DEFINITION of 'Daily Average Revenue Trades - DARTs'

Daily Average Revenue Trade (DART) is a metric used in the brokerage industry. It represents average trades per day that generate commissions or fees.

BREAKING DOWN 'Daily Average Revenue Trades - DARTs'

The DART is closely monitored by analysts who follow the brokerage industry because it measures how well a brokerage is doing in generating revenue from commissions. Commissions are a significant source of profits, especially for discount brokerages, and can, therefore, be used to predict quarterly earnings. Increasing DART values suggest that earnings will be strong while a declining DART indicates that earnings may decline.

To learn more about DARTs, check out What does the Daily Average Revenue Trade (DART) tell me about a brokerage?

Industries typically have their own non-financial operating metrics that indicate how a company is performing. In the retail industry, for example, companies report "same-store sales," representing how stores that were open for a full 12 months in the past year have performed. Sales per square foot is another measure retailers employ to gauge single-store performance. In the hotel industry, RevPar, or revenue per available room, is a common operating metric, and in the airline industry, carriers typically report their revenue per seat/mile along with standard financial results. Operating metrics such as these enable analysts and others to compare performance across companies and assess the direction of performance trends.

RELATED TERMS
  1. Brokerage Account

    A brokerage account is an arrangement that allows an investor ...
  2. Brokerage Fee

    A brokerage fee is fee charged by a broker to execute transactions ...
  3. Revenue Per Available Room - RevPAR

    Revenue per available room is a hotel industry performance metric, ...
  4. Average Daily Rate - ADR

    An average daily rate is a metric widely used in the hospitality ...
  5. Asset Performance

    Asset performance refers to a business' ability to take operational ...
  6. Day Loan

    A day loan is a fund transfer from a bank to a broker or brokerage ...
Related Articles
  1. Investing

    E*TRADE Reports 15% Increase in Daily Average Revenue Trades for November

    E*TRADE reported DARTs for November up 19%, although it ended the month with flat new brokerage accounts compared with October.
  2. Investing

    TradeStation Will Now Report Monthly Metrics Directly

    TradeStation will begin reporting monthly metrics on its own, parent company Monex announced.
  3. Investing

    TradeStation Sees Active Accounts Increase in March

    TradeStation's daily average revenue trades (DARTs) declined sequentially in March but moved up on a year-over-year basis.
  4. Insights

    E*TRADE's Increase in DARTs Is a Good Sign: Zacks

    E*TRADE saw an increase in daily average revenue trades for October, which Zacks says is a good sign.
  5. Investing

    E*TRADE Outperforming Peers: Zacks

    Shares of E*TRADE are outperforming those of its rivals thanks to increased volatility and rising interest rates.
  6. Investing

    TradeStation Courts Active Traders With Day Jobs

    TradeStation is going after active traders that already have day jobs, a new market for the online brokerage.
  7. Investing

    Charles Schwab: Total Client Assets Up 2% Month Over Month in May

    Charles Schwab reported that total client assets increased 2% in May compared with April and are up 13% year over year.
  8. Investing

    E*TRADE Stock May Still Have Room to Go Higher: Zacks

    E*TRADE's stock may be up by double-digit percentages, but Zacks thinks there's still room for the shares to go higher.
  9. Investing

    E*TRADE Stock Upgraded by Morgan Stanley on Valuation

    Morgan Stanley upgraded E*TRADE, saying it is "unwarranted" that the stock is trading at a discount to its peers.
  10. Investing

    Robinhood Surpasses E*TRADE Customer Count; Gets $5.6B Valuation

    Robinhood surpassed E*TRADE in terms of customers and now has a valuation of $5.6 billion.
RELATED FAQS
  1. Why are most brokerage firms owned by banks?

    Learn about the differences between investing with a bank-owned brokerage firm or with an independent broker. Get real answers ... Read Answer >>
Trading Center