Interactive Brokers’ client trades surge by third in April 2024

Interactive Brokers LLC (NASDAQ: IBKR) recorded 2.339 million daily average revenue trades (DARTs) in April 2024, which is 33% higher than the previous year, yet there was a 3% decrease compared to March.

In terms of equity balance in customers’ accounts during April, the figure stood at $457.8 billion, up 34% from last year, but was also down 2% from the previous month. Ending client margin loan balances climbed to $50.7 billion, marking a 28% rise from last year but decreasing slightly by 1% from March.

Interactive Brokers’ client credit balances, including $4.0 billion in insured bank deposit sweeps, totaled $105.8 billion, up 7% from last year and 1% from March.

The number of client accounts continued to grow, reaching 2.81 million, up 26% from the previous year and a 2% increase from March. The annualized average cleared DARTs per client account stood at 188.

The Greenwich, Connecticut-based company also revealed that on average it charged clients commission fees of $3.00, including exchange, clearing, and regulatory fees. Specifically, the average commission for stock orders was $1.90 for 964 shares, $4.14 for equity options involving 6.5 contracts, and $4.37 for futures orders consisting of 3.1 contracts.

The company also noted a slight decline in the value of the GLOBAL, reported in U.S. dollars, which decreased by 0.33% in April.

Interactive Brokers derives nearly 70% of its net revenue from the U.S. market, with the remaining 30% coming from international operations. The company has seen a robust increase in its financials, with net income available for common stockholders rising from $148 million in Q1 2023 to $175 million in 2024. This growth was supported by increases in both interest and non-interest income, indicating a diversified revenue stream.

Despite the strong financial performance, the discount broker reported a $104 million decrease in earnings due to its currency diversification strategy, which was affected by a 0.73% depreciation in the U.S. dollar value against its GLOBAL basket.

Interactive Brokers made headlines in late 2023 when it obtained a license to engage in virtual asset trading for retail clients. This development is also part of a larger wave of regulatory approvals in the region, with Hashkey historically being the first crypto exchange in Hong Kong to be licensed for retail crypto asset offerings back in August.