In its monthly market activity report for Jul 2013,
The Charles Schwab Corporation
) reported Clients' Daily Average Trades of 498,900. The figure
marked a 4% decline from 518,100 in the prior month but was up
26% from 396,100 in the year-ago month.
Total client assets were $2.12 trillion, improving 3% from Jun
2013 and 16% from Jul 2012. Further, Schwab's net new assets -
bought by the new and existing clients - were $8.8 billion,
compared with negative balance of $19.8 billion reported in the
prior month and $7.4 billion in the year-ago month.
Schwab opened 75,000 new brokerage accounts in the reported
month, increasing 9% from Jun 2013 and 21% from Jul 2012. The
company's active brokerage accounts totaled 8.97 million, almost
stable from the prior month and up 3% year over year.
Moreover, clients' banking accounts rose 1% over the prior month
and 11% year over year to 918,000. Moreover, Schwab had 1.60
million corporate retirement plan participants, almost at par
with the Jun 2013 level and rising 4% from Jul 2012.
Performances of Other Brokerage Firms
Along with Schwab, online brokerage firm
E*TRADE Financial Corporation
) reported a decline in its Daily Average Revenue Trades (DARTs)
for the month of Jul 2013. DARTs were 140,898, down 2% from Jun
2013, but up 10% on a year-over-year basis.
TD Ameritrade Holding Corporation
) reported a 6% fall in average client trades compared with the
prior month in its Activity Report for the month of Jul 2013.
However, average client trades surged 12% on a year-over-year
basis to 373,000. Further, TD Ameritrade reported $544.2 billion
in total client assets, up 21% year over year and 4% from the
Schwab's low-cost capital structure will likely aid in improving
results in the upcoming quarters. Moreover, the synergies from
the acquisitions and stable capital position will boost the
company's financials going forward. However, we remained
concerned about the company's low trading activities and reduced
interest rate yields.
Schwab currently carries a Zacks Rank #3 (Hold). Some better
performing investment brokers include
GAIN Capital Holdings, Inc.
), which has a Zacks Rank #1 (Strong Buy).
TD AMERITRADE (AMTD): Free Stock Analysis
E TRADE FINL CP (ETFC): Free Stock Analysis
GAIN CAP HLDGS (GCAP): Free Stock Analysis
SCHWAB(CHAS) (SCHW): Free Stock Analysis
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