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

Rhea-AI Summary

Interactive Brokers Group (IBKR) reported strong November 2024 metrics, with 3.306 million Daily Average Revenue Trades (DARTs), up 74% year-over-year and 17% month-over-month. Client equity reached $575.9 billion, increasing 42% from last year. Client margin loans grew to $60.2 billion, up 43% year-over-year, while client credit balances reached $118.8 billion. The company reported 3.253 million client accounts, a 29% increase from the previous year. Average commission per cleared order was $2.70, with specific rates for stocks ($1.91), equity options ($3.96), and futures ($4.46).

Positive

• DARTs increased 74% year-over-year to 3.306 million
• Client equity grew 42% year-over-year to $575.9 billion
• Client margin loans up 43% year-over-year to $60.2 billion
• Client accounts increased 29% year-over-year to 3.253 million
• Client credit balances rose 17% year-over-year to $118.8 billion

Negative

• GLOBAL value decreased by 0.39% in November

Insights

Financial Analyst

Interactive Brokers reported impressive growth metrics for November 2024. Daily Average Revenue Trades (DARTs) surged 74% year-over-year to 3.306 million, while client equity reached $575.9 billion, up 42%. Client margin loans increased 43% to $60.2 billion, indicating strong trading activity and leverage utilization.

The 29% growth in client accounts to 3.253 million demonstrates robust market share expansion. Average commission per cleared order remains competitive at $2.70, with particularly strong metrics in options and futures trading. The execution cost analysis shows an efficient 2.8% basis points total cost for U.S. Reg-NMS stock trades, highlighting IBKR's competitive advantage in trade execution.

Market Research Analyst

The substantial increase in DARTs and margin balances reflects heightened market activity and investor confidence. The 42% growth in client equity significantly outpaces market performance, suggesting strong client acquisition and asset retention. The platform's low trading costs and efficient execution continue to attract sophisticated traders, particularly in derivatives markets where commissions are higher ($3.96 for options and $4.46 for futures contracts).

The steady growth in credit balances to $118.8 billion provides IBKR with a stable source of interest income in the current high-rate environment, contributing to revenue diversification beyond commission income.

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

Brokerage highlights for the month included:

• 3.306 million Daily Average Revenue Trades (DARTs)¹, 74% higher than prior year and 17% higher than prior month.
• Ending client equity of $575.9 billion, 42% higher than prior year and 7% higher than prior month.
• Ending client margin loan balances of $60.2 billion, 43% higher than prior year and 2% higher than prior month.
• Ending client credit balances of $118.8 billion, including $4.7 billion in insured bank deposit sweeps², 17% higher than prior year and 1% higher than prior month.
• 3.25³ million client accounts, 29% higher than prior year and 2% higher than prior month.
• 227 annualized average cleared DARTs¹ per client account.
• Average commission per cleared Commissionable Order⁴ of $2.70 including exchange, clearing and regulatory fees. Key products:

November 2024			Average			Average Commission per
			Order Size			Cleared Commissionable Order
Stocks			785 shares			$1.91
Equity Options			6.8 contracts			$3.96
Futures			3.1 contracts			$4.46

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:

• GLOBAL⁵: The value of the GLOBAL, reported in U.S. dollars, decreased by 0.39% in November.

