary

Interactive Brokers Group (Nasdaq: IBKR) reported its Electronic Brokerage monthly performance metrics for September 2024. Key highlights include:

• 2.634 million Daily Average Revenue Trades (DARTs), 46% higher than the previous year but 3% lower than the previous month
• Ending client equity of $541.5 billion, up 46% year-over-year and 5% month-over-month
• Client margin loan balances of $55.8 billion, increasing 28% year-over-year and 2% month-over-month
• 3.12 million client accounts, a 28% increase from the previous year and 2% from the previous month
• Average commission per cleared Commissionable Order of $2.88

The report also includes detailed Reg.-NMS stock trading expense data for IBKR PRO clients, with an average U.S. Reg-NMS stock trade value of $20,817 in September.

Positive

• 46% year-over-year increase in Daily Average Revenue Trades (DARTs)
• 46% year-over-year growth in ending client equity, reaching $541.5 billion
• 28% year-over-year increase in client margin loan balances to $55.8 billion
• 28% year-over-year growth in client accounts, totaling 3.12 million
• 19% year-over-year increase in client credit balances, including insured bank deposit sweeps

Negative

• 3% month-over-month decrease in Daily Average Revenue Trades (DARTs)

Insights

Financial Analyst

Interactive Brokers Group's September 2024 metrics reveal strong year-over-year growth across key areas. Client equity increased by 46% to $541.5 billion, indicating robust client asset growth. Client accounts grew by 28% to 3.12 million, showing significant expansion of the customer base.

The 46% increase in Daily Average Revenue Trades (DARTs) to 2.634 million suggests higher trading activity compared to the previous year. However, the 3% month-over-month decrease in DARTs indicates a slight slowdown in trading volume.

Client margin loan balances rose by 28% to $55.8 billion, reflecting increased leverage usage by clients. This could potentially lead to higher interest income for Interactive Brokers.

The average commission per cleared Commissionable Order of $2.88 remains competitive, supporting the company's low-cost brokerage model. The detailed breakdown of trade execution costs for U.S. Reg-NMS stocks, at 4.3 basis points, demonstrates the firm's commitment to cost-effective trading for clients.

Overall, these metrics indicate continued growth and strong performance for Interactive Brokers, with potential for increased revenue from higher client assets, margin balances and trading activity.

GREENWICH, Conn.--(BUSINESS WIRE)-- Interactive Brokers Group, Inc. (Nasdaq: IBKR), an automated global electronic broker, today reported its Electronic Brokerage monthly performance metrics for September.

Brokerage highlights for the month included:

• 2.634 million Daily Average Revenue Trades (DARTs)¹, 46% higher than prior year and 3% lower than prior month.
• Ending client equity of $541.5 billion, 46% higher than prior year and 5% higher than prior month.
• Ending client margin loan balances of $55.8 billion, 28% higher than prior year and 2% higher than prior month.
• Ending client credit balances of $116.7 billion, including $4.6 billion in insured bank deposit sweeps², 19% higher than prior year and 4% higher than prior month.
• 3.12 million client accounts, 28% higher than prior year and 2% higher than prior month.
• 190 annualized average cleared DARTs¹ per client account.
• Average commission per cleared Commissionable Order³ of $2.88 including exchange, clearing and regulatory fees. Key products:

September 2024			Average			Average Commission per
			Order Size			Cleared Commissionable Order
Stocks			1,015 shares			$2.04
Equity Options			6.3 contracts			$3.92
Futures			3.0 contracts			$4.34

Futures include options on futures. We estimate exchange, clearing and regulatory fees to be 56% of the futures commissions.

Other financial information for Interactive Brokers Group:

• Mark to market on U.S. government securities portfolio⁴ was a gain of $2 million for the quarter ended September 30^th.
• GLOBAL⁵: The value of the GLOBAL, reported in U.S. dollars, increased by 0.24% in September and increased by 1.14% for the quarter ended September 30^th.

In the interest of transparency, we quantify our IBKR PRO clients’ all-in cost of trade execution below.

