Interactive Brokers (IBKR) Records Decline in September DARTs

Interactive Brokers Group, Inc. IBKR released the Electronic Brokerage segment’s performance metrics for September 2023. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported a decline in client Daily Average Revenue Trades (DARTs) on a sequential and year-over-year basis.

Total client DARTs for the month were 1,798,000, declining 7% from the August 2023 level and 8% year over year.

Cleared client DARTs for the month were 1,614,000, which decreased 7% from August 2023 and 8% from September 2022. On an annualized basis, IBKR recorded a Cleared Average DARTs per customer account of 168. The metric declined 9% sequentially and 24% from the prior-year period.

IBKR’s total customer accounts rose 3% from the prior month and 21% from September 2022 to 2.43 million. Net new accounts were 62,500, a surge of 48% from August 2023 and 157% from the prior-year period.

Interactive Brokers’ total options contracts were 75.5 million in September 2023, decreasing 17% from the prior month but growing 6% from the prior-year period. Futures contracts declined 8% on a sequential basis and 11% year over year to 17 million.

At the end of September 2023, client equity was $369.8 billion, which declined 2% sequentially but increased 29% year over year. Interactive Brokers recorded client credit balances of $98 billion, down 3% from the August 2023 level and rising 3% from September 2022. The company's customer margin loan balance of $43.6 billion increased 4% from the previous month and 8% year over year.

So far this year, shares of Interactive Brokers have rallied 18.4% against the industry’s 10.5% fall.

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IBKR currently carries a Zacks Rank #3 (Hold).

Two other brokerage firms, Charles Schwab SCHW and LPL Financial Holdings Inc. LPLA, will come out with the monthly performance metrics along with third-quarter 2023 results.

At present, both Schwab and LPL Financial carry a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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