GREENWICH, Connecticut – Interactive Brokers (NASDAQ:) Group, Inc. (NASDAQ:IBKR), the $75.46 billion market cap global automated electronic brokerage, released its monthly electronic brokerage data for December, revealing significant year-over-year growth in client capital and trading activity. The company’s strong performance is reflected in an impressive return of 110.24% over the past year, according to InvestingPro data.
The company reported Daily Average Trading Revenues (DARTs) of 3.267 million for the month, which represents a 66% increase compared to the previous year, although it was down slightly by 1% from the previous month. Client equity ended at $568.2 billion, a notable 33% year-over-year increase, with a marginal 1% decline from November. This growth is aligned with the company’s solid financial health, earning it an “EXCELLENT” overall rating InvestingProwhich offers detailed analysis through its comprehensive Pro Research Report.
The balance of margin loans to customers closed the month at $64.2 billion, up 45% year over year and showing a 7% increase over the previous month. Meanwhile, customer credit balances, including measures of insured bank deposits, reached $119.7 billion, up 15% from last year and up 1% from the previous month.
The brokerage also saw an expansion in its client base, with the number of client accounts reaching 3.34 million, up 30% year-over-year and 3% over November. In addition, the annual average of approved DARTs per customer account was 219. This growth contributed to the company’s strong revenue growth of 16.66% and an impressive gross profit margin of 90.43%.
Average commissions per approved commission order included $1.84 for stocks, $3.82 for stock options and $4.56 for futures, with estimates of future commissions including exchange, clearing and regulatory fees of approximately 57%.
Other financial highlights for Interactive Brokers included market gains on the US Treasury portfolio of $0.3 million for the quarter and $1.8 million for the year ended Dec. 31. The company’s currency diversification strategy, measured in GLOBALs, a basket of 10 major currencies, saw a decline of 0.58% in December and 1.45% for the year.
The cost of executing a trade for IBKR PRO clients is detailed, with the average total cost of trading US Reg.-NMS shares over the past twelve months at approximately 4.1 basis points, relative to the daily VWAP benchmark.
This performance report is based on a press release from Interactive Brokers Group, which is known for its technological approach to brokerage services, serving individual investors, hedge funds and other trading professionals through a sophisticated platform.
Interactive Brokers is not only recognized for its trading platform, but also for its efforts to provide cost-effective trade execution, comprehensive risk and portfolio management tools, and a wide range of investment products. The company has maintained dividend payments for 15 consecutive years, demonstrating consistent returns to shareholders. For more detailed insights and analysis, including additional ProTips and financial metrics, visit InvestingPro.
In other recent news, Interactive Brokers Group is making significant strides in financial results and technological advancements. The company reported strong results in the third quarter of 2024, with record growth in customer accounts, equity and revenue. Specifically, it added 196,000 new accounts and saw a 46% increase in client capital, reaching $541.5 billion. Both commission income and net interest income reached new highs at $435 million and $802 million, respectively.
Interactive Brokers is also improving its technology offering. The company has upgraded its IBKR Desktop trading platform, introducing easy-to-use features such as the Options Wizard and customizable option chains. The company has also introduced AI-generated news summaries for its clients, aiming to streamline the process of updating market-relevant information.
Furthermore, Interactive Brokers has updated its Advisor Portal, providing clients with sophisticated investment portfolio management tools. Notably, the AI Commentary Generator has been added for US-based advisors, a tool that helps create customized portfolio performance reports and market commentary.
Despite his cautious attitude toward cryptocurrencies, Interactive Brokers founder Thomas Peterffy suggested that investors allocate a small portion of their net worth to . The company recognized the growing interest in digital currencies and started offering cryptocurrency trading in 2021. These are recent developments from Interactive Brokers Group.
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