For the full multimedia release with graph see link: 
https://www.interactivebrokers.com/MonthlyMetrics

• Average U.S. Reg-NMS stock trade was $20,817 in September (dividing 2c by 1a in table below).
• In September, IBKR PRO clients’ total cost of executing and clearing U.S. Reg.-NMS stocks through IB was about 4.3 basis points of trade money⁶, as, measured against a daily VWAP⁷ benchmark (3.7 basis points net cost for the rolling twelve months).

IBKR PRO Clients' Reg.-NMS Stock Trading Expense Detail
All amounts are in millions, except %
																										Previous
	Oct '23		Nov '23		Dec '23		Jan '24		Feb '24		Mar '24		Apr '24		May '24		Jun '24		Jul '24		Aug '24		Sep '24			12 Months
#1a - Number of orders
Buys	6.01		5.44		5.61		6.79		7.24		8.51		8.36		8.80		8.07		10.09		9.84		8.38			93.14
Sells	4.29		4.25		4.48		4.92		5.38		6.23		6.21		6.67		5.83		7.55		7.53		6.54			69.88
Total	10.30		9.69		10.09		11.71		12.62		14.74		14.57		15.47		13.90		17.64		17.37		14.92			163.02
#1b - Number of shares purchased or sold
Shares bought	2,447		2,431		2,596		2,639		2,636		3,432		3,387		4,712		3,305		3,855		4,154		3,614			39,208
Shares sold	2,367		2,296		2,471		2,551		2,499		3,189		3,190		4,374		3,100		3,767		3,960		3,436			37,200
Total	4,814		4,727		5,067		5,189		5,135		6,621		6,577		9,087		6,405		7,622		8,114		7,050			76,408
#2 - Trade money including price, commissions and fees
2a Buy money	$124,119		$119,396		$115,908		$133,951		$148,224		$165,938		$161,619		$170,762		$151,903		$189,920		$182,908		$155,758			$1,820,406
2b Sell money	$125,174		$118,893		$114,742		$131,649		$143,433		$163,285		$165,541		$169,343		$147,514		$191,745		$186,274		$154,825			$1,812,418
2c Total	$249,294		$238,290		$230,650		$265,601		$291,657		$329,223		$327,160		$340,105		$299,417		$381,664		$369,182		$310,583			$3,632,824
#3 - Trade value at Daily VWAP
3a Buy value	$124,109		$119,426		$115,916		$133,917		$148,162		$165,825		$161,534		$170,686		$151,684		$189,851		$182,849		$155,692			$1,819,651
3b Sell value	$125,212		$118,981		$114,806		$131,705		$143,451		$163,313		$165,602		$169,379		$147,417		$191,812		$186,440		$154,890			$1,813,007
3c Total	$249,321		$238,407		$230,722		$265,622		$291,612		$329,138		$327,135		$340,066		$299,101		$381,663		$369,289		$310,582			$3,632,657
#4 - Total trade expense, including commissions and fees, relative to Daily VWAP
4a Buys (2a-3a)	$9.9		($30.0)		($8.3)		$34.2		$62.5		$113.3		$85.1		$75.4		$219.1		$68.8		$58.6		$66.6			$755.1
4b Sells (3b-2b)	$37.2		$87.3		$63.8		$55.2		$18.0		$28.0		$60.7		$36.0		($97.1)		$67.5		$166.0		$65.7			$588.4
4c Total trade expense	$47.2		$57.3		$55.6		$89.4		$80.5		$141.3		$145.8		$111.4		$122.0		$136.3		$224.6		$132.3			$1,343.5
Trade expense as percentage of trade money
4c/2c	0.019%		0.024%		0.024%		0.034%		0.028%		0.043%		0.045%		0.033%		0.041%		0.036%		0.061%		0.043%			0.037%
#5 - Trade expense categories
5a Total commissions & fees	$21.5		$21.1		$21.8		$23.4		$23.7		$29.2		$28.8		$36.1		$30.4		$37.1		$38.1		$33.2			$344.4
5b Execution cost (4c-5a)	$25.7		$36.2		$33.7		$66.0		$56.7		$112.1		$117.0		$75.4		$91.6		$99.2		$186.5		$99.1			$999.2
#6 - Trade expense categories as percentage of trade money
Total commissions & fees (5a/2c)	0.009%		0.009%		0.009%		0.009%		0.009%		0.009%		0.009%		0.011%		0.010%		0.010%		0.010%		0.011%			0.009%
Execution cost (5b/2c)	0.010%		0.015%		0.015%		0.025%		0.019%		0.034%		0.036%		0.022%		0.031%		0.026%		0.051%		0.032%			0.028%
Net Expense to IB Clients	0.019%		0.024%		0.024%		0.034%		0.028%		0.043%		0.045%		0.033%		0.041%		0.036%		0.061%		0.043%			0.037%

