About the Interactive Brokers Group
January 2024

In January 2024, Interactive Brokers commenced its forty seventh 12 months as a broker/dealer. We supply direct-access exchange execution and clearing offerings to state-of-the-art investors, lively merchants and establishments and have a consolidated fairness capital of $14.7 billion.1
Our mission stays unchanged:

“Create science to supply liquidity on higher terms. Compete on price, speed, size, range of international merchandise and superior buying and selling tools.”

Interactive Brokers LLC is rated funding grade by using Standard & Poor’s.

Interactive Brokers Group, Inc. used to be centered through its Chairman Thomas Peterffy.

Now in its forty seventh year, Interactive Brokers is one of the premier securities firms, with $14.7 billion in fairness capital.1

IBKR conducts its broker/dealer enterprise on over one hundred fifty market locations worldwide. In its broking supplier organization business, IBKR gives direct get admission to (“online”) exchange execution and clearing offerings to institutional and expert merchants for a huge range of electronically traded merchandise together with stocks, options, futures, currencies, bonds, gold, crypto* and cash worldwide. Interactive Brokers Group and its associates execute approximately 2,350,000 trades per day.1

Interactive Brokers Coupon Code

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Earn up to USD 1,000 in IBKR stock (NASDAQ: IBKR)

In May 2023, Thomas Peterffy was once the keynote speaker at the SIFMA assembly to commemorate the fiftieth anniversary of listed selections trading. The speech chronicles his experiences in listed selections buying and selling and the founding of Timber Hill and Interactive Brokers. Read the Speech
A Global Firm for Global Investors

Interactive Brokers is headquartered in Greenwich, Connecticut and has 2,950+ personnel in its workplaces in the USA, Canada, the United Kingdom, Ireland, Switzerland, Hungary, India, China (Hong Kong and Shanghai), Japan, Singapore, and Australia. IBKR is regulated through the SEC, FINRA, NYSE, FCA and different regulatory businesses round the world.

Financial Strength

When setting your cash with a broker, you want to make certain your broking is tightly closed and can undergo thru accurate and horrific times. The monetary statements of Interactive Brokers LLC are on hand on our internet site for your review.

Note that Interactive Brokers LLC and its associates are owned via IBG LLC.

In a current interview, Thomas Peterffy, Founder and Chairman of the Board of Directors, shared his views on the modern-day kingdom of economic markets, such as rising activity costs and their have an effect on on Interactive Brokers. He additionally mentioned IBKR’s hobby costs on immediately handy money balances and how customers are located to navigate the modern environment.

Important Strength and Security Facts about Interactive Brokers Group1

IBKR IS NOT A BANK, and as a regulated securities broking dealer, we can’t raise securities categorized as HTM (Held To Maturity), which are no longer required to be marked to market on a bank’s books. We additionally can’t make unsecured, long-term loans.
The solely sort of loans we can make are margin loans thoroughly secured with the aid of marketable securities.
Our real-time margining device marks all customer positions to market continuously. All orders are savings vetted earlier than being carried out and positions in debts with insufficient margin deposits are liquidated automatically.
ALL of our positions are marked to market each day and the ensuing payables/receivables are reconciled to outdoor sources automatically.
IBKR invests cash in very non permanent investments maturing inside a few months. We maintain no cloth positions in over-the-counter securities or derivatives. We maintain no CDOs, MBS or CDS.

On a consolidated basis, IBG LLC has $14.7 billion in fairness capital, over $10.4 billion in extra of regulatory requirements.
IBG LLC’s proprietors are our public company, Interactive Brokers Group, Inc. (25.4%) and the firm’s personnel and their associates (74.6%). Unlike at most different firms, the place administration owns a distinctly small share, we take part appreciably in the draw back simply as an awful lot as in the upside. Because of this vested interest, we run our enterprise conservatively.
IBG LLC mentioned $3.069 billion of pretax earnings for 2023.
IBG LLC has no long-term debt.
Interactive Brokers LLC is rated “A- Outlook Stable” by way of Standard & Poor’s. View S&P Rating Report.
Interactive Brokers LLC’s economic statements, which replicate the mark to market profit/loss on all securities positions, are submitted month-to-month to its regulators in its FOCUS report

Important Strength and Security Facts about Interactive Brokers LLC

How We Handle Client Assets

A component (approximately 9% as of April 1, 2024) of consumer cash is segregated in unique financial institution or custody accounts, which are particular for the distinctive gain of customers of IBKR. This safety (the SEC time period is “reserve” and the CFTC time period is “segregation”) is a core precept of securities and commodities brokerage. By excellent segregating the client’s assets, if no cash or inventory is borrowed and no futures positions are held by using the client, then the client’s belongings are accessible to be again to the consumer in the match of a default via or financial disaster of the broker.

As a practice, IBKR locations a element of its very own money in these reserve and segregated bills to make sure that there is greater than adequate money to defend all clients.

A majority (approximately 91% as of April 1, 2024) of customer dollars is normally invested in temporary U.S. Treasury securities and reverse repurchase agreements, the place the collateral obtained is in the shape of U.S. Treasury securities. IBKR’s funding coverage aims non permanent authorities securities and reverse repurchase agreements, with a traditional weighted common maturity of 30 to forty days and a most time period of one year. In this way, we can keep away from mismatching the maturities between our on-demand duties to our purchasers and our investments. This exercise additionally permits us to keep away from immoderate fee volatility and the dangers of giant losses stemming from declines in funding values that might also be exhibited through longer time period securities. As a broking dealer, we have to mark to market the cost of investments of consumer cash daily, in contrast to banks that may additionally keep securities labeled as “held to maturity”, which are now not required to be marked to market.

