Interactive Brokers Group's December 2024 Financial Highlights

Interactive Brokers Group December Performance Overview

Interactive Brokers Group, Inc. (NASDAQ: IBKR), a leading global electronic broker, recently released its performance metrics for December 2024. This report underscores a strong month, showcasing significant growth across various metrics. The increase in daily average revenue trades highlights both growing client engagement and a solid market presence.

Brokerage Highlights

For the month of December, Interactive Brokers Group delivered impressive brokerage results that feature several key highlights:

• Daily Average Revenue Trades (DARTs) reached 3.267 million, reflecting a 66% increase when compared to the previous year, though slightly down by 1% from the prior month.
• The total ending client equity stood at $568.2 billion, indicating a 33% year-over-year growth and a minor decline of 1% compared to November.
• There was a notable rise in client margin loan balances, which elevated to $64.2 billion, marking a 45% increase year-on-year and a 7% rise month-over-month.
• Ending client credit balances were reported at $119.7 billion, which includes $4.9 billion in insured bank deposit sweeps—this signifies a 15% growth year-on-year and up by 1% month-on-month.
• The number of client accounts soared to 3.34 million, reflecting a 30% increase from December of the previous year and a rise of 3% from November.
• On average, each client account had 219 DARTs annually.
• The average commission per cleared Commissionable Order was $2.58, inclusive of exchange, clearing, and regulatory fees.

Product Breakdown

The performance metrics also provide insight into specific product categories:

• Average Order Size for Stocks was noted at 862 shares, generating an average commission of $1.84.
• For Equity Options, the average size of trades was 6.6 contracts, with commissions averaging $3.82.
• In the Futures category, the average size of trades was 3.1 contracts, securing an average commission of $4.56.

It is important to recognize that Futures include options on those contracts, with an estimation that exchange, clearing, and regulatory fees account for approximately 57% of the total futures commissions.

Financial Overview

Other significant financial metrics for Interactive Brokers Group centered around mark-to-market adjustments on its U.S. government securities portfolio, with a reported gain of $0.3 million for the quarter and $1.8 million for the fiscal year ending the last day of December.

Insights on Trading Expenses

The report details trading expenses, revealing that the average all-in cost of trade execution for IBKR PRO clients on U.S. Reg-NMS stocks was approximately 5.7 basis points. This aligns with a competitive benchmark against the daily VWAP observed over the prior twelve months, which averaged 4.1 basis points.

About Interactive Brokers Group, Inc.

Interactive Brokers Group provides automated trade execution and custody across multiple financial instruments, including securities, commodities, and foreign exchange. Serving various client types—from individual investors to institutional hedge funds—Interactive Brokers combines over four decades of innovation in technology to empower clients with sophisticated trading and portfolio management platforms.

Frequently Asked Questions

What are the key financial metrics reported by Interactive Brokers for December 2024?

Key metrics include 3.267 million DARTs, ending client equity of $568.2 billion, and client margin loan balances of $64.2 billion.

How does the December 2024 performance compare to the previous year?

There's been a significant increase, with DARTs up 66%, client equity up 33%, and a 45% increase in margin loan balances compared to December 2023.

What was the average commission per cleared order in December 2024?

The average commission per cleared Commissionable Order was $2.58.

How many client accounts did Interactive Brokers have in December 2024?

The firm reported having 3.34 million client accounts.

What is the average cost of trade execution for IBKR PRO clients?

The average all-in cost was about 5.7 basis points, ranking competitively against the market.

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Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.