TD Ameritrade (AMTD) August Client Trades Down, Assets Up

An image of some coins and die
Credit: Shutterstock photo

Omaha, NE-based online broker age firm, TD Ameritrade Holding CorporationAMTD , came up with average client trades per day of 425,000 in its activity report for Aug 2016. The reported figure declined 6% from the prior month and 21% from the prior-year period.

Broker performance is generally measured through monthly average client trades per day. This represents the number of trades from which brokers earn commissions or fees.

However, as of Aug 31, 2016, TD Ameritrade reported $765.4 billion in total client assets, up 1% from the prior month and 13% year over year. Further, average fee-based balances were $169.9 billion, increasing 2% from the prior month and 8% from the prior-year period. Additionally, average spread-based balance of $111 billion grew 2% from the prior month and 12% year over year.

Rise in Quarterly Performance

During fiscal third-quarter 2016 (ended Jun 30), average client trades per day climbed 6.5% year over year to 461,941. Notably, net new client assets totaled $13.6 billion, up 16.2% year over year. Also, total client assets came in at $736.3 billion, up 4.8% year over year.

While average spread-based balance was $106.1 billion, increasing 11.3% year over year, average fee-based investment balance edged up slightly to $162.1 billion.

TD Ameritrade Well Positioned for Growth

Innovations in online trading, long-term investment in products and services, delivery of advanced customer service and creative marketing and sales are TD Ameritrade's key strategies for boosting its trading and investing business. Further, the company's association with The Toronto-Dominion Bank TD provides an opportunity to cross sell its products. This is expected to significantly drive organic growth.

Amid a volatile operating environment, TD Ameritrade witnessed a consistent rise in organic client assets, which bode well for the future. However, we remain cautious as a continuous rise in expenses, margin pressure and stringent regulations may weigh on the company's financials in the upcoming quarters.

At present, TD Ameritrade carries a Zacks Rank #3 (Hold). Hancock Holding Company HBHC is a better-ranked stock in the finance space, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Among other investment brokers, Interactive Brokers Group, Inc.'s IBKR Electronic Brokerage segment reported total client DARTs of 576,000, down 22% from Aug 2015 and 4% from Jul 2016. Further, it reported Cleared Client DARTs of 534,000, a dip of 20% from the prior-year month and 4% from the prior month. However, the company recorded total customer accounts of 365,300, up 15% from the prior-year month and 1% from the preceding month.

The Charles Schwab Corporation SCHW is expected to report its monthly metrics later this week.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

TORONTO DOM BNK (TD): Free Stock Analysis Report

HANCOCK HLDG CO (HBHC): Free Stock Analysis Report

SCHWAB(CHAS) (SCHW): Free Stock Analysis Report

INTERACTIVE BRK (IBKR): Free Stock Analysis Report

TD AMERITRADE (AMTD): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More