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.

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.

View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research