TD Ameritrade Holding Corporation
) - an online brokerage firm - reported a rise in average client
trades from the prior year in its Activity Report for Aug 2013.
Further, U.S. trades increased 2% from the prior-month level.
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For the reported month, average client trades were 382,000, up
26% year over year. The rise in client trades largely resulted
from a resurgence in the equity markets.
For the month, TD Ameritrade reported $538.4 billion in total
client assets, up 17% year over year but down 1% from the prior
month. Moreover, average spread-based balances increased 16% year
over year to $88.2 billion. However, these balances remained
stable from Jul 2013.
At the end of August, average fee-based balances were recorded at
$122.2 billion, rising 31% year over year and 1% from the prior
As of Jun 30, 2013, average client trades per day increased 12%
year over year to 399,216. Net new client assets were $10.8
billion, up 11% from $9.7 billion in the past year.
At the end of June, TD Ameritrade reported total client assets
worth $523.5 billion, up 18% year over year. Moreover, average
spread-based balance was $84.7 billion, up 14% from $74.2 billion
in the prior-year quarter. Average fee-based balance was $118.1
billion, up 34% year over year.
Innovations in online trading, long-term investment in products
and services, delivery of advanced customer service, creative as
well as cost-effective marketing and sales, along with prudent
expense management are the key factors behind the boost in TD
Ameritrade's trading and investing business.
Further, the company's association with
The Toronto-Dominion Bank
) provides an opportunity to cross-sell its products. This is
expected to be a significant growth driver for TD Ameritrade's
Amid a volatile operating environment, TD Ameritrade witnessed a
rise in both organic client assets and trading volumes, which
will benefit the company. However, a low interest rate
environment and stringent regulations will likely be dampeners.
TD Ameritrade currently carries a Zacks Rank #2 (Buy). Other
financial stocks that are performing well include
E*TRADE Financial Corporation
Evercore Partners Inc.
). Both of these carry the same Zacks Rank as TD Ameritrade.