| 05 November 2009

TradeStation (TRAD) dropped October brokerage metrics on us yesterday and we see DARTs ticked up slightly, but still nowhere near the levels of 2008. Or even 2007 for that matter. When the company reported third-quarter earnings we noted the results of this decreased activity: a 57% drop in net income.

The company blamed a decrease in interest rates in addition to the drop in brokerage rates. Margin balances increased 22% over September to $4 million. The company also recorded a record amount of client assets at just over $2 billion.

While TradeStation competes with Interactive Brokers (IBKR) in the brokerage segment, Interactive Brokers is really getting killed in its market-making segment.

October metrics for TradeStation:
DARTS: 87,193
Clients Assets: $2 billion
Average Credit Balance: $865 million
Average Margin Balance: $44 million