Interactive Brokers Sees Uptick in Accounts, Drop in DARTs

In December 2022, Interactive Brokers Group, a reputable US electronic trading platform with an international reach, released its performance metrics. Last month, the Daily Average Revenue Trades (DARTs) reached 1.751 million – a decrease of 10% from the previous month and 21% lower than in December 2021.

The Group’s other financial indicators have experienced significant decreases in the past month and year. The total client equity dropped to $306.7 billion, decreasing by 3% Month-over-Month (MoM) and 18% Year-over-Year (YoY). Moreover, the client margin loan balances plummeted 1% MoM and 29% YoY, reaching a meager balance of 38.9 billion dollars.

On the other hand, Interactive Brokers experienced a 25% year-over-year increase in client accounts—from 2.09 million to 1%. Additionally, there was also a slight monthly growth of 1%. Each client account has 189 Annualized average DARTs with a fee of $3.17 per commissionable order, including exchange, regulatory, and clearing fees.

Stronger Q3 by Interactive Brokers

Despite the diminishing daily average revenue trades reported by Interactive Brokers in recent months, it is evident that financial performance remains robust. Most impressively, third-quarter revenues surged an extraordinary 70%, conquering a staggering $790 million.

Between July and September 2022, the electronic broker earned $523 million before taxes, an impressive 123% increase from the same period in 2021. Additionally, they disclosed diluted earnings of $0.97 per quarter–a stunning 125% rise year-over-year!

The outcome was a substantial spike in net interest income, which skyrocketed to $473 million – a 73% rise. An upturn in benchmark interest rates propelled this advancement. Conversely, commission income saw only 3% growth, bringing it up to $320 million.

November saw Interactive Brokers take a major step towards expanding in Europe by opening their first office in Dublin. The company now employs more than 110 people at this location and continues to grow.

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