In its monthly market activity report for Apr 2013,
The Charles Schwab Corporation
) reported Daily Average Trades (DATs) of 470,000. The DATs were
up 2% from 458,900 in the year-ago month but down 3% from 486,000
in the prior month.
Total client assets stood at $2.11 trillion, improving 15% from
Apr 2012 and 1% from Mar 2013. However, Schwab's net new assets -
bought by the new and existing clients - totaled $22 million,
substantially lower than $1 billion reported in the year-ago
month and $13 billion in the prior month. Also, this included a
$7.3 billion outflow and $2.6 billion inflow related to mutual
fund clearing services client.
Schwab opened 96,000 new brokerage accounts in the reported
month, 10% higher than the Apr 2012 level and 17% higher than Mar
2013 level. The company's active brokerage accounts totaled 8.91
million, up 3% year over year and 1% sequentially.
Moreover, clients' banking accounts elevated 11% year over year
to 895,000 and inched up 1% over the prior-month. Also, the
company had 1.59 million corporate retirement plan participants,
improving 5% from Feb 2012 and 1% from Mar 2013.
The rising DATs and new brokerage accounts are expected to be
beneficial for Schwab. Yet, fluctuating interest rates and lower
trading activities are anticipated to adversely affect the
company's financials going forward.
Moreover, Schwab's capital intensity in comparison with other
investment brokers remains a matter of concern. However, its
focus on low-cost capital is expected to help the company achieve
better results in the subsequent quarters.
Schwab currently carries a Zacks Rank #3 (Hold). Investment
brokers that are worth considering include
LPL Financial Holdings Inc
GAIN Capital Holdings, Inc
Piper Jaffray Companies
). LPL Financial carries a Zacks Rank #1 (Strong Buy), while GAIN
Capital and Piper Jaffrey hold a Zacks Rank #2 (Buy).
GAIN CAP HLDGS (GCAP): Free Stock Analysis
LPL FINL HLDGS (LPLA): Free Stock Analysis
PIPER JAFFRAY (PJC): Free Stock Analysis
SCHWAB(CHAS) (SCHW): Free Stock Analysis
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