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Investor Presentation
February, 2014
Disclaimer
The following information contains certain forward-looking statements that reflect the Company's current views with
respect to certain current and future events and financial performance. These forward-looking statements are and will be,
as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business
environment which may cause the Company's actual results to be materially different from any future results, expressed
or implied, in these forward-looking statements. Any forward-looking statements are based upon information available to
the Company on the date of this presentation. The Company does not undertake to publicly update or revise its forward-
looking statements even if experience or future changes make it clear that any statements expressed or implied therein
will not be realized. Additional information on risk factors that could potentially affect the Company's financial results
may be found in the Company's filings with the Securities and Exchange Commission.
2
Our Business Today
Business transformation – Brokerage is our focus
• Our brokerage segment is growing at a rapid pace
• Market maker is a mature business in a challenging
environment, yet highly complementary to brokerage
Highly diversified enterprise
• Broad global reach and breadth of products
• Serving multiple customer segments and geographies
Largest U.S. electronic broker by number of trades
Strong value proposition is fueling industry-leading growth
Financial Strength
• $5.1B consolidated equity capital at 12/31/13
• IB LLC is rated 'A-/A-2'; Outlook Stable by Standard & Poor's
3
Recent history of the business: • 2008 - Highest annual earnings ever • 2009 - Market activity slows substantially, HFT’s begin to compete • 2010 - Market making business bottoms amid intense HFT competition • 2011 - Market making stabilizes and brokerage continues to grow • 2012 – Trading volumes slowed, yet continued focus is on expanding the brokerage business
Business Transformation Our electronic brokerage segment, born 20 years ago,
now the driving force of our business
4
Diversified Enterprise
Customer Accounts - by Region1
Our customers
reside in 190+
countries
Customer Equity – by Segment
1Based on country of residence as of Dec. 31, 2013
We serve a broad array of customers across the globe
5
Other
10%
U.S.
43%
Asia
19%
Europe
28%Individual
traders and investors
44%
Financial advisors
27%
Proprietary
trading groups
15%
Hedge and mutual funds
7%
Introducing
brokers
7%
EQUITY
Diversified Enterprise Asia continues to drive our strongest growth abroad
6
Customer Accounts
Customer Equity Commissions
239.3K 157.9K $22.1B $45.7B $386.8M $502.1M
Based on country of legal residence
9.5% 9.8% 13.5% 8.9%17.8% 12.0%
15.9% 18.6% 15.8%18.3%
15.3% 21.8%
27.2%28.6%
15.1% 20.5%21.3% 24.2%
47.4% 43.0%55.6% 52.3%
45.6% 42.0%
Other Asia Europe U.S.
Diversified Enterprise
Our customers can trade on over 100 market centers in 23 countries and 20 currencies. Electronic market access to stocks, options, futures, forex, bonds, ETFs and CFDs from a
single IB Universal Account™.
Multi-product, country and currency
7
Recognized Industry Leader
Winner 2013 "Best Broker-Dealer Options"
Winner 2013 "Best Broker-Dealer Futures"
Winner 2013 Stock Brokerage
Winner 2013 Futures Brokerage
Winner 2013 Forex Brokerage
1st Runner Up 2013 Institutional Platform
1st Runner Up 2013 Professional Platform
1st Runner Up 2013 Options Analysis Software
IB’s multiple trading platforms, extensive suite of advanced trading tools, algos
and order types continue to earn awards, year after year
8
* Supporting documentation for any claims and statistical information will be provided upon request. For additional information see www.interactivebrokers.com/compare.
Recognized Industry Leader We strive to offer the best price execution and lowest trading and financing
costs so our customers can realize more profits
9
Forex – Our customers are more profitable
Data provided by forexmagnates.com, includes the impact of any commissions
The same philosophy and technology that enables our clients to achieve
superior forex trading results also drives our clients’ trading and investing of
stocks, options, futures, and bonds worldwide on over 100 market centers.
Everybody says they provide best executions but only
one can be best and only we can prove it.
Value Proposition: Low Costs
Rated Lowest Margin Rates and Low Cost Broker
9 years in a row by Barron’s
10
* Supporting documentation for any claims and statistical information will be provided upon request. For additional information see www.interactivebrokers.com/compare.
1 Stock
Option
Interactive Brokers 1.58% 1.33% 0.95% 0.73% $1.00 $1.00 $0.85
E-Trade 7.94% 6.14% 3.89% 3.89% $7.99 $8.74 $2.99
Fidelity 7.58% 6.58% 3.75% 3.75% $7.95 $8.70 N/A
optionsXpress 8.25% 7.00% 6.00% 6.00% $8.95 $12.95 $3.50
Schwab 8.00% 6.88% 6.25% 6.00% $8.95 $9.70 N/A
TD Ameritrade 8.50% 7.25% 6.25% 6.25% $9.99 $10.74 $2.25
thinkorswim 8.50% 7.25% 6.25% 6.25% $9.99 $10.74 $2.25
1 E-mini S&P
500 Future
US Commission Rates ComparisonUS Margin Loan Rates Comparison
Interactive Brokers has lower commission rates for larger volumes and comparable rates worldwide. Services vary by firm.
