Interactive Brokers Group, Inc. (NASDAQ:IBKR) an automated global electronic broker, today reported its Electronic Brokerage monthly performance metrics for May.
Brokerage highlights for the month included:
- 1.860 million Daily Average Revenue Trades (DARTs)1, 19% lower than prior year and 5% higher than prior month.
- Ending client equity of $345.1 billion, 10% higher than prior year and 1% higher than prior month.
- Ending client margin loan balances of $39.8 billion, 10% lower than prior year and 1% higher than prior month.
- Ending client credit balances of $98.7 billion, including $2.9 billion in insured bank deposit sweeps2, 8% higher than prior year and 1% lower than prior month.
- 2.26 million client accounts, 19% higher than prior year and 2% higher than prior month.
- 186 annualized average cleared DARTs1 per client account.
- Average commission per cleared Commissionable Order3 of $3.08 including exchange, clearing and regulatory fees. Key products:
| May 2023 |
Average |
Average Commission per |
|
|
Order Size |
Cleared Commissionable Order |
||
| Stocks | 1,013 shares |
$1.95 |
|
| Equity Options | 6.6 contracts |
$4.43 |
|
| Futures | 3.3 contracts |
$4.36 |
Futures include options on futures. We estimate exchange, clearing and regulatory fees to be 57% of the futures commissions.
Other financial information for Interactive Brokers Group:
- GLOBAL4: The value of the GLOBAL, reported in U.S. dollars, decreased by 0.53% in May.
In the interest of transparency, we quantify our IBKR PRO clients’ all-in cost of trade execution below.
For the full multimedia release with graph see link:
https://www.interactivebrokers.com/MonthlyMetrics
- Average U.S. Reg-NMS stock trade was $21,017 in May (dividing 2c by 1a in table below).
- In May, IBKR PRO clients’ total cost of executing and clearing U.S. Reg.-NMS stocks through IB was about 3.1 basis points of trade money5, as measured against a daily VWAP6 benchmark (2.0 basis points net cost for the rolling twelve months).
| IBKR PRO Clients’ Reg.-NMS Stock Trading Expense Detail | |||||||||||||
| All amounts are in millions, except % | |||||||||||||
| Previous | |||||||||||||
| Jun ’22 | Jul ’22 | Aug ’22 | Sep ’22 | Oct ’22 | Nov ’22 | Dec ’22 | Jan ’23 | Feb ’23 | Mar ’23 | Apr ’23 | May ’23 | 12 Months | |
| #1a – Number of orders | |||||||||||||
| Buys |
6.78 |
5.66 |
7.28 |
6.29 |
6.26 |
6.10 |
5.76 |
5.97 |
6.37 |
7.28 |
4.99 |
6.13 |
74.87 |
| Sells |
5.20 |
4.43 |
5.72 |
4.60 |
4.77 |
4.76 |
4.23 |
4.65 |
4.79 |
5.37 |
3.72 |
4.66 |
56.90 |
| Total |
11.98 |
10.09 |
13.00 |
10.89 |
11.03 |
10.86 |
9.99 |
10.62 |
11.16 |
12.65 |
8.71 |
10.79 |
131.77 |
| #1b – Number of shares purchased or sold | |||||||||||||
| Shares bought |
2,983 |
2,554 |
3,123 |
2,625 |
2,726 |
2,803 |
2,704 |
2,904 |
2,857 |
3,399 |
2,336 |
2,706 |
33,721 |
| Shares sold |
2,884 |
2,447 |
3,031 |
2,532 |
2,632 |
2,681 |
2,522 |
2,768 |
2,711 |
3,180 |
2,158 |
2,606 |
32,152 |
| Total |
5,867 |
5,001 |
6,154 |
5,157 |
5,358 |
5,484 |
5,226 |
5,672 |
5,567 |
6,579 |
4,495 |
5,313 |
65,873 |
| #2 – Trade money including price, commissions and fees | |||||||||||||
| 2a Buy money |
$123,938 |
$107,963 |
$121,655 |
$111,851 |
$117,260 |
$116,590 |
$99,937 |
$109,220 |
$122,485 |
$139,588 |
$90,813 |
$114,892 |
$1,376,191 |
| 2b Sell money |
$125,425 |
$106,681 |
$122,556 |
$112,867 |
$117,092 |
$115,319 |
$100,639 |
$108,135 |
$121,850 |
$136,889 |
$91,534 |
$111,882 |
$1,370,867 |
| 2c Total |
$249,362 |
$214,644 |
$244,211 |
$224,718 |
$234,352 |
$231,909 |
$200,576 |
$217,356 |
$244,335 |
$276,476 |
$182,346 |
$226,774 |
