Options Brokers Report July Trading Metrics

This morning, options-focused brokers optionsXpress Holdings (OXPS) and thinkorswim (SWIM) both reported their trading metrics for the month of July.

Details for OXPS:

-Retail daily average revenue trades (DARTs) of 37,800 – 5% lower than July 2007, 3% higher than June 2008
-Institutional daily average revenue trades (DARTs) of 11,800
-Net new customer accounts of 3,700. Ending customer accounts of 298,000 – 24% higher than July 2007, 2% higher than June 2008
-Ending client assets of $5.7 billion – 7% higher than July 2007, essentially flat with June 2008
-Ending margin balances of $221 million – 24% higher than July 2007, 6% lower than June 2008.

Details for SWIM:

-New funded accounts of 3,500; 8% higher than July 2007
-Funded accounts of 81,150 at month-end; 92% higher than July 31, 2007
-Retail DARTs of 57,800; 97% higher than July 2007
-Client assets of $3.12 billion at month-end; 66% higher than July 2007
-Active Trader DARTs of 105,100; 206% higher than July 2007

Investor Education Group

-Total paid graduates of 1,630, compared to 2,440 in July 2007
-Active subscribers at month-end of 96,100, compared to 95,300 as of July 31, 2007

Summary

I find SWIM's metrics to be more impressive than OXPS as DART growth is staggering as the volatile equity markets are presenting options traders with an awful lot of trading opportunities. I do wonder about bid/ask spreads widening when things get wacky - Interactive Brokers (IBKR) has said that it can widen spreads in volatile markets because of competing market makers pulling out of the market. This could have the effect of reducing trading volumes. But at the end of the day, I view SWIM as an exceedingly cheap stock that has plenty of room to go higher throughout the year.

Full disclosure: I am long SWIM and I will probably buy more over the next few months.