Interactive Brokers Group Reports Brokerage Metrics and Other Financial Information for May 2022, includes Reg.-NMS Execution Statistics
Interactive Brokers Group (Nasdaq: IBKR) reported its May performance metrics, highlighting a 2% year-over-year increase in Daily Average Revenue Trades (DARTs) at 2.297 million. However, ending client equity was 10% lower year-over-year at $314.6 billion, mainly due to an omnibus broker switching to a trust company for custody. Client margin loan balances fell 3% to $44.2 billion, while credit balances rose 14% to $91.8 billion, indicating robust client activity. Additionally, client accounts surged 36% year-over-year to 1.89 million.
- 2.297 million Daily Average Revenue Trades (DARTs), 2% higher YoY.
- Client credit balances of $91.8 billion, 14% higher YoY.
- Client accounts increased to 1.89 million, up 36% YoY.
- Client equity decreased by 10% YoY to $314.6 billion.
- Client margin loan balances fell 3% YoY to $44.2 billion.
Brokerage highlights for the month included:
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2.297 million Daily Average Revenue Trades (DARTs)1,
2% higher than prior year and4% higher than prior month. -
Ending client equity of
,$314.6 billion 10% lower than prior year and3% lower than prior month, primarily due to an omnibus broker that is now using a trust company for custody. -
Ending client margin loan balances of
,$44.2 billion 3% lower than prior year and6% lower than prior month. -
Ending client credit balances of
, including$91.8 billion in insured bank deposit sweeps2,$2.2 billion 14% higher than prior year and1% higher than prior month. -
1.89 million client accounts,
36% higher than prior year and2% higher than prior month. - 274 annualized average cleared DARTs1 per client account.
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Average commission per cleared Commissionable Order3 of
including exchange, clearing and regulatory fees. Key products:$2.66
Average | |||||||||||||
Cleared Commissionable Order | Order Size | ||||||||||||
Stocks |
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1,043 shares | |||||||||||
Equity Options |
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6.4 contracts | |||||||||||
Futures |
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2.7 contracts |
Futures include options on futures. We estimate exchange, clearing and regulatory fees to be
Other financial information for
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GLOBAL4: The value of the GLOBAL, reported in
U.S. dollars, increased by0.25% in May.
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
-
In May, IBKR PRO clients’ total cost of executing and clearing
U.S. Reg.-NMS stocks through IB was about 3.1 basis points of trade money5, as measured against a daily VWAP6 benchmark (3.4 basis points net cost for the rolling twelve months).
IBKR PRO Clients' Reg.-NMS Stock Trading Expense Detail | ||||||||||||||||||||||||||
All amounts are in millions, except % | ||||||||||||||||||||||||||
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Previous |
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Jun '21 |
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July '21 |
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Aug '21 |
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Sep '21 |
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Oct '21 |
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Nov '21 |
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Dec '21 |
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Jan '22 |
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Feb '22 |
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Mar '22 |
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Apr '22 |
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May '22 |
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12 Months |
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#1a - Number of orders | ||||||||||||||||||||||||||
Buys | 12.60 |
10.98 |
9.98 |
9.55 |
9.52 |
11.57 |
9.36 |
9.96 |
8.74 |
9.84 |
8.10 |
8.30 |
118.50 |
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Sells | 10.00 |
8.10 |
7.61 |
6.99 |
7.08 |
8.52 |
6.71 |
7.14 |
6.22 |
7.24 |
5.47 |
5.96 |
87.04 |
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Total | 22.60 |
19.08 |
17.59 |
16.54 |
16.60 |
20.09 |
16.07 |
17.10 |
14.96 |
17.08 |
13.57 |
14.26 |
205.54 |
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#1b - Number of shares purchased or sold | ||||||||||||||||||||||||||
Shares bought | 4,261 |
3,785 |
3,263 |
3,412 |
3,595 |
3,764 |
3,169 |
3,012 |
2,699 |
4,104 |
2,855 |
3,097 |
41,017 |
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Shares sold | 4,157 |
3,608 |
3,202 |
3,300 |
3,390 |
3,667 |
3,074 |
2,994 |
2,653 |
4,044 |
2,738 |
3,055 |
39,882 |
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Total | 8,418 |
7,393 |
6,465 |
6,713 |
6,984 |
7,432 |
6,243 |
6,006 |
5,353 |
8,147 |
5,592 |
6,152 |
80,899 |
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#2 - Trade money including price, commissions and fees | ||||||||||||||||||||||||||
2a Buy money |
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2b Sell money |
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2c Total |
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#3 - Trade value at Daily VWAP | ||||||||||||||||||||||||||
3a Buy value |
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3b Sell value |
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3c Total |
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#4 - Total trade expense, including commissions and fees, relative to Daily VWAP | ||||||||||||||||||||||||||
4a Buys (2a-3a) |
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4b Sells (3b-2b) |
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4c Total trade expense |
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Trade expense as percentage of trade money | ||||||||||||||||||||||||||
4c/2c |
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#5 - Trade expense categories | ||||||||||||||||||||||||||
5a Total commissions & fees |
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5b Execution cost (4c-5a) |
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#6 - Trade expense categories as percentage of trade money | ||||||||||||||||||||||||||
Total commissions & fees (5a/2c) |
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Execution cost (5b/2c) |
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Net Expense to IB Clients |
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The above illustrates that the rolling twelve months’ average all-in cost of an IBKR PRO client
________________
Note 1: Daily Average Revenue Trades (DARTs) – customer orders divided by the number of trading days in the period.
Note 2:
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
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.
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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
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20220601006048/en/
Source:
FAQ
What were the Daily Average Revenue Trades for IBKR in May 2023?
How much is the ending client equity for Interactive Brokers as of May 2023?
What is the client credit balance reported by IBKR for May 2023?