The above illustrates that the rolling twelve months’ average all-in cost of an IBKR PRO client U.S. Reg.-NMS stock trade was 3.7 basis points.

________________
Note 1: Daily Average Revenue Trades (DARTs) – customer orders divided by the number of trading days in the period.

Note 2: FDIC insured client bank deposit sweep program balances with participating banks. These deposits are not reported in the Company’s statement of financial condition.

Note 3: Commissionable Order – a customer order that generates commissions.

Note 4: Mark to market gains and losses on investments in U.S. government securities and associated hedges are included in Other Income. In the general course of business, we hold these investments to maturity. As a result, accumulated mark to market gains or losses should converge to zero at maturity. Accounting conventions require broker-dealers, unlike banks, to mark all investments to market.

Note 5: In connection with our currency diversification strategy, we have determined to base our net worth in GLOBALs, a basket of 10 major currencies in which we hold our equity. The total effect of the currency diversification strategy is reported in Comprehensive Income and the components are reported in (1) Other Income and (2) Other Comprehensive Income (“OCI”) on the balance sheet. The effect of the GLOBAL on our comprehensive income can be estimated by multiplying the total equity for the period by the change in the U.S. dollar value of the GLOBAL during the same period.

Note 6: Trade money is the total amount of money clients spent or received, including all commissions and fees.

Note 7: Consistent with the clients’ trading activity, the computed VWAP benchmark includes extended trading hours.

_________________
More information, including historical results for each of the above metrics, can be found on the investor relations page of the Company’s corporate web site, www.interactivebrokers.com/ir.

About Interactive Brokers Group, Inc.:
Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities, and foreign exchange around the clock on over 150 markets in numerous countries and currencies, from a single unified platform to clients worldwide. We serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Interactive Brokers has consistently earned recognition as a top broker, garnering multiple awards and accolades from respected industry sources such as Barron’s, Investopedia, Stockbrokers.com, and many others.

Cautionary Note Regarding Forward-Looking Statements:
The foregoing information contains certain forward-looking statements that reflect the company's current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the company's operations and business environment which may cause the company's actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the company on the date of this release. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241001742461/en/

Contacts for Interactive Brokers Group, Inc.: Rob Garfield - media@ibkr.com

Source: Interactive Brokers Group, Inc.

FAQ

What was Interactive Brokers' (IBKR) Daily Average Revenue Trades (DARTs) for September 2024?

Interactive Brokers reported 2.634 million Daily Average Revenue Trades (DARTs) for September 2024, which was 46% higher than the previous year but 3% lower than the previous month.

How much was Interactive Brokers' (IBKR) ending client equity in September 2024?

Interactive Brokers' ending client equity was $541.5 billion in September 2024, which was 46% higher than the previous year and 5% higher than the previous month.

What was the average commission per cleared Commissionable Order for Interactive Brokers (IBKR) in September 2024?

The average commission per cleared Commissionable Order for Interactive Brokers in September 2024 was $2.88, including exchange, clearing and regulatory fees.

How many client accounts did Interactive Brokers (IBKR) have in September 2024?

Interactive Brokers reported 3.12 million client accounts in September 2024, which was 28% higher than the previous year and 2% higher than the previous month.