TradeStation Reports Brokerage Metrics for January 2022

Rhea-AI Summary

TradeStation Group reported strong January 2022 metrics, highlighting a 44.7% increase in total customer accounts to 195,969. The company saw a significant surge in gross new accounts, up 218.2% to 21,052. While daily average revenue trades (DARTs) decreased by 12.4% to 239,227, total customer assets reached $11.5 billion, a 16.7% increase. Total customer cash also grew to $3.0 billion, a 5.9% rise. The success of a recent cryptocurrency account promotion, contributing significantly to new accounts, will be monitored for future strategy.

Positive

• 44.7% increase in Total Customer Accounts to 195,969.
• Gross New Accounts surged 218.2% to 21,052.
• Total Customer Assets grew 16.7% to $11.5 billion.
• Total Customer Cash increased by 5.9% to $3.0 billion.

Negative

• Daily Average Revenue Trades (DARTs) decreased by 12.4% to 239,227.

PLANTATION, Fla.--(BUSINESS WIRE)-- TradeStation Group, Inc. (“TradeStation”), the parent company of award-winning self-clearing online brokerages for trading stocks, ETFs, equity and index options, futures, futures options and cryptocurrencies, today reported certain monthly business metrics for January 2022:

• 195,969 Total Customer Accounts, 44.7% higher than prior year
• 21,052 Gross New Accounts, 218.2% higher than prior year
• 239,227 Daily Average Revenue Trades (DARTs), 12.4% lower than prior year
• $11.5 billion Total Customer Assets, 16.7% higher than prior year
• $3.0 billion of Total Customer Cash, 5.9% higher than prior year

Comparisons to the prior year mean a comparison of the month (or month-end, as applicable) of January 2022 to the month (or month-end, as applicable) of January 2021.

Total Customer Accounts is the number of customer brokerage accounts with a positive account balance at the end of the period presented.

Gross New Accounts is the total number of approved customer brokerage accounts funded during the period presented, and includes accounts funded during the period presented that were opened and approved (but not funded) in a prior period, as well as accounts that were opened and funded in a prior period, but then went to a zero balance and were subtracted from Total Customer Accounts, but then were again funded during the period presented.

Daily Average Revenue Trades (DARTs) means daily average revenue trades made by customers. A revenue trade means one completed customer equities, options, futures, or crypto trade, regardless of the number of shares, contracts, or units included in such trade, and includes trades completed under TradeStation’s “zero commission” plans (which are supported by payment-for-order-flow, or “PFOF,” revenue). Each “side” of a futures trade is counted as one revenue trade. Partial fills of an equities order on the same day are aggregated and counted as one revenue trade. DARTs are calculated by dividing the total number of revenue trades in the period presented by the total number of “Trading Days” in the period presented. A “Trading Day” means each day during the period presented that trading is open on NYSE and NASDAQ markets. A day on which such markets close early, such as the Friday after Thanksgiving, is counted as half a day. DARTs is a general indicator, as each of the asset classes TradeStation offers has a different fee structure and level of profitability.

Total Customer Assets is total cash and assets held in customer brokerage accounts at the end of the period presented.

Total Customer Cash is the aggregate cash held in customer brokerage accounts (equities and futures accounts – no cash is held in customer cryptocurrency accounts) at the end of the period presented.

Included in both Total Customer Accounts and Gross New Accounts are customer cryptocurrency accounts opened and funded through a marketing promotion that began December 20, 2021 in which TradeStation makes the initial account funding for the customer (BTC equal to $10.00). Cryptocurrency accounts opened under this promotion represented 13,450 of the 14,147 total gross new cryptocurrency accounts added in the month of January 2022. TradeStation intends to monitor and evaluate the success of this crypto account-opening promotion to decide if and how long it should be continued, or be continued on a modified or different basis, including by evaluating the extent to which these TradeStation-initially-funded cryptocurrency accounts receive additional deposits from, and account revenues generated by, these customers.

More information, including historical results for each of the above metrics, are attached.

About TradeStation Group, Inc.

