In its monthly market activity report for Oct 2013,
) reported Daily Average Trades (DATs) of 490,800. This marked an
increase of 4.6% from 469,200 in the prior month and 11.6% from
439,700 in the year-ago month.
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SCHWAB(CHAS) (SCHW): Free Stock Analysis
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Total client assets were $2.18 trillion, up 1.5% from Sep 2013
and 14.7% from Oct 2012. However, Schwab's net new assets -
bought by existing as well as new clients - were negative $19.8
billion, compared with negative $2.4 billion reported in the
prior month and $24.7 billion in the year-ago month.
In the reported month, Schwab opened 81,000 brokerage accounts,
increasing 15.7% from Sep 2013 and 9.5% from Oct 2012. The
company's active brokerage accounts totaled 9.0 million, almost
flat with the prior month but up 3.5% year over year.
Moreover, clients' banking accounts were 930,000, which was in
line with the prior month but up 9.3% year over year. Moreover,
Schwab had 1.29 million corporate retirement plan participants,
falling marginally from Sep 2013 and down 16.9% from Oct 2012.
In the reported month, the figures for total client assets and
retirement plan participants have been adjusted to reflect the
impact of the company's retirement plan recordkeeping platform
and resignation of certain retirement plan clients.
Performance of Other Brokerage Firms
) reported a rise in average client trades per day in its
Activity Report for Oct 2013. Average client trades per day were
420,000, up 7.7% from the prior month and 27.3% year over year.
Online brokerage firm
) reported a rise in its Daily Average Revenue Trades (DARTs) for
Oct 2013. DARTs were 159,703, up 9% from Sep 2013 and rising 29%
on a year-over-year basis.
Increase in DATs and new brokerage accounts will be beneficial
for Schwab. Moreover, the company's low-cost capital structure is
expected to boost results in the coming quarters. However, we
remain concerned about Schwab's low trading activities.
Schwab currently carries a Zacks Rank #2 (Buy). A
better-performing investment broker is
Ladenburg Thalmann Financial Services Inc.
), which has a Zacks Rank #1 (Strong Buy).