TD Ameritrade Holding Corporation
) - an online brokerage firm - reported marginally lower U.S.
trades in its Activity Report for the month of Feb 2013.
Moreover, on a year-over-year basis, the U.S. trades were down
For the reported month, Daily Average Revenue Trades (DARTs) were
386,000 compared with 387,000 in the prior month. The fall in
DARTs primarily resulted from lower trading in the equity
Broker performance is generally measured through DARTs from which
brokers can earn commissions or fees.
TD Ameritrade reported $502.5 billion in total client assets in
February, up 14% year over year and 1% from the prior month.
Moreover, average spread-based balances augmented 11% year over
year to $81.8 billion. However, these balances inched down 2%
from Jan 2013.
At the end of February, average fee-based balances stood at
$110.8 billion, up 30% year over year and 3% from the last month.
As of Dec 31, 2012, DARTs decreased 9% year over year to 334,035.
Net new client assets reported were $15.6 billion, up 53% from
$10.2 billion a year ago.
For the quarter, TD Ameritrade reported $480.8 billion in total
client assets, up 18% year over year. Moreover, average
spread-based balance was $79.3 billion, up 9% from $72.6 billion
in the prior-year quarter. Average fee-based balances surged 28%
year over year to $100 billion.
The competitive position of brokerage business in the market
depends on trading customers with emphasis on active traders. As
the long-term investing customer group is less developed compared
to trading customers, there is an opportunity for future growth
in case the long-term customer base expands.
Development of innovative ways for online trading and long-term
investing products and services, delivery of advanced customer
service, creative and cost-effective marketing and sales, as well
as expense discipline can be considered as the key factors behind
TD Ameritrade's strategy of boosting its trading and investing
Amid a volatile operating environment, TD Ameritrade witnessed a
decline in organic client asset. The company also reported waning
trading volumes and therefore a significant turnaround remains
elusive. Further, a low interest rate environment is a matter of
TD Ameritrade currently retains a Zacks Rank #2 (Buy). Other
brokerage firms that are also performing well include
Evercore Partners Inc.
Knight Capital Group Inc.
Piper Jaffray Companies
). All these stocks carry a Zacks Rank #1 (Strong Buy).
TD AMERITRADE (AMTD): Free Stock Analysis
EVERCORE PARTNR (EVR): Free Stock Analysis
KNIGHT CAP GP (KCG): Free Stock Analysis
PIPER JAFFRAY (PJC): Free Stock Analysis
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