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TD Ameritrade’s Daily Client Trades Rise 19% Y/Y in August


TD Ameritrade Holding Corporation AMTD, Omaha, NE-based online brokerage firm, reported average client trades per day of 504,000 in its activity report for August 2017. Though the reported figure is down 2% from the prior-month tally it increased 19% from the year-ago period.

Broker performance is generally measured through monthly average client trades per day. This represents the number of trades from which brokers earn commissions or fees.

As of Aug 31, 2017, TD Ameritrade reported $909.4 billion in total client assets, up 1% from the prior month and 19% year over year. Average fee-based balances were $197.6 billion, up 1% from the prior month and 16% from the prior-year period. Average spread-based balance of $116.8 billion remained flat sequentially and increased 5% year over year.

Improved Quarterly Performance

During third-quarter fiscal 2017 (ended Jun 30, 2017), average client trades per day increased 10.5% year over year to 510,358.

As of Jun 30, 2017, net new client assets totaled $22 billion, up 61.8% year over year. Total client assets came in at $882.4 billion, up 19.8%.

Average spread-based balance came in at $117.8 billion, jumping 11% year over year. Average fee-based investment balance was up 17% to $189.7 billion.

TD Ameritrade Poised for Growth

Innovations in online trading along with delivery of advanced customer service are TD Ameritrade’s key strategies that have strengthened its trading and investing business.

Further, the company’s association with The Toronto-Dominion Bank TD provides an opportunity to cross sell its products. This is anticipated to significantly drive organic growth. Also, its deal in October 2016, to acquire Scottrade, is likely to be accretive to earnings per share in double digits, post conversion. This deal is also projected to drive annual expense savings of $450 million, with additional $300 million of savings, over the long run.

Shares of TD Ameritrade have gained 1.5% year to date versus 1% decline for the industry it belongs to.

At present, TD Ameritrade carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other investment brokers, Interactive Brokers Group, Inc.’s IBKR Electronic Brokerage segment reported a year-over-year increase in Daily Average Revenue Trades (DARTs) for August 2017. Total client DARTs were 696,000, up 21% from August 2016. DARTs were relatively stable

sequentially. Also, total customer accounts increased 23% year over year and 3% from the prior month to 448,900.

The Charles Schwab Corporation SCHW is expected to report its monthly metrics later this week.

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