3Q22 IBKR Presentation
3Q22 IBKR Presentation
3Q22 IBKR Presentation
Wealth Symposium
November 9, 2022
2
Financial Strength – Liquid and Growing
Held by management
316.6 million 75.5%
& their affiliates
Publicly held 102.9 million 24.5%
3
Company Overview
2.0mil +31%
Client Accounts1 YoY1 Account Growth
150+ 33 26
Market Centers Countries Currencies
1. 09/30/22
2. DARTs are based on client orders
3. YTD through 09/30/22 4
The IBKR Advantage
• We executed, cleared and settled over 3.0 million trades per day year-
to-date through 3Q22, across multiple product classes and in multiple
currencies, on over 150 market centers in 33 countries
• See reconciliation of non-GAAP measures at the end of this presentation
• 2020 includes $19 million in fixed expenses due to Brexit costs
6
Cost Comparison
• IBKR clients recognize that they can maximize E-Trade 11.45% 9.95% N/A N/A
returns by minimizing their costs
• Barron’s has recognized Interactive Brokers as the Fidelity 10.82% 9.57% 7.00% 7.00%
low-cost broker 2002 through 20221
Schwab 10.82% 9.57% N/A N/A
Changes an existing
Technology assists A class of its own,
business model in
existing business combining the best
finance in a material
model from both industries
way
✓ ✓
Established
Business
Sustained Growth ✓ ✓ ✓
✓
> 50% Pre-tax
Margins
Domain Knowledge ✓ ✓
✓ ✓
Experience with
Policy & Regulation
Many Active Users ✓ ✓
* Represents adjusted pre-tax margin. See the reconciliation of non-GAAP measures at the end of this presentation.
✓
Brick and Mortar
Presence
Technology Slow to adopt Heavy use Heavy use
8
Broad, Global Addressable Market
Multiple factors, including increased interest in the financial More accounts on our platform has led to
markets and the growing interconnectedness of investors more client assets held at IBKR.
worldwide, have propelled account growth.
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IBKR Growth Continues
More accounts and client equity on our …as well as higher margin loans. This drives our superior, industry-
highly automated platform mean higher leading profit margins.
activity, as seen in increased DARTs...
1See reconciliation of non-GAAP measures at the end of this presentation. Non-GAAP reporting began in 1Q20.
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Diversified Client Base – by Client Type
As of September 30, 2022
Individuals
Hedge and Mutual Funds
Proprietary Trading Groups
Financial Advisors
Introducing Brokers
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Diversified Client Base – by Geography
As of September 30, 2022
North America
Europe
Asia-Pacific
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Earn Interest on Uninvested Cash Balances
• Client accounts are eligible to receive credit interest on long settled cash
balances in their securities accounts. 1
• The U.S. credit interest rate is up to 2.58% for IBKR Pro and 1.58% for
IBKR Lite. 2
Impact Dashboard
Simple.
Trade Trade stocks on 90+ stock markets from around the world, and access
Worldwide. Global cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum and Litecoin,2 and
options on 30+ market centers around the world.
Stock trading.1
$0 Enjoy $0 Commissions on US Stocks and ETFs.3
Fees No Inactivity Fees or Account Minimums.
Fractional Shares Trading, now for European stocks and ETFs – allows investors the opportunity to
trade across markets in a more affordable way. With fractional shares, there is no minimum for buying
European or US shares and investors can invest with as little as $1, irrespective of the stock price. Fractional
shares trading is available on all Interactive Brokers platforms. 1
Options Trading and Tools in IBKR GlobalTrader and IMPACT– these apps now include Options Chain,
Option Exercise Tool and a new Options Wizard. The Options Wizard helps investors find options strategies
that fit their market view. Investors respond to a few simple questions and can select options strategies
based on their preferences and market expectations. 2
Expanded Cryptocurrency Trading – clients can now trade cryptocurrencies 24/7 in their IBKR-linked
Paxos crypto account. Clients who elect to manage the funding of their crypto account themselves can pre-
fund their crypto accounts at Paxos during regular US banking hours and then trade Bitcoin (BTC), Ethereum
(ETH), Litecoin (LTC), and Bitcoin Cash (BCH), plus additional coins around the clock. Cryptocurrency
trading has a low commission of just 0.12% to 0.18% of trade value, with a $1.75 minimum commission per
order, with no added spreads, markups or custody fees. 3
1. European stocks and ETFs listed on select exchanges, and with average daily volume above $5 million and market cap above $5 billion, are eligible for European shares trading.
