Interactive Brokers experiences 10% slowdown in May, share price drops 0.48%

Interactive Brokers (NASDAQ:IBKR) yesterday released its monthly trading metrics for the month of May 2014.

One of the retail FX stalwarts of North America, Interactive Brokers has weathered not only the storm of extremely high operating costs due to regulatory overhauls and the requirement for high net capital adequacy, but also this year’s slow start to the year, from which Interactive Brokers has been relatively immune.

LeapRate recently reported that Interactive Brokers’ first quarter earnings for this year had demonstrated a return to form, but with evidence that a slight change in fortune may materialize, and May’s metrics bear that out.

May’s metrics demonstrate a different picture however, as daily average revenue trades (DARTS) dropped by approximately 10% from 576,000 in April to 518,000 in May, despite an increas in total accounts from 255,600 to 258,900.

Interactive Brokers continues to provide margin loan facilities to clients in North America, having ceased to do so in Australia last year due to the requirement to possess a specific license to offer such a facility in Australia. On this basis, Interactive Brokers’ total margin loan amount has remained steady since the beginning of this year, standing at $14.8 billion in May compared with $14.7 billion in April.

Client equity increased in May from $49.4 billion to $51 billion.

At close of business yesterday, the company’s share price decreased by 0.48% following the announcement of the volume figures for May.


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