Interactive Brokers (IBKR) Reports Brokerage Metrics and Other Financial Information for January 2021, includes Reg.-NMS Execution Statistics

February 1, 2021 12:45 PM EST

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Interactive Brokers Group, Inc. (Nasdaq: IBKR) an automated global electronic broker, today reported its Electronic Brokerage monthly performance metrics for January.

Brokerage highlights for the month included:

  • 3,295 thousand Daily Average Revenue Trades (DARTs)1, 223% higher than prior year and 43% higher than prior month.
  • Ending client equity of $313.4 billion including $2.43B of client equity acquired from Folio Investments Inc., 78% higher than prior year and 9% higher than prior month.
  • Ending client margin loan balances of $40.8 billion, 49% higher than prior year and 5% higher than prior month.
  • Ending client credit balances of $82.7 billion, including $2.7 billion in insured bank deposit sweeps2, 40% higher than prior year and 6% higher than prior month.
  • 1,189 thousand client accounts, including 57 thousand new accounts acquired from Folio Investments Inc., 69% higher than prior year and 11% higher than prior month.
  • 656 annualized average cleared DARTs1 per client account.
  • Average commission per cleared Commissionable Order3 of $2.44 including exchange, clearing and regulatory fees. Key products:
January 2021 Average Commission per Average
Cleared Commissionable Order Order Size
Stocks

$1.92

2,326 shares
Equity Options

$3.68

6.7 contracts
Futures

$4.08

2.8 contracts

Futures include options on futures. We estimate exchange, clearing and regulatory fees to be 55% of the futures commissions.

Other financial information for Interactive Brokers Group:

  • GLOBAL4: The value of the GLOBAL, reported in U.S. dollars, decreased by 0.12% in January.

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

  • In January, IBKR PRO clients’ total cost of executing and clearing U.S. Reg.-NMS stocks through IB was about 3.5 basis points of trade money5, as measured against a daily VWAP6 benchmark (2.2 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
Feb '20Mar '20Apr '20May '20Jun '20Jul '20Aug '20Sep '20Oct '20Nov '20Dec '20Jan '2112 Months
#1a - Number of orders
Buys

4.36

8.15

7.22

6.61

8.47

7.75

7.19

8.12

7.86

9.77

11.49

15.46

102.45

Sells

3.43

6.37

5.64

5.12

6.60

5.95

5.53

6.09

6.01

7.61

8.25

11.33

77.93

Total

7.79

14.52

12.86

11.73

15.07

13.70

12.72

14.21

13.87

17.38

19.74

26.79

180.38

#1b - Number of shares purchased or sold
Shares bought

1,856

3,835

3,530

2,896

4,004

3,376

2,742

2,614

2,834

3,778

4,166

5,907

41,536

Shares sold

1,824

3,698

3,258

2,649

3,779

3,165

2,620

2,512

2,660

3,574

3,824

5,488

39,050

Total

3,679

7,533

6,787

5,544

7,784

6,541

5,361

5,126

5,493

7,352

7,990

11,395

80,585

#2 - Trade money including price, commissions and fees
2a Buy money

$94,581

$146,660

$121,940

$105,972

$131,186

$119,673

$109,579

$124,497

$110,098

$132,293

$136,858

$161,779

$1,495,117

2b Sell money

$94,073

$149,232

$118,489

$101,705

$126,528

$115,442

$105,936

$122,504

$107,298

$128,291

$130,548

$156,739

$1,456,786

2c Total

$188,654

$295,892

$240,429

$207,677

$257,713

$235,115

$215,515

$247,002

$217,396

$260,584

$267,406

$318,518

$2,951,902

#3 - Trade value at Daily VWAP
3a Buy value

$94,552

$146,684

$121,907

$105,961

$131,167

$119,639

$109,540

$124,425

$110,073

$132,284

$136,867

$161,613

$1,494,711

3b Sell value

$94,117

$149,238

$118,459

$101,741

$126,570

$115,479

$105,953

$122,523

$107,317

$128,297

$130,658

$156,683

$1,457,035

3c Total

$188,669

$295,921

$240,366

$207,702

$257,737

$235,117

$215,494

$246,947

$217,390

$260,581

$267,524

$318,296

$2,951,746

#4 - Total trade expense, including commissions and fees, relative to Daily VWAP
4a Buys (2a-3a)

$28.2

($23.5)

$33.5

$11.0

$18.6

$34.8

$39.0

$72.7

$25.5

$9.1

($9.2)

$166.5

$406.0

4b Sells (3b-2b)

$43.8

$5.2

($29.3)

$36.0

$42.7

$36.7

$17.8

$18.1

$19.1

$6.4

$109.1

($55.7)

$249.7

4c Total trade expense

$72.0

($18.3)

$4.2

$47.0

$61.2

$71.5

$56.8

$90.8

$44.5

$15.5

$99.9

$110.8

$655.7

Trade expense as percentage of trade money
4c/2c

0.038%

-0.006%

0.002%

0.023%

0.023%

0.030%

0.026%

0.037%

0.020%

0.006%

0.037%

0.035%

0.022%

#5 - Trade expense categories
5a Total commissions & fees

$16.7

$31.9

$27.8

$24.2

$31.8

$26.8

$23.3

$23.8

$23.9

$29.3

$33.1

$45.8

$338.4

5b Execution cost (4c-5a)

$55.3

($50.2)

($23.6)

$22.8

$29.4

$44.6

$33.5

$67.0

$20.6

($13.9)

$66.8

$64.9

$317.2

#6 - Trade expense categories as percentage of trade money
Total commissions & fees (5a/2c)

0.009%

0.011%

0.012%

0.012%

0.012%

0.011%

0.011%

0.010%

0.011%

0.011%

0.012%

0.015%

0.011%

Execution cost (5b/2c)

0.029%

-0.017%

-0.010%

0.011%

0.011%

0.019%

0.015%

0.027%

0.009%

-0.005%

0.025%

0.020%

0.011%

Net Expense to IB Clients

0.038%

-0.006%

0.002%

0.023%

0.023%

0.030%

0.026%

0.037%

0.020%

0.006%

0.037%

0.035%

0.022%

The above illustrates that the rolling twelve months’ average all-in cost of an IBKR PRO client U.S. Reg.-NMS stock trade was 2.2 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.



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