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

Rhea-AI Summary

Interactive Brokers Group, Inc. (IBKR) reported a strong performance in January with 2.201 million Daily Average Revenue Trades (DARTs), a 11% increase from the prior year, and 12% higher than the prior month. Ending client equity of $424.0 billion was 26% higher than the prior year.

Insights

Financial Analyst

The reported increase in Daily Average Revenue Trades (DARTs) by Interactive Brokers Group, Inc. is a significant indicator of the company's trading volume and, by extension, potential revenue from trade commissions and fees. An 11% year-over-year and 12% month-over-month growth suggests a strong uptrend in client activity, which could be driven by increased market volatility or an expansion in the broker's customer base. This growth rate exceeds the industry average, which typically hovers around single-digit percentages, indicating that Interactive Brokers may be outperforming competitors or successfully capturing market share.

Additionally, the 26% year-over-year increase in ending client equity reflects both new capital inflow and possibly favorable market conditions that have enhanced portfolio values. This is a substantial growth figure that could imply increased client confidence in the broker's platform or successful marketing strategies to attract high-net-worth individuals and institutional clients. It is important to monitor whether this growth trajectory can be sustained in subsequent months, taking into account market conditions and competitive dynamics.

Market Research Analyst

Interactive Brokers' performance metrics are a reflection of broader trends in the electronic brokerage industry, which is increasingly characterized by automation and the use of sophisticated technology to facilitate trading. The rise in DARTs indicates that the platform's user engagement is strong. It is essential to contextualize this performance within the broader industry landscape, where there is fierce competition among brokers to offer lower fees, better execution and advanced trading tools.

Furthermore, the substantial increase in client equity suggests that Interactive Brokers may be effectively leveraging its platform's features to retain and attract traders, especially in an environment where retail trading is becoming more popular. The company's ability to maintain and grow its client base amidst regulatory changes and market uncertainties will be crucial for its continued success and could provide insights into consumer behavior within the electronic trading space.

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

Brokerage highlights for the month included:

• 2.201 million Daily Average Revenue Trades (DARTs)¹, 11% higher than prior year and 12% higher than prior month.
• Ending client equity of $424.0 billion, 26% higher than prior year and about even with prior month.
• Ending client margin loan balances of $44.3 billion, 12% higher than prior year and about even with prior month.
• Ending client credit balances of $102.5 billion, including $3.8 billion in insured bank deposit sweeps², 3% higher than prior year and 2% lower than prior month.
• 2.63 million client accounts, 23% 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 $3.03 including exchange, clearing and regulatory fees. Key products:

January 2024

Average

Average Commission per

Order Size

Cleared Commissionable Order

Stocks

958 shares

$1.95

Equity Options

6.5 contracts

$4.08

Futures

3.1 contracts

$4.51

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:

• GLOBAL⁴: The value of the GLOBAL, reported in U.S. dollars, decreased by 0.46% in January.

