Monex Group’s U.S. subsidiary, TradeStation, reported mixed trading volumes for May 2022, even as global political events kept investors interested in financial markets.
According to the investor update released by the company, the number of daily average revenue (DART) trades, an industry standard measure, was 241,336 last month. This figure was 13.2% higher than the previous year, a sign that trading continues to accelerate significantly due to the volatility triggered by Russia’s large-scale invasion of Ukraine.
Additionally, TradeStation Group’s trading activity was higher month over month compared to 226,760 trades recorded in April 2022.
TradeStation’s client account metrics were pessimistic in May, after losing more than 50,000 accounts, down 22% from the previous month. That had reduced its active account base to 186,149, down percent from 240,417 as of April 30.
However, this bleak picture can be attributed to around 57,000 cryptocurrency accounts that were opened through a promotion that started in December and ended in April. During this period, TradeStation provided initial funding to the client’s account ($10.00 value in bitcoins) but had no other client account activity as of May 31, 2022.
The company’s total client assets were approximately $10.8 billion (moM and YoY unchanged), while their cash balances increased slightly to $2.9 billion.
TradeStation Securities, the U.S. brokerage arm of Japanese financial services giant Monex Group, announced in November that it would go public through a merger with a blank check company in a deal valuing the combined entity at $1.43 billion.
Launch of TradeStation in Puerto Rico
TradeStation Crypto, the subsidiary of TradeStation Group focused on digital assets, announced the smooth rollout of its services in Puerto Rico in March.
Celebrating the new launch, TradeStation gave new customers a $10 cryptocurrency bonus, but they can qualify for higher bonuses if they deposit at least $5,000. Additionally, clients can own cryptocurrency as an alternative investment in a TradeStation Individual Retirement Account (IRA).
Dozens of crypto entrepreneurs and businesses have flocked to Puerto Rico as the US territory adopts crypto-friendly policies, including huge tax breaks. In particular, US citizens can keep their US passport while avoiding paying capital gains tax.
Tailor-made for crypto traders, TradeStation uses global integrations to create a large pool of liquidity sources that allow for better price discovery and transparency. The company further promotes its crypto desktop by helping traders avoid lengthy trades on traditional exchanges, as well as avoid the fees charged by other platforms for high-volume instant trades.
The crypto-focused offshoot is drawing on the brokerage industry expertise of its parent company, Japanese financial services giant Monex Group, to address what it perceives to be key concerns and some weaknesses in the industry. current cryptocurrency ecosystem.