This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Online Brokers See Trading Rebound

NEW YORK ( TheStreet) -- Retail trading at online brokerage firms including TD Ameritrade (AMTD), E*Trade Financial (ETFC), and Charles Schwab (SCHW), surged by double digits during the month of October.

According to channel checks conducted by Rich Repetto, an analyst at Sandler O'Neill & Partners, daily average revenue trades, or DARTs, rose 15%-20% in October vs. the prior month, with retail trading likely outpacing institutional volumes, Repetto estimates in an industry note on Monday.

U.S. cash equity volumes totaled 7.8 billion shares, up 7.7% sequentially but down 16.2% from the year-earlier comparable period, according to Repetto. Share volumes on the NYSE Euronext's (NYX) New York Stock Exchange (Tape A) rose 13%, Tape B (American Stock Exchange and NYSE Arca) rose 3.1%, while Nasdaq (NDAQ) volumes (Tape C) fell 0.4% last month.

According to the note, trading at TD Ameritrade rose 15% sequentially; E*Trade's volumes rose 12.5%; Schwab's retail volume rose 10%; while OptionsXpress (OXPS) retail volumes rose 10%. Interactive Brokers Group (IBKR) and TradeStation Group (TRAD) each experienced a 5% rise in trading, Repetto writes.

The rise in trading volumes occurred even as volatility declined for the fifth straight month from its peak in May from the "flash crash." Higher volatility is typically better for equity volumes and trading activity in equity index futures, Repetto writes.

Options trading continues to be strong. Options volume rose 13.2% last month to 16.3 million per day, the note said.

Futures trading volume for CME Group (CME) fell 5.4% sequentially to 11.4 million contracts. The decrease was fueled by soft interest rate and equity contract activity, the note said. Futures trading volume on the Intercontinental Exchange (ICE) also fell 12%, Repetto estimates.

Online brokers have experienced a general decline in retail equity trading this year, through the combination of lower volatility compared with last year's uncertain market conditions, but also as some investors, skittish from the market woes of the last few years exacerbated by the "flash crash" continue to park cash on the sidelines.

Online Brokerages Want Money on Sidelines

TD Ameritrade shares were trading flat at $17.08 around 12:30. E*Trade and Schwab shares were each rising 0.6% to $14.38 and $15.50, respectively.



To contact the writer of this article, click here: Laurie Kulikowski.

To submit a news tip, send an email to: tips@thestreet.com.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,031.14 +43.63 0.26%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs