TD Ameritrade Holding Corporation
), an online brokerage firm, reported a 1% rise in average U.S.
trades compared with the prior month in its Activity Report for the
month of July 2012. However, U.S. trades dropped on a
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For the reported month, Daily Average Revenue Trades (DARTs) were
332,000, down 9% year over year. The dip in DARTs largely resulted
from the uncertain economic recovery and investors' reluctance to
invest in the equity markets.
Broker performance is generally measured through the DARTs that
represent the number of trades from which brokers can expect
commissions or fees.
For the month, TD Ameritrade reported $449.3 billion in total
client assets, up 9% year over year and 1% from the prior month.
Moreover, average spread-based balances increased 14% year over
year to $74.7 billion. Further, these balances upped 1% from June
At July-end, average fee-based balances were recorded at $90.7
billion, rising 8% year over year and 3% from the prior month.
As of June 30, 2012, DARTs were 355,000, down 4% year over year.
Net new client assets reported were $9.7 billion in the quarter,
reflecting an annualized growth rate of 9%.
For the quarter, TD Ameritrade reported $445 billion in total
client assets, up 8% year over year. Moreover, average spread-based
balances increased 18% year over year to $73.8 billion. Average
fee-based balances were recorded at $88.2 billion, up 8% year over
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 against
the trading customers, there is an opportunity for future growth
whenever there is an expansion in the long-term customer base.
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 key factors in executing
TD Ameritrade's strategy of boosting its trading and investing
Amidst a volatile operating environment, TD Ameritrade portrays
organic client asset growth. Although, the company reported
slightly improved trading volumes, significant turnaround remains
elusive. Further, a low interest rate environment also
remains a matter of concern.
TD Ameritrade currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating.
Later this week, among TD Ameritrade's peers,
Charles Schwab Corp.
E*TRADE Financial Corporation
) are expected to release their Monthly Activity Report for