Interactive Brokers’ DARTs dropped by 21% compared to last year
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
One of the leading US trading platforms, Interactive Brokers, recently published the platform’s metrics for December 2022. The figures show a significant drop when it comes to the Daily Average Revenue Trades (DARTs). DARTs came in at 1.751 million, which is a 10% drop from November 2022, and a 21% drop compared to December 2021.
The rest of the report also showed declines on a monthly and annual basis alike, in many areas. For example, the client equity ended up being $306.7 billion. While a large figure, it is still 3% lower than what was seen in November and as much as 18% lower than in December 2021.
Another slip was reported in client margin loan balances. December 2022 figure reached $38.9 billion, which represents only a 1% slip from November, but a 29% slip from the year before.
One positive development that the report has recorded is a rise in the number of the platform’s client accounts. According to current figures, the client accounts count went up to 2.09 million, which represents a 25% increase compared to December 2021. On a monthly basis, the figure still went up, although only by 1%.
The company further reported that the annualized DARTs per client account was around 189, on average. Meanwhile, the commission per each cleared commissionable order had an average of $3.17. This includes exchange, clearing, as well as regulatory fees.
Interactive Brokers still saw good performance in 2022
Interestingly enough, the broker has seen fairly solid financial results for the year as a whole, despite seeing a DARTs decline for months now. A lot of it has to do with a successful Q3 2022, when the company’s revenue skyrocketed by 70%, hitting $790 million. The summer months, especially the period between July and September, left the company with a pre-tax income of $523 million. This represents a 123% increase on a Year-Over-Year basis. Similar percentage followed the diluted earnings for the quarter, which reached $0.97. This represents an increase of 125% on a YoY basis.
As a result, the broker has seen a net interest income increase of 73%, reaching $473 million. This was, of course, driven by the surging benchmark interest rates. At the same time, commission income increased to $320 million, going up by barely 3%.
Lastly, it is worth noting that Interactive Brokers made a decision to boost its presence in Europe, so it opened a new office in Dublin back in November 2022. The company’s first office in Ireland appeared in 2020. These days, Interactive Brokers employs over 110 people in the country.
