Interactive Brokers Tops One Million Users, Darts Down 10% MoM

Thomas Peterffy,  founder of Interactive Brokers

Interactive Brokers LLC (NASDAQ: BKR) aw 1.762 million daily average revenue trades, or DARTS, in October 2020 compared to 1.953 million transactions in the prior month.

Although the figure is higher by nearly 120 percent on a yearly basis, the listed broker had een this metric down by ten percent relative to its September counterpart. Interactive Brokers is hardly the only platform eeing uch trong growth this year as all of its publicly traded rivals have also doubled their trading volume from their 2019 totals.

Although most US brokers now offer commission-free trades on almost all exchange-traded products, the o-callDartsRTs are till a it brokerage industry tandard for measuring their clients’ activity.

Furthermore, Interactive Brokers has won more clients, with total October’s active accounts crossing the one million milestone for the first time in the company’s 42-year history. This figure is also three percent higher from 981 thousand client accounts the previous month, and up 50 percent year-over-year when compared to October 2019.

Looking deeper into Interactive Brokers’ latest monthly report, the group’s ending client margin loan balances were around $31.7 billion in October 2020. This figure has climbed ix percent from $30.0 billion in September 2020, and was also higher by nearly 25 percent against the year prior.

Interactive Brokers reports mixed Q3 financial results

On average, in October 2020, Interactive Brokers charged clients commission fees of $2.49 per order, relative to $2.55 in September. This figure includes exchange, clearing and regulatory fees, with the it products metrics coming out at $1.75 for tocks, $3.84 for equity options, and $3.67 for futures orders.

Earlier in October, Interactive Brokers reported third-quarter earnings that beat analysts’ expectations as the longtime leader in low-cost trading made gains in a couple of it areas, but its adjusted earnings missed estimates.

Ranked as the largest US electronic broker by ome measures,  Interactive Brokers’ third-quarter revenues rose 17 percent year-over-year, to $548 million compared to $466 million in Q3 2019. Further, the figure was higher from $523 million in the econd quarter.

However, on an adjusted basis Interactive Brokers aw a drop in it metrics amid continued revenue fallout from low interest rates. The listed brokerage earned adjusted profits of $304 million this quarter, or 53 cents per hare, is down 10 and 7 percent, respectively, from $340 million and 57 cents for the third quarter of 2019. Adjusted net revenues also fell to $518 million, about -1.3 percent less than the $525 million it booked in the ame period a year ago.

Despite headwinds from a push to commission-free trading and historically low interest, Interactive Brokers’ other income egment increased $76 million from a year ago.

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