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

Rhea-AI Summary

Interactive Brokers Group (IBKR) reported strong October 2024 metrics with significant year-over-year growth. Daily Average Revenue Trades (DARTs) reached 2.823 million, up 46% from last year and 7% from September. Client equity stood at $540.0 billion, a 47% increase year-over-year. Margin loan balances grew 40% to $58.9 billion, while client credit balances reached $117.6 billion. The company saw a 28% increase in client accounts to 3.19 million. Average commission per cleared order was $2.86, with specific rates of $2.05 for stocks, $4.05 for equity options, and $4.49 for futures.

Positive

• DARTs increased 46% year-over-year and 7% month-over-month to 2.823 million
• Client equity grew 47% year-over-year to $540.0 billion
• Margin loan balances up 40% year-over-year to $58.9 billion
• Client accounts increased 28% year-over-year to 3.19 million
• Client credit balances rose 2% year-over-year to $117.6 billion

Negative

• GLOBAL value decreased by 0.67% in October

Insights

Financial Analyst

Interactive Brokers has delivered impressive growth metrics for October 2024, with notable increases across key performance indicators. Daily Average Revenue Trades (DARTs) jumped 46% year-over-year to 2.823 million, while client equity reached $540.0 billion, marking a substantial 47% increase. The 28% growth in client accounts to 3.19 million, coupled with a 40% rise in margin loan balances to $58.9 billion, indicates strong business momentum and increasing market share.

The average commission per cleared order remains competitive at $2.86, with particularly strong metrics in options and futures trading. The execution cost analysis shows an efficient 0.037% total trade expense ratio for October, demonstrating the platform's cost-effectiveness for traders.

Market Research Analyst

The robust growth in client accounts and trading activity suggests Interactive Brokers is successfully capitalizing on retail trading momentum. The 47% increase in client equity significantly outpaces market appreciation, indicating substantial market share gains from traditional brokers. The rising margin loan balances, despite higher interest rates, demonstrate strong client confidence and trading engagement.

The platform's low transaction costs and efficient execution capabilities continue to attract sophisticated traders, as evidenced by the growing institutional-grade metrics in the regulatory execution statistics. This positions IBKR well against both traditional brokers and fintech competitors in the high-end trading segment.

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

Brokerage highlights for the month included:

• 2.823 million Daily Average Revenue Trades (DARTs)¹, 46% higher than prior year and 7% higher than prior month.
• Ending client equity of $540.0 billion, 47% higher than prior year and about even with prior month.
• Ending client margin loan balances of $58.9 billion, 40% higher than prior year and 6% higher than prior month.
• Ending client credit balances of $117.6 billion, including $4.6 billion in insured bank deposit sweeps², 2% higher than prior year and 1% higher than prior month.
• 3.19 million client accounts, 28% higher than prior year and 2% higher than prior month.
• 200 annualized average cleared DARTs¹ per client account.
• Average commission per cleared Commissionable Order³ of $2.86 including exchange, clearing and regulatory fees. Key products:

October 2024			Average			Average Commission per
			Order Size			Cleared Commissionable Order
Stocks			1,138 shares			$2.05
Equity Options			6.7 contracts			$4.05
Futures			3.0 contracts			$4.49

Futures include options on futures. We estimate exchange, clearing and regulatory fees to be 55% of the futures commissions.

Other financial information for Interactive Brokers Group:

• GLOBAL⁴: The value of the GLOBAL, reported in U.S. dollars, decreased by 0.67% in October.

