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How Do Interactive Brokers Group’s June Metrics Look?

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DARTs rose month-over-month

Interactive Brokers Group (IBKR) reported its financial metrics for June 2018 on July 2. The company reported daily average revenue trades (or DARTs) of 799,000 in June, a month-over-month rise of 2% and a YoY rise of 17%. The impact on markets at the end of June from Trump’s decision to restrict China from investing in US technology stocks could be the main reason for the month-over-month rise in the company’s DARTs. These global factors can prompt investors to reshuffle their portfolio holdings.

The June 2018 DARTs of other brokerage companies (VFH) like E*TRADE (ETFC), TD Ameritrade Holding (AMTD), and Charles Schwab (SCHW) are also expected to rise as compared to May 2018 primarily because of Trump’s announcement.

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What could drive performance?  

President Trump’s decision to restrict Chinese investment suggests that the trade tensions between the two countries could rise moving forward. China is expected to take measures against this move. These events might create a global downturn, which could lead to volatile equity markets. The higher volatility could lead to higher trading volumes for brokerages.

In June 2018, Interactive Brokers Group had a client margin loan balance amounting to $28.8 billion, which represents a fall of 7% month-over-month and 27% year-over-year. The company had client credit balances amounting to $47.6 billion at the end of June 2018, which implies a month-over-month rise of 2% and a YoY rise of 4%.

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