TradeStation has, for decades, provided innovative fintech decision-support analysis and order-placement tools that support self-directed traders and investors in their journeys to claim their financial edge. TradeStation provides award-winning trading and analysis platforms and self-clearing online brokerage services for stocks, ETFs, equity and index options, commodity and financial futures, futures options, and cryptocurrencies. These trading platforms are accessible on desktop, Web and mobile, as well as via API technologies which seamlessly provide access to TradeStation’s brokerage environment through third-party platforms. TradeStation’s offerings also include deep and growing learning content designed to build confidence among those new to investing and hone the skills of seasoned traders.

TradeStation Securities, Inc. (Member NYSE, FINRA, SIPC, NSCC, DTC, OCC, NFA & CME) offers self-clearing equities, options, futures and futures options brokerage services as a licensed securities broker-dealer and futures commission merchant (FCM) and is a member of major equities and futures exchanges in the United States. TradeStation Crypto, Inc. offers self-clearing cryptocurrency brokerage services under federal and state money services business, money-transmitter and similar registrations and licenses. TradeStation Crypto, Inc. is not subject to NFA’s regulatory oversight and examinations.

Cautionary Statement Regarding Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that reflect TradeStation’s current views with respect to, among other things, the future operations and financial performance of TradeStation. Forward-looking statements in this communication may be identified by the use of words such as “continue,” “intends,” and “should,” and similar terms and phrases. Forward-looking statements contained in this communication include TradeStation’s potential decisions regarding the success of marketing campaigns and approaches, including the success of its crypto account-opening/marketing promotion, and whether crypto customer accounts added through such promotion will provide further funding or deposits to, or trade in, such accounts. The forward-looking statements contained in this communication are based on the current expectations of TradeStation and its management and are subject to risks and uncertainties. No assurance can be given that future developments affecting TradeStation will be those that are anticipated. Actual results may differ materially from current expectations due to changes in global, regional or local economic, business, competitive, market, regulatory and other factors, risks and uncertainties, including those under the heading “Risk Factors” in publicly-available SEC filings made by TradeStation. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Factors that could cause actual results to differ may emerge from time to time, and it is not possible to predict all of them.

Proposed Business Combination

As previously announced, TradeStation Group, Inc. (the “Company”) and Quantum FinTech Acquisition Corporation (“Quantum”) have entered into agreements to effect a business combination (the “Business Combination”). This presentation does not constitute (i) a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the Business Combination or (ii) an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase, any securities of the Company, Quantum, the combined company or any of their respective affiliates. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”), or an exemption therefrom, nor shall any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction be effected. No securities commission or securities regulatory authority in the United States or any other jurisdiction has in any way passed upon the merits of the Business Combination or the accuracy or adequacy of this presentation.

In connection with the proposed Business Combination between the Company and Quantum, the Company has filed a registration statement on Form S-4 (the “Registration Statement”) with the U.S. Securities and Exchange Commission (the “SEC”) that includes a proxy statement / prospectus relating to the offer of the securities to be issued to Quantum. Investors, security holders and other interested persons are advised to read the Registration Statement and proxy statement / prospectus and any amendments thereto, and other relevant documents that are filed with the SEC carefully and in their entirety because they will contain important information about the Company, Quantum and the proposed Business Combination. The definitive proxy statement / prospectus will be mailed to stockholders of Quantum as of a record date to be established for voting on the proposed Business Combination. Investors, security holders and other interested persons will also be able to obtain copies of the Registration Statement and other documents containing important information about the Business Combination and the parties to the Business Combination once such documents are filed with the SEC, without charge, at the SEC’s website at www.sec.gov, or by directing a request to: Quantum FinTech Acquisition Corp., 4221 W. Boy Scout Blvd., Suite 300, Tampa, FL 33607, Attention: Investor Relations or by email at IR@qftacorp.com.

Quantum and the Company, their respective directors and executive officers and certain investors may be considered participants in the solicitation of proxies with respect to the proposed Business Combination under the rules of the SEC. Information about the directors and executive officers of Quantum and their ownership is set forth in Quantum’s filings with the SEC, including its final prospectus relating to its initial public offering in February 2021, which is available free of charge at the SEC’s website at www.sec.gov. Additional information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the Quantum shareholders in connection with the proposed Business Combination, including the Company’s directors and executive officers and certain investors, will be contained in the Registration Statement for the Business Combination when available.

