Interactive Brokers’ Customer Accounts Jump as Equity Reaches $386B in July

<p>Interactive
Brokers, one of the largest electronic trading platforms in the world, <a href="https://investors.interactivebrokers.com/en/index.php?f=54140" target="_blank" rel="follow">published</a> its metrics for July 2023 today
(Tuesday), reporting a 19% year-over-year (YoY) increase in its client accounts. The
accounts, which hit 2.33 million, however, only
expanded 2% month-over-month (MoM). </p><p>Interactive
Broker Sees Modest DARTs</p><p>In July,
Interactive Broker reported a similar growth rate in its ending client equity,
or the amount of money clients had in their trading accounts at the end month.
The value climbed by 23% to $386.2 billion when compared to the same period
last year. However, compared to last month, the figure represents a modest 2%
growth. </p><p>Other
similar metrics also returned only slight growth rates: ending client margin loan balances, that is, the amount of money owed to the brokerage from leverage trades by clients, rose
2% year-over-year (YoY) and 3% MoM to $43.2 billion. Similarly, ending client credit balances,
or the amount of money clients left in their trading account after all trades
have been settled and all fees and charges deducted, came in at $98.8 billion.
The balances were nearly even with
the figure from the prior month but surged 5% higher compared to last year.</p><p>Furthermore,
Interactive Brokerage’s daily average revenue trades (DARTs) only grew by 2% MoM in July, reaching 1.991 million.
However, compared to the same month in 2022, the DARTs, which are the average trades per day that generated commissions or fees, increased
by 9%.</p><p>Previously, the total
number of accounts managed by the brokerage <a href="https://www.financemagnates.com/institutional-forex/interactive-brokers-client-base-jumps-19-in-a-year-to-229-million/" target="_blank" rel="follow">reached 2.29 million</a>, with client equity worth
$365 billion at the end of June, <a href="https://www.financemagnates.com/institutional-forex/interactive-brokers-client-base-jumps-19-in-a-year-to-229-million/" target="_blank" rel="follow">Finance Magnates</a> reported. Ending client margin
loan balances and ending client credit balances also came in at $41.9 billion
and $98.9 billion, respectively, in June.</p><p>New Offerings</p><p>Last month,
Interactive Brokers reported <a href="https://www.financemagnates.com/forex/interactive-brokers-performance-drops-in-q2-revenue-shrinks-to-1b/" target="_blank" rel="follow">quarter-over-quarter
decreases</a> in its net revenue, income before tax, profit margin and earnings
per share (EPS). The net
revenue and income before tax dived by 5% and 14% to $1 billion and $652 million,
respectively. </p><p>However,
the brokerage has continued to focus on the growth of its business. The firm on
Tuesday <a href="https://www.financemagnates.com/institutional-forex/interactive-brokers-launches-fractional-shares-trading-in-canada/" target="_blank" rel="follow">expanded its fractional
shares trading offering to Canada</a>. The offering was recently <a href="https://www.financemagnates.com/forex/interactive-brokers-expands-offering-with-new-markets-and-fractional-shares-in-europe/" target="_blank" rel="follow">introduced in Denmark</a> for eligible shares listed on Nasdaq Copenhagen. </p><p>On top of these,
Interactive Broker in late July <a href="https://www.financemagnates.com/forex/interactive-brokers-brings-overnight-trading-to-10k-us-stocks-and-efts/" target="_blank" rel="follow">expanded its overnight
trading offering</a> to include 10,000 stocks and exchange-traded funds (ETFs) listed in the
United States. It also recently <a href="https://www.financemagnates.com/forex/darwinex-seeks-growth-through-new-integration-with-interactive-brokers/" target="_blank" rel="follow">integrated with
Darwinex</a>, a
UK-based retail broker and asset manager.</p><p>Meta to launch 'Personas' AI bots; Conotoxia shows new feature; <a href="https://www.financemagnates.com/forex/news-nuggets-1-august-meta-to-launch-personas-ai-bots-conotoxia-shows-new-feature/" target="_blank" rel="follow">read today's news nuggets</a>.</p>

This article was written by Solomon Oladipupo at www.financemagnates.com.