$25K $200K $1.5M $3.5M 100 Shares
Value Proposition: Low Costs Our industry low margin rates have increased our
market share of total margin borrowing
IB6%
ETFC25%
SCHW40%
AMTD29%
Total Customer Margin of Industry (1)Dec 2007 - $29 billion
Dec. 2007
Total - $29 Billion Dec. 2013
Total - $42 Billion
11
IB
32%
ETFC15%
SCHW30%
AMTD23%
Dec 2013 - $42 billion
In four years, IB’s margin balances have increased over 600%
Value Proposition: Best Execution
The IB SmartRoutingSM Advantage
Unlike other routers, IB
SmartRoutingSM dynamically
routes and re-routes all or parts
of the order for optimal
execution.
We do NOT sell order flow to
internalizers.
Transaction Auditing Group,
Inc., (TAG), a third-party
provider of transaction analysis,
has determined that Interactive
Brokers’ U.S. stock and options
price executions and European
stock price executions were
significantly better than the
industry during 2013.
(1) Net $ Improvement per Share Definition: ((# of Price Improved Shares * Price Improvement Amount) - (# of Price Disimproved Shares*Price Disimprovement Amount)) / Total Number of Executed Shares
*For more information visit
www.interactivebrokers.com
Net Dollar Price Improvement vs. Best Bid/Offer(1) – 1st Half 2013
12
Financial Strength Liquid balance sheet and low financial leverage
Low Financial Leverage
Highly Liquid Solid balance sheet Dec. 31, 2013 - $38 billion total assets,
98.9% liquid Low financial leverage
Distributing capital from market making segment Quarterly dividend of $0.10/share started
June 2011 (represents ~10% post-tax return of MM capital)
Special dividends paid: $1.00 in Dec. 2012; $1.79 in Dec. 2010
S&P Credit Ratings Comparison1:
[1] Ratings were obtained on July 26 2013 from each firm's website. Supporting documentation for any claims and statistical information will be provided upon request.
13
#1 Strategic Priority:
Brokerage Expansion
We will achieve this through:
Leader in
Options Trading
Technology
Enhancements
Institutional
Branding
Measuring success:
Maintain our lead as largest eBroker by number of trades
Strong progress towards goal to be largest eBroker by profits
Industry leading growth in all key metrics
Increase market share in options trading (currently 12% of US exchange-trade volume)
Building upon our nearly 4 decade history of options trading
Strategic focus on developing innovative tools for options
traders is the key to our continued success
Continuously optimizing our platform and trading tools
2013 improvements: Probability Lab, EmployeeTrack,
expanded mobile solutions, Mosaic trading workspace, market
scanners, Money Manager Marketplace
Targeted marketing to increase market share amongst
advisors, hedge funds, prop traders, introducing brokers
These institutional customers are our fastest growing segment
14
Brokerage Expansion Maintaining position as largest eBroker by number of DARTs
4Q13 Results
Very active customer base:
• Our customers trade on
average ~500 times/year
• Daily average revenue
trades grew 23% YoY
15
-
100,000
200,000
300,000
400,000
500,000
AMTD ETFC IBKR SCHW
414,000
160,000
499,000
297,000
Dai
ly A
vera
ge R
even
ue
Tra
de
s (D
AR
Ts)
Brokerage Expansion Strong progress towards our goal to be the largest broker by
profits—
Rapidly gaining on the competition
1Brokerage segment only 4Q13 excludes unusual item ($64M Singapore loss)
16
162%
-100%
-50%
0%
50%
100%
150%
200%Pretax Profits - Normalized to Q408
Interactive Brokers (1) Schwab TD Ameritrade
Brokerage Expansion Market leading growth in every key metric
-20%
0%
20%
40%
60%
80%
100%
Jan
-09
Mar
-09
Ma
y-0
9
Jul-
09
Se
p-0
9
No
v-0
9
Jan
-10
Mar
-10
Ma
y-1
0
Jul-
10
Se
p-1
0
No
v-1
0
Jan
-11
Mar
-11
Ma
y-1
1
Jul-
11
Average Customer Equity/Account
IB AMTD ETFC SCHW17
-20%
0%
20%
40%
60%
80%
100%
120%
140%
Jan
-09
Jan
-10
Jan
-11
Jan
-12
Jan
-13
Jan
-14
Customer Accounts
IB AMTD ETFC SCHW
-50%
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
Jan
-09
Jan
-10
Jan
-11
Jan
-12
Jan
-13
Jan
-14
Customer Equity
IB AMTD ETFC SCHW
-60%
-40%
-20%
0%
20%
40%
60%
80%
Jan
-09
Jan
-10
Jan
-11
Jan
-12
Jan
-13
Jan
-14
Daily Average Revenue Trades (DARTs)
IB AMTD ETFC SCHW