See ibkr.com/fractional for further details. Program eligibility may change according to country of residence.
2. See globaltrader.ibkr.com and impact.ibkr.com for further details. Options involve risk and are not suitable for all investors. For more information read the Characteristics and Risks
of Standardized Options, also known as the options disclosure document (ODD). Alternatively, call 312-542-6901 to receive a copy of the ODD.
3. See ibkr.com/crypto for further details. Paxos Trust Co. provides trading and custody services. 17
Recent Enhancements and New Products
IBKR EventTrader – event contracts lets clients express their view on whether the price of key futures
markets will move up or down by the end of each day's trading session. They can select from event contracts
in the Equity Index, Energy, Metals and Foreign currency futures markets, and to trade they can choose
‘YES’ or ‘NO’ on an event contract. For each event contract a client holds that expires “in the money”, in
reference to the underlying futures settlement price, they receive a fixed payout of $20.00. The max profit per
contract is $20.00 minus the contract cost, fees and commissions. Event contracts are priced between $0.25
to $19.75 per contract and quoted in $0.25 increments. Interactive Brokers offers a low, transparent
commission of just $0.10 per event contract.1,2
Traders' Insight Radio – a new podcast series featuring interviews with executives, thought leaders and
market experts from across the financial services industry discussing topical themes impacting global
markets and trading.3
IBKR Economic Landscape – introduced on Traders’ Insight, as part of the IBKR Campus. It provides
insights from IBKR’s Senior Economist, José Torres, on the state of the economy and on topics that could
influence the direction of the dollar, such as inflation, key economic data releases and FOMC meetings. 3
2022 BrokerChooser
Best Online Brokers:
Best Online Broker
2022 Preqin Awards: Best Broker for Day Trading
Top Prime Broker
Best Broker for Investing
Top Hedge Fund Custodian
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Pioneer in technology throughout the years
Over four decades of developing our automated trading platforms allow us to be the lowest cost broker-dealer
Ushered a
new era of
computerized
Thomas trading with a Launched
Peterffy buys fully Introduces cryptocurrency
a seat on the automated Established zero trading; US
AMEX, trading stock and Interactive IPO of commission spot gold
as an option market Brokers as a Interactive trading as an trading, and
individual making brokerage Brokers Group option for the IMPACT
market maker system subsidiary (IBKR) clients ESG app
1977 1982 1985 90s 1993 2000 2007 2016 2019 2020 2021 2022
Timber Hill Extends its Emerges from Phases out Continues to Launched
Inc. is formed. market making 2000 stock market making expand the GlobalTrader,
One year system to market crash to focus brokerage a streamlined
later, it most as the largest exclusively on business version of our
created the electronic and most brokerage across the award-winning
first handheld exchanges profitable globe by platform, to
computers across the market maker opening new broaden our
used for globe in options offices in relevance and
trading. Singapore, reach
Ireland and worldwide
Hungary.
Launched the
Bonds and
Mutual Funds
marketplaces.
21
Non-GAAP Reconciliation
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Non-GAAP Reconciliation
Quarter Ended
1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22
(in millions)
Adjusted net revenues
Net revenues - GAAP $ 532 $ 539 $ 548 $ 599 $ 893 $ 754 $ 464 $ 603 $ 645 $ 656 $ 790
Non-GAAP adjustments
Currency diversification strategy, net 49 (16) (27) 13 2 9 3 23 18 53 40
Mark-to-market on investments - - (3) (33) (99) (113) 184 58 29 8 17
Remeasurement of TRA liability - - - 3 - - (1) - - - -
Total non-GAAP adjustments 49 (16) (30) (17) (97) (104) 186 81 47 61 57
Adjusted net revenues $ 581 $ 523 $ 518 $ 582 $ 796 $ 650 $ 650 $ 684 $ 692 $ 717 $ 847
Pre-tax profit margin 58% 41% 61% 65% 72% 72% 50% 62% 61% 60% 66%
Adjusted pre-tax profit margin 61% 59% 59% 64% 68% 67% 65% 66% 64% 63% 68%
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