It's only fitting that TD AMERITRADE
TD AMERITRADE made the most of the past few months of market volatility. Average daily client trades clocked in at a brisk 357,294, 15% higher than last year's showing. Investors hungry to play the market's volatility led to a 10% spike in transaction-based revenue.
Unfortunately, net revenue itself fell by 5% to $610.7 million, as asset-based revenue surrendered far more than the gains on the transaction-based side. You can lay the blame on a sharp plunge in interest revenue during the quarter, as gun-shy clients avoided trading on margin, despite the temptation of lower interest rates.
Stack up TD AMERITRADE's report against rival Charles Schwab's
Folks are still flocking to TD AMERITRADE, though. The company attracted $7.8 billion in net new assets during the quarter. The discount broker's asset base will get even stronger when it completes its purchase of thinkorswim Group
TD AMERITRADE nailed Wall Street's bottom-line expectations, but it's taking a cautious stance when it comes to its near-term outlook. The broker is looking to earn between $0.90 a share to $1.15 a share this fiscal year. The new range is well below the original net-income-per-share guidance of $1.10 to $1.42 that the company issued three months ago.
We'll have a clearer picture on the discount brokerage space when E*Trade
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Longtime Fool contributor Rick Munarriz has been trading exclusively through discount brokers since 1990 but he does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.