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
Jan
-09
Jan
-10
Jan
-11
Jan
-12
Jan
-13
Jan
-14
Average Customer Equity/Account
IB AMTD ETFC SCHW
Peer data only available through Dec 2013
Brokerage Expansion
IB Brokerage Statistics
18
2
3
4
5
6
7
8
9
10
11
12
100
120
140
160
180
200
220
240
Acc
ou
nt A
dd
s (0
00's
)
Acc
ou
nts
(000
's)
Customer Accounts
Accounts Accounts adds
$100
$110
$120
$130
$140
$150
$160
$170
$180
$190
$200
0
5
10
15
20
25
30
35
40
45
50
Equ
ity
pe
r A
cco
un
t (0
00's
)
Cu
sto
me
r Eq
uit
y $B
Customer Equity
Equity Equity per account
20%
22%
24%
26%
28%
30%
32%
34%
36%
38%
40%
0
2
4
6
8
10
12
14
16
Mar
gin
as
% o
f C
ust
om
er
Eq
uit
y
Cu
sto
me
r Mar
gin
($B
)
Margin
Margin Margin as % of Customer Equity
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
0
100
200
300
400
500
600
700
Ye
ar-o
ver-
year
gro
wth
Tota
l Cu
sto
me
r D
AR
Ts (
000'
s) DARTs
Total Customer DARTs YoY Growth
Institutional Branding Focused marketing and specialized institutional tools
and services are driving the shift in customer segments
19
Customer Accounts
Customer Equity Commissions
231.3K 157.9K $22.1B $45.7B $386.8M $502.1M
73.3% 71.4%
50.6%44.2%
60.2%56.0%
18.3% 20.2%
22.2%27.3%
17.0%17.7%
4.2% 3.9%
15.7% 14.7%
15.3%17.8%
0.5% 0.5%5.6% 6.5%
6.1% 6.5%3.7% 4.0% 5.9% 7.3%
1.4% 2.0%
Dec 2010 Dec 2013 Dec 2010 Dec 2013 2010 2013
Introducing brokers
Hedge and mutual funds
Proprietary trading groups
Financial advisors
Individual traders and investors
Technology Enhancements Our latest developments
Mosaic Market Scanners Allows customers to quickly and easily scan
global markets for the top performing contracts,
including stocks, options, futures, bonds, indexes
and more, in numerous categories
Scan multiple products around the world
Choose from popular scan parameters
Save your favorites
Create custom scans
Redefine a scan in two clicks
Run scans after market hours
20
IB FYIs Free, customized portfolio event notifications and reminders Upcoming Earnings Reminder one day prior to portfolio company earnings announcements
Option Expiry Reminder one day prior to option position expiry
M&A Event Notification of takeover involving a portfolio company
Borrow Locate Notification that IB stock loan desk has secured a borrow on shares for which you
initiated a locate request
Exercise Advisory Notification that an option position’s value would be maximized through exercise prior
to an upcoming dividend
Technology Enhancements Our latest developments cont.
21
The IB Investors’
Marketplace is an
electronic forum where
IB customers and IB
service providers meet
to form connections and
conduct business with
one another on
Interactive Brokers’
platform
www.interactivebrokers.com/
marketplace
Technology Enhancements Our latest developments cont.
Our new blog tool provides market insights throughout the trading day direct from global market
participants to the public at large
IB Traders’ Insight
22
Leader in Options Trading
23
Options Tools: Our sophisticated option trading “Labs” make it easier than ever for clients to understand, price, and create profitable option and combination trades - The Probability Lab – Provides a practical way to think about options without complicated mathematics - The Options Strategy Lab – Create strategies tailored specifically to your price or volatility forecast - The Volatility Lab – A suite of nine volatility and option activity tools that provides an in-depth snapshot across a variety of option analytics
Leader in Options Trading
24
Interactive Brokers Probability Lab℠ (Patent Pending)
The ultimate options trading tool:
Encompasses the basic understanding and approach to options trading in a visual, interactive tool
Customers can use Probability Lab to experiment with the shape of probability distributions and study
the resulting best combination trades
We introduced this tool in order to increase our customers’ profitability which remains our ultimate
objective
Subsequent releases of this tool will address buy writes, rebalancing for delta, multi-expiration
combination trades, rolling forward of expiring positions and further refinements