Interactive Brokers registers 19% M/M drop in daily trades in March 2021
Electronic trading major Interactive Brokers Group, Inc. (NASDAQ:IBKR) has just reported its key operating metrics for March 2021, with subsiding market volatility apparently having an effect on trading activity.
Interactive Brokers registered 2,998,000 Daily Average Revenue Trades (DARTs) in March 2021, 53% higher than in March 2020 and 19% lower than in February 2021. Let’s note that the month-on-month drop is not surprising given that the start of February was marked by extremely high market volatility that led to record trading volumes.
Ending client equity amounted to $330.6 billion in March 2021, 106% higher than prior year and about even with prior month, whereas ending client margin loan balances amounted to $42.2 billion, 113% higher than prior year and about even with prior month.
The number of client accounts reached 1,325,000, 74% higher than prior year and 5% higher than prior month. The average commission per cleared Commissionable Order was $2.22 including exchange, clearing and regulatory fees.
Interactive Brokers has yet to report its financial results for the first quarter of 2021. The latest financial performance metrics it has filed are for the fourth quarter of 2020. In the final three months of 2020, Interactive Brokers reported net revenues of $599 million and income before income taxes of $392 million, compared to net revenues of $500 million and income before income taxes of $312 million for the equivalent period in 2019.
Adjusted net revenues were $582 million and adjusted income before income taxes was $375 million for the final quarter of 2020, compared to adjusted net revenues of $503 million and adjusted income before income taxes of $315 million for the same period in 2019.
Net interest income decreased $62 million, or 22%, from the year-ago quarter as the average Federal Funds effective rate decreased to 0.09% from 1.65% in the year-ago quarter.