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 forwardlooking 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.

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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
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Business Transformation

Our electronic brokerage segment, born 20 years ago, now the driving force of our business

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

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Diversified Enterprise
We serve a broad array of customers across the globe

Customer Equity – by Segment
EQUITY Introducing brokers

Customer Accounts - by Region1

Hedge and mutual funds

7%
Proprietary trading groups

7%
Individual traders and investors
Europe

Other

10%

28%
U.S.

15%

44%

43%
Financial advisors
Asia

27%
1Based

19%
Our customers reside in 190+ countries
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on country of residence as of Dec. 31, 2013

Diversified Enterprise
Asia continues to drive our strongest growth abroad
Customer Accounts
157.9K

Customer Equity
$22.1B $45.7B

Commissions
$386.8M $502.1M

239.3K

47.4%

43.0% 55.6%

52.3%

45.6%

42.0%

27.2%

28.6%

15.1% 15.8% 13.5%

20.5% 18.3% 8.9%

21.3%
15.3% 17.8%

24.2%

15.9%
9.5%

18.6% 9.8%

21.8% 12.0%

Other

Asia

Europe

U.S.

Based on country of legal residence

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Diversified Enterprise
Multi-product, country and currency

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™.
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Recognized Industry Leader
IB’s multiple trading platforms, extensive suite of advanced trading tools, algos and order types continue to earn awards, year after year

 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
* Supporting documentation for any claims and statistical information will be provided upon request. For additional information see www.interactivebrokers.com/compare.

 Winner 2013 "Best Broker-Dealer Options"  Winner 2013 "Best Broker-Dealer Futures"

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Recognized Industry Leader
We strive to offer the best price execution and lowest trading and financing costs so our customers can realize more profits

Forex – Our customers are more profitable

Data provided by forexmagnates.com, includes the impact of any commissions

Everybody says they provide best executions but only one can be best and only we can prove it.
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.

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Value Proposition: Low Costs
Rated Lowest Margin Rates and Low Cost Broker 9 years in a row by Barron’s
US Margin Loan Rates Comparison $25K Interactive Brokers E-Trade Fidelity optionsXpress Schwab TD Ameritrade thinkorswim 1.58% 7.94% 7.58% 8.25% 8.00% 8.50% 8.50% $200K 1.33% 6.14% 6.58% 7.00% 6.88% 7.25% 7.25% $1.5M 0.95% 3.89% 3.75% 6.00% 6.25% 6.25% 6.25% $3.5M 0.73% 3.89% 3.75% 6.00% 6.00% 6.25% 6.25% US Commission Rates Comparison 100 Shares $1.00 $7.99 $7.95 $8.95 $8.95 $9.99 $9.99 1 Stock 1 E-mini S&P Option 500 Future $1.00 $8.74 $8.70 $12.95 $9.70 $10.74 $10.74 $0.85 $2.99 N/A $3.50 N/A $2.25 $2.25

Interactive Brokers has lower commission rates for larger volumes and comparable rates worldwide. Services vary by firm.

* Supporting documentation for any claims and statistical information will be provided upon request. For additional information see www.interactivebrokers.com/compare.

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Value Proposition: Low Costs
Our industry low margin rates have increased our market share of total margin borrowing
Total Customer Margin Dec. 2007 of Industry (1) Dec 2007 - $29 billion Total - $29 Billion
IB 6%

Dec. 2013 Total - $42 Billion Dec 2013 - $42 billion

AMTD 29%

ETFC 25%

AMTD 23%

IB 32%
ETFC 15%

SCHW 40%

SCHW 30%

In four years, IB’s margin balances have increased over 600%

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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.

Net Dollar Price Improvement vs. Best Bid/Offer(1) – 1st Half 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

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Financial Strength
Liquid balance sheet and 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:

Low Financial Leverage

[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.

