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

Rhea-AI Summary

Interactive Brokers Group (IBKR) reported its August 2024 brokerage metrics, showing strong year-over-year growth. Key highlights include:

• 2.712 million Daily Average Revenue Trades (DARTs), up 40% from last year
• Client equity reached $515.3 billion, a 36% increase
• 3.06 million client accounts, growing 29% year-over-year
• Client margin loan balances at $54.9 billion, up 30%
• Client credit balances of $112.1 billion, rising 13%

The company's GLOBAL value increased by 0.52% in August. For IBKR PRO clients, the total cost of executing and clearing U.S. Reg.-NMS stocks was about 6.1 basis points of trade money in August, with a 12-month rolling average of 3.6 basis points.

Positive

• Daily Average Revenue Trades (DARTs) increased 40% year-over-year to 2.712 million
• Client equity grew 36% year-over-year to $515.3 billion
• Client accounts increased 29% year-over-year to 3.06 million
• Client margin loan balances rose 30% year-over-year to $54.9 billion
• Client credit balances increased 13% year-over-year to $112.1 billion

Negative

• DARTs decreased 2% compared to the previous month
• Client margin loan balances declined 2% from the previous month

Insights

Financial Analyst

Interactive Brokers' August performance metrics reveal robust growth in key areas. Client equity reached $515.3 billion, a 36% year-over-year increase, indicating strong client trust and asset growth. The client account base expanded by 29% to 3.06 million, showcasing successful client acquisition strategies. Daily Average Revenue Trades (DARTs) rose 40% year-over-year to 2.712 million, reflecting increased trading activity.

However, the 2% month-over-month decrease in DARTs and 2% decline in margin loan balances suggest a slight cooling in trading enthusiasm. The average commission per cleared Commissionable Order of $2.80 indicates competitive pricing. The all-in cost for U.S. Reg-NMS stock trades at 6.1 basis points is favorable, potentially attracting cost-conscious traders. Overall, these metrics paint a picture of solid growth with some signs of short-term moderation in trading activity.

Market Research Analyst

The 36% increase in client equity and 29% growth in client accounts suggest Interactive Brokers is outpacing industry averages, potentially gaining market share. The 13% rise in client credit balances, including insured bank deposit sweeps, indicates a conservative stance among some investors, possibly due to market uncertainties.

The average commission per order data provides valuable insights into trader behavior. Stock trades average 766 shares at $1.95, while equity options average 6.3 contracts at $3.88 and futures 3.0 contracts at $4.19. These figures suggest a mix of retail and sophisticated traders using the platform. The slight 0.52% increase in the GLOBAL basket value hints at potential forex headwinds for the company's global operations. The detailed Reg-NMS stock trading expense breakdown demonstrates transparency, a key factor in attracting and retaining clients in the competitive brokerage industry.

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

Brokerage highlights for the month included:

• 2.712 million Daily Average Revenue Trades (DARTs)¹, 40% higher than prior year and 2% lower than prior month.
• Ending client equity of $515.3 billion, 36% higher than prior year and 1% higher than prior month.
• Ending client margin loan balances of $54.9 billion, 30% higher than prior year and 2% lower than prior month.
• Ending client credit balances of $112.1 billion, including $4.4 billion in insured bank deposit sweeps², 13% higher than prior year and 3% higher than prior month.
• 3.06 million client accounts, 29% higher than prior year and 2% higher than prior month.
• 198 annualized average cleared DARTs¹ per client account.
• Average commission per cleared Commissionable Order³ of $2.80 including exchange, clearing and regulatory fees. Key products:

August 2024

Average

Average Commission per

Order Size

Cleared Commissionable Order

Stocks

766 shares

$1.95

Equity Options

6.3 contracts

$3.88

Futures

3.0 contracts

$4.19

Futures include options on futures. We estimate exchange, clearing and regulatory fees to be 58% of the futures commissions.

Other financial information for Interactive Brokers Group:

• GLOBAL⁴: The value of the GLOBAL, reported in U.S. dollars, increased by 0.52% in August.

