The increased activity of the publicly listed brokerages in the US in 2019 gets an assuring start to 2021. Most of the brokers now offering commission-free trades to investors. But the vital metric for deciding trade activity or client activity is still dependent on DARTs for each platform.
DARTs is short for daily average revenue trades. It can be interpreted as a measuring instrument or a metric in the brokerage industry. It helps to determine the number of trades per day that the broker generates revenue through commissions or fees.
The Interactive Brokers LLC a 42-year-old brokerage sets a new landmark growth. People at homes during the global pandemic, aids to the fee-generating trades exceeding the 2.3 million marks in December 2020. This increase is a 200 percent increase over the year from 771,000 transactions in December 2019.
A fifty-five percent (55%) increase has been seen in the number of active accounts since last year. The brokerage is said to have crossed the one million mark for the first time in its history.
Interactive Brokers have been ranked as the largest US electronic broker. It is expected to expand its staffing for its new offices in Hungary and Ireland. It now has physical existence in eleven (11) entities across the globe.
It is rumored that IBKR has agreed to purchase a self-directed retail brokerage from the online custodian, Folio Investing. It shall be for a greater reach of the investor’s pool.
According to Brokers Reviews, almost Eighty percent (80%) of Interactive Brokers clients are from outside the US. The Broker Company is expected to expand its roots into Europe as it grows.
The Trading Secrets for Interactive Broker is that it allows investors to buy Bitcoin futures rather than ownership of the currency. It also allows free trials and the website is user friendly for the common man. It provides live quotes of CME Bitcoin futures for non-professionals and professionals with monthly subscription fees posted on their website.
Other options for brokerage services include Robinhood Crypto that offers to buy and selling Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies. It offers the options around the clock and that too commission-free.
TD Ameritrade is recently expanding from traditional products such as bonds and stocks to bitcoin futures. However, it requires a minimum account limit to get started. It has recently purchased Charles Schwab and is said to integrate the two in the future. Charles Schwab is one of the top 7 brokers according to Bankrate’s. Charles Schwab does not have any account minimum however future trades commission per contract is charged.
TradeStation is providing direct currency trading via Tradestation Crypto and commission-based pricing for traders. The account balance and direct marketability are the determining factors for pricing. Trading discounts are also available for their customers.
Coinbase being a specified cryptocurrency-focused platform allows its traders to trade digitally in bitcoin, ethereum, litecoin, and bitcoin cash. It offers vaults with time-delayed withdrawals for the protection of your coins. There is no minimum account balance but the commission structure is a bit vertical for its competitors.
eToro is a user-friendly web-based platform and mobile application. It is said to be excellent for casual investors and including beginners.
IG another leading online trading provider that gives you access to opportunities across thousands of financial markets. IG has ranked 1st with forexbrokers.com for a forex broker and best in class for cryptocurrency trading.
Other online trading companies include xtb online trading, awatrade and Henyep Markets.
Recently, the United States Securities and Exchange Commission (SEC) sued a 23-year-old hedge fund founder. The case was filed in December 2020, in the Manhattan federal court for defrauding for $92.4 million cryptocurrency arbitrage fund.
The SEC has also filed suit against Ripple for its XRP currency allegedly being security. SEC recently refused settlement offered by Ripple and is said to be combing through the last confidential settlement Ripple conducted.
The brokers anticipated the public investor’s reaction to the SEC fishing expedition. They have also shown displeasure towards new rules being formed by countries around the world for cryptocurrencies.