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#1 Strategic Priority:

Brokerage Expansion
We will achieve this through:
Institutional Branding
 Targeted marketing to increase market share amongst advisors, hedge funds, prop traders, introducing brokers  These institutional customers are our fastest growing segment  Continuously optimizing our platform and trading tools  2013 improvements: Probability Lab, EmployeeTrack, expanded mobile solutions, Mosaic trading workspace, market scanners, Money Manager Marketplace  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

Technology Enhancements

Leader in Options Trading

   

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)

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Brokerage Expansion
Maintaining position as largest eBroker by number of DARTs

Daily Average Revenue Trades (DARTs)

500,000
414,000

499,000

400,000
297,000

Very active customer base: • Our customers trade on average ~500 times/year • Daily average revenue trades grew 23% YoY

300,000

200,000

160,000

100,000

-

AMTD

ETFC

IBKR

SCHW

4Q13 Results

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Brokerage Expansion
Strong progress towards our goal to be the largest broker by profits— Rapidly gaining on the competition

Pretax Profits - Normalized to Q408
200%
150% 100% 50% 0% -50%

162%

-100%

Interactive Brokers (1)

Schwab

TD Ameritrade

1Brokerage segment only

4Q13 excludes unusual item ($64M Singapore loss)

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Brokerage Expansion
Market leading growth in every key metric
140%
120% 100% 80%
450%

Customer Accounts

400%
350% 300%

Customer Equity

250%

60%
40% 20% 0%
Jan-09

100% 80%
Jan-10

200% 150%

100% Average Customer Equity/Account
50% 0%
Jan-10 Jan-11 Jan-12 Jan-13

Jan-11

Jan-12

Jan-13

Jan-14

80%

160%

60%
40% 20% 0%

40% IB Revenue AMTD Trades (DARTs) ETFC Daily Average

SCHW

140%

IB AMTD ETFC Average Customer Equity/Account

SCHW

120%

20%
0% -20%
Sep-09

100% 80% 60% 40% 20%

-20%

Nov-09

Sep-10

May-10

May-09

Nov-10

Jan-14 Mar-10

Jan-11 Mar-11

May-11

-40% -60%
Jan-09

Mar-09

Jul-10

-20%

Jul-11 Jan-12

Jan-09

Jul-09

Jan-10

Jan-09

Jan-10

Jan-11

0%

Jan-13

Jan-14

Jan-09

-20%

60%

-50%

Jan-10

Jan-11

Jan-12

Jan-13

Peer data only available through Dec 2013
IB AMTD ETFC

IB

SCHW

AMTD

ETFC

SCHW

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IB AMTD ETFC SCHW

Jan-14

Brokerage Expansion
IB Brokerage Statistics
Account Adds (000's) Customer Equity $B
220

200 180

160
140 120

100

Accounts 700
600 500

Accounts adds 40% 16

Equity

Equity per account 40% 38% 36% 34% 32% 30% 28% 26% 24% 22% 20%

Year-over-year growth

20% 10% 0%

Customer Margin ($B)

DARTs

30%

14 12 10 8 6 4 2 0

400 300 200
100 0

-10% -20%
-30% -40%

Total Customer DARTs

YoY Growth

Margin

Margin as % of Customer Equity

18

Margin as % of Customer Equity

Total Customer DARTs (000's)

Margin

Equity per Account (000's)

240

Customer Accounts

12 11 10 9 8 7 6 5 4 3 2

50 45 40 35 30 25 20 15 10 5 0

Customer Equity

$200 $190 $180 $170 $160 $150 $140 $130 $120 $110 $100

Accounts (000's)

Institutional Branding
Focused marketing and specialized institutional tools and services are driving the shift in customer segments
Customer Accounts
157.9K
Introducing brokers
3.7% 0.5% 4.2% 18.3%

Customer Equity
$22.1B
5.9% 5.6% 15.7%

Commissions
$386.8M
1.4% 6.1% 15.3%

231.3K
4.0% 0.5% 3.9% 20.2%

$45.7B
7.3%

$502.1M
2.0% 6.5% 17.8%

6.5% 14.7%
17.0%

Hedge and mutual funds 22.2% Proprietary trading groups 73.3% Financial advisors 50.6%
44.2%

17.7%

27.3%

71.4% 60.2% 56.0%

Individual traders and investors

Dec 2010

Dec 2013

Dec 2010

Dec 2013

2010

2013

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Technology Enhancements
Our latest developments
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

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
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Technology Enhancements
Our latest developments cont.

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

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Technology Enhancements
Our latest developments cont. IB Traders’ Insight
Our new blog tool provides market insights throughout the trading day direct from global market participants to the public at large

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Leader in Options Trading
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

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Leader in Options Trading
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


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