TD Ameritrade Holding Corporation
) - an online brokerage firm - reported higher client trades in
its Activity Report for the month of May. Moreover, on a
year-over-year basis, the U.S. trades were up 13%.
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Daily Average Trades were 417,000 compared with 383,000 in the
prior month. The rise in Daily Average Trades was primarily
attributable to higher trading volumes in the equity markets.
Broker performance is generally measured through Daily Average
Trades from which brokers can earn commissions or fees.
TD Ameritrade reported $530.9 billion in total client assets in
May, up 23% year over year and 1% from the prior month. Moreover,
average spread-based balances rose 14% year over year to $83.8
billion. Further, it nudged up 1% from Apr 2013.
At the end of May, average fee-based balances came in at $119.9
billion, up 37% year over year and 3% from the previous month.
As of Mar 31, 2013, Daily Average Trades fell 2% year over year
to 378,096. Net new client assets were $12.9 billion, up 19% from
$10.8 billion a year ago.
At the end of the quarter, TD Ameritrade reported $516.8 billion
in total client assets, up 14% year over year. Moreover, average
spread-based balance was $82.6 billion, up 11% from $74.1 billion
in the prior-year quarter. Average fee-based balance was $110.9
billion, up 31% year over year.
The competitive position of brokerage business in the market
depends on trading customers, especially active traders. As the
long-term investing customer group is less developed compared to
trading customers, there is an opportunity for future growth with
the expansion of the long-term customer base.
Innovations in online trading, long-term investment on products
and services, rendition of advanced customer service, creative
and cost-effective marketing and sales, along with expense
control are the key factors behind the boost in TD Ameritrade's
trading and investing business.
Amid a volatile operating environment, the company witnessed a
rise in organic client assets. However, low interest rates
coupled with stringent regulations are likely to be dampeners.
TD Ameritrade currently carries a Zacks Rank #3 (Hold). Better
performing financial stocks include
LPL Financial Holdings Inc.
Investment Technology Group Inc.
Ladenburg Thalmann Financial Services Inc.
), all of which carry a Zacks Rank #1 (Strong Buy).