Although approved with the aid of CFTC regulations, given the deposit worries over overseas sovereign debt IBKR does no longer presently make investments any patron cash in cash market funds.

Securities money owed with no borrowing of money or securities

Securities patron cash is included as follows:

A majority is invested in U.S. Treasury securities, along with direct investments in Treasury bills, Treasury Notes and reverse repurchase agreements, the place the collateral acquired is in the structure of U.S. Treasury securities. These transactions are performed with 0.33 events and assured via a central counterparty clearing residence (Fixed Income Clearing Corp., a subsidiary of the Depository Trust & Clearing Corp.), which marks the collateral to market costs daily, thereby making sure that IBKR holds full collateral value. The collateral stays in the possession of IBKR and held at a custody financial institution in a segregated Reserve Safekeeping Account for the one-of-a-kind gain of clients. U.S. Treasury securities may also additionally be pledged to a clearing residence to help patron margin necessities on securities selections positions.
Client money is maintained on a internet groundwork in the reserve accounts, which displays the lengthy balances of some purchasers and loans to others. To the extent any one patron continues a margin mortgage with IBKR, that mortgage will be wholly secured through inventory valued at up to 140% of the loan. The safety of the mortgage is superior by using IBKR’s conservative margin policies, which do now not enable the borrower to right a margin deficiency inside days, as approved via regulation. Instead, IBKR video display units and acts on a real-time groundwork to robotically liquidate positions and repay the loan. This brings the borrower returned into margin compliance besides placing IBKR and different customers at risk.

A element is deposited specially with massive U.S. banks in one of a kind reserve debts for the different gain of IBKR’s clients. These deposits are disbursed throughout a wide variety of banks with investment-grade rankings so that we can keep away from a attention hazard with any single institution. No single financial institution holds extra than 5% of complete patron dollars held by way of IBKR. As of May 2024, the following banks held deposits from IBKR (this listing is difficulty to exchange over time at IBKR’s discretion). Certain banks, which are associates or branches of overseas economic institutions, are situation to regulatory oversight by using the Federal Reserve and the Office of the Comptroller of the Currency.
BMO Harris Bank, N.A.
CIBC Bank US
Citizens Bank
Standard Chartered Bank
Truist Bank
US Bank, N.A.
Valley National Bank

Current SEC rules require broker-dealers to function a unique reconciliation of consumer cash and securities (known as the “reserve computation”) at least weekly to make certain that patron monies are good segregated from the broker-dealer’s personal funds. In order to in addition beautify our safety of our clients’ assets, Interactive Brokers sought and obtained approval from FINRA (the Financial Industry Regulatory Authority), to function and file the reserve computation on a every day basis, alternatively of as soon as per week. IBKR initiated day by day computations in December 2011 alongside with every day changes of the cash set apart in safekeeping for our clients. Reconciling our debts and customer reserves day by day alternatively of weekly is simply any other way that Interactive Brokers seeks to furnish latest safety for our clients.

Client-owned, fully-paid securities are included in debts at depositories and custodians that are especially recognized for the specific advantage of clients. IBKR reconciles positions in securities owned by way of consumers every day to make certain that these securities have been obtained at the depositories and custodians.

Commodities accounts

Commodities consumer cash is included as follows:

A majority is invested in U.S. Treasury securities, which are held at a custody financial institution in a safekeeping account segregated for the distinct advantage of clients.
A element is invested in U.S. Treasury securities and pledged to futures clearing homes to aid customer margin necessities on futures and alternatives on futures positions.
A component is held at commodities clearing banks/brokers in debts recognized as segregated for the gain of IBKR’s consumers to aid consumer margin requirements.

A element is deposited principally with massive U.S. banks in segregated money owed for the distinctive gain of clients. These deposits are disbursed throughout a variety of banks with investment-grade rankings so that we can keep away from a awareness chance with any single institution. No single financial institution holds greater than 5% of complete purchaser money held through IBKR. As of May 2024, the following banks held deposits from IBKR (this listing is concern to alternate over time at IBKR’s discretion).
Barclays Bank plc
BMO Harris Bank, N.A.
Citibank, N.A.
JPMorgan Chase Bank, N.A.
Standard Chartered Bank
As prescribed via commodities regulations, consumer dollars are difficulty to real-time protection. IBKR performs a distinct reconciliation of customer fairness on a each day foundation to make sure that consumer monies are proper segregated. This computation is submitted to the regulators daily.

Securities money owed with margin loans

For purchasers who borrow cash from IBKR to buy securities, IBKR is accepted by way of securities rules to make use of for financing functions up to 140% of the mortgage price of the inventory these consumers maintain with IBKR. In easy terms, IBKR borrows cash from a 0.33 birthday celebration (such as a financial institution or broker-dealer), the usage of the client’s margin inventory as collateral, and it lends these cash to the customer to finance the client’s margin purchases. Typically, IBKR lends out a small component of the complete inventory it is authorised to lend out. When IBKR lends clients’ stock, it ought to put extra cash into the one-of-a-kind reserve money owed set apart for the advantage of clients.

Insured Bank Deposit Sweep Program

Under the Insured Bank Deposit Sweep Program, eligible IBKR purchasers can achieve up to $2,500,000 of FDIC insurance plan in addition to the present $250,000 SIPC insurance for complete insurance of $2,750,000. IBKR sweeps every taking part client’s free savings balances each day to one or extra banks, up to $246,500 per bank, permitting for the accrual of hobby and maintaining inside the FDIC covered threshold. Cash balances above $2,750,000 stay difficulty to safeguarding beneath the SEC’s Customer Protection Rule 15c3-3, backed through the firm’s fairness capital, which is $ 14.7 billion.