Interactive Brokers Recorded A 24% Annual Increase in Darts to 2.44 Million
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Brokerage firm Interactive Brokers posted 2.44 million daily average revenue trades (DARTs) in February 2024, which is a notable increase from the 2.2 million recorded in January.
During the same month, the broker added 680,000 new accounts. This increase brought the total number of client accounts to 2.69 million, representing a 24% increase compared to the previous year. The growth in user accounts was also a 2% increase compared to January 2024.
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Interactive Brokers Posted Solid Numbers in February 2024
Interactive Brokers appears to have had a strong start to the year, and as the first quarter comes to an end, the brokerage firm is expected to continue posting solid numbers.
Interactive Brokers adds 680k accounts, daily trades hit two-year high –
Interactive Brokers LLC (NASDAQ: IBKR) recorded 2.44 million daily average revenue trades (DARTs) in February 2024, marking a notable increase from the 2.2 million transactions observed in the previous … pic.twitter.com/pFVR4fHOvX— The Industry Spread (@industryspread) March 4, 2024
The 2.44 million DARTs posted in February 2024 marked the highest metric by the brokerage company in two years. These DARTS were an 11% monthly increase and a 15% yearly increase. Stakeholders are waiting to see whether a similar trend will be seen in March. The annualized cleared DARTs per client account also averaged 206.
On the other hand, the equity balance in customer accounts during the month reached 448.2 billion, representing a 36% increase from the previous year. The balance was also a 6% increase from January 2024.
The ending client margin loan balances during the month came to $47.4 billion, representing a 31% increase from the previous year and a 7% monthly increase. Client credit balances also increased by 3% annually to reach $102.9 billion by the end of February 2024.
Low Fees Drive High Client Numbers
Interactive Brokers revealed that it charged clients an average commission fee of $3.03 per order in February, which is among the lowest in the market. The firm’s fees come from exchange, clearing, and regulatory activities.
Stocks have the lowest fee, with Interactive Brokers charging an average commission of $1.81 per order. Equity options also charge a fee of $4.01, while futures have a fee of around $4.59. Futures account for 56% of the total commissions collected by the broker.
Developments Around Interactive Brokers
Interactive Brokers has been making an effort to expand its presence in the finance industry. In November last year, it secured a license to expand into the cryptocurrency industry. Its expansion into this industry comes as more traditional financial firms seek to offer crypto-based products in an attempt to tap into this fast-growing market.
Interactive Brokers has become a hub for crypto activities because of its low-fee policy. The broker offers low fees to professional investors in Hong Kong looking to diversify their portfolio with crypto.
While launching its crypto services in Hong Kong, the broker announced an early-access waitlist for eligible clients with more than HKD 8 million in assets. The waitlist was also open to institutions with more than HKD 40 million in assets.
Interactive Brokers supports the trading of multiple assets including cryptocurrencies, stocks, options, futures, bonds, mutual funds, and exchange-traded funds (ETFs).