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 $21,254 in August (dividing 2c by 1a in table below).
• In August, IBKR PRO clients’ total cost of executing and clearing U.S. Reg.-NMS stocks through IB was about 6.1 basis points of trade money⁵, as, measured against a daily VWAP⁶ benchmark (3.6 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
	Sep '23		Oct '23		Nov '23		Dec '23		Jan '24		Feb '24		Mar '24		Apr '24		May '24		Jun '24		Jul '24		Aug '24		12 Months
#1a - Number of orders
Buys	5.14		6.01		5.44		5.61		6.79		7.24		8.51		8.36		8.80		8.07		10.09		9.84		89.90
Sells	3.67		4.29		4.25		4.48		4.92		5.38		6.23		6.21		6.67		5.83		7.55		7.53		67.01
Total	8.81		10.30		9.69		10.09		11.71		12.62		14.74		14.57		15.47		13.90		17.64		17.37		156.91
#1b - Number of shares purchased or sold
Shares bought	2,132		2,447		2,431		2,596		2,639		2,636		3,432		3,387		4,712		3,305		3,855		4,154		37,726
Shares sold	2,044		2,367		2,296		2,471		2,551		2,499		3,189		3,190		4,374		3,100		3,767		3,960		35,807
Total	4,176		4,814		4,727		5,067		5,189		5,135		6,621		6,577		9,087		6,405		7,622		8,114		73,533
#2 - Trade money including price, commissions and fees
2a Buy money	$102,405		$124,119		$119,396		$115,908		$133,951		$148,224		$165,938		$161,619		$170,762		$151,903		$189,920		$182,908		$1,767,052
2b Sell money	$103,953		$125,174		$118,893		$114,742		$131,649		$143,433		$163,285		$165,541		$169,343		$147,514		$191,745		$186,274		$1,761,547
2c Total	$206,358		$249,294		$238,290		$230,650		$265,601		$291,657		$329,223		$327,160		$340,105		$299,417		$381,664		$369,182		$3,528,599
#3 - Trade value at Daily VWAP
3a Buy value	$102,374		$124,109		$119,426		$115,916		$133,917		$148,162		$165,825		$161,534		$170,686		$151,684		$189,851		$182,849		$1,766,333
3b Sell value	$103,980		$125,212		$118,981		$114,806		$131,705		$143,451		$163,313		$165,602		$169,379		$147,417		$191,812		$186,440		$1,762,096
3c Total	$206,353		$249,321		$238,407		$230,722		$265,622		$291,612		$329,138		$327,135		$340,066		$299,101		$381,663		$369,289		$3,528,429
#4 - Total trade expense, including commissions and fees, relative to Daily VWAP
4a Buys (2a-3a)	$31.3		$9.9		($30.0)		($8.3)		$34.2		$62.5		$113.3		$85.1		$75.4		$219.1		$68.8		$58.6		$719.8
4b Sells (3b-2b)	$26.6		$37.2		$87.3		$63.8		$55.2		$18.0		$28.0		$60.7		$36.0		($97.1)		$67.5		$166.0		$549.3
4c Total trade expense	$57.9		$47.2		$57.3		$55.6		$89.4		$80.5		$141.3		$145.8		$111.4		$122.0		$136.3		$224.6		$1,269.2
Trade expense as percentage of trade money
4c/2c	0.028%		0.019%		0.024%		0.024%		0.034%		0.028%		0.043%		0.045%		0.033%		0.041%		0.036%		0.061%		0.036%
#5 - Trade expense categories
5a Total commissions & fees	$18.3		$21.5		$21.1		$21.8		$23.4		$23.7		$29.2		$28.8		$36.1		$30.4		$37.1		$38.1		$329.5
5b Execution cost (4c-5a)	$39.5		$25.7		$36.2		$33.7		$66.0		$56.7		$112.1		$117.0		$75.4		$91.6		$99.2		$186.5		$939.6
#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%		0.009%		0.011%		0.010%		0.010%		0.010%		0.009%
Execution cost (5b/2c)	0.019%		0.010%		0.015%		0.015%		0.025%		0.019%		0.034%		0.036%		0.022%		0.031%		0.026%		0.051%		0.027%
Net Expense to IB Clients	0.028%		0.019%		0.024%		0.024%		0.034%		0.028%		0.043%		0.045%		0.033%		0.041%		0.036%		0.061%		0.036%

The above illustrates that the rolling twelve months’ average all-in cost of an IBKR PRO client U.S. Reg.-NMS stock trade was 3.6 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. 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/20240903170678/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 August 2024?

Interactive Brokers reported 2.712 million Daily Average Revenue Trades (DARTs) for August 2024, which was 40% higher than the previous year but 2% lower than the prior month.

How much did Interactive Brokers' (IBKR) client equity grow in August 2024?

Interactive Brokers' client equity reached $515.3 billion in August 2024, representing a 36% increase from the previous year and a 1% increase from the prior month.

What was the total cost for IBKR PRO clients executing U.S. Reg.-NMS stocks in August 2024?

The total cost for IBKR PRO clients executing and clearing U.S. Reg.-NMS stocks was approximately 6.1 basis points of trade money in August 2024.

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

Interactive Brokers reported 3.06 million client accounts in August 2024, which was 29% higher than the previous year and 2% higher than the prior month.