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LPL Financial's (LPLA) October Assets Down From Prior Month

LPL Financial Holdings Inc.’s LPLA total brokerage and advisory assets of $807.6 billion at the end of October 2020 fell marginally from the prior month but increased 10.4% year over year. Of the total assets, brokerage assets were $401.6 billion and advisory assets totaled $406 billion.

The sequential decline was mainly due to not so impressive performance of the equity markets in the month of October. Notably, compared to September 2020, the S&P 500 Index fell 2.8%.

Total net new assets were $6.5 billion for the reported month. This compared favorably with the September 2020 level of $5.1 billion as well as $3.4 billion in October 2019.

Notably, LPL Financial completed the acquisition of San Diego, CA-based Lucia Securities, LLC in August 2020 and onboarded assets in October. Thus, prior to the addition of assets of Lucia Securities, LPL Financial’s total net new assets were $5 billion for October 2020.

LPL Financial reported $48.3 billion of total client cash balance, up 3.6% from September 2020 and 52.8% from October 2019. Of the total, $36 billion was insured cash and $8.6 billion was deposit cash, while the remaining was money market balance.

Shares of LPL Financial have gained 42.8% over the past six months, outperforming the 33.5% growth recorded by the industry.

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Brokerage Firms

Interactive Brokers Group IBKR released its Electronic Brokerage segment’s performance metrics for October 2020. The segment, which deals with clearance and settlement of trades for individual and institutional clients globally, reported a substantial surge in Daily Average Revenue Trades (DARTs) on a year-over-year basis.

Tradeweb Markets Inc. TW reported total trading volume of $19.4 trillion in October 2020. Average daily volumes were $910.8 billion, up 28.8% year over year.

Among other brokers, Charles Schwab SCHW is set to report monthly performance metrics in the coming days.

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