) were up nearly 1.8% on Monday following a rise in Daily Average
Trades (DATs) for Feb 2014. In its monthly market activity
report, the company reported DATs of 556,400, marking an increase
of 10% from the prior-year month but down 5% from the previous
Total client assets were $2.29 trillion, up 13% from Feb 2013 and
3% from Jan 2014. Schwab's net new assets - bought by existing as
well as new clients - were $10.9 billion, a decrease of 40% from
the year-ago month and 8% from the prior month.
In the reported month, Schwab opened 78,000 brokerage accounts,
up 4% from Feb 2013 but decreasing 13% from Jan 2014. The
company's active brokerage accounts totaled 9.1 million, up 3%
year over year and almost flat compared with the prior month.
Clients' banking accounts were 928,000, up 5% year over year and
1% from the prior month. Moreover, Schwab had 1.33 million
corporate retirement plan participants, down 15% from Feb 2013
but almost in line with Jan 2014 level.
Performance of Other Brokerage Firms
) reported a rise in average client trades per day in its
Activity Report for February. Average client trades per day were
501,000, up 30% year over year and 1% from the prior month.
) reported an increase in its Daily Average Revenue Trades
(DARTs) for Feb 2014. According to the monthly market activity
report for February, DARTs were 201,223, up 32% from Feb 2013 and
3% from Jan 2014.
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
Investment Technology Group Inc.
), which has a Zacks Rank #1 (Strong Buy).
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