) recorded a decline in Daily Average Trades (DATs) for May 2014.
Per its monthly market activity report, the company charted DATs of
445,700, marking a decline of 12% from the prior-year month and 17%
from the previous month.
However, total client assets were $2.35 trillion, up 12% from May
2013 and 2% from Apr 2014. Schwab's net new assets - bought by
existing as well as new clients - were $10.9 billion, compared with
an asset outflow of $1.9 billion in May 2013 and up significantly
from $0.3 billion in Apr 2014.
Schwab opened 71,000 brokerage accounts, down 9% from May 2013 and
25% from Apr 2014. The company's active brokerage accounts totaled
9.2 million, up 3% year over year and almost flat compared with the
Clients' banking accounts were 944,000, increasing 5% year over
year and 1% from the prior month. Moreover, Schwab had 1.35 million
corporate retirement plan participants, down 16% from May 2013 but
almost in line with Apr 2014 level.
Though Schwab witnessed a decline in DATs during the reported
month, a consistent rise in net new assets remains its strength.
This was reflected in the company's stock price movement which
gained 1.6% during the trading session on Friday and closed at
Further, Schwab is well positioned to benefit from the overall
volatility in the equity market. Therefore, going forward we
anticipate healthy inflows to continue supporting top-line growth.
Nevertheless, despite the positives, sluggish economic recovery,
elevated expenses and a still low interest rate environment make us
apprehensive. Hence, currently Schwab carries a Zacks Rank #3
Among other investment brokers,
) average client trades per day were 383,000, falling 8% year over
year and 15% from the preceding month.
Interactive Brokers Group, Inc.
) total customer DARTs were 518,000, up 2% from May 2013 but down
10% from Apr 2014. Moreover,
) DARTs were 147,661, down 9% from May 2013 and14% from Apr
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