Ameritrade’s Interest Earning Assets Continue Growth Momentum In August
TD Ameritrade (NASDAQ:AMTD) saw growth in most of its key monthly metrics in August, largely driven by a surge in interest earning assets (+12% y-o-y) and assets under management (+8% y-o-y). Furthermore, the brokerage firm has continued to witness steady growth in new brokerage accounts(+5% y-o-y) on the back of competitive pricing on brokerage fees and trading commissions, while keeping its minimum account balance requirements at reasonable levels. However, a slowdown in the Chinese economy in 2015 had given a major boost to trading volumes in August; this tough comparison resulted in daily average revenue trades (DARTS) seeing a 21% slump in their volumes in the same month this year.
In the wake of the digital advisory platform launched by Ameritrade in alliance with Riskalyze and Adhesion Wealth, we expect a significant rise in the brokerage’s assets under management.
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Additionally, a probable interest rate hike by the Fed in the near future is also likely to boost the brokerage’s interest earning assets.
Please refer to our complete analysis for Ameritrade.
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