) stated average client trades per day of 383,000 in its Activity
Report for May 2014. This figure was down 15% from the prior month
and 8% 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.
TD Ameritrade reported $634 billion in total client assets in May
2014, up 2% from the prior month and 19% year over year. Moreover,
average spread-based balances augmented 9% year over year to $91.2
billion while it remained stable as compared with Apr 2014.
Further, average fee-based balances climbed 15% year over year and
1% from the prior month to $137.9 billion.
Average client trades per day in second-quarter fiscal 2014 (ended
Mar 2014) increased 30.1% year over year to 491,963. However, net
new client assets were $12.2 billion, down 5.4% from the past year.
At quarter end, TD Ameritrade reported total client assets worth
$617.1 billion, up 19.4% year over year. Moreover, average
spread-based balance was $91.5 billion, up 10.8% from $82.6 billion
in the prior-year quarter. Average fee-based investment balance was
$133.6 billion, up 20.5% year over year.
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 in the near
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
) 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.
) Electronic Brokerage segment recorded a year-over-year rise in
brokerage metrics for May 2014. Total customer Daily Average
Revenue Trades (DARTs) were 518,000, up 2% from May 2013 but down
10% from Apr 2014.
) is expected to report their monthly metrics later this week.
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