2017 ANNUAL REPORT ebrokers.com

2017 ANNUAL REPORT

A YEAR OF MILESTONES

This year, Interactive Brokers...

...celebrated the 40th anniversary of our founding.

...commemorated 10 years as a publicly traded company.

...achieved several record setting financial accomplishments.

2012

2017

Equity Capital

$4.8 billion

$6.4 billion

Customers migrate to our platform because of our technology, the quality of executions, compelling prices, and our refusal to sell our customers' orders to high frequency traders.

Accounts

210,000

In over 170 countries

483,000

In over 200 countries

Daily Average Revenue Trades

413,000

688,000

Client Equity

$33 billion

$125 billion

Brokerage Pretax Profit

$342 million $860 million

We are laser-focused on lowering client trading costs, whether they are commissions, margin rates or execution expense.

US Margin Loan Rates Comparison1

$25K

$300K

$1.5M

$3.5M

Commission Rates Comparison1

Equity Trades

Option Trades

Futures Trades

N/A Interactive Brokers2

N/A

Interactive Brokers has lower commission rates for larger volumes and comparable rates worldwide. Each firm's information reflects the standard online trades pricing obtained from their respective websites. Competitor pricing and offers subject to change without notice.

2017 marked the seventh consecutive year that Barron's selected us as the low-cost online broker.4

IB Advantage

Execution Price Improvement Comparison3

European Stocks

per 100 shares

$0.05

$0.20

0.78

1. Rates were obtained on February 5, 2018 from each firm's website, and are subject to change without notice. The IB equity and futures commission rates shown are the average of the client commissions for trades executed in January 2018 and are subject to minimums and maximums as shown on the IB website. Some of the firms listed may have additional fees and some firms may reduce or waive commissions or fees, depending on account activity or total account value. Services vary by firm.

2. IB calculates the interest charged on margin loans using the applicable rates for each interest rate tier listed on its website. For additional information, see interest. Under some commission plans, overnight carrying fees may apply. Options and futures are risky and are not suitable for all investors. Please review "Characteristics and Risks of Standardized Options" and the CFTC Future Trading Risk Disclosure. You can obtain a copy by calling 312 542-6901 before trading these respective products.

3. Based on independent measurements, the Transaction Auditing Group, Inc., (TAG), a third-party provider of transaction analysis, has determined that Interactive Brokers' US stock and options price executions were significantly better than the industry's during the first half of 2017.

4. Low Cost Rated by Barron's - Low cost broker 2002 through 2016 according to Barron's online broker reviews. Barron's is a registered trademark of Dow Jones & Co. Inc. For additional information, see info

NEW PRODUCTS, NEW MARKETS

With the launch of the Interactive Brokers Debit Mastercard?, we have established an integrated, one-account financial management solution for our clients.

NOW, FROM A SINGLE PLATFORM, CLIENTS MAY:

Borrow at our margin rates, which

range between 1.72% and 2.92%1, far below most conventional lenders.

Earn 0.92% APR2 on qualifying idle

cash balances, and generate extra income by lending fully paid shares.

Spend up to the amount of the eligible equity available

in your brokerage account.

Use the debit card at merchants worldwide, or select it as the default payment source on Apple Pay?, and use your iPhone? to make secure purchases.

Invest in stocks, options, futures, forex and bonds on

over 120 global market centers at low cost1.

1. Supporting documentation for any claims and statistical information will be provided upon request. For complete information about the Interactive Brokers Debit Mastercard rates, go to debitcard.

2. Credit interest rate as of 2/5/2018. USD credit interest is paid on balances over USD 10,000 in accounts with Net Asset Value exceeding USD 100,000. For more information, see interest.

Margin borrowing is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment.

SEAMLESS ACCESS TO CHINA'S MARKETS

Our clients are already trading the 222 China A large-cap companies that MSCI will add to its Emerging Market Index in 2018.

Interactive Brokers' clients were able to trade China A shares beginning in late 2016, after we provided access to the emerging industries of the world's second-largest economy.

Meeting Customer Needs

BANK DEPOSIT SWEEP PROGRAM IBKR's Insured Bank Deposit Sweep Program lets clients supplement their existing $250,000 SIPC coverage with up to $2,500,000 of FDIC insurance on eligible cash balances.

FOREX AUTO-SWAP PROGRAM Eligible clients who carry large forex positions can participate, at no cost, in the Interbank forex swaps market, instead of the higher-cost retail deposit market.

BITCOIN FUTURES Bitcoin futures began trading in December 2017 on both the Cboe Futures Exchange and the CME. Interactive Brokers was ready on the first day of trading at each exchange.

TRADING IN BITCOIN FUTURES IS ESPECIALLY RISKY AND IS ONLY FOR CLIENTS WITH A HIGH RISK TOLERANCE AND THE FINANCIAL ABILITY TO SUSTAIN LOSSES. For more information about the risks of trading Bitcoin products, go to bitcoin.

We have remained as entrepreneurial in our approach to new markets as we were

40 years ago.

PROPRIETARY TECHNOLOGY DRIVES INNOVATION

Automation through best-in-class software engineering is our competitive advantage.

New technology initiatives introduced in 2017 included:

IBOT Trade and manage your account wherever you are simply and easily

using text or voice. IBot is now integrated with several popular chatbot and voice assistants,

so clients can access these benefits no matter what platform they use.

NEW CLIENT PORTAL Access all the features and services of your account from anywhere. One login takes you to all our web tools and a streamlined view of your account.

NEW ORDER MANAGEMENT SYSTEM (OMS) FOR ADVISORS AND INSTITUTIONAL CLIENTS The new OMS features an intuitive, easy-to-use interface that moves

seamlessly between desktop and mobile devices. A new pre-trade compliance tool was added to support the trading and

regulatory requirements of our growing institutional investor client base.

ENHANCED TRADING ALGORITHMS Adaptive Algo ? a tool to achieve a fast fill at the best all-in price,

using IB's SmartRoutingSM capabilities. Accumulate/Distribute ? a tool to achieve the best price for large volume orders.

We provide our customers with state-of-the-art technology and algorithms at the lowest cost1 in

the electronic trading industry (for free).

1. Supporting documentation for any claims and statistical information will be provided upon request. For more information go to info

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