In its monthly market activity report for Aug 2013,
The Charles Schwab Corporation
) reported Daily Average Trades (DATs) of 467,300. The figure
marked a 6% decline from 498,900 in the prior month but was up
24% from 375,900 in the year-ago month.
Total client assets were $2.08 trillion, down 2% from Jul 2013
but up 12% from Aug 2012. Further, Schwab's net new assets -
bought by existing as well as new clients - were negative $2.4
billion, compared with $8.8 billion reported in the prior month
and $6.9 billion in the year-ago month.
Schwab opened 78,000 new brokerage accounts in the reported
month, increasing 4% from Jul 2013 and 8% from Aug 2012. The
company's active brokerage accounts totaled 9.0 million, almost
stable compared with the prior month but up 3% year over year.
Moreover, clients' banking accounts rose 1% from the prior month
and 11% year over year to 926,000. Moreover, Schwab had 1.29
million corporate retirement plan participants, down 19% from Jul
2013 and 16% from Aug 2012.
In the reported month, the figures for total client assets and
retirement plan participants have been adjusted to reflect the
impact of consolidation of the company's retirement plan
recordkeeping platform and the resignation of certain retirement
Performance of Other Brokerage Firms
TD Ameritrade Holding Corporation
) reported a rise in average client trades from the prior year in
its Activity Report for Aug 2013. Average client trades were
382,000, up 26% year over year. Further, TD Ameritrade reported
$538.4 billion in total client assets, up 17% year over year but
down 1% from the prior month.
Online brokerage firm
E*TRADE Financial Corporation
) is expected to report its monthly Daily Average Revenue Trades
(DARTs) by this week.
Schwab's low-cost capital structure will likely aid in improving
results in the upcoming quarters. Moreover, the synergy from the
acquisitions and stable capital position will boost the company's
financials going forward. However, we remain concerned about
Schwab's low trading activities and reduced interest rate yields.
Schwab currently carries a Zacks Rank #3 (Hold). A
better-performing investment brokers is
BGC Partners, Inc.
), which has a Zacks Rank #2 (Buy).
TD AMERITRADE (AMTD): Free Stock Analysis
BGC PARTNRS INC (BGCP): Free Stock Analysis
E TRADE FINL CP (ETFC): Free Stock Analysis
SCHWAB(CHAS) (SCHW): Free Stock Analysis
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