Online brokerage firm,
TD Ameritrade Holding Corporation
) reported a 22% rise in average client trades per day in its
Activity Report for Jan 2014. Further, client trades increased
28% on a year-over-year basis.
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For the reported month, average client trades per day were
496,000, up from 405,000 in the prior month and 387,000 in the
For the month, TD Ameritrade reported $588.8 billion in total
client assets, up 18% year over year but down 1% from the
previous month. Moreover, average spread-based balances rose 10%
year over year to $91.7 billion. Further, these balances
increased 1% from the prior month.
At the end of January, average fee-based balances were recorded
at $132.9 billion, which surged 23% year over year and was in
line with the last month.
Average client trades per day in first-quarter fiscal 2014
increased 24% year over year to 413,743. However, net new client
assets were $14.5 billion, down 7% from the past year.
At the quarter-end, TD Ameritrade reported total client assets
worth $596.5 billion, up 24% year over year. Moreover, average
spread-based balance was $90.3 billion, up 14% from $79.3 billion
in the prior-year quarter. Average fee-based balance was $130.5
billion, up 31% 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 TD Ameritrade's key strategies to boost
its 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
bode well going forward. However, a low interest rate environment
and stringent regulations pose challenges.
At present, TD Ameritrade carries a Zacks Rank #2 (Buy). Among
other investment brokers,
The Charles Schwab Corporation
E*TRADE Financial Corporation
) are expected to report their monthly metrics by the end of this