Online brokerage firm
E*TRADE Financial Corporation
) reported an uptick in its Daily Average Revenue Trades (DARTs)
for Jan 2014. According to the monthly market activity report for
January, E*TRADE's DARTs were 195,652, up 26% from Dec 2013.
Moreover, DARTs increased 27% on a year-over-year basis.
Broker performance is generally measured through the DARTs that
represent the number of trades from which brokers can expect
commissions or fees.
At the end of the month under review, E*TRADE's total number of
accounts came in at approximately 4.6 million, of which about 3.0
million are brokerage accounts, 1.2 million are stock plan
accounts and 0.4 million are banking accounts.
For the reported month, E*TRADE's total brokerage accounts
included 41,367 gross new brokerage accounts. Moreover, E*TRADE's
net new brokerage assets were $1.0 billion, increasing from $0.9
billion in the prior month. Total brokerage accounts reflect the
company's ability to attract and retain customers who trade and
As of January end, E*TRADE's customer security holdings were
$176.4 billion, down 1.0% from the prior month. The company's
brokerage-related cash decreased $0.8 billion to $38.9 billion,
with customers being the net buyers of about $2.3 billion in
securities. Moreover, bank-related cash and deposits for the
company stood at $6.3 billion, down from $6.4 billion in the
TD Ameritrade Holding Corp
) average client trades per day of 496,000 marked a 22% increase
compared with the prior month in its Activity Report for Jan
2014. Further, client trades increased 28% on a year-over-year
Another sector participant
The Charles Schwab Corp.
) reported average client trades of 588,200, representing a 17%
increase compared with the prior month as well as the prior-year
period in its Activity Report for Jan 2014.
Amid the challenging economy, increase in DARTs and new brokerage
accounts will be beneficial for E*TRADE. Further, the company's
initiatives to reduce balance sheet risk appear to be promising,
although they will put near-term pressure on the net interest
We remain concerned about the sluggish macroeconomic
environment, which might lead to lower trading activities.
Moreover, mounting expenses and fluctuating interest rates are
expected to continuously impact the company's financials in the
TD AMERITRADE (AMTD): Free Stock Analysis
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E*TRADE currently carries a Zacks Rank #2 (Buy).
Investment Technology Group Inc.
) is a better-ranked stock in the same industry with a Zacks Rank
#1 (Strong Buy).