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 $20,291 in November (dividing 2c by 1a in table below).
• In November, IBKR PRO clients’ total cost of executing and clearing U.S. Reg.-NMS stocks through IB was about 2.8 basis points of trade money⁶, as, measured against a daily VWAP⁷ benchmark (3.8 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
	Dec '23		Jan '24		Feb '24		Mar '24		Apr '24		May '24		Jun '24		Jul '24		Aug '24		Sep '24		Oct '24		Nov '24		12 Months
#1a - Number of orders
Buys	5.61		6.79		7.24		8.51		8.36		8.80		8.07		10.09		9.84		8.38		10.93		11.40		104.02
Sells	4.48		4.92		5.38		6.23		6.21		6.67		5.83		7.55		7.53		6.54		8.33		8.62		78.29
Total	10.09		11.71		12.62		14.74		14.57		15.47		13.90		17.64		17.37		14.92		19.26		20.02		182.31
#1b - Number of shares purchased or sold
Shares bought	2,596		2,639		2,636		3,432		3,387		4,712		3,305		3,855		4,154		3,614		4,645		4,744		43,719
Shares sold	2,471		2,551		2,499		3,189		3,190		4,374		3,100		3,767		3,960		3,436		4,390		4,497		41,423
Total	5,067		5,189		5,135		6,621		6,577		9,087		6,405		7,622		8,114		7,050		9,035		9,241		85,143
#2 - Trade money including price, commissions and fees
2a Buy money	$115,908		$133,951		$148,224		$165,938		$161,619		$170,762		$151,903		$189,920		$182,908		$155,758		$190,627		$204,300		$1,971,817
2b Sell money	$114,742		$131,649		$143,433		$163,285		$165,541		$169,343		$147,514		$191,745		$186,274		$154,825		$188,444		$201,932		$1,958,727
2c Total	$230,650		$265,601		$291,657		$329,223		$327,160		$340,105		$299,417		$381,664		$369,182		$310,583		$379,071		$406,232		$3,930,544
#3 - Trade value at Daily VWAP
3a Buy value	$115,916		$133,917		$148,162		$165,825		$161,534		$170,686		$151,684		$189,851		$182,849		$155,692		$190,537		$204,249		$1,970,900
3b Sell value	$114,806		$131,705		$143,451		$163,313		$165,602		$169,379		$147,417		$191,812		$186,440		$154,890		$188,493		$201,995		$1,959,303
3c Total	$230,722		$265,622		$291,612		$329,138		$327,135		$340,066		$299,101		$381,663		$369,289		$310,582		$379,030		$406,243		$3,930,203
#4 - Total trade expense, including commissions and fees, relative to Daily VWAP
4a Buys (2a-3a)	($8.3)		$34.2		$62.5		$113.3		$85.1		$75.4		$219.1		$68.8		$58.6		$66.6		$90.7		$51.4		$917.3
4b Sells (3b-2b)	$63.8		$55.2		$18.0		$28.0		$60.7		$36.0		($97.1)		$67.5		$166.0		$65.7		$49.6		$62.3		$575.8
4c Total trade expense	$55.6		$89.4		$80.5		$141.3		$145.8		$111.4		$122.0		$136.3		$224.6		$132.3		$140.3		$113.8		$1,493.1
Trade expense as percentage of trade money
4c/2c	0.024%		0.034%		0.028%		0.043%		0.045%		0.033%		0.041%		0.036%		0.061%		0.043%		0.037%		0.028%		0.038%
#5 - Trade expense categories
5a Total commissions & fees	$21.8		$23.4		$23.7		$29.2		$28.8		$36.1		$30.4		$37.1		$38.1		$33.2		$41.9		$43.5		$387.2
5b Execution cost (4c-5a)	$33.7		$66.0		$56.7		$112.1		$117.0		$75.4		$91.6		$99.2		$186.5		$99.1		$98.4		$70.3		$1,106.0
#6 - Trade expense categories as percentage of trade money
Total commissions & fees (5a/2c)	0.009%		0.009%		0.009%		0.009%		0.009%		0.011%		0.010%		0.010%		0.010%		0.011%		0.011%		0.011%		0.010%
Execution cost (5b/2c)	0.015%		0.025%		0.019%		0.034%		0.036%		0.022%		0.031%		0.026%		0.051%		0.032%		0.026%		0.017%		0.028%
Net Expense to IB Clients	0.024%		0.034%		0.028%		0.043%		0.045%		0.033%		0.041%		0.036%		0.061%		0.043%		0.037%		0.028%		0.038%

The above illustrates that the rolling twelve months’ average all-in cost of an IBKR PRO client U.S. Reg.-NMS stock trade was 3.8 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: Total accounts at November 30^th are adjusted downward by 9.1K accounts for accounts that were opened over the previous two years for administrative purposes for sanctioned securities and are not tradeable.

Note 4: Commissionable Order – a customer order that generates commissions.

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/20241202545445/en/

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

Source: Interactive Brokers Group, Inc.

FAQ

What was IBKR's Daily Average Revenue Trades (DARTs) in November 2024?

Interactive Brokers (IBKR) reported 3.306 million Daily Average Revenue Trades (DARTs) in November 2024, which was 74% higher than the previous year and 17% higher than the previous month.

How much was IBKR's client equity in November 2024?

IBKR's ending client equity was $575.9 billion in November 2024, representing a 42% increase from the previous year and a 7% increase from the previous month.

What was IBKR's average commission per cleared order in November 2024?

IBKR's average commission per cleared Commissionable Order was $2.70, including exchange, clearing and regulatory fees.

How many client accounts did IBKR have in November 2024?

IBKR reported 3.253 million client accounts in November 2024, showing a 29% increase from the previous year and a 2% increase from the previous month.