Interactive Brokers’ DARTs jump 27% YoY in May 2024

US-listed discount broker, Interactive Brokers recorded 2.360 million daily average revenue trades (DARTs) in May 2024, which is 27% higher than the previous year’s transactions. This figure was slightly higher on a monthly basis.

Meanwhile, IBKR’s ending client equity stood at $486.3 billion, up 41% compared to the previous year and a 6% increase from the prior month. Client margin loan balances reached $53.1 billion, representing a 33% increase year-over-year and a 5% increase month-over-month.

Additionally, client credit balances amounted to $106.7 billion, including $4.0 billion in insured bank deposit sweeps, up 8% from the previous year and a 1% increase from April. The number of client accounts grew to 2.86 million, marking a 27% increase year-over-year and a 2% rise month-over-month. The annualized average cleared DARTs per client account was 186.

The average commission per cleared order was $3.01, including exchange, clearing, and regulatory fees. For specific products, the average commission per order for stocks was $2.12 for an average order size of 1,131 shares. For equity options, the average commission was $4.04 for 6.6 contracts per order, while futures had an average commission of $4.61 for 3.2 contracts per order, including options on futures.

Interactive Brokers expanded its cryptocurrency business last month by introducing digital asset trading services to its British customers through its UK unit.

Investors in the UK can now trade Bitcoin (BTC), Ethereum (Ether), Litecoin (LTC), and Bitcoin Cash (BCH), alongside the traditional investment products offered by IBKR.

This move comes five months after Interactive Brokers partnered with OSL Digital Securities to launch crypto trading services for retail customers in Hong Kong in November 2023.

Interactive Brokers began its crypto journey in July 2021, initially targeting retail investors. Shortly after, the company expanded crypto trading to institutional customers in the United States. Now, by extending its services to UK customers, Interactive Brokers is allowing both retail and institutional investors to participate in the growing digital asset economy.

Eligible UK customers of Interactive Brokers can manage both traditional securities and digital assets accounts opened at Paxos Trust Company through a single, unified platform.

The new regulations also require firms promoting crypto products or services to include a clear risk warning in their promotions and verify that individuals have the necessary knowledge and experience to invest in cryptocurrencies. Non-compliance could result in penalties, including up to two years in prison.

The impact of these regulations is already visible in the UK’s crypto market, with firms like Bybit and PayPal withdrawing certain services. Luno, another prominent crypto company, has restricted some clients from investing in cryptocurrencies on its platform.