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Sandler O’Neill Global Exchange and Brokerage

Conference

June 3, 2010

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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.

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IB Commercial:Compare our forex quotes to other brokers

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Themes for today’s discussion:

1. Globalization of the financial markets

2. The benefits of automation

3. Building our brokerage business

GlobalizationA key theme of our business

• Interactive Brokers is an automated global market maker and broker,

specializing in derivatives and the underlying equities, bonds and foreign

exchange.

• Optimizing the allocation of resources on a global network of electronic

platforms is a major and long-term trend of our times.

• Electronic exchanges and trading venues, market makers, brokers, HFTs,

and customers form the network.

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Globalization

Growth factors:

• There is an ever-growing demand for access to the world’s markets by

sophisticated individuals and institutions from anywhere to everywhere

around the world.

• Emerging economies are setting up new exchanges and the worldwide

competition among exchanges results in lower transaction costs and more

new and innovative products.

• A growing middle class, advances in technology and education generate a

growing class of financially sophisticated investors and institutions and

millions of financial professionals to serve their needs.

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Our platform:

Provides the global access at lower commissions

than any other broker, from one integrated account, to financial professionals

lower financing rates

faster executions at

better execution prices

to more products,

in more places

in more currencies

GlobalizationWe are a market leader in connecting the world’s exchanges

The Benefits of AutomationSpeed, precision and efficiency

• We have a 33-year history of automating our market making and

brokerage operations– We operate a single, automatically functioning, computerized platform that requires

minimal human intervention

• Automation allows us to be one of the lowest cost providers of broker-

dealer services while increasing the volume of trades we handle– Significant economies of scale contribute to a low fixed cost structure

– Average over 900K trades per day with ~800 employees

• Automated risk management system limits possibility of significant losses

to IB and its customers

• Accelerates expansion into new markets and products

8

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

2003 2004 2005 2006 2007 2008 2009 1Q10

Bil

lion

s U

S$

Equity Debt

Benefits of AutomationLow fixed cost structure drives profit growth

• Approximately half of our

non-interest expenses are

variable

• Our highly automated

model reduces fixed costs

which has allowed us to

build a sizeable capital

base organically

• 51% profit margin for

brokerage segment in 1Q-10

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Expanding Capital with Low Financial Leverage

21% avg. equity growth

‘03-’09

Building our Brokerage BusinessUpon two pillars: Globalization and Automation

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Unique platform: Connected to over 100 trading venues around the world

• Average commission in Q1-10 was $4.40 per trade, including foreign products that

tend to be more expensive than US products.

• Our financing rates are under 1% for large balances of USD or EUR, add interest

differential for others.

• Accounts may be funded in one of 11 base currencies and products based in any of

the other currencies may be traded in the same consolidated account.

• Free risk analysis of existing and hypothetical positions for existing accounts, in

sophistication approaching services charging hundreds of thousands per year.

• Pre-trade credit vetting. Continuous marking to market with automated position

liquidations.

• Unique trading algorithms.

• Best execution with statistics to back it up.

• IB SmartRoutingSM searches best price and seeks to immediately execute

customer order electronically

• An audit by an independent transaction analysis firm confirms that IB

stock and option price executions were significantly better than the

industry:

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Building our Brokerage BusinessMeasuring best execution

Net Dollar Price Improvement (A)

vs. National Best Bid Offer

Interactive

Brokers Industry (B)

IB Advantage

US Stocks

(cents per 100 shares) 26¢ -05¢ 31¢

US Options

(cents per contract) 73¢ 52¢ 21¢

Source: The Transaction Auditing Group (TAG) a third party provider of transaction audit services.

[A] Net $ Improvement per Share Definition: ((# of Price Improved Shares * Price Improvement Amount) - (# of Price Dis-improved Shares*Price Dis-improvement Amount)) /

Total Number of Executed Shares. [B] According to TAG for US stocks (31 cents per 100 shares better), the analysis included all market orders of 100 shares or more, up to

10,000 shares from July - December 2009. The analysis for US options (21 cents per contract better) included all market orders with order sizes of 1 to 50 contracts from July -

December 2009.

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Building our Brokerage BusinessOffering customers the lowest cost

Interactive Brokers LLC is a member of NYSE, FINRA, SIPC. Supporting documentation for any claims and statistical information will be provided upon request. [1] E-Trade - 150-1,499 trades per quarter.

[2] Fidelity Gold Account - $1 million or more in assets or $25,000 in assets and 120 trades per year. [3] IB - Accounts generating commissions less than $10 per month (with account equity of $2,000 or

more) will be assessed the difference as a monthly activity fee. [4] optionsXpress - minimum 9 stock trades per quarter. [5] optionsXpress - minimum 35 option trades per quarter. [6] optionsXpress -

eMini – between 1 - 40 contracts per month. [7] Schwab - For online trades in stocks and third-party exchange-traded funds.

Despite significant gap between our pricing and competitors, no plans to increase

our prices

Offering the lowest financing rates and commissions is a key component of our

growth strategy to attract financial professionals

$25K $200K $1.5M

100

shares

1 Stock

Option

1 E-mini

S&P 500

Future

E-Trade 7.64% 6.14% 3.89% 7.99$ 1

8.74$ 1

plus

exch

fees 2.99$ plus fees

Fidelity 7.58% 6.58% 3.75% 7.95$ 2

8.70$ 2

N/A

Interactive Brokers 1.70% 1.20% 0.70% 1.00$ 3

1.00$ 3

0.85$ 3

optionsXpress 6.25% 5.00% 4.00% 9.95$ 4

12.95$ 5

6.99$ 6

Schwab 8.00% 6.88% 6.25% 8.95$ 7

9.70$ N/A

TD Ameritrade 8.50% 7.25% 6.25% 9.99$ 10.74$ N/A

thinkorswim 7.70% 7.70% * 7.70% * 5.00$ 2.95$ 3.50$

* Negotiable

US Margin Loan Rates Comparison US Commission Rates Comparison

Comparisons as of 5/5/2010. Services vary by firm. Commisions data is for U.S. equities, stock options and futures.

