In its monthly market activity report for Jan 2014,
The Charles Schwab Corporation
) reported Daily Average Trades (DATs) of 588,200. This marked an
increase of 17% from both the prior month and the prior-year
Total client assets were $2.22 trillion, down 1% from Dec 2013
but up 10% from Jan 2013. Schwab's net new assets - bought by
existing as well as new clients - were $11.9 billion, which was
up 20% from the previous month but fell 2% from the year-ago
In the reported month, Schwab opened 90,000 brokerage accounts,
down 6% from Dec 2013 but increasing 3% from Jan 2013. The
company's active brokerage accounts totaled 9.1 million, almost
flat with the prior month and up 3% year over year.
Clients' banking accounts were 923,000, up 1% from the prior
month and 6% year over year. Moreover, Schwab had 1.33 million
corporate retirement plan participants, up 2% from Dec 2013 but
down 15% from Jan 2013.
Performance of Other Brokerage Firms
TD Ameritrade Holding Corp.
) reported a rise in average client trades per day in its
Activity Report for January. Average client trades per day were
496,000, up 22% from the prior month and 28% year over year.
Online brokerage firm
E*TRADE Financial Corp.
) is expected to report its Daily Average Revenue Trades (DARTs)
for Jan 2014 earlier next week.
Management expects revenue growth to be in high single digits and
pre-tax profit margin of nearly 34% based on the assumption that
S&P will appreciate 6.5%, Fed Funds will remain at the
current level of 0.00%-0.25% and DARTs will rise in the range of
5%-6% year over year.
Further, management anticipates net interest margin of nearly 160
basis points based on the assumption of a stable or an improved
interest rate scenario. Moreover, the pressure on money
fund fees is expected to continue.
Amid a volatile operating environment, Schwab witnessed a rise in
both client assets and trading volumes, which bode well going
forward. Further, the company's low-cost capital structure should
help it improve results in the coming quarters. However, a low
interest rate environment and stringent regulations pose
Currently, Schwab carries a Zacks Rank #2 (Buy). A better-ranked
investment broker is
LPL Financial Holdings Inc.
), which has a Zacks Rank #1 (Strong Buy).
TD AMERITRADE (AMTD): Free Stock Analysis
E TRADE FINL CP (ETFC): Free Stock Analysis
LPL FINL HLDGS (LPLA): Free Stock Analysis
SCHWAB(CHAS) (SCHW): Free Stock Analysis
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