Both TD Ameritrade (AMTD) and Interactive Brokers (IBKR) reported monthly metrics for May this week. The monthly metrics give us a chance to get a look inside the company and view the all-important Daily Average Revenue Trade (DART) figures. Over the past few quarters DARTs have been consistently down, which has really put a damper on online brokers and their ability to grow their earnings. In April, there were small signs of this possibly improving a bit throughout the industry.
The May monthly metrics from TD Ameritrade and Interactive Brokers can’t be viewed as anything other than great news for the online broker industry. TD Ameritrade reported 413,000 DARTs per day in May. That number was up nine percent from last month and 12 percent from the same period a year ago. Interactive Brokers reported DARTs of 509,000 in the month of May. That was up six percent from last month and 13 percent from a year ago.
It wasn’t just the DARTs that were upbeat for these two major online brokers. For the period ended in May 2013, Interactive Brokers customer equity grew to $37.9 billion, which is a big 37% gain year over year. TD Ameritrade reported $530.9 billion in client assets, which was up 23 percent from a year ago.
As volatility in the markets have increased over the past few weeks, it seems retail investors have been getting more involved in the market. That is definitely good news for the online brokers. Stockbrokers.com will continue to monitor this to see if this trend continues.