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 $22,682 in January (dividing 2c by 1a in table below).
• In January, IBKR PRO clients’ total cost of executing and clearing U.S. Reg.-NMS stocks through IB was about 3.4 basis points of trade money⁵, as measured against a daily VWAP⁶ benchmark (2.6 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
	Feb '23	Mar '23	Apr '23	May '23	Jun '23	Jul '23	Aug '23	Sep '23	Oct '23	Nov '23	Dec '23	Jan '24	12 Months
#1a - Number of orders
Buys	6.37	7.28	4.99	6.13	6.04	5.84	6.56	5.14	6.01	5.44	5.61	6.79	72.20
Sells	4.79	5.37	3.72	4.66	4.62	4.35	4.81	3.67	4.29	4.25	4.48	4.92	53.93
Total	11.16	12.65	8.71	10.79	10.66	10.19	11.37	8.81	10.30	9.69	10.09	11.71	126.13
#1b - Number of shares purchased or sold
Shares bought	2,857	3,399	2,336	2,706	2,607	2,369	2,858	2,132	2,447	2,431	2,596	2,639	31,376
Shares sold	2,711	3,180	2,158	2,606	2,495	2,262	2,720	2,044	2,367	2,296	2,471	2,551	29,861
Total	5,567	6,579	4,495	5,313	5,102	4,631	5,578	4,176	4,814	4,727	5,067	5,189	61,237
#2 - Trade money including price, commissions and fees
2a Buy money	$122,485	$139,588	$90,813	$114,892	$128,303	$116,426	$129,975	$102,405	$124,119	$119,396	$115,908	$133,951	$1,438,261
2b Sell money	$121,850	$136,889	$91,534	$111,882	$126,129	$113,811	$131,518	$103,953	$125,174	$118,893	$114,742	$131,649	$1,428,025
2c Total	$244,335	$276,476	$182,346	$226,774	$254,432	$230,237	$261,493	$206,358	$249,294	$238,290	$230,650	$265,601	$2,866,285
#3 - Trade value at Daily VWAP
3a Buy value	$122,425	$139,592	$90,785	$114,824	$128,262	$116,395	$129,887	$102,374	$124,109	$119,426	$115,916	$133,917	$1,437,913
3b Sell value	$121,878	$136,917	$91,534	$111,883	$126,175	$113,855	$131,510	$103,980	$125,212	$118,981	$114,806	$131,705	$1,428,435
3c Total	$244,303	$276,509	$182,319	$226,707	$254,438	$230,250	$261,397	$206,353	$249,321	$238,407	$230,722	$265,622	$2,866,348
#4 - Total trade expense, including commissions and fees, relative to Daily VWAP
4a Buys (2a-3a)	$60.2	($4.6)	$27.5	$68.3	$40.3	$30.5	$88.2	$31.3	$9.9	($30.0)	($8.3)	$34.2	$347.6
4b Sells (3b-2b)	$28.0	$28.4	($0.0)	$1.4	$46.2	$44.2	($8.0)	$26.6	$37.2	$87.3	$63.8	$55.2	$410.1
4c Total trade expense	$88.2	$23.8	$27.4	$69.7	$86.5	$74.7	$80.2	$57.9	$47.2	$57.3	$55.6	$89.4	$757.7
Trade expense as percentage of trade money
4c/2c	0.036%	0.009%	0.015%	0.031%	0.034%	0.032%	0.031%	0.028%	0.019%	0.024%	0.024%	0.034%	0.026%
#5 - Trade expense categories
5a Total commissions & fees	$25.8	$28.4	$19.2	$23.4	$22.7	$20.7	$23.6	$18.3	$21.5	$21.1	$21.8	$23.4	$269.9
5b Execution cost (4c-5a)	$62.4	($4.7)	$8.2	$46.3	$63.8	$54.0	$56.6	$39.5	$25.7	$36.2	$33.7	$66.0	$487.7
#6 - Trade expense categories as percentage of trade money
Total commissions & fees (5a/2c)	0.010%	0.011%	0.011%	0.011%	0.009%	0.009%	0.009%	0.009%	0.009%	0.009%	0.009%	0.009%	0.009%
Execution cost (5b/2c)	0.026%	-0.002%	0.004%	0.020%	0.025%	0.023%	0.022%	0.019%	0.010%	0.015%	0.015%	0.025%	0.017%
Net Expense to IB Clients	0.036%	0.009%	0.015%	0.031%	0.034%	0.032%	0.031%	0.028%	0.019%	0.024%	0.024%	0.034%	0.026%

The above illustrates that the rolling twelve months’ average all-in cost of an IBKR PRO client U.S. Reg.-NMS stock trade was 2.6 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: 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 5: Trade money is the total amount of money clients spent or received, including all commissions and fees.

Note 6: 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. For the sixth consecutive year, Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its June 9, 2023, Best Online Brokers Review.

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/20240201295321/en/

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

Source: Interactive Brokers Group, Inc.

FAQ

What are the ticker symbol and the name of the company mentioned in the press release?

The ticker symbol is IBKR and the company is Interactive Brokers Group, Inc.

What were the Electronic Brokerage monthly performance metrics reported for January by IBKR?

IBKR reported 2.201 million Daily Average Revenue Trades (DARTs), a 11% increase from the prior year, and 12% higher than the prior month. Ending client equity of $424.0 billion was 26% higher than the prior year.

How does the client equity of IBKR compare to the prior year?

The ending client equity of $424.0 billion was 26% higher than the prior year.

What is the significance of the reported DARTs for IBKR?

The reported 2.201 million Daily Average Revenue Trades (DARTs) represent a 11% increase from the prior year, and 12% higher than the prior month.

What is the Nasdaq ticker symbol for Interactive Brokers Group, Inc.?

The Nasdaq ticker symbol for Interactive Brokers Group, Inc. is IBKR.