TD Ameritrade Holding Corporation
) - an online brokerage firm - reported a 3% rise in average U.S.
trades in its Activity Report for the month of November 2012.
However, the U.S. trades declined 10% on a year-over-year basis.
For the reported month, Daily Average Revenue Trades (DARTs) were
341,000, up from 330,000 recorded in the prior month. The rise in
DARTs largely resulted from the improvement in the equity
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 $475.1 billion in total
client assets, up 18% year over year and 1% from the prior month.
Moreover, average spread-based balances augmented 8% year over
year to $79.0 billion. Further, these balances hiked 2% from
At the end of November this year, average fee-based balances were
recorded at $99.4 billion, which surged 28% year over year and 1%
from the last month.
As of Sep 30, 2012, DARTs were 328,280, plummeting 21% year over
year. Net new client assets reported were $10.1 billion in the
quarter, down from $12.4 billion in the year-ago quarter.
For the quarter, TD Ameritrade reported $472.3 million in total
client assets, up 24.7% year over year. Moreover, average
spread-based balance was $76.2 billion, compared with $67.5
billion in the prior-year quarter. Average fee-based balances
were recorded at $93.6 billion, soaring 16.9% year over year.
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 compared
to trading customers, there is an opportunity for future growth
in case the long-term customer base expands.
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 the key factors behind
TD Ameritrade's strategy of boosting its trading and investing
Amidst a volatile operating environment, TD Ameritrade exhibited
a decline in organic client asset. The company also reported
waning trading volumes, and therefore significant turnaround
remains elusive. Further, a low interest rate environment is 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
Charles Schwab Corp.
E*TRADE Financial Corporation
) are expected to release their Monthly Activity Report for
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