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Omaha, NE-based online brokerage firm TD Ameritrade Holding Corporation AMTD came out with its average client trades per day of 537,000 in its activity report for August 2015. This jumped 18% from the prior month and 41% compared with the prior-year period.

Broker performance is generally measured through monthly average client trades per day. This represents the number of trades from which brokers earn commissions or fees.

As of Aug 31, 2015, TD Ameritrade reported $679.1 billion in total client assets, down 4% from the prior month while it was up 2% year over year. Further, average spread-based balance of $99.3 was up 1% from the prior month and 6% year over year. Additionally, average fee-based balances were $157.6 million, down 2% from the prior month while it was up 10% year over year.

Quarterly Performance

Average client trades per day in fiscal third-quarter 2015 increased 8% year over year to 433,759. Though net new client assets totaled $11.7 billion, down 12.7% year over year, total client assets increased 8% year over year to $702.3 billion.

Moreover, average spread-based balance was $95.3 billion, increasing 4.5% year over year, while average fee-based investment balance increased 16.5% to $161.3 billion.

Our Viewpoint

With gradually improving investors’ confidence, firms like TD Ameritrade are expected to benefit. Also, the broader trend in the investment brokerage industry should help drive growth.

Innovations in online trading, long-term investment in products and services, delivery of advanced customer services, creative as well as cost-effective marketing and sales, along with prudent expense management are TD Ameritrade’s key strategies to boost its trading and investing business.

Further, the company’s association with The Toronto-Dominion Bank TD provides an opportunity to cross sell its products. This is expected to significantly drive organic growth.

Amid a volatile operating environment, TD Ameritrade witnessed a continuous rise in trading volumes, which bode well going forward. However, we remain cautious as a continuous rise in expenses, a low interest rate environment and stringent regulations may weigh on the company’s financials in the upcoming quarters.

At present, TD Ameritrade carries a Zacks Rank #3 (Hold).

Among other investment brokers, Interactive Brokers Group, Inc.’s IBKR Electronic Brokerage segment reported a year-over-year improvement in its brokerage metrics for August 2015. Total client DARTs were 737,000, increasing 49% from August 2014 and 13% from July 2015. Further, total customer accounts were 317,400; up 18% from the prior-year month and 1% from the preceding month.

The Charles Schwab Corporation SCHW is expected to report its monthly metrics early next week.