TD Ameritrade Holding Corporation
) - an online brokerage firm - reported higher U.S. trades in its
Activity Report for the month of Apr 2013. Moreover, on a
year-over-year basis, the U.S. trades were up 4%.
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Daily Average Revenue Trades (DARTs) were 383,000 compared with
361,000 in the prior month. The rise in DARTs was primarily
attributable to higher trading volumes in the equity markets.
Broker performance is generally measured through DARTs from which
brokers can earn commissions or fees.
TD Ameritrade reported $524.4 billion in total client assets in
April, up 16% year over year and 1% from the prior month.
Moreover, average spread-based balances rose 11% year over year
to $82.8 billion. Further, it nudged up 0.1% from Mar 2013.
At the end of April, average fee-based balances came in at $116.2
billion, up 31% year over year and 2% from the previous month.
As of Mar 31, 2012, DARTs decreased 2% year over year to 378,096.
Net new client assets were $12.9 billion, up 19% from $10.8
billion a year ago.
At the end of the quarter, TD Ameritrade reported $516.8 billion
in total client assets, up 14% year over year. Moreover, average
spread-based balance was $82.6 billion, up 11% from $74.1 billion
in the prior-year quarter. Average fee-based balance was $110.9
billion, up 31% year over year
The competitive position of brokerage business in the market
depends on trading customers, especially active traders. As the
long-term investing customer group is less developed compared to
trading customers, there is an opportunity for future growth when
the long-term customer base expands.
Innovations in online trading and long-term investing products
and services, delivery of advanced customer service, creative as
well as cost-effective marketing and sales, along with 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
rise in organic client assets. However, the decline in trading
volumes is a matter of concern for the company. Further, a low
interest rate and stringent regulatory environment are expected
to be the dampeners.
TD Ameritrade currently carries a Zacks Rank #3 (Hold). Better
performing financial stocks include
Virtus Investment Partners, Inc.
LPL Financial Holdings Inc.
), all of which carry a Zacks Rank #1 (Strong Buy).