Certain Business Metrics

Fiscal Year-Ended March 31, 2022 Business Metrics^[1]

(Total Customer Assets and Total Customer Cash, in Millions)	Apr		May		Jun		Jul		Aug		Sep		Oct		Nov		Dec		Jan		Feb		Mar
Trading Days2	21.0		20.0		22.0		21.0		22.0		21.0		21.0		20.5		22.0		20.0		19.0		23.0
Total Customer Accounts3	150,319		153,885		156,961		158,612		160,532		162,751		165,811		170,597		178,863		195,969
Gross New Accounts4	8,176		7,380		6,737		5,596		5,564		5,663		6,528		8,701		12,183		21,052
Total Customer Assets5	10,842		10,746		11,359		11,179		11,780		11,269		12,393		12,344		12,286		11,505
Total Customer Cash6	2,924		2,889		2,886		2,892		2,915		2,883		2,937		2,915		2,984		2,962
DARTs7	217,317		213,286		213,008		202,925		197,460		209,704		210,529		231,653		202,857		239,227

¹TradeStation’s fiscal year is from April 1 through March 31.
² A “Trading Day” means each day during the period presented that trading is open on NYSE and NASDAQ markets. A day on which such markets close early, such as the Friday after Thanksgiving, is counted as half a day.
³ “Total Customer Accounts” is the number of customer brokerage accounts with a positive account balance at the end of the period presented.
⁴ “Gross New Accounts” is the total number of approved customer brokerage accounts funded during the period presented, and includes accounts funded during the period presented that were opened and approved (but not funded) in a prior period, as well as accounts that were opened and funded in a prior period, but then went to a zero balance and were subtracted from Total Customer Accounts, but then were again funded during the period presented. Included in Gross New Accounts are customer cryptocurrency accounts opened and funded through a marketing promotion that began December 20, 2021 in which TradeStation makes the initial account funding for the customer (BTC equal to $10.00). Cryptocurrency accounts opened under this promotion represented 4,950, of the 5,725 total gross new cryptocurrency accounts added in the month of December 2021 and 13,450 of the 14,147 total gross new cryptocurrency accounts added in the month of January 2022. TradeStation intends to monitor and evaluate the success of this cryptocurrency account-opening promotion to decide if and how long it should be continued, or be continued on a modified or different basis, including by evaluating the extent to which these TradeStation-initially-funded crypto accounts receive additional deposits from, and account revenues generated by, these customers.
⁵ “Total Customer Assets” is total cash and assets held in customer brokerage accounts at the end of the period presented.
⁶ “Total Customer Cash” is the aggregate cash held in customer brokerage accounts (equities and futures accounts – no cash is held in customer cryptocurrency accounts) at the end of the period presented.
⁷ “DARTs” means daily average revenue trades made by our customers. A revenue trade means one completed customer equities, options, futures, or crypto trade, regardless of the number of shares, contracts, or units included in such trade, and includes trades completed under TradeStation’s “zero commission” plans (which are supported by payment-for-order-flow, or “PFOF,” revenue). Each “side” of a futures trade is counted as one revenue trade. Partial fills of an equities order on the same day are aggregated and counted as one revenue trade. DARTs are calculated by dividing the total number of revenue trades in the period presented by the total number of Trading Days in the period presented. DARTs is a general indicator, as each of the asset classes TradeStation offers has a different fee structure and level of profitability.

Certain Business Metrics
Fiscal Year-Ended March 31, 2021 Business Metrics^[2]

(Total Customer Assets and Total Customer Cash, in Millions)		Apr		May		Jun		Jul		Aug		Sep		Oct		Nov		Dec		Jan		Feb		Mar
Trading Days2		21.0		20.0		22.0		22.0		21.0		21.0		22.0		19.5		21.5		19.0		19.0		23.0
Total Customer Accounts3		111,317		114,289		118,219		119,222		122,843		126,078		128,428		128,641		131,431		135,402		139,354		145,887
Gross New Accounts4		6,435		5,933		6,446		5,544		6,371		5,952		5,198		4,589		5,360		6,615		10,658		9,988
Total Customer Assets5		6,028		6,303		6,702		7,264		7,895		7,826		7,738		8,722		9,259		9,856		10,106		10,336
Total Customer Cash6		2,157		2,169		2,235		2,365		2,457		2,405		2,437		2,552		2,641		2,796		2,820		2,795
DARTs7		176,967		178,577		201,831		199,988		202,220		255,006		231,096		249,533		237,796		273,166		287,875		271,075

