Interactive Brokers Group, Inc. (Nasdaq: IBKR), a prominent automated global electronic broker, disclosed its December 2023 performance metrics, revealing substantial growth in daily average revenue trades (DARTs) and increased new accounts. The metrics highlight the company’s robust growth trajectory, with DARTs hitting 1.972 million, marking a 13% year-over-year increase and a 4% increase over the previous month.
Interactive Brokers Reports a 23% Increase in Client Accounts
The firm’s ending client equity surged to $426 billion, demonstrating an impressive 39% annual growth. Financially, Interactive Brokers saw positive trends in client assets and transactions. The company reported a 14% annual increase in client margin loan balances, totalling $44.4 billion, and a 10% rise in client credit balances to $104.5 billion.
Furthermore, the brokerage expanded its customer base significantly, closing the month with 2.56 million accounts, reflecting a 23% increase from the previous year. This growth in clientele resulted in an increased rate of 172 annualised average DARTs per client account.
Interactive Brokers continued its commitment to competitive pricing throughout December. The brokerage maintained low commission costs for cleared orders, averaging $3.17, including fees. This competitive pricing strategy was evident across various trade types, with stocks, equity options, and futures trading at favourable rates.
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The brokerage’s financial health also showed mixed results, with a quarterly loss of $0.3 million but an overall annual gain of $8.4 million from its US government securities portfolio. Regarding trading costs for its IBKR PRO clients, the brokerage reported an approximate cost of 2.4 basis points of trade money in December, showcasing its efficiency and client-focused pricing strategy.
In a strategic move to enhance its corporate governance, Interactive Brokers announced the addition of Rich Repetto, a veteran analyst with extensive experience in electronic trading and financial technology, to its board.
Finally, Interactive Brokers is also making significant strides in international markets. The firm secured a license for retail crypto trading in Hong Kong, indicating its entry into the burgeoning cryptocurrency market in the region.