$2,747,058 |
| #3 – Trade value at Daily VWAP | |||||||||||||
| 3a Buy value |
$123,875 |
$107,993 |
$121,639 |
$111,806 |
$117,318 |
$116,603 |
$99,874 |
$109,252 |
$122,425 |
$139,592 |
$90,785 |
$114,824 |
$1,375,987 |
| 3b Sell value |
$125,409 |
$106,747 |
$122,590 |
$112,874 |
$117,179 |
$115,399 |
$100,608 |
$108,207 |
$121,878 |
$136,917 |
$91,534 |
$111,883 |
$1,371,224 |
| 3c Total |
$249,284 |
$214,740 |
$244,229 |
$224,680 |
$234,497 |
$232,003 |
$200,481 |
$217,459 |
$244,303 |
$276,509 |
$182,319 |
$226,707 |
$2,747,211 |
| #4 – Total trade expense, including commissions and fees, relative to Daily VWAP | |||||||||||||
| 4a Buys (2a-3a) |
$62.8 |
($30.1) |
$15.6 |
$44.4 |
($58.5) |
($13.5) |
$63.6 |
($31.6) |
$60.2 |
($4.6) |
$27.5 |
$68.3 |
$203.9 |
| 4b Sells (3b-2b) |
($15.7) |
$66.0 |
$33.5 |
$6.8 |
$86.8 |
$80.4 |
($31.3) |
$72.2 |
$28.0 |
$28.4 |
($0.0) |
$1.4 |
$356.4 |
| 4c Total trade expense |
$47.1 |
$35.9 |
$49.1 |
$51.2 |
$28.3 |
$66.9 |
$32.3 |
$40.6 |
$88.2 |
$23.8 |
$27.4 |
$69.7 |
$560.3 |
| Trade expense as percentage of trade money | |||||||||||||
| 4c/2c |
0.019% |
0.017% |
0.020% |
0.023% |
0.012% |
0.029% |
0.016% |
0.019% |
0.036% |
0.009% |
0.015% |
0.031% |
0.020% |
| #5 – Trade expense categories | |||||||||||||
| 5a Total commissions & fees |
$27.3 |
$23.2 |
$28.7 |
$24.5 |
$25.3 |
$25.6 |
$23.8 |
$25.6 |
$25.8 |
$28.4 |
$19.2 |
$23.4 |
$300.8 |
| 5b Execution cost (4c-5a) |
$19.8 |
$12.7 |
$20.4 |
$26.7 |
$3.0 |
$41.2 |
$8.5 |
$15.1 |
$62.4 |
($4.7) |
$8.2 |
$46.3 |
$259.6 |
| #6 – Trade expense categories as percentage of trade money | |||||||||||||
| Total commissions & fees (5a/2c) |
0.011% |
0.011% |
0.012% |
0.011% |
0.011% |
0.011% |
0.012% |
0.012% |
0.010% |
0.011% |
0.011% |
0.011% |
0.011% |
| Execution cost (5b/2c) |
0.008% |
0.006% |
0.008% |
0.012% |
0.001% |
0.018% |
0.004% |
0.007% |
0.026% |
-0.002% |
0.004% |
0.020% |
0.009% |
| Net Expense to IB Clients |
0.019% |
0.017% |
0.020% |
0.023% |
0.012% |
0.029% |
0.016% |
0.019% |
0.036% |
0.009% |
0.015% |
0.031% |
0.020% |
The above illustrates that the rolling twelve months’ average all-in cost of an IBKR PRO client U.S. Reg.-NMS stock trade was 2.0 basis points.
________________
Note 1: Daily Average Revenue Trades (DARTs) – customer orders divided by the number of trading days in the period.
Note 2: FDIC insured client bank deposit sweep program balances with participating banks. These deposits are not reported in the Company’s statement of financial condition.
Note 3: Commissionable Order – a customer order that generates commissions.
Note 4: In connection with our currency diversification strategy, we have determined to base our net worth in GLOBALs, a basket of 10 major currencies in which we hold our equity. The total effect of the currency diversification strategy is reported in Comprehensive Income and the components are reported in (1) Other Income and (2) Other Comprehensive Income (“OCI”) on the balance sheet. The effect of the GLOBAL on our comprehensive income can be estimated by multiplying the total equity for the period by the change in the U.S. dollar value of the GLOBAL during the same period.
Note 5: Trade money is the total amount of money clients spent or received, including all commissions and fees.
Note 6: Consistent with the clients’ trading activity, the computed VWAP benchmark includes extended trading hours.
_________________
More information, including historical results for each of the above metrics, can be found on the investor relations page of the Company’s corporate web site, www.interactivebrokers.com/ir.
