) came out with its average client trades per day of 405,000 in its
activity report for Jul 2014. This figure increased 8% from the
prior month and 9% year over year.
Broker performance is generally measured through monthly average
client trades per day. It represents the number of trades from
which brokers can earn commissions or fees.
As of Jul 31, 2014, TD Ameritrade reported $644.4 billion in total
client assets, up 1% from the prior month and 18% year over year.
Average spread-based balance of $91.7 billion remained almost
stable with the prior month while it grew 4% year over year.
Further, average fee-based balances increased 1% from the prior
month and 19% year over year to $143.5 billion.
Average client trades per day in third-quarter fiscal 2014 (ended
Jun 2014) increased nearly 1% year over year to 401,468. Further,
as of Jun 30, 2014, net new client assets stood at $13.4 billion,
up 24.1% from the prior-year quarter end.
At the quarter end, TD Ameritrade reported total client assets of
$650.2 billion, up 24.2% year over year. Moreover, average
spread-based balance was $91.2 billion, up 7.7% year over year,
while average fee-based investment balance increased 17.3% to
As investors' confidence has been improving at a modest level
recently, we expect firms like TD Ameritrade to benefit from the
broader trend in the investment brokerage industry.
Innovations in online trading, long-term investment in products and
services, delivery of advanced customer services, 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
However, mounting expenses, a volatile operating scenario and
stringent regulations may pose challenges to the company's
financials in the long run.
At present, TD Ameritrade carries a Zacks Rank #3 (Hold).
Among other investment brokers, Interactive Brokers Group, Inc.'s (
) Electronic Brokerage segment recorded an increase in its
brokerage metrics for Jul 2014. Total customer Daily Average
Revenue Trades (DARTs) were 528,000, up 7% from Jun 2014 and 14%
from Jul 2013.
) is expected to report its monthly metrics later this week.
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