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Building our Brokerage BusinessMaintaining focus on our target customer

* Brokerage Segment only

Source: Company filings

0

20

40

60

80

100

120

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10

eBroker Pretax ProfitsNormalized to 4Q07

Interactive Brokers optionsXpress Schwab

Tradestation TD Ameritrade

IB *

AMTDOXPSSCHWTRAD

IB Schwab optionsXpress ETrade Ameritrade TradeStation

Cleared accounts (in thousands) 140 7,805 358 2,632 7,788 47

Cleared DARTS (in thousands ) 328 276 45 166 379 80

Average annual trades per account 604 9 32 16 12 431

Average commission per cleared trade $4.40 $12.60 $14.55 $11.21 $13.04 $5.52

(including exchange and regulatory fees)

Pretax profit margin 51% 20% 33% n/a 34% 14%

As of and for the quarter ended March 31, 2010

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Building our Brokerage Business

As of 5/31/10:

20% YoY account growth

45% YoY customer equity growth

2.2

1.3

0.7

1.8

1.21.1

1.9

1.0

0.7

1.8

1.10.9

1.9

1.4

1.7

2.32.2

1.4

1.7

2.12.12.3

2.01.8

2.12.0

2.32.4

2.0

0.5%

1.0%

1.5%

2.0%

2.5%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Acc

ou

nt

Gro

wth

Acc

ou

nt

Ad

ds

(00

0's

)Monthly Account Add's and Growth

Monthly Account Adds (000's) Monthy Account Growth

$6

$8

$10

$12

$14

$16

$18

60

70

80

90

100

110

120

130

140

150

Equ

ity

($B

)

Acc

ou

nts

(0

00

's)

Accounts and Customer Equity

Customer Accounts (000's, End of Period) Customer Equity ($B)

15

-

50

100

150

200

250

300

350

400

450

500

DA

RTs

(0

00

's)

Cleared DARTs (000's)

$-

$20

$40

$60

$80

$100

$120

$140

-

10

20

30

40

50

60

70

80

90

De

c-0

7

Feb

-08

Ap

r-0

8

Jun

-08

Au

g-0

8

Oct

-08

De

c-0

8

Feb

-09

Ap

r-0

9

Jun

-09

Au

g-0

9

Oct

-09

De

c-0

9

Feb

-10

Ap

r-1

0

Equ

ity

(00

0's

)

Trad

es

Monthly trades & equity per account

Monthly Trades per Account Average Customer Equity per Account

Building our Brokerage Business

Building our Brokerage BusinessResults normalized to Dec ‘07

16

60

80

100

120

140

160

180

200

Dec

-07

Jan

-08

Feb

-08

Ma

r-0

8A

pr-

08

May

-08

Jun-

08

Jul-

08A

ug

-08

Sep-

08

Oct

-08

No

v-0

8D

ec-0

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b-0

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Ap

r-0

9M

ay-0

9Ju

n-0

9Ju

l-09

Au

g-0

9Se

p-0

9O

ct-0

9N

ov-

09

Dec

-09

Jan

-10

Feb

-10

Ma

r-1

0A

pr-

10

Customer Equity

IB TRAD OXPS AMTD ETFC SCH

90

100

110

120

130

140

150

160

Dec

-07

Jan-

08

Feb

-08

Mar

-08

Ap

r-0

8

May

-08

Jun-

08

Jul-

08

Aug

-08

Sep

-08

Oct

-08

No

v-0

8

De

c-0

8

Jan-

09

Feb

-09

Mar

-09

Ap

r-0

9

May

-09

Jun-

09

Jul-

09

Aug

-09

Sep

-09

Oct

-09

No

v-0

9

Dec

-09

Jan-

10

Feb

-10

Mar

-10

Ap

r-1

0

Customer Accounts

IB TRAD OXPS AMTD ETFC SCH

50

60

70

80

90

100

110

120

130

Dec

-07

Feb-

08

Ap

r-0

8

Jun

-08

Aug

-08

Oct

-08

Dec

-08

Feb-

09

Ap

r-0

9

Jun

-09

Aug

-09

Oct

-09

De

c-0

9

Feb-

10

Ap

r-1

0

Average Customer Equity per Account

IB TRAD OXPS AMTD ETFC SCH

IB

IB

IB

Based on IB’s May 2010

operating metrics

80

90

100

110

120

130

140

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09

Accounts

Interactive Brokers E-Trade optionsXpress

Schwab TD Ameritrade Tradestation

80

100

120

140

160

180

200

De

c-0

7

Jan

-08

Feb

-08

Mar

-08

Apr

-08

May

-08

Jun

-08

Jul-

08

Aug

-08

Sep

-08

Oct

-08

Nov

-08

Dec

-08

Jan-

09

Feb-

09

Mar

-09

Apr

-09

Ma

y-0

9

Jun

-09

Jul-

09

Aug

-09

Sep

-09

Oct

-09

Nov

-09

De

c-0

9

Jan-

10

Feb-

10

Mar

-10

Apr

-10

DARTs

IB TRAD OXPS AMTD ETFC SCH

IB