uploads///etfc

E*TRADE Financial’s Daily Average Revenue Trades Rose in May

By

Jun. 15 2018, Updated 8:05 a.m. ET

What to look for in Q2 2018

After lower volatility in April, the markets were again volatile in May, which boosted brokerages’ (VFH) daily average revenue trades (or DARTs). Overall, volatility was lower sequentially in the second quarter, hinting that brokerages’ trading revenues might fall. The primary factors that reduced volatility in the second quarter were corporate earnings, improvement in employment, and settling geopolitical tensions.

Article continues below advertisement

Brokerages will likely benefit in 2018 from interest income. The Federal Reserve indicated at its June meeting that we could see a total of four interest rate hikes this year. The macro variables are supporting the US economy, and the jobs report indicated that the unemployment levels are low. The Federal Reserve is optimistic about the US economy.

E*TRADE Financial’s May numbers

On June 14, E*TRADE Financial (ETFC) reported its May numbers. The company saw DARTs of 253,649 in May, which reflects a rise of 1% month-over-month and 20% on a YoY basis. Of the total DARTs in May, 34% were derivatives DARTs. At the end of May, the company had around 3.9 million brokerage accounts, a 1% rise month-over-month and a 9% rise year-over-year.

E*TRADE’s net new customer assets amounted to $1.5 billion at the end of May. $1.4 billion of this was net new brokerage assets and $0.1 billion was net new banking assets. Interactive Brokers Group (IBKR), a competitor, reported DARTs of 780,000 in May. E*TRADE Financial, Interactive Brokers, TD Ameritrade Holding (AMTD), and Charles Schwab (SCHW) form 0.39% of the Vanguard Total Stock Market ETF (VTI).

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.