Trading volumes ease at TradeStation, but it won more clients

abdelaziz Fathi

Trading activity at TradeStation Group lost momentum in January 2022 with volumes easing on a year-on year basis following strong gains in the previous year.

According to the investor update published by Monex Group’s subsidiary, the number of daily average revenue trades (DARTs), a standard industry metric, were 239,227 last month. This figure was 12.4% lower than January 2022, a sign that trades continue to meaningfully deaccelerate despite the pandemic volatility over the winter.

TradeStation, however, had won more clients in January, having added 21,052 gross new accounts, up 218.2% than the prior year. This had propelled its active accounts base up to 195,969, 44.7% higher than it was in January 2021.

The company’s total client assets were around $11.5 billion (up 17% YoY), while their cash balances grew to $3.0 billion (up 6% YoY).

TradeStation has recently reported its results for the fiscal third quarter ending December 31, 2021, which showed a positive performance in terms of revenue growth. However, the multi-asset brokerage company posted worse-than-expected net income triggered by higher marketing expenses.

TradeStation posts mixed financial results

TradeStation was able to amass a total revenue of $53.9 million. This figure was up 1.8% over the three months ended December 31, 2020, and also grew by 6.9% as compared to the prior quarter.

Taking a year-to-date perspective, TradeStation had net revenues of $157.0 million for the April-December period, a 2.2% increase over the 2020 nine-month period.

TradeStation attributed the revenue growth to higher trading-related revenue and net interest income. However, this growth was partially offset by lower average trading-related revenue per account coupled with lower subscription fees and other revenue.

As per the report, TradeStation had 178,863 customer accounts, an increase of 36.1% from December 2020, and up 9.9% from September 2021. The broker added 27,412 new accounts during the last three months, up by 81.0% from 15,147 a year earlier.

Despite the bullish operational metrics, the company posted a net loss of $11.3 million and negative adjusted EBITDA of $13.6 million. That compares to a profit of $2.1 million and adjusted EBITDA of $12.4 million for the prior-year’s three months. Year-to-date, the company had a net loss of $16.9 million after it earned $4.5 million in the previous year.

TradeStation Securities, the US broker-dealer arm of Japanese financial services giant Monex Group, said in November it will go public through a merger with a blank-check firm in a deal that values the combined entity at $1.43 billion.

Read this next

Metaverse Gaming NFT

Despite crypto winter, Fastex grabs $23.2 million in Fasttoken token sale

Fasttoken, part of the Fastex web3 ecosystem, has secured $23.2 million in financing through the private and public token sales of its native cryptocurrency Fasttoken (FTN).

Digital Assets

Iran to repay Russian debts in gold-backed stablecoins

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Digital Assets

SEC denies Cathie Wood’s bitcoin ETF for second time

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again denied Cathie Wood’s application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Executive Moves

Pavel Spirin promoted to Scope Markets CEO following Rostro acquisition

Belize-based FX and CFDs brokerage Scope Markets has promoted Pavel Spirin to take on an expanded role as the company’s chief executive officer. He replaces the outgoing CEO Jacob Plattner, who has also been a major shareholder since he resigned his position as managing director at GKFX.

Retail FX

Public.com goes all-in on alternative investing, launches Rare Sneaker Portfolio

“The concept of curated Portfolios means that our members will be able to invest in categories like art, trading cards, royalties, and real estate without needing to become subject matter experts on individual assets.”

Industry News

State Street taps AWS and Microsoft for cloud and infrastructure solutions

“By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

Institutional FX

Bitpanda launches Investment-as-a-Service business for banks, fintechs, online platforms

“Financial institutions today have to ask themselves how they aim to cater the increasing demand for modern investing solutions. Building these Individually, means a high startup cost, and products that are often outdated before they are even launched.”

Institutional FX

Options expands market data feeds after partnership with Tools for Brokers

“Our integration with ACTIV Financial marked the beginning of a new era in market data availability and infrastructure. Our teams have come together to provide unparalleled, fully managed market data services alongside Options’ global connectivity and infrastructure.”

Industry News

Recruitment in financial services sector buoyant despite planned mass layoffs

“It remains to be seen what impact this will have on hiring levels within the financial services arena this quarter”, said APSCo, regarding the expected mass layoffs within the financial services sector in England & Wales. 

<