¹TradeStation’s fiscal year is from April 1 through March 31.
² A “Trading Day” means each day during the period presented that trading is open on NYSE and NASDAQ markets. A day on which such markets close early, such as the Friday after Thanksgiving, is counted as half a day.
³ “Total Customer Accounts” is the number of customer brokerage accounts with a positive account balance at the end of the period presented.
⁴ “Gross New Accounts” is the total number of approved customer brokerage accounts funded during the period presented, and includes accounts funded during the period presented that were opened and approved (but not funded) in a prior period, as well as accounts that were opened and funded in a prior period, but then went to a zero balance and were subtracted from Total Customer Accounts, but then were again funded during the period presented.
⁵ “Total Customer Assets” is total cash and assets held in customer brokerage accounts at the end of the period presented.
⁶ “Total Customer Cash” is the aggregate cash held in customer brokerage accounts (equities and futures accounts – no cash is held in customer cryptocurrency accounts) at the end of the period presented.
⁷ “DARTs” means daily average revenue trades made by our customers. A revenue trade means one completed customer equities, options, futures, or crypto trade, regardless of the number of shares, contracts, or units included in such trade, and includes trades completed under TradeStation’s “zero commission” plans (which are supported by payment-for-order-flow, or “PFOF,” revenue). Each “side” of a futures trade is counted as one revenue trade. Partial fills of an equities order on the same day are aggregated and counted as one revenue trade. DARTs are calculated by dividing the total number of revenue trades in the period presented by the total number of Trading Days in the period presented. DARTs is a general indicator, as each of the asset classes TradeStation offers has a different fee structure and level of profitability.

Certain Business Metrics
Fiscal Year-Ended March 31, 2020 Business Metrics^[3]

(Total Customer Assets and Total Customer Cash, in Millions)		Apr		May		Jun		Jul		Aug		Sep		Oct		Nov		Dec		Jan		Feb		Mar
Trading Days2		21.0		22.0		20.0		21.5		22.0		20.0		23.0		19.5		20.5		21.0		19.0		22.0
Total Customer Accounts3		98,054		98,706		99,826		101,362		102,932		103,792		104,138		102,654		102,601		103,425		104,128		107,692
Gross New Accounts4		2,880		2,751		2,643		3,096		3,137		2,401		2,460		2,129		2,250		3,080		3,094		5,622
Total Customer Assets5		5,627		5,355		5,556		5,622		5,647		5,627		5,693		5,843		5,969		6,005		5,735		5,420
Total Customer Cash6		2,093		2,034		2,084		2,079		2,090		2,122		2,075		2,049		2,090		2,107		2,077		2,089
DARTs7		69,696		88,938		80,292		79,185		96,844		84,991		82,924		80,059		76,830		105,140		131,609		182,978

¹ TradeStation’s fiscal year is from April 1 through March 31.
² A “Trading Day” means each day during the period presented that trading is open on NYSE and NASDAQ markets. A day on which such markets close early, such as the Friday after Thanksgiving, is counted as half a day.
³ “Total Customer Accounts” is the number of customer brokerage accounts with a positive account balance at the end of the period presented.
⁴ “Gross New Accounts” is the total number of approved customer brokerage accounts funded during the period presented, and includes accounts funded during the period presented that were opened and approved (but not funded) in a prior period, as well as accounts that were opened and funded in a prior period, but then went to a zero balance and were subtracted from Total Customer Accounts, but then were again funded during the period presented.⁵ “Total Customer Assets” is total cash and assets held in customer brokerage accounts at the end of the period presented.
⁶ “Total Customer Cash” is the aggregate cash held in customer brokerage accounts (equities and futures accounts – no cash is held in customer cryptocurrency accounts) at the end of the period presented.
⁷ “DARTs” means daily average revenue trades made by our customers. A revenue trade means one completed customer equities, options, futures, or crypto trade, regardless of the number of shares, contracts, or units included in such trade, and includes trades completed under TradeStation’s “zero commission” plans (which are supported by payment-for-order-flow, or “PFOF,” revenue). Each “side” of a futures trade is counted as one revenue trade. Partial fills of an equities order on the same day are aggregated and counted as one revenue trade. DARTs are calculated by dividing the total number of revenue trades in the period presented by the total number of Trading Days in the period presented. DARTs is a general indicator, as each of the asset classes TradeStation offers has a different fee structure and level of profitability.

