March marked another strong month for Interactive Brokers as daily trading activity surged and client accounts continued to grow. During this period, the electronic brokerage firm reported a 44% year-over-year increase in Daily Average Revenue Trades (DARTs).

Despite a slight month-over-month dip, the firm’s overall client equity and margin loan balances remained at elevated levels, reflecting strong market engagement.

The number of active trading clients showed mixed performance. Interactive Brokers processed 3.471 million DARTs, up significantly from the previous year but 4% lower than in February. The firm ended the month with 3.62 million client accounts, a 32% annual increase, with net account additions of 87,700.

Trading Volume Climbs While Monthly Activity Slips

However, 13,300 accounts were escheated to governmental authorities as required by law, reducing the calculated growth to 74,400 accounts. Total client equity reached $573.5 billion, up 23% from the previous year but slightly lower than the previous month’s figures.

Margin loan balances stood at $63.7 billion, reflecting a 24% increase year over year and little change from February. Credit balances, including insured bank deposit sweeps, rose to $125.2 billion, marking a 19% annual gain and a slight increase from the prior month.

Interactive Brokers’ average commission per cleared commissionable order stood at $2.85, factoring in exchange, clearing, and regulatory fees. The cost per trade varied by product type, with stocks averaging $2.17 per order, equity options at $3.89, and futures at $3.9.

Commissions and Trading Costs

The firm noted that exchange, clearing, and regulatory fees made up 57% of futures trading costs. Interactive Brokers disclosed that its IBKR PRO clients faced an all-in execution cost of approximately 3.3 basis points for U.S. Reg-NMS stock trades in March.

The firm’s U.S. government securities portfolio posted a mark-to-market gain of $462,000 for the quarter ending March 31. Additionally, the value of the GLOBAL metric, reported in U.S. dollars, increased by 0.61% in March and 0.75% for the quarter.

Expect ongoing updates as this story evolves.

Source: Finance Magnates