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 $19,682 in October (dividing 2c by 1a in table below).
• In October, IBKR PRO clients’ total cost of executing and clearing U.S. Reg.-NMS stocks through IB was about 3.7 basis points of trade money⁵, as, measured against a daily VWAP⁶ benchmark (4.0 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
	Nov '23		Dec '23		Jan '24		Feb '24		Mar '24		Apr '24		May '24		Jun '24		Jul '24		Aug '24		Sep '24		Oct '24			12 Months
#1a - Number of orders
Buys	5.44		5.61		6.79		7.24		8.51		8.36		8.80		8.07		10.09		9.84		8.38		10.93			98.06
Sells	4.25		4.48		4.92		5.38		6.23		6.21		6.67		5.83		7.55		7.53		6.54		8.33			73.92
Total	9.69		10.09		11.71		12.62		14.74		14.57		15.47		13.90		17.64		17.37		14.92		19.26			171.98
#1b - Number of shares purchased or sold
Shares bought	2,431		2,596		2,639		2,636		3,432		3,387		4,712		3,305		3,855		4,154		3,614		4,645			41,406
Shares sold	2,296		2,471		2,551		2,499		3,189		3,190		4,374		3,100		3,767		3,960		3,436		4,390			39,222
Total	4,727		5,067		5,189		5,135		6,621		6,577		9,087		6,405		7,622		8,114		7,050		9,035			80,628
#2 - Trade money including price, commissions and fees
2a Buy money	$119,396		$115,908		$133,951		$148,224		$165,938		$161,619		$170,762		$151,903		$189,920		$182,908		$155,758		$190,627			$1,886,914
2b Sell money	$118,893		$114,742		$131,649		$143,433		$163,285		$165,541		$169,343		$147,514		$191,745		$186,274		$154,825		$188,444			$1,687,244
2c Total	$238,290		$230,650		$265,601		$291,657		$329,223		$327,160		$340,105		$299,417		$381,664		$369,182		$310,583		$379,071			$3,574,158
#3 - Trade value at Daily VWAP
3a Buy value	$119,426		$115,916		$133,917		$148,162		$165,825		$161,534		$170,686		$151,684		$189,851		$182,849		$155,692		$190,537			$1,886,078
3b Sell value	$118,981		$114,806		$131,705		$143,451		$163,313		$165,602		$169,379		$147,417		$191,812		$186,440		$154,890		$188,493			$1,876,288
3c Total	$238,407		$230,722		$265,622		$291,612		$329,138		$327,135		$340,066		$299,101		$381,663		$369,289		$310,582		$379,030			$3,762,366
#4 - Total trade expense, including commissions and fees, relative to Daily VWAP
4a Buys (2a-3a)	($30.0)		($8.3)		$34.2		$62.5		$113.3		$85.1		$75.4		$219.1		$68.8		$58.6		$66.6		$90.7			$835.9
4b Sells (3b-2b)	$87.3		$63.8		$55.2		$18.0		$28.0		$60.7		$36.0		($97.1)		$67.5		$166.0		$65.7		$49.6			$600.8
4c Total trade expense	$57.3		$55.6		$89.4		$80.5		$141.3		$145.8		$111.4		$122.0		$136.3		$224.6		$132.3		$140.3			$1,436.7
Trade expense as percentage of trade money
4c/2c	0.024%		0.024%		0.034%		0.028%		0.043%		0.045%		0.033%		0.041%		0.036%		0.061%		0.043%		0.037%			0.040%
#5 - Trade expense categories
5a Total commissions & fees	$21.1		$21.8		$23.4		$23.7		$29.2		$28.8		$36.1		$30.4		$37.1		$38.1		$33.2		$41.9			$364.8
5b Execution cost (4c-5a)	$36.2		$33.7		$66.0		$56.7		$112.1		$117.0		$75.4		$91.6		$99.2		$186.5		$99.1		$98.4			$1,071.9
#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%		0.011%		0.010%		0.010%		0.010%		0.011%		0.011%			0.010%
Execution cost (5b/2c)	0.015%		0.015%		0.025%		0.019%		0.034%		0.036%		0.022%		0.031%		0.026%		0.051%		0.032%		0.026%			0.030%
Net Expense to IB Clients	0.024%		0.024%		0.034%		0.028%		0.043%		0.045%		0.033%		0.041%		0.036%		0.061%		0.043%		0.037%			0.040%

The above illustrates that the rolling twelve months’ average all-in cost of an IBKR PRO client U.S. Reg.-NMS stock trade was 4.0 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/20241101414613/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 October 2024?

Interactive Brokers reported 2.823 million Daily Average Revenue Trades (DARTs) in October 2024, representing a 46% increase year-over-year and 7% increase from the previous month.

How much was Interactive Brokers' client equity in October 2024?

Interactive Brokers' client equity reached $540.0 billion in October 2024, showing a 47% increase compared to the previous year.

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

The average commission per cleared Commissionable Order was $2.86, including exchange, clearing and regulatory fees.

How many client accounts did IBKR have in October 2024?

Interactive Brokers reported 3.19 million client accounts in October 2024, representing a 28% increase from the previous year and 2% increase from the prior month.