Interactive Brokers (IBKR) has reported financial results for this year’s third quarter that beat Wall Street’s forecasts.
The brokerage announced earnings per share (EPS) of $0.69 U.S., which topped the $0.67 U.S. consensus estimate among analysts.
The firm’s revenue for the July through September quarter totaled $1.91 billion U.S., which was ahead of the $1.86 billion U.S. forecast on Wall Street.
Like other brokerage firms, Interactive Brokers has benefited this year from strong trading activity among investors as the stock market rose to all-time highs.
Customer accounts increased 35% year-over-year in the third quarter to 5.58 million. Total daily average trades on its platform increased 18% to 4.27 million.
Additionally, margin loans at Interactive Brokers increased 36% to $105.2 billion U.S. When customers use margin, they are borrowing money from their brokerage to buy stocks.
Despite the strong headline numbers, there are signs of a slowdown at Interactive Brokers.
Customer trading in stocks was actually down 24% year-over-year in the third quarter while trading in options contracts decreased 1%, said Interactive Brokers.
Since the end of August, markets have grown more volatile as crude oil prices and yields on government bonds have risen, pressuring stocks.
IBKR stock has gained 25% over the past year to trade at $86.03 U.S. per share.
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