Certain Business Metrics
Fiscal Year-Ended March 31, 2019 Business Metrics^[4]

(Total Customer Assets and Total Customer Cash, in Millions)		Apr		May		Jun		Jul		Aug		Sep		Oct		Nov		Dec		Jan		Feb		Mar
Trading Days2		21.0		22.0		21.0		20.5		23.0		19.0		23.0		20.5		18.5		21.0		19.0		21.0
Total Customer Accounts3		82,589		84,191		85,396		86,879		88,494		89,850		91,597		91,959		92,878		94,449		95,559		96,972
Gross New Accounts4		2,756		3,051		2,531		2,770		2,955		2,642		3,110		2,529		2,415		2,987		2,657		2,930
Total Customer Assets5		5,220		5,417		5,470		5,557		5,786		5,759		5,457		5,476		5,101		5,422		5,486		5,534
Total Customer Cash6		2,033		2,022		2,051		2,050		2,071		2,048		2,089		2,072		2,054		2,096		2,095		2,067
DARTs7		83,823		75,877		74,042		69,362		66,006		73,356		92,082		85,860		92,583		81,248		74,217		80,129

¹TradeStation’s fiscal year is from April 1 through March 31.
² A “Trading Day” means each day during the period presented that trading is open on NYSE and NASDAQ markets. A day on which such markets close early, such as the Friday after Thanksgiving, is counted as half a day.
³ “Total Customer Accounts” is the number of customer brokerage accounts with a positive account balance at the end of the period presented.
⁴ “Gross New Accounts” is the total number of approved customer brokerage accounts funded during the period presented, and includes accounts funded during the period presented that were opened and approved (but not funded) in a prior period, as well as accounts that were opened and funded in a prior period, but then went to a zero balance and were subtracted from Total Customer Accounts, but then were again funded during the period presented.
⁵ “Total Customer Assets” is total cash and assets held in customer brokerage accounts at the end of the period presented.
⁶ “Total Customer Cash” is the aggregate cash held in customer brokerage accounts (equities and futures accounts – no cash is held in customer cryptocurrency accounts) at the end of the period presented.
⁷ “DARTs” means daily average revenue trades made by our customers. A revenue trade means one completed customer equities, options, futures, or crypto trade, regardless of the number of shares, contracts, or units included in such trade, and includes trades completed under TradeStation’s “zero commission” plans (which are supported by payment-for-order-flow, or “PFOF,” revenue). Each “side” of a futures trade is counted as one revenue trade. Partial fills of an equities order on the same day are aggregated and counted as one revenue trade. DARTs are calculated by dividing the total number of revenue trades in the period presented by the total number of Trading Days in the period presented. DARTs is a general indicator, as each of the asset classes TradeStation offers has a different fee structure and level of profitability.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220207005968/en/

Investors:

ir@tradestation.com

Media:

Madison Roberts

281-684-9857

madison.roberts@fleishman.com

Source: TradeStation Group, Inc.

FAQ

What were TradeStation's total customer accounts in January 2022?

TradeStation reported total customer accounts of 195,969 in January 2022.

How much did TradeStation's gross new accounts increase in January 2022?

Gross new accounts increased by 218.2%, totaling 21,052 in January 2022.

What was the change in TradeStation's daily average revenue trades (DARTs) for January 2022?

TradeStation saw a decrease of 12.4% in daily average revenue trades, reporting 239,227 DARTs.

What is the value of TradeStation's total customer assets as of January 2022?

Total customer assets reached $11.5 billion in January 2022.

How much customer cash did TradeStation hold in January 2022?

TradeStation held $3.0 billion in total customer cash in January 2022.